Show All Answers

1. Where are you located?

The Sales Tax & Licensing Division is located at 211 W Aspen Ave., 2nd Floor

2. Who do I call if I have questions?

For questions regarding TPT Simplification or City of Flagstaff business licensing, please call our offices at (928) 213-2250.
For questions regarding Arizona TPT renewal and licensing, please call the ADOR TPT Simplification hotline at (602) 542-5027.

3. How do I obtain a Transaction Privilege (Sales) Tax License or a Business License?

To obtain the City of Flagstaff Transaction Privilege (Sales) Tax License:

• Go to www.aztaxes.gov.
  
• Click on "New User Enrollment" or "Register for an AZTaxes Account."
  
• Complete the required fields annotated with a red asterisk.
  
• Read and check the acceptance box.
  
• Click "Register."
  
  • You will receive two e-mails from Noreply@azdor.gov within 24 hours. The first e-mail will contain your username, the second will provide a temporary password. If you do not find these e-mails in your IN box, please check your spam folder.
    
  • When you register your City of Flagstaff business location, ADOR will charge and collect the city's $46.00 one-time application fee. Effective January 1, 2019 there will be an annual $20.00 fee.

    To obtain the City of Flagstaff Business License:

    • Complete the City of Flagstaff license application.
      
    • Remit the completed application to the City of Flagstaff with our $8.00 annual license fee.
      Additional forms are available on the City Sales Tax webpage, by e-mail, regular mail, or at our offices.
    
    For additional information about starting, operating, and growing a business, please visit:
    • Flagstaff Chamber of Commerce (flagstaff.chamber.com)
      
    • Coconino County Small Business Development Center (coconinosbdc.com)
      
    • Arizona Commerce Authority (www.azcommerce.com/smallbiz)
      
    • Arizona Corporation Commission (www.azcc.gov)
      
    • Arizona Secretary of State (www.azsos.gov)
      
    • Internal Revenue Service (www.irs.gov)

4. What is the current tax rate for the City of Flagstaff for most business categories?

• Effective January 1, 2015, the City tax rate is 2.051%
  
• The State tax rate is 5.6%, Coconino County tax rate is 1.30% (combined rate is 6.90%)
  
• State, County & City combined rate is 8.951%

5. What methods are available for paying my City tax?

The City accepts credit card (in person only), cash or check for payment of City tax; however, beginning January 1, 2017, payments for outstanding taxes and audit assessments should be remitted to the Arizona Department of Revenue directly.

6. Which city has nexus if I have a home-based business in Flagstaff but sell my products in other cities?

• If your inventory is deliverd to another city, the sale is subject to that city's tax rate and tax is due to that city. A license for that city is required.
  
• If the inventory remains in Flagstaff and you solicit orders from customers in other cities within the State of Arizona, then tax is due to the City of Flagstaff.

7. I have a business that is located out-of-state but I have customers in Flagstaff. How do I remit the tax to Flagstaff?

If you have no physical presence in Flagstaff and no sales representatives who come to Flagstaff, you are not required to obtain a license with Flagstaff or remit tax to Flagstaff. If you collect sales or use tax as a courtesy to your City of Flagstaff customers, you are required to obtain a license and report activities on the Arizona Department of Revenue TPT return.

8. I have a home-based business in Flagstaff and all my sales are generated through the Internet. How do I determine the tax rate to charge?

Sales made to customers located out of state are exempt from city tax (orders placed from out-of-state, delivered to a location outside the stae, for use outside the state). Sales made to customers who reside within Arizona are subject to the Flagstaff city tax, regardless of the city they reside.

9. The corporate office is located out-of-state but has a retail location in Phoenix and Flagstaff. What tax rate do we charge for Internet sales to customers in Arizona?

Collect and remit the tax to the Arizona city that receives the order. If the order is received at the corporate office (in another state), collect and remit the tax to the city in Arizona that fulfills the order.

10. How long am I required to keep my business records?

Records must be kept for a minimum of four years. If audited, and taxable income is under reported by 25%, the audit period extends to six years. If no tax returns were filed, there is no limitation period.