June 2, 2009
Tax Amnesty Program on Past Due Phoenix City Taxes Will End June 15
The city of Phoenix will conclude its two-month tax amnesty opportunity program at 5 p.m. June 15. Phoenix businesses are invited to submit delinquent tax returns and delinquent taxes without a penalty no matter how late the tax payment may be. Also, the interest rate charged for late taxes was reduced from 6 percent to 3 percent during this time period.
More than $5 million in delinquent taxes are due on returns that have been filed but not paid. Through May 15, approximately 190 businesses have taken advantage of the amnesty program and have committed to pay more than $1million in delinquent tax and interest before the end of the program or through a payment plan that may extend up to six months.
During this time period, Phoenix businesses that are not licensed also will be able to get licensed without penalty.
The amnesty program has the potential to bring Phoenix businesses in compliance with city tax laws and increase tax collections by about $2 million. The final results of the amnesty program will be presented to the Phoenix City Council in the fall. Beginning July 1, the city plans to implement stricter tax enforcement policies that will strengthen the city’s tax collection program.
To submit delinquent taxes, call 602-262-6785 and press option 7 or visit the city of Phoenix Finance Department, Calvin C. Goode Municipal Building, 251 W. Washington St., third floor, between 8 a.m. and 5 p.m. through June 15.
What is the tax amnesty program?
During these difficult economic times, the city is offering an opportunity to assist its business community by reducing the burden associated with delinquent sales taxes and license fees.
The tax amnesty program will allow Phoenix business owners to submit delinquent sales tax or license fees without penalty and with reduced interest on delinquent balances.
This is also an opportunity for Phoenix businesses that are not licensed to get licensed, without penalty.
Who is eligible?
- Licensed businesses subject to city of Phoenix privilege license tax (sales tax).
- Unlicensed businesses that must become licensed to comply with the City Tax Code.
When does it apply?
The amnesty period will run for two months only, beginning Wednesday, April 15 and ending at 5 p.m. June 15.
How will it work?
Any Phoenix business with delinquent city sales tax on or before April 1, 2009, is eligible for consideration of penalty waiver and a reduction of interest charges from the current 6 percent to 3 percent.
Unlicensed businesses that obtain a license during the amnesty period will be eligible for a waiver of penalties associated with failing to obtain a license and submit sales tax in accordance with the Phoenix City Code.
How do I participate?
By visiting the city of Phoenix at the Calvin C. Goode Municipal Building, 251 W. Washington St., third floor between 8 a.m. and 5 p.m. during the two-month amnesty period or by calling 602-262-6785 and selecting option 7. Staff will be available to assist you in filing missing returns, payment of delinquent taxes or license fees, and adjustments to penalty/interest.
NOTE: Unlicensed businesses or businesses with delinquent tax and fees that do not take advantage of the tax amnesty program will be subject to all penalties, interest and fees authorized by City Code at the conclusion of the amnesty period.
Media Contact:
| Marcie Colpas | 602-262-6164 |