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.
-
About $1.5 million in restitution could be coming to residents of two apartment complexes in Mesa and Gilbert as part of settlement deals announced by Arizona Attorney General Kris Mayes. -
Arizona still has a supply and demand imbalance when it comes to housing, according to a new report from the Arizona-based think tank, Common Sense Institute. -
Each year, students from ASU’s Master of Real Estate Development program work with cities and towns on a development proposal for a particular piece of land. One recent collaboration reimagined the site of the Turf Paradise horse racing track in north Phoenix. -
As Gov. Katie Hobbs and Republican lawmakers negotiate the next state budget, dozens of local officials throughout the state are calling on them to include a new tax incentive to boost affordable housing in rural communities. -
A recent court ruling that found the state Department of Water Resources illegally changed how it evaluates whether there’s enough groundwater to approve new housing in certain parts of the Valley.
