Every residential rental property owner with taxable rental property is required to obtain an Arizona transaction privilege tax (TPT) license from the Arizona Department of Revenue for each location where residential rental income is taxable. This applies regardless if the owner rents the property themselves or employs a property management company (PMC).
Taxpayers can use the Residential Rental Licensing Matrix to determine if a city tax license is required.
Other Business License Requirements
A city may impose additional requirements beyond the transaction privilege tax license. Check with the city in which a property is located for more information.
Arizona Transaction Privilege Tax PMC Penalty Abatement Procedure
Pursuant to TPR 19-1, this penalty abatement procedure applies to all property management companies (PMCs) that filed transaction privilege tax (TPT) returns on behalf of property owners for taxable periods starting January 1, 2018 (filed in February 2018) to June 30, 2019 (filed in July 2019) (Applicable Tax Period). This procedure applies only to PMCs registered with the department, currently filing on behalf of property owners and were assessed penalties for late filing or late payment of taxes for the Applicable Tax Period, whether or not those penalties were paid. This procedure does not apply to interest or penalties assessed in relation to registration (license) fees. Interest or penalties imposed on license fees cannot be abated.
Download Arizona Transaction Privilege Tax Procedure TPP 19-1
Download Sample Request for Penalty Abatement – Form 290
Download PMC Penalty Abatement Client List
County Assessor Residential Rental Registration
In addition to the transaction privilege tax licensing requirements, all Arizona counties require residential rental properties to be registered with the County Assessor. There may be penalties and fines for properties not correctly identified or registered as a rental property with the County Assessor.
Download Property Management License Application
Download Residential Rental Property Disclosure/Authorization Form
Download Residential Rental Licensing Matrix
Download Efile Return Payment Voucher (TPT-V Form)
Download Mailing Address Update Form — Property Management Company (PDF)