General Tax Return Information
What is the City of Peoria sales tax rate?
The Peoria tax rate is 1.8% on most business activities such as advertising, retail, construction contracting, job printing, publishing, telecommunications, transportation, rental of tangible personal property (except for short-term motor vehicle rental), apartment or other residential rental, amusements, speculative builders, owner-builders, manufactured buildings and use tax. Special rates apply to: amusements 2.8%; hotel/motel 5.6%; utilities 3.3%; restaurant and bar 2.8%. The above listed tax rates do not include the State and County tax rates. See the Combined Tax Rate Chart for all rate information.
For how long do I need to keep my sales tax records?
If you are licensed and reporting on time, you are required to keep records for at least four years. For any period that you were required to be licensed and reporting and you did not have a license and did not report, there is no statute of limitation and the City will audit for these periods.
When is my return due?
The monthly tax return is due on the 20th of the month following the reporting month. The quarterly tax return is due on the 20th of the month following the end of the quarter (these are the due dates: 1st Quarter -> April 20th, 2nd Quarter -> July 20th and 3rd Quarter -> October 20th). The annual basis tax return and the 4th Quarter return are due on January 20th each year. The return is delinquent if not received by the City before the close of business on the last business day of the month. Postmarks are not proof of timely filing. Late fees will be assessed if received after the last day of the month.
Can I file quarterly or annually?
When you are first issued a license, you will be required to report monthly. After at least six months of reporting, you can request to be changed to calendar annual or quarterly filing. The requirements for filing are:
· Annual filing: If annual taxable revenue is under $5,000.
· Quarterly filing: If annual taxable revenue is between $5,000 & $50,000.
· Monthly filing: If annual taxable revenue is over $50,000.
If your income level increases, you are responsible for notifying the City to change your filing to a more frequent filing method.
Do I file a tax return if I’ve had no sales (income) for the period?
Yes, a tax return must be filed for every tax period even if there were no sales/no gross income to report. Simply check the box on your tax return form that reads “No business activity” sign and date your return. The Audit section may estimate tax due per the tax code for any periods for which a return was not filed.
Can I deduct my business expenses from gross revenue?
No, business expenses are not deductible. Deductions from gross income are limited to specific types of sales. See below.
How do I correct an error on my previously filed tax return?
Make a photocopy of your copy of the return (both sides), and using a black/blue pen: Write “AMENDED” on the photocopy. Cross through all incorrect amounts to be amended. Write the correct amounts next to the incorrect amounts. Sign the amended return. Send the amended return, with additional payment due if applicable, to: City of Peoria, Tax & License, 8401 W. Monroe St., Peoria, AZ 85345.
How can I get a copy of a blank tax return?
Contact Tax Accounting Section at 623-773-7160 to request a duplicate of your blank tax return. Accuracy of your data can best be acheived by using the City's pink original return. You can also file on-line using the City's eTax website; you will have up to midnight on the last day of the month to file and pay timely. If you must file on paper and don't have time for us to send you a duplicate original pink return, you may use the Fillable tax return found on the website.
I need to file a return, but it is late. What do I need to do?
Complete your return as normal, send it in with payment for the tax and we will compute any penalty and interest. If you pay the entire tax amount, it will not cost you extra for us to bill you later for the penalty and interest, as we do not charge penalty on penalty. A late return is subject to a penalty of 5% per month (or part of a month) until filed. The late tax balance is subject to a one-time 10% penalty. Total penalties can not exceed 25% of the tax due. A delinquent tax balance is also subject to interest on the balance at the end of each month from the month the tax becomes delinquent.
What is Use Tax?
Use Tax applies to items that were purchased or leased without paying sales tax for use in the business, typically from out-of-state vendors. These items become taxable when they are purchased or removed from inventory for use. Use Tax does not apply to purchases or leases of items that are resold or released in the normal course of business. Report USE TAX under sales tax code '20' on the tax return.
Where do I pay my taxes?
You have three choices:
1) File your tax return and remit payment by mail in the envelope provided with the tax return (postmarks are not accepted as proof of timely filing - the return and payment must be received timely) .
2) Pay in person at the City of Peoria 8401 W. Monroe St., 2nd Floor, Peoria, Arizona 85003.
3) Sign up for a City of Peoria Tax & License eTax account – and enjoy the benefits of filing your tax return and making your payment on line.
Who do I contact about paying my property tax?
If your property is in Peoria or any other area of Maricopa County, visit the Maricopa County Assessor’s website.
Can I just show my total deductions on the front of the return?
No, all deductions must be shown in detail on the back of your return for each business activity on the front of your return. Please use the boxes on the back of the return for the most commonly taken deductions.
What deductions can I take?
Please view the Allowable Deductions to see deductions for each business activity. Deductions are specific to the business activity in which the business is engaged. If you still don’t know if you can claim a deduction, call 623-773-7160.
How do I claim a deduction that isn’t shown on the back of the return?
Show the amount of the deduction(s) on lines 16-18 (Codes 75-77) on the back of the return and provide the explanation. If the claimed deduction is not allowed by the tax code, the claimed deduction will be disallowed and a billing statement for the tax due will be mailed.
What is a tax exemption (resale) certificate?
An exemption (resale) certificate is designed to transfer the tax liability from the seller to the purchaser when accepted in good faith. Because the State of Arizona requires that their form be used when documenting a State exemption, we recommend using their State Exemption Certificate Form 5000. However, the State form lists some exemptions that are not necessarily deductible for City sales tax. Please be sure to verify any deductions for which you may have questions.
What records are required to document tax exempt sales?
All tax exempt sales to Arizona customers should be supported by a city of Peoria or state of Arizona exemption certificate completed by your customer at the time of the sale. For exempt sales to out-of-state customers records should be retained to show where the order was placed from and where the order was shipped.
Are sales to nonprofit organizations, such as churches and charitable groups, exempt?
Not in general. Churches and nonprofit organizations, other than hospitals, are taxable on their purchases unless they are licensed to remit tax on their sales and complete the exemption certificate.
Where can I see the City Tax Code?
Click on this link to the City Tax Code.