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Glendale, AZ

Glendale, AZ

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Glendale, AZ - Tax and License Home Page

**IMPORTANT NOTICE TO TAXPAYERS**

In an effort to achieve uniformity among cities, on May 14, 2013, the Glendale City Council approved an amendment to the City’s Tax Code Article III –Licensing (Code Section – 21.1-310 (J)). The amendment removed subsection J from Article III-Licensing. As a result, all taxpayers, including those with an annual gross net taxable income of less than three thousand dollars($3,000), are required to pay a fifty dollar ($50) annual renewal license fee. Previously, the annual renewal fee was waived for taxpayer’s who met the above criteria and the City of Glendale was the sole jurisdiction with this waiver.

We understand this is a new requirement for you and this notice is to provide valuable information to transition you through this new requirement.  The Privilege Sales and (Use) Tax license that your business is currently licensed for is valid for one calendar year and expires December 31, 2013.  It now must be renewed each year by paying the new renewal fee of fifty dollars ($50) on or before January 31 of each year.  

Enclosed in the letter you receive, you will find a statement of account dated November 2013 denoting that the fifty dollar ($50) renewal fee is due.  You will continue to receive a statement of account in the months of December and January as a reminder that the renewal fee is due.  Please keep in mind, the payment is due in our office by January 31, 2014. Failure to renew by the due date will automatically result in an assessment of penalties. 

Additionally, Glendale’s Tax and License and Customer Service Offices will be closed December 23 through December 27. Therefore, if it is your intent to pay your renewal fees in person, please plan to visit Customer Service on or before December 20 or beginning the week of December 30. Due to the city being closed the week of Christmas, all mailed tax & license documents with a postmark of December 21 through December 27 will be processed with a December 23 received date so business owners will not receive a late penalty. 

Please contact us with any questions you may have about the above changes by calling our Customer Service Office at: 623-930-3190 or emailing: taxlic@glendaleaz.com


As of July 1st, 2013 - Commercial lease income is now exempt when derived from leases between affiliated companies, businesses, persons or reciprocal insurers if the lessor holds a controlling interest in the lessee, the lessee holds a controlling interest in the lessor, an affiliated entity holds a controlling interest in both the lessor and lessee or an unrelated person holds a controlling interest in both the lessor and lessee. Controlling interest means an 80% ownership of the voting shares of a corporation or of the interests in a company, business or person other than a corporation. If you have any questions please contact us at 623 930-3190. 

The new sales tax provision for retail sales at the rate of 2.2% that went into effect on August 1, 2012, is for SINGLE ITEM PURCHASES OVER $5,000 not the businesses’ total monthly gross sales.  Example of single items that qualify include:  an automobile, a boat, fine jewelry, furniture, etc.  Please list only the single items purchases over $5,000 under Class Code 32 at a taxable rate of 2.2% and all other retail sales should be listed under Class Code 17 at a taxable rate of 2.9%. For the fact sheet on the city’s temporary sales tax increase, click here.

 

All businesses operating within the City limits are required to be licensed. To engage or continue in business, a Transaction Privilege Tax license is required. It is the business owner's responsibility to complete an application and obtain a license. Additionally, a person with multiple business locations will need to have a business license for each location. However, special provisions exist for residential rental businesses. Please see the information on our website for “Rental of Real Property.” Once the license has been applied for, a tax return will be mailed monthly, quarterly or annually depending on the annual taxable gross income of the business. 

Submit an application for the Transaction Privilege Tax License with the nonrefundable license fee and application fee. The Fee Schedule details the prorated license fee structure based on the business start date.

General Annual License Fee Schedule

Business Start Date

Application Fee

License Fee

Total Due
(if timely)

Delinquent License Penalty*

Total Due
(if delinquent)

Jan 1st – Mar 31st

$20

$50

$70

$25

$95

Apr 1st – Jun 30th

$20

$37.50

$57.50

$18.75

$76.25

Jul 1st – Sep 30th

$20

$25

$45.00

$12.50

$57.50

Oct 1st – Dec 31st

$20

$12.50

$32.50

$6.25

$38.75


* If payment is not received in our office within 30 days of the start of business, you must pay the Delinquent License Penalty in addition to the License Fee and Application Fee. 

