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Increased communication and services for the local business community are coming soon, thanks to a new General Business License passed by the Tempe City Council on July 1.
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The license will provide a single point of intake for information and establish a more complete database to better serve businesses, bridging a current information gap.
An estimated 30,000 Tempe businesses are not in the city’s database. Soon, the city will be able to gather and track crucial demographics, including information on minority and disadvantaged business ownership, which is currently unavailable.
This new database will be used to encourage engagement in decision-making, provide information about events and opportunities and reach businesses in the event of emergencies. Businesses can opt out of publicly sharing their information in the database.
The license also opens the door for Tempe’s Economic Development team to share resources such as grants, training opportunities, technical support, workforce development and more directly with the community.
Businesses with a permanent location in Tempe, including those not required to obtain a Transaction Privilege Tax (TPT) license, such as professional services and contractors with job sites in Tempe, will be required to obtain a business license.
The new license will go into effect on Aug. 1, though the fee will not be required until Jan. 1, 2026, with first renewal on Jan. 1, 2027. As a special introductory incentive, businesses that register before Jan. 1, 2026, won’t have to pay any fees until Jan. 1, 2027.
The fee for the license is $25 annually, with revenue going to cover administrative costs and programs to support businesses. This aligns with fees charged by other cities in the region.
Exemptions include businesses with existing regulatory licenses (such as tobacco sales or short-term rental licenses), temporary businesses, special event vendors, and other businesses like casual activities, childcare, independent contractor/sale representative, educational lessons, and tutoring services. Religious, veteran, or civic service organizations that conduct business in the city for a nonprofit purpose on four or fewer occurrences are also exempt.
Two public meetings were held in April to gather feedback for the proposal, in addition to two public hearings at Tempe City Council meetings. The licensing program is supported by the Tempe Chamber of Commerce.
Read the ordinance and find complete details at tempe.gov/BusinessLicense.
Read more stories from the Phoenix Area on Signals A Z.com.
