News

Residential rental tax change, A.R.S. § 42-6004 (H) has been amended.

A.R.S. § 42-6004 (H) has been amended to prohibit a city, town, or other taxing jurisdiction from levying a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee, however denominated, on the business of renting or leasing real property for residential purposes.  This applies to residential rents for 30 days or more.  

Currently, there is no state transaction privilege (TPT) or county tax imposed on residential rentals.  Effective January 1, 2025, Arizona cities will not be able to impose a tax on residential rentals. The Arizona Department of Revenue will be issuing guidance on this in the coming months.

This change will affect the City of Yuma 1.7% residential tax on the first 90 days of rental and also the rental taxes assessed by Wellton, Somerton and San Luis along with many other cities in Arizona.