FROM AND AFTER DECEMBER 31, 2024, A CITY, TOWN OR OTHER TAXING 17 JURISDICTION MAY NOT LEVY A TRANSACTION PRIVILEGE, SALES, GROSS RECEIPTS, 18 USE, FRANCHISE OR OTHER SIMILAR TAX OR FEE, HOWEVER DENOMINATED, ON THE 19 BUSINESS OF RENTING OR LEASING REAL PROPERTY FOR RESIDENTIAL PURPOSES.
SB 1131
On August 1, 2023, Governor Hobbs signed SB 1131, a bill enthusiastically supported and influenced by Arizona REALTORS®.
Matthew Contorelli, Arizona REALTORS® Government Affairs Director, has spoken often over the past 2 years of AR’s efforts to bring an end to taxing residential renters in Arizona. It has been a part of the AR Legislative agenda for a very long time.
SB 1131 prohibits a city, town or county from levying a tax on residential rentals. TPT (Transaction Privilege Tax) is currently levied by city, towns and counties on the amount of rent received by the rental property owner. As of January 1, 2025, TPT may no longer be levied on a residential rental by a city , town or county or collected by a residential property owner.
The bill stipulates DOR (Az Department of Revenue) will provide notice no later than 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.
Congratulations to Matthew Contorelli, Tom Farley, and the entire AR Government Affairs Team!