Dept. of Revenue: Tax license required for those who rent homes

The Arizona Department of Revenue is reminding property owners who rent out residences in a city or town that levies transaction privilege tax on residential rental activity are required to obtain a TPT license with ADOR. Also, property owners who rent out residences for periods of less than 30 days must have a TPT license and report and remit TPT under the transient lodging classification for state, county and city.

The Arizona Department of Revenue is the single point of central administration and collection of state and city taxes for all taxable businesses, including residential rental owners in the state. Owners of taxable residential rental properties are required to file one TPT return for all taxing jurisdictions with ADOR.

Residential rental owners can get license application forms, tax forms and other information regarding residential rental taxation from the ADOR website, www.azdor.gov. To file and pay taxes online, which is required for any taxpayer that has more than one taxable property, register for an account at www.AZTaxes.gov.

ADOR has a special hotline and dedicated email for residential rental taxpayers with questions about transaction privilege tax filing and payment. A residential rental owner can direct all TPT inquiries to residentialrental@azdor.gov or by calling: 602-716-7368.

ADOR is also reminding property management companies to make sure their clients are properly licensed for TPT.

Additionally, the agency is advising property management companies of the following licensing and filing changes:

  • property management companies will no longer need a TPT license for filing residential rental TPT on behalf of their clients. property management companies that own taxable residential rental properties will still maintain their TPT licenses.
  • ADOR is working on a new electronic bulk upload function that will improve the filing process for property management companies.

The Arizona Department of Revenue is targeting January to have the new electronic licensing and filing functionality for customers.

For more information on the TPT, go to www.azdor.gov.

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