On August 1, 2023, Governor Hobbs signed SB 1131, a bill that prohibits a city, town, or county from levying a tax on residential rentals. As of January 1, 2025, TPT may no longer be charged on a residential rental by a city, town, or county or collected by a residential property owner. Arizona has long been one of the few states to charge rental tax. However, opponents have argued that its mostly paid by lower income individuals and removing it is an easy way to save resident’s money.
The bill stipulates AZDOR (AZ Department of Revenue) will provide notice by September 30, 2024, to each residential rental property owner with a TPT license who owns residential rental property in a jurisdiction levying residential rental TPT of the change. The bill also provides details of enforcement on residential rental property owners.
The rule doesn’t go into effect until January 1, 2025, but it will be a welcome change for residents, owners, and property managers.
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Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.
