Tempe, AZ Business Licensing & Operations: Tobacco Retail License (2026)
Key Facts
- License fee
- $300 annually
- Late fee
- $100 for a tardy renewal
- Reinspection fee
- $300 after a violation
- 1st violation penalty
- $500 fine plus retraining
- 4th violation penalty
- $1,000 fine and license revocation
- Unlicensed sale ban
- 3-year ineligibility for a new license
- Appeal window
- 10 days to Tax and License Division
Summary
Every store that sells cigarettes, vape products, or other tobacco items in Tempe needs an annual $300 tobacco sales license from the Tax and License Division before making a single sale. City Code Section 16A-248 requires the license and mandatory retailer training, and Section 16A-253 escalates penalties up to license revocation for repeat underage-sale violations.
Sec. 16A-248(a): No person or tobacco sales establishment may sell tobacco products without a valid tobacco sales license. Upon receipt of a license, the license shall be displayed at all times at the tobacco sales establishment location. Sec. 16A-250(a): The application for a tobacco sales license shall be submitted with a licensing fee of three hundred dollars ($300.00). The fees shall be used, in part or whole, to cover the administrative cost for licensing administration, any required education and training, and any unannounced compliance checks.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: City Code: Supplement 33 Update 4 | Zoning and Development Code: Supplement 11 Update 2).
Full Breakdown
Article XI of the Tempe City Code, added by Ordinance No. 55, covers any 'tobacco sales establishment,' a term that reaches tobacco shops, cigar and pipe retailers, e-cigarette and vape retailers, grocery and convenience stores, gas stations, bars, and restaurants that sell tobacco products, electronic smoking devices, or related paraphernalia. Section 16A-248(a) makes it unlawful to sell tobacco products without a valid license, and the license must be displayed at all times at the location. Before applying, Section 16A-248(b) requires the applicant to attend and show proof of completing an Arizona retail tobacco training class approved by the licensing officer, and to hold a current transaction privilege tax license from the Arizona Department of Revenue.
Section 16A-250 sets the licensing fee at $300, plus a $100 late fee for a tardy renewal and a $300 reinspection fee after a violation, with the Police Department or Community Development Department conducting an unannounced compliance check within 180 days of an adjudicated violation. The license expires every December 31 and is not transferable between establishments or locations. Section 16A-251 requires a posted sign, at least 4 inches by 6 inches with 60-point capital lettering, warning that no one under 21 may be sold tobacco products, within six feet of where the products are sold. S. Section 4-241(K).
Violations & Fines
Section 16A-253 sets an escalating penalty schedule per violation within a rolling 36-month period: $500 for a first violation plus mandatory retraining, $750 and a 7-day sales suspension for a second, $1,000 and a 30-day suspension for a third, and $1,000 with outright license revocation for a fourth. Selling without a license, or during a suspension or revocation, makes the establishment ineligible for a new license for three years. Denials, suspensions, and revocations can be appealed to the Tax and License Division within ten days under Section 16A-254, with judicial review available under Section 16A-255.
Frequently Asked Questions
Do vape and e-cigarette stores need this license in Tempe?
What training does a tobacco retailer need before getting licensed?
What happens after a third underage-sale violation?
Sources & Official References
Other rules in Tempe
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