Real Property Rental

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Phone (623) 333-2004
Email resrentals@avondaleaz.gov

Residential Rental Tax Changes

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 ADOR. (Laws 2023, Chapter 204 and A.R.S. § 42-6004 (H)).

This applies to licensees that are registered and have filed using business code 045 indicating that license is engaged in the business classification of residential rental. Residential rental is the rental of real property for a period of 30 or more consecutive days for residential (i.e. noncommercial) purposes only.

Currently, there is no state or county tax imposed on residential rentals, and the upcoming change to the tax law will eliminate the city TPT. While there will no longer be a city TPT obligation beginning January 1, 2025, you must still register the property with the county assessor to comply with landlord tenant laws and other compliance requirements from government entities. Owners can still file for prior periods online even if the license has been canceled or the location has been closed.

For tax periods before January 1, 2025:

You must still comply with filing and payment requirements, and
These periods remain subject to audit as allowed by statute.

Please note: Hotel, motel, or other transient lodging businesses that book stays for fewer than 30 days must still collect and remit TPT under the transient lodging or hotel classification.

What Should I Do?

Please 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, it is no longer needed to collect, file, and pay residential rental TPT.

No further action or steps need to be taken to cancel the license. Be aware that cancelation of the license will not exempt you from any liabilities related to periods before January 1, 2025. If liabilities are unpaid, enforcement actions may be taken against you. Log on to AZTaxes.gov to resolve any outstanding liabilities or missing returns for the license.

General Information

The City of Avondale began taxing residential real property rentals in October 1987.
The Avondale tax rate on residential rental gross receipts is 2.5%. There is no state tax on residential rentals.
Commercial lease gross receipts are taxed at the combined rate of 3.0%, which includes the Avondale tax rate of 2.5% and the Maricopa County tax rate of .5%.
All taxes are reported and remitted directly to the Arizona Department of Revenue (ADOR) via AZTaxes.gov.

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