Tax Liability
The legal responsibility to pay privilege (sales) tax is that of the business. The business is permitted to pass the tax through to and collect the tax from its customers. Any tax so collected must be remitted to the City and/or State.
► The City of Peoria and the State of Arizona maintain separate and distinct tax codes. There are circumstances where reporting requirements and the taxability of certain business activities are different between the two codes.
► Tax returns are generally due monthly on the 20th of the month following a reporting period. Quarterly or annual reporting options may be allowed based on provisions in the tax code. Requests for a change in filing frequency must be submitted in writing.
Taxable Activities
Gross receipts generated from the following types of business activities are subject to the City of Peoria privilege (sales) tax. This summary provides only broad guidelines as to which activities are taxable and is not intended to be a comprehensive list of such activities.
Advertising – Includes advertising by radio, television, direct mail, flyers, billboards, or any other means.
Amusements – Includes movies, concerts, circuses, exhibitions, sporting events, video games, tennis courts, golf courses, health spas, fitness centers, etc. See Guidelines for Amusements for additional information.
Contracting – Includes developers, speculative builders, general contractors, contractors, subcontractors, construction managers, and owner-builders. See Guidelines for Construction Contracting and Guidelines for Owner-Builders and Speculative Builders for additional information.
Job Printing – Includes copying, photo reproduction, engraving of printing plates, embossing, micro- graphics, etc.
Hotel/Motel – In addition to the 1.8% privilege (sales) tax on the rental of real property, there is a 3.8% transient lodging tax on any hotel, motel, apartment, or individual charging for lodging space to any person for less than thirty (30) consecutive days. The total tax rate is 5.6%.
Publishing – Includes advertising and subscription income from newspapers, magazine, periodical distribution, etc.
Rental, Leasing and Licensing for Use of Personal Property – Includes rental or licensing for use of equipment, automobiles, tools, furniture, coin-operated laundromats or carwashes, tanning beds/booths or any tangible personal property. See Guidelines for Rental of Personal Property for additional information.
Rental, Leasing and Licensing for Use of Real Property – Includes rental or lease of any real property, including commercial buildings, apartments, homes or other residential units. Each different property location requires a separate license. See Guidelines for Commercial Real Property Rentals and Guidelines for Residential Real Property Rentals for further information.
Restaurants & Bars Includes businesses that prepare and serve food and/or beverages for consumption on or off the premises, also the activity of catering. See Guidelines for Restaurants & Bars for additional information.
Retail Sales – Includes the sale of any tangible personal property such as food, cars, furniture, equipment, etc. See Guidelines for Retail Sales for additional information.
Telecommunication Service – Includes telephone, FAX, monitoring of security or alarm systems, computer interface, telegraph, etc.
Transporting for Hire – Includes transporting anything by railroad, aircraft, or pipeline. Utility Services – Includes providing water, electricity, or gas to rate payers within the City.
Use tax - Use Tax is a tax on purchases or rentals for storage or use within the City, on which an equivalent sales or excise tax has not been paid. The rate is 1.8% of the cost of the item. There are no allowed deductions. The liability for tax general is due to purchases from out of state vendors - including many on-line retailers.
All businesses may incur a use tax liability. Therefore, businesses with a Privilege (Sales) Tax License have a preprinted line on every return for the purposes of reporting any use tax liability. Businesses with an Occupational License receive an annual return to report any use tax due.
See Guidelines for Use Tax for additional information.
