Application For License, Transaction Privilege (Sales) And Use Tax

Revenue Collections Operations

Licensing Office

Tax Payment Processing

PRIVILEGE (SALES) AND USE TAX

INFORMATION SHEET

GENERAL INFORMATION

You cannot lawfully operate a taxable business in Mesa until you have received your Privilege (Sales) and Use

Tax License. A separate license is required for each Mesa business location that you have.

Approval of the application is for the limited purpose of granting the applicant a Privilege Tax License to conduct

taxable business activities within the City of Mesa. The granting of a Privilege Tax License shall not be construed as an

express or implied certification that the premises upon which the applicant wishes to conduct business activities within the

City of Mesa conforms to applicable City codes. Contact Building Safety to address any code requirements

regarding your business location. They are located at 55 N. Center Street or can be reached by phone at (480)

644-2185.

RATE (AMOUNT OF TAX)

The amount of tax is one and one-half percent (1.5%) of your taxable income, which is the gross receipts

collected

less allowable deductions.

WHEN TO REPORT

You must report each month. After six (6) months, you may request to report quarterly if your taxable income

does not exceed $50,000 per year, or report annually if your taxable income does not exceed $5,000 per year. It is your

responsibility to notify the City to adjust your reporting frequency should your taxable income exceed the allowable limits.

Penalties will be assessed for failure to make this adjustment. For proper filing all returns must show gross receipts,

itemized deductions, be signed and dated. If you have no taxable activity for a reporting period a report must be

submitted showing no tax owed.

WHEN TO NOTIFY US (In writing)

•

If you change your mailing address

•

If you change your business location

•

When you are no longer doing business in Mesa

DELINQUENCY DATES; PENALTIES AND INTEREST

Your taxes are due and payable on or before the 20th day of the month succeeding the month, quarter and/or

year for which you are reporting. All returns received within the Tax Collector’s office on or before the last business day

of the month when due will be regarded as being filed timely.

Interest is prorated on delinquent unpaid taxes until paid and cannot be waived. The interest for late filing is 1%

of the tax due per month delinquent.

The Penalty Structure is:

•

10% of the tax due for failure to pay tax.

•

5% of the tax due per month for failure to file (not to exceed 15%).

USE TAX

If you purchase items on which no sales tax has been paid (including items you take from your inventory) for

either your personal or business use, a Use Tax of 1.5% of the purchase price of these items is payable to the City and

must be reported on your Privilege License Tax Report Form.

For detailed information about any of the above requirements, please contact the Licensing Office.

55 North Center Street - PO Box 1466 - Mesa Arizona 85211-1466

(480) 644-2316 Tel - (480) 644-3999 Fax

Application For License, Transaction Privilege (Sales) And Use Tax - City Of Mesa Page 4

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