CITY OF PHOENIX
PRIVILEGE LICENSE (Sales) TAX
WHO MUST PAY THE TAX?
You must be licensed and pay tax if you are the owner or operator of amusement activities including
the following or similar activities*:
• Video/Game Center
• Bowling Center
• Golf Courses
• Sports Events
• Amusement Parks
• Skating Rinks
• Dance Hall
• Batting/Driving Range
• Tennis Courts
• Pool Hall
• Shooting Range
• Music Machines
• Car/Motorcycle Races
• Coin-Operated Game Machines • Any business charging admission for exhibition, amusement,
entertainment, or instruction
* These activities may require a separate Regulatory License, please contact (602) 262-4638 for more
WHAT IS THE CITY TAX RATE?
The City’s tax rate is 2.0%; the combined rate
(including State & County taxes) is 9.3%.
WHEN IS TAX DUE?
Your tax return and payment are due on the 20th day
of the month following the reporting period.
• Coin-Operated Game Machines – The gross income from pinball, video game, or any other
coin-operated game machine is taxable as amusement income. There is no deduction allowed
for commissions or equipment rental costs. Commissions received for the placement of
game machines in a business location are taxable to the business providing space as
licensing for use of commercial property.
• Souvenirs/Programs – Income from the sale of souvenirs and programs at or during an
amusement activity is taxable as retail sales.
• Food and Beverage Sales – Income from the sale of all food and beverages at or during an
amusement activity is taxable as restaurant and bar activity.
• Rental of Equipment – Income from the rental of equipment necessary to participate in an
amusement activity (e.g., ice skates, bowling shoes) is taxable as rental of tangible personal
• Federally Exempt Organizations –