Interest on unpaid Tax Balances

Interest on unpaid tax balances accruing through the end of September 2005 is charged at 1% per month. Beginning October 2005, the city’s interest rate matches the variable interest rate charged by the state on transaction privilege tax (TPT) balances. City interest is charged on a monthly basis – the annual rate divided by 12. For example, an annual rate of 7% divided by 12 is a monthly interest of 0.5833%.

Amended Returns

To file an amended return, make a photo copy of the tax return you filed and need to change. Mark the top of the copy in blue or black ink "AMENDED RETURN." Cross out the incorrect information and write in the corrected information. Please resign and redate form. Save a copy of the amended return for your files. Send a letter with your corrected copy explaining the reason for the changes to City of Phoenix, Finance Department Tax Accounting, P.O. Box 2005, Phoenix, AZ 85001-2005.

Late Returns

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 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. Interest for months prior to October 2005 is charged at 1%; as of October 2005, a variable interest rate is charged at the same rate as the State.
Attached is a link to a detailed explanation of the City of Phoenix Tax & License Statement.

Credit Balances

Refunds are not issued if credits can be applied to future taxes and fees within a year. Statement credits may only be used on the license number on the statement. Tax returns may be filed with no payment sent until the balance of the credit is completely used. To request a refund, complete the attachment and mail to address indicated on form.

Telephone Information Tax Accounting

For questions concerning a statement, tax return, refund, or penalty waiver, call (602) 262-6785, Press 6, TTY (602) 534-5500 to be connected with someone to assist you. Please have your eight digit city of Phoenix Privilege Sales Tax License number ready when you call us for information. This number is on your license, tax returns and statement.

If you have questions please contact:

City of Phoenix
Finance Department
Christina Muller, Taxpayer Liaison
251 West Washington Street, 9th floor
Phoenix, AZ 85003

City of Phoenix
Tax Accounting
251 W. Washington St, 3rd Floor
Phoenix, AZ 85003
(602) 262-6785, Press 6, TTY (602) 534-5500