Arizona

Arizona Tax Changes - October 2024

Quick Look

Week of 10.21.2024

Arizona Property Tax—Arizona updates publication on Military Reuse Zones.

The Arizona Department of Revenue has updated its property tax publication on the military reuse zones to reflect recent statutory renumbering. The Military Reuse Zone Program was established in 1992 by the Arizona Legislature to mitigate impacts related to the closure of military bases in the state through tax incentives for certain businesses and projects located in a Military Reuse Zone. The publication discusses the classification, valuation and assessment process for property in such zones. (Military Reuse Zones, Ariz. Dept. of Rev., 10/01/2024.)

Week Of 10.14.2024

Key Changes:

  • Queen Creek: Starting October 1, 2024, the Town of Queen Creek will eliminate an additional 0.25% tax on various businesses, including hotels, restaurants, retail stores, and marijuana sales.
  • Surprise: Also effective October 1, 2024, the City of Surprise will increase its tax rate on certain businesses from 2.2% to 2.8%. However, starting January 1, 2025, the tax rate on rental occupancy and residential rentals will be reduced to zero.

Businesses Affected in Queen Creek:

  • Hotels (044)
  • Restaurants and Bars (011)
  • Retail Sales (017)
  • Retail Sales Food for Consumption (062)
  • Medical and Adult Use Marijuana Sales
  • Remote Sellers and Marketplace Facilitators

Important Dates:

  • October 1, 2024: Queen Creek tax repeal and Surprise tax increase take effect.
  • January 1, 2025: Surprise rental occupancy and residential rental tax rate drops to zero.

Week Of 09.21.2024

Arizona Residential Rental Tax Changes:

Starting January 1, 2025, Arizona residential rental property owners will no longer be required to collect and remit city transaction privilege tax (TPT) on long-term lodging stays of 30 days or more.

Key Points:

  • No City Tax: The change eliminates the city TPT for residential rentals of 30 days or more.
  • State and County Taxes: There are no state or county taxes on residential rentals.
  • Other Obligations: Property owners still need to register their property with the county assessor and comply with landlord-tenant laws and other government requirements.
  • Short-Term Stays: Hotels, motels, and other transient lodging businesses that book stays for less than 30 days will continue to collect and remit TPT.

Important Note: This change only affects long-term residential rentals (30 days or more). Short-term rentals will still be subject to the city TPT.

Last updated: October 25, 2024
Detailed Look

Week of 10.21.2024

Arizona Property Tax—Arizona updates publication on Military Reuse Zones.

The Arizona Department of Revenue has updated its property tax publication on the military reuse zones to reflect recent statutory renumbering. The Military Reuse Zone Program was established in 1992 by the Arizona Legislature to mitigate impacts related to the closure of military bases in the state through tax incentives for certain businesses and projects located in a Military Reuse Zone. The publication discusses the classification, valuation and assessment process for property in such zones. (Military Reuse Zones, Ariz. Dept. of Rev., 10/01/2024.)

Week Of 10.14.2024

Arizona Sales and Use Tax Rates—Local TPT rate changes for Queen Creek and Surprise Arizona.

The Arizona Department of Revenue reminds taxpayers that effective October 1, 2024, the Town of Queen Creek repealed the additional 0.25% taxation rate over the rate of taxation on designated sales activities inside the town. The repeal affects several business classifications including Hotels (044); Restaurant and Bars (011); Retail Sales (017); Retail Sales Food for Consumption (062), and it also affects the sale of medical and adult use marijuana and remote seller and marketplace facilitator classifications. In addition, effective October 1, 2024, the City of Surprise increased the tax rate from 2.2% to 2.8% on specified classifications and decreased the tax rate to zero on rental occupancy tax and residential rentals effective January 1, 2025. (Arizona Transaction Privilege Tax Changes and News No. 10/01/2024, 10/01/2024.)

Arizona Sales & Use Taxes—Local TPT rate changes for Queen Creek and Surprise Arizona.

The Arizona Department of Revenue reminds taxpayers that effective October 1, 2024, the Town of Queen Creek repealed the additional 0.25% taxation rate over the rate of taxation on designated sales activities inside the town. The repeal affects several business classifications including Hotels (044); Restaurant and Bars (011); Retail Sales (017); Retail Sales Food for Consumption (062), and it also affects the sale of medical and adult use marijuana and remote seller and marketplace facilitator classifications. In addition, effective October 1, 2024, the City of Surprise increased the tax rate from 2.2% to 2.8% on specified classifications and decreased the tax rate to zero on rental occupancy tax and residential rentals effective January 1, 2025. (Arizona Transaction Privilege Tax Changes and News No. 10/01/2024, 10/01/2024.)

Week Of 09.30.2024

Arizona Sales and Use Tax Rates—Arizona publishes TPT rate tables for November 2024.

The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for November 2024. Also included are the tables for medical and adult use marijuana TPT codes. There are no rate changes for the month of November. (Transaction Privilege and Other Tax Rate Tables, Ariz. Dept. of Rev., eff. 11/01/2024.)

Arizona Sales & Use Taxes—Arizona publishes TPT rate tables for November 2024.

