Arizona Tax Changes - December 2024
Week Of 12.09.2024
Transaction Privilege Tax (TPT) Rate Tables
- Effective Date: January 1, 2025
- Key Changes:
- Elimination of Residential Rental Rates: The Arizona Department of Revenue (DOR) has removed the transaction privilege tax (TPT) applicable to residential rentals across all towns and cities that previously had such rates.
- Marijuana Tax Rates: The TPT rates for adult and medical use marijuana have been updated, with an increase in the city of Gilbert from 1.50% to 2%.
Changes to Residential Rental Tax
- Announcement: The DOR has confirmed the elimination of TPT for residential rentals effective January 1, 2025.
- Legislative Update: Arizona Revised Statutes (Ariz. Rev. Stat. Ann. 42-6004(H)) was amended to exempt residential rental TPT from being levied.
- Reporting Requirements:
- Property owners must continue to collect, file, and pay residential rental TPT for periods through December 31, 2024.
- From January 1, 2025, owners should discontinue collecting residential rental TPT.
- License Cancellations:
- Licenses that only have the residential business code 045 will be canceled effective January 1, 2025.
- If a business has other activities under the same license, the residential rental location will be closed, but no further action is needed from the property owner.
Week Of 12.09.2024
Arizona Sales and Use Tax Rates—Arizona publishes TPT rate tables for January 2025.
The Arizona Department of Revenue has released the transaction privilege tax (TPT) rate tables, effective January 1, 2025. The tables reflect the elimination of residential rental rates for all towns and cities that previously had such a rate. The tables also contain the TPT rates for adult and medical use marijuana and reflect an increase to those rates in the city of Gilbert from 1.50% to 2%. (Transaction Privilege and Other Tax Rate Tables, Ariz. Dept. Rev., effective 01/01/2025.)
Arizona Sales & Use Taxes—Arizona DOR announces changes to tax on residential rentals effective January 1, 2025.
The Arizona Department of Revenue (DOR) announced the elimination of transaction privilege tax (TPT) applicable to the rental of real estate for residential purposes (residential rental) as of January 1, 2025. Ariz. Rev. Stat. Ann. 42-6004(H) was amended earlier this year to exempt residential rental TPT from being levied. Residential rental TPT is reported and collected under business code 045 for long-term lodging stays of 30 days or more. Owners should continue to collect, file, and pay residential rental TPT for periods through December 31, 2024, filed in January 2025. For periods beginning January 1, 2025, and thereafter, individuals should discontinue collecting residential rental TPT. The DOR has canceled licenses that only have the residential business code 45 on their account, effective January 1, 2025. Property owners are still required to file for periods prior to January 1, 2025. If the business has other business activity on the same license, the license will not be canceled, and instead the residential rental location will be closed. No further steps need to be taken by the property owner to cancel the license or close the location. (Residential Rental Tax Changes Coming in the New Year, Ariz. Dept. Rev., 12/11/2024.)
Arizona Sales & Use Taxes—Arizona publishes TPT rate tables for January 2025.
The Arizona Department of Revenue has released the transaction privilege tax (TPT) rate tables, effective January 1, 2025. The tables reflect the elimination of residential rental rates for all towns and cities that previously had such a rate. The tables also contain the TPT rates for adult and medical use marijuana and reflect an increase to those rates in the city of Gilbert from 1.50% to 2%. (Transaction Privilege and Other Tax Rate Tables, Ariz. Dept. Rev., effective 01/01/2025.)
Week Of 12.09.2024
Arizona Sales and Use Tax Rates—Arizona publishes TPT rate tables for January 2025.
The Arizona Department of Revenue has released the transaction privilege tax (TPT) rate tables, effective January 1, 2025. The tables reflect the elimination of residential rental rates for all towns and cities that previously had such a rate. The tables also contain the TPT rates for adult and medical use marijuana and reflect an increase to those rates in the city of Gilbert from 1.50% to 2%. (Transaction Privilege and Other Tax Rate Tables, Ariz. Dept. Rev., effective 01/01/2025.)
Arizona Sales & Use Taxes—Arizona DOR announces changes to tax on residential rentals effective January 1, 2025.
The Arizona Department of Revenue (DOR) announced the elimination of transaction privilege tax (TPT) applicable to the rental of real estate for residential purposes (residential rental) as of January 1, 2025. Ariz. Rev. Stat. Ann. 42-6004(H) was amended earlier this year to exempt residential rental TPT from being levied. Residential rental TPT is reported and collected under business code 045 for long-term lodging stays of 30 days or more. Owners should continue to collect, file, and pay residential rental TPT for periods through December 31, 2024, filed in January 2025. For periods beginning January 1, 2025, and thereafter, individuals should discontinue collecting residential rental TPT. The DOR has canceled licenses that only have the residential business code 45 on their account, effective January 1, 2025. Property owners are still required to file for periods prior to January 1, 2025. If the business has other business activity on the same license, the license will not be canceled, and instead the residential rental location will be closed. No further steps need to be taken by the property owner to cancel the license or close the location. (Residential Rental Tax Changes Coming in the New Year, Ariz. Dept. Rev., 12/11/2024.)
Arizona Sales & Use Taxes—Arizona publishes TPT rate tables for January 2025.
The Arizona Department of Revenue has released the transaction privilege tax (TPT) rate tables, effective January 1, 2025. The tables reflect the elimination of residential rental rates for all towns and cities that previously had such a rate. The tables also contain the TPT rates for adult and medical use marijuana and reflect an increase to those rates in the city of Gilbert from 1.50% to 2%. (Transaction Privilege and Other Tax Rate Tables, Ariz. Dept. Rev., effective 01/01/2025.)