Every residential rental property owner with taxable rental property is required to obtain an Arizona transaction privilege tax 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.
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.
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.