Residential Rental Tax and License

[Kevin Phu]

Hey all. I recently purchased a property in Phoenix and I'm a bit confused about the "Residential Rental Income Tax" and licensing requirements. We don't have this here in my local market. I looked through the treasurer's site and it says that all residential rental properties must pay a tax on the income but based on the licensing matrix, I don't need a residential rental license. So if I'm understanding this correctly, I owe 2.3% (?) of tax on the rental income but I don't require a license to operate? I've seen on other listings that the tenant pays the tax. Is this common practice?

https://azdor.gov/sites/defaul...

[Ryan Swan]

@Kevin Phu are you using a property manager? If Yes, then it doesn't matter how many rentals or what city they are in, you require a license and the PM will usually handle that on your behalf. 

If no, then follow the matrix and answer the questions based on how many rentals you own in each city. If you only one one rental in AZ and that rental is in Phoenix, then I don't believe you need a tax license.