Public Notice: Tax and Fee Changes

15-Day Notice of Proposed Increase in Transaction Privilege Tax (TPT) and Use Tax Rates

The City of Phoenix hereby gives notice pursuant to A.R.S. § 9-499.15 of its intent to consider an increase of up to 0.5% to the TPT and Use Tax rates, thereby increasing the current rates from 2.3% up to and including, but not exceeding, 2.8% with an effective date of July 1, 2025. City revenues were impacted by the State’s actions to diminish the tax base with the enactment of Senate Bill (SB) 1131 and SB 1828. SB 1131 eliminated residential rental TPT collected from businesses engaged in the rental of residential property effective January 1, 2025.  With this change, the City anticipates a revenue loss of approximately $35.4 million in fiscal year 2024-25 (5 months) and an ongoing annual revenue loss of approximately $85.5 million beginning in fiscal year 2025-26. City revenues were further impacted due to SB 1828, which transitioned the state’s individual income tax rate to a flat rate of 2.5%. State income tax is distributed to cities and towns based on its population in relation to the total population of all cities and towns and is based on collections from two years prior. The City relies on estimates provided by the State Joint Legislative Budget Committee (JLBC) for state shared income tax revenue projections. These actions will result in less ongoing state shared income tax revenue to the General Fund compared to prior projections had the tax rate not decreased.

Finally, the City finds it necessary to identify additional resources to reduce Fire Department response times, continue efforts to address homelessness, and address the impact of inflation that has significantly increased the cost to provide essential programs and services to the community. This proposed amendment to Chapter 14 of the Phoenix City Code will generate the revenue required to maintain service levels and offset anticipated revenue decreases. City Staff will present additional information to City Council and the public during its budget development and adoption process, which commences on February 25, 2025, with the General Fund Status and Multi-Year Forecast Report.

1. Date, time, and place of meeting.
The final proposed tax increase will be considered by the Phoenix City Council at the policy meeting on March 18, 2025, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85007.

2. Reference for more details
Phoenix City Council will consider increasing the TPT and Use Tax Rate from 2.3% up to and including, but not exceeding, 2.8% with an effective date of July 1, 2025. Download PDF with more information. 

This notice of intent is posted effective: February 27​​, 2025.

60-Day Notice of Proposed Increase in Transaction Privilege Tax (TPT) and Use Tax Rates

The City of Phoenix hereby gives notice pursuant to A.R.S. § 9-499.15 of its intent to consider an increase of up to 0.5% to the TPT and Use Tax rates, thereby increasing the current rates from 2.3% up to and including, but not exceeding, 2.8% with an effective date of July 1, 2025. City revenues were impacted by the State’s actions to diminish the tax base with the enactment of Senate Bill (SB) 1131 and SB 1828. SB 1131 eliminated residential rental TPT collected from businesses engaged in the rental of residential property effective January 1, 2025.  With this change, the City anticipates a revenue loss of approximately $35.4 million in fiscal year 2024-25 (5 months) and an ongoing annual revenue loss of approximately $85.5 million beginning in fiscal year 2025-26. City revenues were further impacted due to SB 1828, which transitioned the state’s individual income tax rate to a flat rate of 2.5%. State income tax is distributed to cities and towns based on its population in relation to the total population of all cities and towns and is based on collections from two years prior. The City relies on estimates provided by the State Joint Legislative Budget Committee (JLBC) for state shared income tax revenue projections. These actions will result in less ongoing state shared income tax revenue to the General Fund compared to prior projections had the tax rate not decreased.

Finally, the City finds it necessary to identify additional resources to reduce Fire Department response times, continue efforts to address homelessness, and address the impact of inflation that has significantly increased the cost to provide essential programs and services to the community. This proposed amendment to Chapter 14 of the Phoenix City Code will generate the revenue required to maintain service levels and offset anticipated revenue decreases. City Staff will present additional information to City Council and the public during its budget development and adoption process, which commences on February 25, 2025, with the General Fund Status and Multi-Year Forecast Report.

1. Date, time, and place of meeting.
The final proposed tax increase will be considered by the Phoenix City Council at the policy meeting on March 18, 2025, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85007.

