Kingman renters and landlords alike will get to breathe a sigh of relief this month because the Transaction Privilege Tax (TPT), applied by cities to monthly rental payments, has been eliminated. While lobbying groups like the League of Arizona Cities and Towns cried foul, Republicans who pushed for the reform and the renters who pay it are celebrating.
Arizona Senate President Warren Petersen touted the tax elimination on X, “Its happening. Renters are about to get relief from the rental tax repeal passed by the Republican led legislature. The rental tax repeal was an important part of our majority plan to deliver inflation relief. To get the governors signature we had to delay the effective date to Jan 1 2025. Many people said the Dems would take the majority and put the tax back in place. Fortunately for renters we held the Senate and the House. Here is an email from a property manager letting the tenants know their rent will be going down.”
Seventy-five cities across Arizona had been charging TPT on rentals ranging from 1.5% to 4%. Depending on rental rates, this could mean monthly savings of about $20-$50 per month based on estimates.It might not offset inflation, which still tolls heavily on Arizona residents, but in the current economy every little bit
helps.
The additional savings could see renters parlay the funds into other taxable goods and services.
Property owners who collected tax for rental periods prior to January 1st will still be required to remit those taxes to the Arizona Department of Revenue. For more information you can call the ADOR at:(602) 255-3381 or go online to: www.azdor.gov/business/residential-rental