What is Transaction Privilege Tax?
Transaction Privilege Tax (TPT) is a tax imposed by many cities in Arizona for the privilege of doing business. The tax is charged based upon gross revenue and is collected by the Arizona Department of Revenue on behalf of the cities. This tax also applies to Residential Rentals and is commonly charged on top of the rent. The tax rates vary by city and range from zero to 3%.
What’s Changing?
The City of Scottsdale, Arizona approved a TPT rate increase for Residential rentals from 1.65% to 1.75% beginning February 1st, 2019.
The City of Mesa, Arizona approved a TPT rate increase for Residential Rentals from 1.75% to 2% beginning March 1st, 2019.
Questions?
We’re always happy to help with any questions about rental tax or any other rental concerns. Call us anytime!
