The change took effect January 1, 2025
Arizona’s Department of Revenue says owners should no longer collect or remit city transaction privilege tax on qualifying residential rentals for periods beginning January 1, 2025. Its guidance covers residential stays of 30 or more consecutive days, formerly reported under business code 045.
Check the rental type
The change does not eliminate TPT for hotel, motel, or other transient lodging stays of fewer than 30 days. Owners with mixed rental uses or other business activity should review each activity separately. Prior-period residential rental liabilities also remain relevant.
Review statements and settings
Check lease templates, resident charges, recurring billing rules, and owner reports for outdated residential rental tax lines. Reconcile any historical questions with your bookkeeper and the Department of Revenue. Avoid treating the end of this tax as a conclusion about income tax or property tax.
Keep registration current
A.R.S. § 33-1902 separately addresses county-assessor rental registration and requires an Arizona statutory agent for out-of-state owners. Review those records when ownership or contact information changes. This overview is general information; ask your tax adviser about your returns and specific rental activity.
Sources & further reading
General educational information. Requirements and individual circumstances can change; consult a qualified Arizona professional for property-specific advice.