The Tax and License office must receive the application and all fees within 30 days of the start of business date to avoid delinquent penalties.  If you are unable to remit the application timely and are beyond the 30 days, simply add the penalty fee indicated to the amount for remittance. Prior year license and late fees will be assessed for each year of operation without a license. The license fees and penalties are retroactive to 1990.
 
An annual Transaction Privilege Tax License renewal notice will be issued and mailed to you approximately three weeks prior to the December expiration date. It is important to return the renewal notice with the identified amount due to renew your license, update the information, or to cancel the license.

Documentation Requirements:
According to the Legal Arizona Workers Act (A.R.S. 41-1080), a license eligibility form is required to issue a license if your business ownership type is identified as an Individual, Sole Proprietorship, or Husband and Wife business. Before your license can be approved, you must provide a copy of a document indicating your presence in the United States is authorized under federal law (if applying as Husband and Wife, both individuals must provide documentation). After you have completed the form, return it along with the applicable business license application for your type of business.

Planning Requirements:
Zoning requirements vary based on location. For further information about the specific zoning requirements for your location, please contact a planning representative at (623) 930-2800 or click here to view their website now. A group home must first contact the planning & zoning department for approval.
 
Building Safety Requirements:
Building requirements vary based on location. For more information on specific building requirements for your location, click here or call the building safety department at (623) 930-2800. All commercial-based locations within the Glendale city limits must obtain approval.

Other Requirements:

Alarm Security Permits verify addressing and building layout to guarantee access to the building in a timely manner in the event of an emergency, and secures all required contact information.  Please contact the Police Department, Alarm Unit at (623) 930-2466 for further information.
 
Fire Permits ensure the health and safety of all citizens. Information concerning Fire Plan Review, Fire Protection, Fire Prevention Codes, Standards, Inspections, Fire Preventions Contractors lists, other fire related requirements, Hazardous Materials Permit, Special Event Permits, or additional permits and fees can be obtained through the Fire Department’s website. Please contact the Fire Department at (623) 930-4400 for further information.
 
Sign Permits assure that signs meet City requirements. Please contact the Transportation Department at (623) 930-2940 for further information.

Reporting Requirements:
New accounts are typically placed on monthly reporting for a minimum of six months to allow a reporting history to be established. Once a reporting history is established, you may request a change in reporting frequency based on your annual taxable income.
 
Reporting Frequency:

Monthly

Quarterly

 Annually

Annual taxable income
of $50,000 or more

Annual taxable income
of $5,000 to less than $50,000

Annual taxable income of
$0 to less than $5,000

Information for completing the tax return is located on the reverse side of the tax return form. Please be sure to file before the due date to ensure the timely processing of your tax return.

Even if there is no income to report, you must check the box indicated no activity to report this period, then sign and submit the tax return.

Monthly Reporting: The tax for monthly filing is due on or before the 20th day of the month following the month in which the revenue was recognized. 
 
Quarterly Reporting: The taxes for each calendar quarter shall be due and payable on or before the 20th day of the month next succeeding the end of each calendar quarter.
 
Annual Reporting: The taxes for each calendar year shall be due and payable on or before the 20th day of January of the following year. Review our reporting frequency chart above to determine which reporting frequency you are eligible to report.
 
Payments can be paid in person at our office location, or mailed directly:

In person:
City of Glendale
City Hall First Floor
5850 W. Glendale Ave
Glendale, AZ 85301

Mail:
PO Box 800
Glendale, AZ 85311-0800

Postmarks are not evidence of timely filing; payments must be received in our office on or before the last business day of the month to be considered timely.

Non-profit: All Glendale-based non-profits are required to complete the standard Transaction Privilege Tax License application. There is no fee associated with this registration.

Also required is a copy of the current (dated 1994 or later) letter from the IRS confirming the organization’s non-profit status under Section 501 of the Internal Revenue Service Code.
 
A renewal notice will be sent to you approximately three weeks prior to the expiration date. There is no renewal fee; however it is important to return the renewal notice to renew your license, update the information, or to cancel the license.

REMINDER!
Due to the fact that some types of licensing require background checks, it is imperative to allow enough lead time for processing your license prior to opening your business. For specific questions on business licenses and lead time, please see the internal processing timeline below or contact Glendale’s Tax & License Division at (623) 930-3190.

Timeline for Internal Processing:
For more information on the time frames of an application submitted to the City for obtaining a license (permit), click here.

 
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