2. Reference for more details
Phoenix City Council will consider increasing the TPT and Use Tax Rate from 2.3% up to and including, but not exceeding, 2.8% with an effective date of July 1, 2025. Download PDF with more information. 

This notice of intent is posted effective: January 15​​, 2025.

The City of Phoenix hereby gives notice of its intent to standardize fees charged to providers of Network Infrastructure Services, to allow them to engage in the business of operating a fiber-to-the home (FTTH) and fiber-to-the premises (business) to provide fiber-optic broadband access in the City of Phoenix.

Phoenix City Council will consider a new City Code Chapter, 5D – Network Infrastructure Services that will allow companies to install fiber-optic networks in the City’s rights-of-way (ROW) to provide high-speed internet to residential and business customers. The fiber-to-the-home (FTTH) and premises networks may be installed throughout the City and will provide a choice for consumers desiring broadband connections that are as fast, or faster than what is available from the current service providers.

Chapter 5D includes a provision for a license fee that will compensate the City for the private use of the ROW. The license fee is set at three percent (3%) of gross revenues that a licensee collects from customers for providing FTTH services in the City of Phoenix. The license fee for wholesale, open access internet, service providers is six percent (6%) of gross revenues that the company receives for leasing its network to internet service providers.

The licensee may be subject to an alternative, annual minimum fee (AMF) until the 3% or the 6% license fee exceeds the AMF of six dollars ($6.00) for each residential unit that the licensee’s fiber optic network passes.​

The City of Phoenix currently has three companies that expressed a strong desire to secure a Network Infrastructure Services license and two other companies that have expressed an interest but require specific terms to be met before making a final decision. This Code Chapter and fee will apply the same fee to any Network Infrastructure Services license.​

1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council at its formal meeting on Wednesday, December 18, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85003, the meeting may be viewed virtually by visiting ​Phoenix.gov/phxtv​.​​

This notice of intent is posted effective: December 3​​, 2024.

The City of Phoenix hereby gives notice of its intent to increase the City of Phoenix Film and Digital Media Permits (FDMPs) fees charged to motion picture and television productions, as defined by Phoenix City Code, Chapter 10, Article VIII, including fees for rush applications, to allow them to engage in the business of filming on any public property, facility or right-of-way belonging to the City of Phoenix, and for the release of City claims to the products of such activities. “Motion picture” or “television productions” shall encompass activities for commercial purposes including features, television, industrial, educational, documentary, student, still photography, commercials and web casts:​​
Proposed Fee Schedule:
Permit Type: General
Application Fee: $50
Filming Permit Fee: $150 per calendar month
Rush Fee: $150
Materials Changes Rush Fee: $150

Permit Type: Student
Application Fee: Free
Filming Permit Fee: $40
Rush Fee: $40
Materials Changes Rush Fee: $40

Permit Type: Low Impact
Application Fee: $50
Filming Permit Fee: $100 per 7 days
Rush Fee: $100
Materials Changes Rush Fee: N/A​
​
Rush fees only apply when application and materials are submitted three or fewer business days prior to filming. Materials submitted inside of 24 business day hours will not be accepted. Material changes are considered large element changes inside of three or fewer business days. Material changes inside of 24 business day hours will not be accommodated. This does not include date changes so long as they are not inside 24 business day hours.
​
1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council at its formal meeting on November 20, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85007, the meeting may be viewed virtually by visiting Phoenix.gov/phxtv​.

2. Reference for more details​
Download PDF for more information​.​​

This notice of intent is posted effective: November 4​, 2024​.

The City of Phoenix hereby gives notice of its intent to standardize fees charged to providers of Network Infrastructure Services, to allow them to engage in the business of operating a fiber-to-the home (FTTH) and fiber-to-the premises (business) to provide fiber-optic broadband access in the City of Phoenix.

Phoenix City Council will consider a new City Code Chapter, 5D – Network Infrastructure Services that will allow companies to install fiber-optic networks in the City’s rights-of-way (ROW) to provide high-speed internet to residential and business customers. The fiber-to-the-home (FTTH) and premises networks may be installed throughout the City and will provide a choice for consumers desiring broadband connections that are as fast, or faster than what is available from the current service providers.

