For Property Management Companies (PMC)

Welcome to the Arizona Department of Revenue PMC Resource Page!

A property management company (PMC) is a business that acts on behalf of a property owner regarding rental properties. This oversight includes overseeing and managing the property, filing returns, and remitting applicable taxes to the Arizona Department of Revenue (ADOR).

The best place for a new PMC to start is with the PMC workshops offered by ADOR’s Education and Outreach team. The PMC workshops are a series of three sessions that cover all that a property manager needs to know, from how to get licensed as a PMC and obtain a Power of Attorney, to onboarding and offboarding your various property owners. To learn more about these workshops or reserve your spot, please visit the Upcoming Events section of the Taxpayer Education webpage.

Along the way to becoming a successful PMC, there will be a variety of forms that must be completed to do such things as:

  • Apply for a PMC license
  • Obtain a Form 285-PMC (POA) for your property owners
  • Update property owner licensing information

 

Property Manager Licensing Requirements and Process

All owners of property engaging the service of a property management company (PMC) for short-term lodging or commercial rentals are required to obtain a TPT license. Owners of residential rental properties are not required to obtain a TPT license after January 1, 2025.

The PMC registration license is used to access the filing portal called the Residential Rental E-Solution. There is no fee associated with obtaining the registration license or renewing the registration license. When filing for each of the property owners (PO), the PO’s license number is used to file taxes for each individual owner’s property.

There are multiple ways a PMC can obtain a TPT license on behalf of a PO. Either the property owner (PO) or the PMC may complete and submit a Form JT-1 if the PMC is managing a short term rental property (lodging rental for less than 30 days) or commercial rentals. PMCs that complete and submit the JT-1 application (for short-term rentals) on behalf of their PO clients must provide the appropriate Power of Attorney (POA) forms to validate their authority to act on behalf of the PO.

Additionally, the legal name for a property should be the name used on the TPT application. For most POs, that is the owner’s name.

Property owners with common ownership of multiple rental property locations may retain a single license that represents all locations by location number. On average, after submitting a Form JT-1, PMCs will begin receiving PO license(s) numbers within approximately 7-10 business days after ADOR receives and processes the application. Please note the importance of providing complete and accurate applications and ensuring the PMC has indicated the PMC mailing address on the application.

PMCs that do not own and/or rent properties, and only represent POs, should cancel their existing TPT license and apply for a Property Management License Application. Nevertheless, PMCs that engage in other taxable activities must retain an active TPT license in addition to the PMC registration to report these activities.

POs with properties in multiple cities do not need a different license for each city. A single license can represent multiple jurisdictions; however, if the PO chooses to work with multiple PMCs, a separate property management license per PMC will be required. Also, if a PO owns multiple properties and the PMCs only represent some of them, the state of Arizona will require the PO to maintain separate licenses for each PMC representing the PO.

The fee for a license that represents multijurisdictional locations may vary per location. A list of fees can be found online on page four of the JT-1 application.

A PMC may electronically submit a registration license directly to the ADOR PMC team.

Please note: PMCs do not have to reapply for TPT licenses on their clients who currently have them. TPT licenses that currently exist can be engaged in the PMC registration.

 

For questions and guidance on voluntary compliance with filing and paying correctly for past periods, please call (602)716-RENT or email [email protected].

 

We have compiled these forms and listed them below for ease of access:

 

To further assist along the process, several tutorials have been created that can be referenced at any time.

 

Starting January 1, 2025, residential rental property owners should no longer collect and remit any city transaction privilege tax (TPT) on the income derived from long-term lodging stays of 30 days or more to ADOR. (Laws 2023, Chapter 204 and A.R.S. § 42-6004 (H)).

A.R.S. § 42-6004 (H) has been amended to prohibit a city, town, or other taxing jurisdiction from levying a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee, however denominated, on the business of renting or leasing real property for residential purposes. (Lodging spaces booked for 30 days or more.)

A few helpful tips:

  • If filing for periods prior to January 2025, know what residential rental income is taxable.
  • PMCs must file and pay electronically on behalf of their property owners.
  • Check if the property owner already has a TPT license before submitting a licensing application.
  • Inform your property owner that you will need to communicate with them as needed.
  • Report all like filing frequencies together (monthly, quarterly, annually).
  • Make sure you file the return and pay the TPT liability; both are required to be considered in compliance.
  • When no longer representing a property owner, make sure to disengage on the last period; otherwise, the PMC remains responsible for filing and paying.
  • Bookmark this page and visit frequently!