Assigned to FIN                                                                                                  AS PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Fourth Legislature, First Regular Session

AMENDED

FACT SHEET FOR H.B. 2445

TPT; residential rentals; notice

Purpose

            Requires a city or town to inform owners of residential rental properties of any new or increased tax rate.

Background

Current statute prohibits a city or town that levies a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee; however denominated, from imposing or increasing the rate of tax applied to the business of renting or leasing real property for residential purposes unless approved by the qualified electors of the city or town at any regular municipal election (A.R.S. § 42-6011). Statute specifies that this requirement applies whether or not the city or town has adopted the Model City Tax Code.

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Requires a city or town that levies a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee, applied to the business of renting or leasing real property for residential purposes, to notify by first class mail each residential transaction privilege tax (TPT) licensee and each individual residential rental property of any imposition or increase to the rate of tax at least 60 days before the effective date of the new or increased rate.

2. Makes conforming changes.

3. Becomes effective on the general effective date.

Amendments Adopted by Committee

· Changes the notification requirement to TPT licensees.

House Action Senate Action

WM                 2/6/19        DP       10-0-0-0             FIN                 3/13/19      DPA       9-0-1

3^rd Read          2/14/19                  60-0-0

Prepared by Senate Research

March 14, 2019

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