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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
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 tax (TPT), 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 TPT, 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 send a notification by first-class mail to each residential TPT licensee and to the address of each residential rental property that there is a new or increased rate of tax at least 60 days before the effective date of the new or increased rate of tax.
2. Makes conforming changes.
3. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Changes the notification requirement to TPT licensees.
Amendments Adopted by Committee of the Whole
· Requires an additional notice to be sent to the address of each residential rental property.
House Action Senate Action
WM 2/6/19 DP 10-0-0-0 FIN 3/13/19 DPA 9-0-1
3rd Read 2/14/19 60-0-0
Prepared by Senate Research
March 26, 2019
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