(HELP 😵‍💫)Arizona transaction privilege tax license

[Johnny McKeon]

Hey BP, I need help with the Arizona transaction privilege tax license. do you guys know or do you know someone that would know how to help with this?

I have a question about the Arizona transaction privilege tax

Do you just have to pay the city a percentage ? For example the city of Mesa is 2% I believe and that is passed through to the tenant

or is it the city, county and State each owed a percentage? For example the city of Mesa 2% Maricopa County 5.6% and the state x percentage? 

And which one do you pass on to the tenants? Just the city or all of them

Thank you for your help!

[Doug McVinua]

@Johnny McKeon The Arizona Transaction Privilege Tax is paid to the state of Arizona Department of Revenue. As a property manager, we report and pay monthly for each property we manage. You will need to obtain a license for each property, calculate the appropriate tax, report and pay it. The tax amount is set by each City depending on the type of rental, short-term, long-term, residential, commercial, etc.

I write it into the lease so that the tenant pays the appropriate tax, so it's a neutral gain/loss for the property owner.

It is one of our least favorite jobs, but we take care of the tax and reporting for the owners as part of our service.