Attachment C - DRAFT_Master Doc 2.8% Increase Ord.pdf

ORDINANCE G- 
 
AN ORDINANCE RELATING TO PRIVILEGE AND EXCISE 
TAXATION; PROVIDING FOR AN INCREASED TAX RATE ON 
MULTIPLE PRIVILEGE TAX BUSINESS CLASSIFICATIONS AND 
THE USE TAX FROM TWO AND THREE-TENTHS PERCENT 
(2.3%) TO TWO AND EIGHT-TENTHS PERCENT (2.8%) AND 
ESTABLISHING AN EFFECTIVE DATE. 
     _______________ 
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PHOENIX as 
follows: 
SECTION 1.  Phoenix City Code Section 14-410 is amended to read as 
follows: 
Sec. 14-410. Amusements, exhibitions, and similar activities. 
a. The tax rate shall be at an amount equal to two and three
EIGHT-tenths percent (2.38%) of the gross income from the
business activity upon every person engaging or continuing in the
business of providing amusement that begins in the city or takes
place entirely within the City, which includes the following type or
nature of businesses:
*** 
SECTION 2.  Phoenix City Code Section 14-415 is amended to read as 
follows: 
Sec. 14-415. Construction contracting – Construction contractors. 
a. The tax rate shall be at an amount equal to two and three
EIGHT-tenths percent (2.38%) of the gross income from the
business upon every construction contractor engaging or continuing
in the business activity of construction contracting within the City.
*** 
ATTACHMENT C
THIS IS A DRAFT COPY ONLY AND IS NOT AN OFFICIAL COPY OF THE FINAL 
ADOPTED ORDINANCE

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Ordinance G- 
 
SECTION 3.  Phoenix City Code Section 14-416 is amended to read as 
follows: 
Sec. 14-416. Construction contracting – Speculative builders. 
a. The tax shall be equal to two and three EIGHT-tenths percent 
(2.38%) of the gross income from the business activity upon every 
person engaging or continuing in business as a speculative builder 
within the City. 
*** 
SECTION 4. Phoenix City Code Section 14-417 is amended to read as 
follows: 
Sec. 14-417. Construction contracting – Owner-builders who are 
not speculative builders. 
a. At the expiration of twenty-four (24) months after improvement 
to the property is substantially complete, the tax liability for an 
owner-builder who is not a speculative builder shall be at an 
amount equal to two and three EIGHT-tenths percent (2.38%) of: 
*** 
SECTION 5.  Phoenix City Code Section 14-425 is amended to read as 
follows: 
Sec. 14-425. Job printing. 
 
a. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the gross income from the 
business activity upon every person engaging or continuing in the 
business of job printing, which includes engraving of printing plates, 
embossing, copying, micrographics, and photo reproduction. 
*** 
SECTION 6. Phoenix City Code Section 14-427 is amended to read as 
follows:

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Ordinance G- 
 
 
 
Sec. 14-427. Manufactured buildings. 
a. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the gross income, including site 
preparation, moving to the site, and/or set-up, upon every person 
engaging or continuing in the business activity of selling 
manufactured buildings within the City. Such business activity is 
deemed to occur at the business location of the seller where the 
purchaser first entered into the contract to purchase the 
manufactured building. 
*** 
SECTION 7.  Phoenix City Code Section 14-430 is amended to read as 
follows: 
Sec. 14-430. Timbering and other extraction. 
a. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the gross income from the 
business activity upon every person engaging or continuing in the 
following businesses: 
*** 
SECTION 8. Phoenix City Code Section 14-435 is amended to read as 
follows: 
Sec. 14-435. Publishing and periodicals distribution.  
a. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the gross income from the 
business activity upon every person engaging or continuing in the 
business activity of: 
*** 
SECTION 9. Phoenix City Code Section 14-444 is amended to read as 
follows:

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Ordinance G- 
 
Sec. 14-144. Hotels. 
 