Chapter 5D includes a provision for a license fee that will compensate the City for the private use of the ROW. The license fee is set at three percent (3%) of gross revenues that a licensee collects from customers for providing FTTH services in the City of Phoenix. The license fee for wholesale, open access internet, service providers is six percent (6%) of gross revenues that the company receives for leasing its network to internet service providers.

The licensee may be subject to an alternative, annual minimum fee (AMF) until the 3% or the 6% license fee exceeds the AMF of six dollars ($6.00) for each residential unit that the licensee’s fiber optic network passes.​

The City of Phoenix currently has three companies that expressed a strong desire to secure a Network Infrastructure Services license and two other companies that have expressed an interest but require specific terms to be met before making a final decision. This Code Chapter and fee will apply the same fee to any Network Infrastructure Services license.​

1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council at its formal meeting on Wednesday, December 18, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85003, the meeting may be viewed virtually by visiting ​Phoenix.gov/phxtv​.​​

This notice of intent is posted effective: October 18​​, 2024.

The City of Phoenix hereby gives notice of its intent to increase the City of Phoenix Film and Digital Media Permits (FDMPs) fees charged to motion picture and television productions, as defined by Phoenix City Code, Chapter 10, Article VIII, including fees for rush applications, to allow them to engage in the business of filming on any public property, facility or right-of-way belonging to the City of Phoenix, and for the release of City claims to the products of such activities. “Motion picture” or “television productions” shall encompass activities for commercial purposes including features, television, industrial, educational, documentary, student, still photography, commercials and web casts:​​
Proposed Fee Schedule:
Permit Type: General
Application Fee: $50
Filming Permit Fee: $150 per calendar month
Rush Fee: $150
Materials Changes Rush Fee: $150

Permit Type: Student
Application Fee: Free
Filming Permit Fee: $40
Rush Fee: $40
Materials Changes Rush Fee: $40

Permit Type: Low Impact
Application Fee: $50
Filming Permit Fee: $100 per 7 days
Rush Fee: $100
Materials Changes Rush Fee: N/A​
​
Rush fees only apply when application and materials are submitted three or fewer business days prior to filming. Materials submitted inside of 24 business day hours will not be accepted. Material changes are considered large element changes inside of three or fewer business days. Material changes inside of 24 business day hours will not be accommodated. This does not include date changes so long as they are not inside 24 business day hours.
​
1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council at its formal meeting on November 20, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85007, the meeting may be viewed virtually by visiting Phoenix.gov/phxtv​.

2. Reference for more details​
Download PDF for more information​.​​

This notice of intent is posted effective: September 18​, 2024​.

The City of Phoenix hereby gives notice of its intent to increase Aviation Department, Phoenix Sky Harbor International Airport Parking Rates charged to the Public, as defined by Phoenix City Code G-6631 Section 4-58 Parking Rates to allow for the Daily Parking Rate Increase as presented in the table:​​

Daily Parking Rates:
Parking Facility: Current Rate / Proposed Rate
24th Street Economy: $14.00 / $16.00
East Economy Uncovered: $14.00 / $16.00
East Economy Garage: $16.00 / $19.00
West Economy Garage: $16.00 / $19.00
Terminal 3 Garage: $30.00 / $33.00
Terminal 4 Garage: $30.00 / $33.00
Valet (T3 & T4): $39.00 / $43.00
Premium (T3 & T4):  $33.00 / $37.00
West Park & Walk: $9.00 / $10.00
Hourly Rate: $4.00 / $6.00
Overflow Self-Park: $9.00/ $12.00
Overflow Valet: $22.00 / $25.00​​
Effective Date: October 1, 2024

This notice of intent is posted effective: September 13​, 2024​.

The City of Phoenix hereby gives notice of its intent to modify fees charged to retailers when their abandoned shopping carts are retrieved and returned. A.R.S. § 44-1799.33 and City of Phoenix Ordinances S-34842 (July 2, 2007) (outlining program standards) and Ordinance S-44077 (November 29, 2017) (raising fee to $50) allow the City to charge a retailer up to a $50.00 fee for cart retrieval in the City of Phoenix. This action would authorize a $25 fee for cart retrieval for retailers who have a cart retrieval vendor.​

1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council at its formal meeting on September 18, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers 200 W Jefferson Street, Phoenix, AZ 85007, the meeting may be viewed virtually, by signing on at Phoenix.gov/phxtv​.

