Residential Rental
General Overview
Effective January
1, 2025, residential rental property owners are no longer required to report,
collect, or remit any city transaction privilege tax (TPT) on the income
derived from long-term lodging stays of 30 days or more to the Arizona
Department of Revenue. There is no state
or county TPT imposed on residential rentals and this change to the tax law eliminated
the city TPT. While owners of residential rental property will no longer have a
city TPT obligation beginning January 1, 2025, the property owner must still
register the property with the county assessor to comply with landlord tenant
laws or other compliance requirements from government entities.
Please note that owners
of residential rental property, hotels, motels, or other transient lodging
businesses that book stays for fewer than 30 days must still collect and remit
TPT under the transient lodging or hotel classification.
Residential Rental Income Received in Tax Periods Prior
to January 1, 2025
The Arizona Department
of Revenue collects city sales tax on behalf of all cities and towns within the
state. Owners of residential rental property must still comply with filing and
payment requirements for taxable income from tax periods prior to January 1,
2025, and such periods remain subject to audit as allowed by statute.
Taxes
reported for the City of Glendale must be on a separate line of the state
return with a City Jurisdiction Code of GE for the City of Glendale. The
business code for residential rental on the state return is 045.
Contact Information
For assistance with city TPT licensing,
tax rates, and fees for tax periods prior to January 2025, you can reach us by:
Telephone: (623) 930-3190
or
Email: [email protected]
For filing questions, additional information, or to obtain Arizona State tax forms, please contact the Arizona Department of Revenue by:
Telephone: (602) 716-7368 or
Email: [email protected] or
Webpage: AZDOR Residential Rental Guide