The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for November 2024. Also included are the tables for medical and adult use marijuana TPT codes. There are no rate changes for the month of November. (Transaction Privilege and Other Tax Rate Tables, Ariz. Dept. of Rev., eff. 11/01/2024.)

Week Of 09.21.2024

Arizona Sales & Use Taxes—Arizona explains upcoming residential rental tax changes.

The Arizona Department of Revenue (DOR) is informing property management companies and residential rental property owners of upcoming changes to Arizona tax law for residential rental properties. 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 DOR. Residential rental - business code 045, is the rental of real property for a period of 30 or more consecutive days for residential purposes only and not commercial. Currently, there is no state or county tax imposed on residential rentals, and the upcoming change to the tax law will eliminate the city tax. While there will no longer be a city TPT obligation beginning January 1, 2025, this does not affect the obligations to register the property with the county assessor to comply with landlord tenant laws or other compliance requirements from government entities. The DOR noted that hotel, motel, or other transient lodging businesses which book stays for fewer than 30 days must still collect and remit TPT under the transient lodging or hotel classification. (Arizona Transaction Privilege Tax Changes and News No. 09/01/2024, 09/01/2024.)

Last updated: October 25, 2024

Week of 10.21.2024

Arizona Property Tax—Arizona updates publication on Military Reuse Zones.

The Arizona Department of Revenue has updated its property tax publication on the military reuse zones to reflect recent statutory renumbering. The Military Reuse Zone Program was established in 1992 by the Arizona Legislature to mitigate impacts related to the closure of military bases in the state through tax incentives for certain businesses and projects located in a Military Reuse Zone. The publication discusses the classification, valuation and assessment process for property in such zones. (Military Reuse Zones, Ariz. Dept. of Rev., 10/01/2024.)

Week Of 10.14.2024

Arizona Sales and Use Tax Rates—Local TPT rate changes for Queen Creek and Surprise Arizona.

The Arizona Department of Revenue reminds taxpayers that effective October 1, 2024, the Town of Queen Creek repealed the additional 0.25% taxation rate over the rate of taxation on designated sales activities inside the town. The repeal affects several business classifications including Hotels (044); Restaurant and Bars (011); Retail Sales (017); Retail Sales Food for Consumption (062), and it also affects the sale of medical and adult use marijuana and remote seller and marketplace facilitator classifications. In addition, effective October 1, 2024, the City of Surprise increased the tax rate from 2.2% to 2.8% on specified classifications and decreased the tax rate to zero on rental occupancy tax and residential rentals effective January 1, 2025. (Arizona Transaction Privilege Tax Changes and News No. 10/01/2024, 10/01/2024.)

Arizona Sales & Use Taxes—Local TPT rate changes for Queen Creek and Surprise Arizona.

The Arizona Department of Revenue reminds taxpayers that effective October 1, 2024, the Town of Queen Creek repealed the additional 0.25% taxation rate over the rate of taxation on designated sales activities inside the town. The repeal affects several business classifications including Hotels (044); Restaurant and Bars (011); Retail Sales (017); Retail Sales Food for Consumption (062), and it also affects the sale of medical and adult use marijuana and remote seller and marketplace facilitator classifications. In addition, effective October 1, 2024, the City of Surprise increased the tax rate from 2.2% to 2.8% on specified classifications and decreased the tax rate to zero on rental occupancy tax and residential rentals effective January 1, 2025. (Arizona Transaction Privilege Tax Changes and News No. 10/01/2024, 10/01/2024.)

Week Of 09.30.2024

Arizona Sales and Use Tax Rates—Arizona publishes TPT rate tables for November 2024.

The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for November 2024. Also included are the tables for medical and adult use marijuana TPT codes. There are no rate changes for the month of November. (Transaction Privilege and Other Tax Rate Tables, Ariz. Dept. of Rev., eff. 11/01/2024.)

Arizona Sales & Use Taxes—Arizona publishes TPT rate tables for November 2024.

The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for November 2024. Also included are the tables for medical and adult use marijuana TPT codes. There are no rate changes for the month of November. (Transaction Privilege and Other Tax Rate Tables, Ariz. Dept. of Rev., eff. 11/01/2024.)

Week Of 09.21.2024

Arizona Sales & Use Taxes—Arizona explains upcoming residential rental tax changes.

The Arizona Department of Revenue (DOR) is informing property management companies and residential rental property owners of upcoming changes to Arizona tax law for residential rental properties. 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 DOR. Residential rental - business code 045, is the rental of real property for a period of 30 or more consecutive days for residential purposes only and not commercial. Currently, there is no state or county tax imposed on residential rentals, and the upcoming change to the tax law will eliminate the city tax. While there will no longer be a city TPT obligation beginning January 1, 2025, this does not affect the obligations to register the property with the county assessor to comply with landlord tenant laws or other compliance requirements from government entities. The DOR noted that hotel, motel, or other transient lodging businesses which book stays for fewer than 30 days must still collect and remit TPT under the transient lodging or hotel classification. (Arizona Transaction Privilege Tax Changes and News No. 09/01/2024, 09/01/2024.)