2. Reference for more details. 
Phoenix City Council will consider approving a fee for the retrieval of abandoned shopping carts for retailers with established cart retrieval contracts. The proposed fee would be $25.00 for retailers with established cart retrieval contracts, while the City would maintain the existing $50.00 fee for retailers who do not have a cart retrieval vendor. The City of Phoenix currently uses a cart retrieval service to respond to complaints of abandoned shopping carts, charging a $50.00 fee to all retailers who do not have a contract with a cart retrieval vendor. Since 2017, the number of abandoned shopping carts reported and retrieved increased substantially, from 2,937 in 2017 to 7,851 in 2023. The majority of the increase, 2,923, were from shopping carts belonging to retailers with their own contracts for cart retrieval, increasing the City's contract costs by more than 167%, from $21,488 to $57,481, yet providing no offset revenue to account for those costs. Due to the increased program expenses and inefficacy of retail cart retrieval services, Neighborhood Services Department is proposing a $25 cart retrieval fee for retailers with established cart retrieval contracts.

This notice of intent is posted effective: September 3​, 2024​.

The City of Phoenix hereby gives notice of its intent to increase Aviation Department, Phoenix Sky Harbor International Airport Parking Rates charged to the Public, as defined by Phoenix City Code G-6631 Section 4-58 Parking Rates to allow for the Daily Parking Rate Increase as presented in the table:​​

Daily Parking Rates:
Parking Facility: Current Rate / Proposed Rate
24th Street Economy: $14.00 / $16.00
East Economy Uncovered: $14.00 / $16.00
East Economy Garage: $16.00 / $19.00
West Economy Garage: $16.00 / $19.00
Terminal 3 Garage: $30.00 / $33.00
Terminal 4 Garage: $30.00 / $33.00
Valet (T3 & T4): $39.00 / $43.00
Premium (T3 & T4):  $33.00 / $37.00
West Park & Walk: $9.00 / $10.00
Hourly Rate: $4.00 / $6.00
Overflow Self-Park: $9.00/ $12.00
Overflow Valet: $22.00 / $25.00​​
Effective Date: October 1, 2024

This notice of intent is posted effective: July 22​, 2024​.

The City of Phoenix hereby gives notice of its intent to modify fees charged to retailers when their abandoned shopping carts are retrieved and returned. A.R.S. § 44-1799.33 and City of Phoenix Ordinances S-34842 (July 2, 2007) (outlining program standards) and Ordinance S-44077 (November 29, 2017) (raising fee to $50) allow the City to charge a retailer up to a $50.00 fee for cart retrieval in the City of Phoenix. This action would authorize a $25 fee for cart retrieval for retailers who have a cart retrieval vendor.​

1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council at its formal meeting on September 18, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers 200 W Jefferson Street, Phoenix, AZ 85007, the meeting may be viewed virtually, by signing on at Phoenix.gov/phxtv​.

2. Reference for more details. 
Phoenix City Council will consider approving a fee for the retrieval of abandoned shopping carts for retailers with established cart retrieval contracts. The proposed fee would be $25.00 for retailers with established cart retrieval contracts, while the City would maintain the existing $50.00 fee for retailers who do not have a cart retrieval vendor. The City of Phoenix currently uses a cart retrieval service to respond to complaints of abandoned shopping carts, charging a $50.00 fee to all retailers who do not have a contract with a cart retrieval vendor. Since 2017, the number of abandoned shopping carts reported and retrieved increased substantially, from 2,937 in 2017 to 7,851 in 2023. The majority of the increase, 2,923, were from shopping carts belonging to retailers with their own contracts for cart retrieval, increasing the City's contract costs by more than 167%, from $21,488 to $57,481, yet providing no offset revenue to account for those costs. Due to the increased program expenses and inefficacy of retail cart retrieval services, Neighborhood Services Department is proposing a $25 cart retrieval fee for retailers with established cart retrieval contracts.