The tax rate shall be at an amount equal to two and three EIGHT-
tenths percent (2.38%) of the gross income from the business 
activity upon every person engaging or continuing in the business 
of operating a hotel charging for lodging and/or lodging space 
furnished to any: 
*** 
SECTION 10. Phoenix City Code Section 14-445 is amended to read as 
follows: 
Sec. 14-445. Rental, leasing, and licensing for use of real property. 
 
a. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the gross income from the 
business activity upon every person engaging or continuing in the 
business of leasing or renting real property located within the City 
for a consideration, to the tenant in actual possession, or the 
licensing for use of real property to the final licensee located within 
the City for a consideration including any improvements, rights, or 
interest in such property; provided further that: 
*** 
SECTION 11. Phoenix City Code Section 14-450 is amended to read as 
follows: 
Sec. 14-450. Rental, leasing, and licensing for use of tangible 
personal property.  
 
a. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the gross income from the 
business activity upon every person engaging or continuing in the 
business of leasing, licensing for use, or renting tangible personal 
property for a consideration, including that which is semi-
permanently or permanently installed within the City as provided by 
Regulation. 
 
*** 
SECTION 12. Phoenix City Code Section 14-455 is amended to read as 
follows:

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Ordinance G- 
 
 
 
Sec. 14-455. Restaurants and bars.  
a. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the gross income from the 
business activity upon every person engaging or continuing in the 
business of preparing or serving food or beverage in a bar, cocktail 
lounge, restaurant, or similar establishment where articles of food 
or drink are prepared or served for consumption on or off the 
premises, including also the activity of catering. Cover charges and 
minimum charges must be included in the gross income of this 
business activity. 
*** 
SECTION 13. Phoenix City Code Section 14-460 is amended to read as 
follows: 
Sec. 14-460. Retail sales – Measure of tax; burden of proof; 
exclusions.  
 
a. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the gross income from the 
business activity upon every person engaging or continuing in the 
business of selling tangible personal property at retail. 
*** 
d. Nothwithstanding the provisions of subsection (a) above, when 
the gross income from the sale of a single item of tangible 
personal property exceeds ten thousand dollars ($10,000.00), 
the two and three EIGHT-tenths percent (2.38%) tax rate shall 
apply to the first $10,000.00. For the amount greater than 
$10,000.00, the measure of tax shall be at a rate of two percent 
(2%). 
 
*** 
SECTION 14. Phoenix City Code Section 14-475 is amended to read as 
follows: 
Sec. 14-475. Transporting for hire:

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Ordinance G- 
 
The tax rate shall be an amount equal to two and three EIGHT-
tenths percent (2.38%) of the gross income from the business 
activity upon every person engaging or continuing in the business 
of providing the following forms of transportation for hire from this 
City to another point within the State: 
*** 
SECTION 15. Phoenix City Code Section 14-610 is amended to read as 
follows: 
Sec. 14-610. Use tax- Imposition of tax; presumption. 
a. There is hereby levied and imposed, subject to all other 
provisions of this chapter, an excise tax on the storage or use in the 
City of tangible personal property, 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. 
 
b. The tax rate shall be at an amount equal to two and three 
EIGHT-tenths percent (2.38%) of the: 
*** 
e. 
Nothwithstanding the provisions of subsection (a) above, 
when the amount subject to the tax for any single item of tangible 
personal property exceeds ten thousand dollars ($10,000.00), the 
two and three EIGHT-tenths percent (2.38%) tax rate shall apply to 
the first $10,000.00. For the amount greater than $10,000.00, the 
measure of tax shall be at a rate of two percent (2%). 
*** 
SECTION 16. The imposition of increased taxes imposed by Sections 1 
through Section 15 shall be effective on and after July 1, 2025. 
… 
… 
…

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Ordinance G- 
 
 
 
PASSED by the City Council of the City of Phoenix this 18th day of March, 
2025. 
 
 
 
 
 
 
 
___________________________ 
 
 
 
 
 
 
 
 
 
MAYOR 
 
 
 
ATTEST: 
 
 
_____________________________________ 
Denise Archibald, City Clerk 
 
 
APPROVED AS TO FORM: 
Julie M. Kriegh, City Attorney 
 
 
BY: _________________________________ 
 
       _________________________________ 
 
 
REVIEWED BY: 
 
 
____________________________________ 
Jeffrey Barton, City Manager 
 
 
 
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