PEORIA, AZ — Starting on Jan. 1, 2024, some businesses in Peoria will be required to pay a Transaction Privilege Tax.
The city of Peoria approved the ordinance that established the effective date Tuesday night for the "Amusement classification" of the tax.
Peoria officials say there are 18 businesses potentially falling under the classification, which include "dance, gymnastics, and martial arts studios that charge for dance, sports, athletic, or health-related instruction."
The city has been working with businesses to help settle taxes owed. Payment plans and waiving penalties were among the solutions while "maintaining consistency with the tax code," according to Peoria officials. However, the city says businesses selling merchandise will be required to pay back sales taxes on those transactions.
The City of Peoria has adopted this tax code option since at least 2002, ABC15 reported last month.
Watch ABC15's previous reporting in the video player below:
Peoria’s deputy city manager told ABC15 that the city started doing audits at random business plazas and learned that some businesses were not paying this tax.
The city's Chamber of Commerce CEO called the move by the City of Peoria an "anti-attraction measure" to Peoria as it may deter small businesses from coming to the growing city.