This notice of intent is posted effective: July 18, 2024​.

The City of Phoenix hereby gives notice of its intent to amend the Phoenix City Code (PCC), Chapter 15 Fire Prevention Code of the City of Phoenix, Ord. No. G-6854, § 1, 2021 to establish new fees for permitting activities as required in the Phoenix Fire Code. These new permit fees encompass two types:

1. Creation of new fees for solar and battery construction permits by creating two new combination permits and fees to better service our community and customers by reducing the number of permits and fees required for installations comprising of both solar and battery storage at residential locations. Currently the fee schedule requires two separate permits: one for solar and a separate for batteries. This action combines those permits into one permit and results in a slight reduction of the total plan review and permit cost for projects encompassing both systems in one submission.

2. Creation of a fee for a construction permit to allow flammable/combustible fuel dispensers to be installed/modified. Currently there is an existing $300 operational permit required for this activity. This change algins the permit type correctly with construction activities by replacing the current operational permit. As this action will replace the current $300 operational permit fee with a new $300 construction permit, there will be no fee changes to the permitting for these types of activities.

1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council on or after March 20, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85003.​

2. Reference for more details. 
Download PDF for more information​.​​

This notice of intent is posted effective: March 04​, 2024​.

The City of Phoenix hereby gives notice of its intent to standardize fees charged to providers of Network Infrastructure Services, to allow them to engage in the business of operating a fiber-to-the home (FTTH) and fiber-to-the premises (business) to provide fiber-optic broadband access in the City of Phoenix.

Phoenix City Council will consider a new City Code Chapter, 5-D – Network Infrastructure Services that will allow companies to install fiber-optic networks in the City’s rights-of-way (ROW) to provide high-speed internet to residential and business customers. The fiber-to-the-home (FTTH) and premises networks may be installed throughout the City and will provide a choice for consumers desiring broadband connections that are as fast, or faster than what is available from the current service providers.

Chapter 5-D includes a provision for a license fee that will compensate the City for the private use of the ROW. The license fee is set at three percent (3%) of gross revenues that a licensee collects from customers or companies that it leases its network to for providing FTTH services in the City of Phoenix. The licensee may be subject to an alternative, annual minimum fee (AMF) until the 3% license fee exceeds the AMF of nine dollars ($9.00) for each residential unit that the licensee’s fiber optic network passes.

The City of Phoenix currently has two companies that expressed a strong desire to secure a Network Infrastructure Services license and two other companies that have expressed an interest, but require specific terms to be met before making a final decision. This Code Chapter and fee will apply the same fee to any Network Infrastructure Services license.​​

1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council at its formal meeting on Wednesday, February 21, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85003.​

2. Reference for more details. 
Download PDF for more information​.​​

This notice of intent is posted effective: February 5​, 2024.

The City of Phoenix hereby gives notice of its intent to amend the Phoenix City Code (PCC), Chapter 15 Fire Prevention Code of the City of Phoenix, Ord. No. G-6854, § 1, 2021 to establish new fees for permitting activities as required in the Phoenix Fire Code. These new permit fees encompass two types:

1. Creation of new fees for solar and battery construction permits by creating two new combination permits and fees to better service our community and customers by reducing the number of permits and fees required for installations comprising of both solar and battery storage at residential locations. Currently the fee schedule requires two separate permits: one for solar and a separate for batteries. This action combines those permits into one permit and results in a slight reduction of the total plan review and permit cost for projects encompassing both systems in one submission.

2. Creation of a fee for a construction permit to allow flammable/combustible fuel dispensers to be installed/modified. Currently there is an existing $300 operational permit required for this activity. This change algins the permit type correctly with construction activities by replacing the current operational permit. As this action will replace the current $300 operational permit fee with a new $300 construction permit, there will be no fee changes to the permitting for these types of activities.

1. Date, time, and place of meeting.
The proposed fees will be considered by the Phoenix City Council on or after March 20, 2024, commencing at 2:30 p.m. The meeting will be held at the Phoenix City Council Chambers, 200 West Jefferson Street, Phoenix, AZ 85003.​

2. Reference for more details. 
Download PDF for more information​.​​

This notice of intent is posted effective: January 11​, 2024​.