Arizona cities and towns will no longer be able to collect taxes on residential rentals starting in 2025. That’s because Gov. Katie Hobbs signed a bill early August eliminating it.
Not all communities in the state levy this kind of tax, but for those that do, the League of Arizona Cities and Towns estimates the change will cost them around $230 million a year.
Hobbs had vetoed a similar version of this bill earlier in the session, but this new iteration became part of a deal to secure enough votes for a measure to refer an extension of Prop. 400 to the ballot — that’s the extension of Maricopa County’s transportation sales tax.
The Show spoke with Mesa Mayor John Giles about it more.
