Landlords across Arizona have been preparing for a significant change in residential leases.
Starting Jan. 1, 2025, state law bans cities and towns from charging sales tax on residential rentals.
The Arizona Multihousing Association, an affiliate of the National Apartment Association, warned its 2,600 members that the tax elimination had been controversial and told landlords they should be charging residents less. Taxes must also be removed from other items, like late fees.
The law allows tenants to sue if taxes are still being collected. About 75 cities and towns have been collecting sales tax ranging from 1% to 4% of residential rents.
The Arizona Department of Revenue defines residential rental as “real property for a period of 30 or more consecutive days for residential (i.e. noncommercial) purposes only.”
Hotels, motels and other lodging businesses must still collect and remit sales taxes under the transient lodging or hotel classification.
-
Tempe is seeking residents’ feedback as it complies with a new state law aimed at boosting construction of multi-family homes.
-
Last year, Attorney General Kris Mayes filed a lawsuit against Heritage Village assisted living in Mesa. Now that facility, which Mayes once described as “perhaps the most notorious assisted living facility in Arizona,” is being sold.
-
One of the only emergency homeless shelters for seniors in the country opened in Phoenix last month. On Tuesday, Gov. Katie Hobbs toured the facility.
-
Rising costs and cancellations by insurers citing wildfire risks have garnered attention in California, where many Los Angeles County residents are struggling to recover from deadly wildfires. It's a problem in Arizona, too.
-
A sweeping proposal that would strip larger Arizona cities and towns of the right to set standards for single family home lot and building sizes and bar their ability to set design standards is back with minor changes after Gov. Katie Hobbs vetoed a similar bill last year.