Arizona Residential Rental Property: Tax Filing Changes in 2018

  |  October 25, 2017

Starting January 2018, every Arizona residential rental property owner will be required to obtain a transaction privilege tax (TPT) license from the Arizona Department of Revenue (ADOR) for each location where residential rental income is taxable.

Arizona property management companies (PMCs) will no longer be allowed to report and remit residential rental TPT using their own TPT license (formerly referred to as a Master License) on behalf of client property owners. Instead, all taxes must be filed and remitted using the property owner’s license number.

The ADOR has established a dedicated webpage to assist property management companies and property owners. The web content provides resources on the licensing requirements, a step-by-step guide on TPT licensing, and other information regarding residential rental TPT. In addition, ADOR has created a new electronic filing process for PMCs designed to improve the filing and payment process.

If you’d like to know more about how the upcoming changes may affect your tax and reporting requirements, please contact Thomas Herrick, Senior Accountant at therrick@redw.com.

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