Ding Dong The Tax Is Dead

Renters across Arizona have a reason to celebrate. Starting January 2025, the rental tax is gone! If you’ve been renting a home or apartment, you probably know that a small percentage of your monthly rent has been going toward this tax. Now, that extra cost is off your plate, and here’s what that means for you.

Arizona used to have what’s called a Transaction Privilege Tax (TPT) on residential rentals. This meant that cities could add anywhere from 1% to 4% to your monthly rent. For example, if your rent was $1,500 a month and your city had a 2% rental tax, you’d be paying an extra $30 every month. Over a year, that added up to $360! With the rental tax gone, you’ll now get to keep that money in your pocket.

This change was signed into law in 2024 and officially started in January 2025. The idea behind it is simple: Give renters a little breathing room, especially now, when rents are high and housing costs keep climbing. It’s one small way to make living in Arizona a little more affordable.

Additionally, the Arizona Attorney General has announced plans to take action against landlords who continue to charge the rental tax or attempt to disguise it as other fees to keep rents the same. Renters are encouraged to report any suspicious charges or fees to the Attorney General’s office to ensure compliance with the new law and protect their rights.

What Should Renters Do Now?

If you’re renting, here’s a quick checklist to make sure you’re benefiting from the tax elimination:

• Review Your Rent Statement: Check your latest rent statement (January 2025 or later) to ensure the rental tax is no longer being charged.
• Compare Past and Current Payments: Look at previous rent payments to confirm that the total amount has decreased.
• Ask Questions: Contact your landlord or property manager if you’re unsure whether the tax has been removed or if you spot new or unusual fees.
• Stay Informed: Keep a copy of your lease and any rent payment receipts to track any discrepancies.

Reporting Issues

If you suspect your landlord is still charging the rental tax or disguising it as other fees, take action:

• Contact the Arizona Attorney General’s Office: Contact the Attorney General’s Office by visiting https://www.azag.gov/, by phone at (602) 542-5025, or by email at consumerinfo@azag.gov.
• File a Consumer Complaint: For information on filing consumer complaints visit https://www.azag.gov/complaints/consumer.
• File a Civil Complaint: If your landlord continues to charge the tax or refuses to adjust fees, you can file a civil complaint through the local court system. Small claims courts often handle landlord-tenant disputes, and you may not need an attorney to proceed. Check with your local court for filing instructions and any associated fees.
• Seek Legal Advice: Consult a tenant advocacy group or legal professional to protect your rights and explore your options.

For now, you can celebrate the bit of extra savings. Whether it’s covering a few more groceries, paying off a bill, or just giving you some breathing room, every dollar helps. If you’re renting in Arizona, this is a change you’ll notice and appreciate. Keep an eye on your rent statements, and enjoy this bit of relief as we continue into the new year.

For more information about the elimination of the rental tax and the Attorney General’s commitment to enforcing it, check out the Arizona Department of Revenue’s Residential Rental Guidelines, as well as the following Article from KJZZ.org: Arizona landlords are accused of still charging rental tax despite new law. Mayes is investigating