Chandler, AZ Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing law
- Chandler City Code Ch. 62, Art. IV
- Advertising tax rate
- 1.5% of gross income (§ 62-405)
- Amusements tax rate
- 1.5% of gross income (§ 62-410)
- Construction contracting rate
- 1.5% (§ 62-415)
- Retail sales rate
- 1.5% (§ 62-460)
- Base license fee
- $2 per license, per year (§ 62-320)
- Late-license penalty
- 50% of fee owed (§ 62-330(c))
Summary
Chandler taxes business activity under its Transaction Privilege and Use Tax code, Chapter 62, Article IV, by sorting every taxable activity into a separate classification, advertising, amusements, construction contracting, retail sales, restaurants, hotels, utilities, telecommunications and more, each carrying its own code section and rate, most set at 1.5% of gross income.
A. There are hereby levied and imposed, subject to all other provisions of this chapter, the following privilege taxes for the purpose of raising revenue to be used in defraying the necessary expenses of the City, such taxes to be collected by the Tax Collector: 1. A privilege tax upon persons on account of their business activities, to the extent provided elsewhere in this article, to be measured by the gross income of persons... C. Presumption. ...it shall be presumed that all gross income...is subject to the tax until the contrary is established by the taxpayer. [§ 62-405] The tax rate shall be at an amount equal to one and one-half (1½) percent of the gross income from the business activity upon every person engaging or continuing in the business of "local advertising" by billboards, direct mail, radio, television, or by any other means.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 79).
Full Breakdown
Section 62-400 imposes a privilege tax on persons "on account of their business activities," measured by gross income regardless of whether it is earned from City residents or from within or without the City, and directs the Tax Collector to collect it. 5%, excluding stock and bond sales, lottery tickets, bullion, and most cash-equivalent redemptions). Other named classes reach jet fuel sales, job printing, mining, publishing, hotels, real and personal property rentals, restaurants and bars, telecommunications, transporting for hire, utility services and wastewater removal, each in its own section of Article IV.
Section 62-400(C) presumes all gross income is taxable until the taxpayer proves otherwise, and § 62-400(D) limits any exemption or credit strictly to the specific activity it names. A business engaged in more than one classification at one location does not need a separate license per activity but must list every classification on its application (§ 62-300(B)); a business at two or more locations or under two or more names needs a separate license for each (§ 62-310(D)).
Violations & Fines
Engaging in a licensable activity without a Transaction Privilege and Use Tax license is unlawful under § 62-350; the Tax Collector assesses back tax, interest and penalties. Section 62-330(c)-(d) adds a license-fee penalty of 50% of the fee owed for each period unlicensed or unrenewed. Under § 62-340 the Tax Collector may cancel a license as inactive after six consecutive unfiled/unpaid monthly periods, or revoke it for nonpayment, with a hearing available if requested within 20 days of notice.
Frequently Asked Questions
Does every Chandler business pay the same tax rate?
How does Chandler decide what activity a business is taxed under?
What if income isn't clearly documented as exempt?
What happens if a business operates without the right license?
Sources & Official References
Other rules in Chandler
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