Arizona requires short-term rental operators to license with the Department of Revenue and remit transaction privilege tax plus any applicable county and city transient lodging taxes statewide.
Under A.R.S. Title 42, Chapter 5, short-term rentals of less than 30 days are subject to the transient lodging classification of the transaction privilege tax (TPT). Operators must obtain a TPT license through Arizona Department of Revenue, collect and remit state TPT, county excise tax, and any local transient occupancy tax. Online lodging marketplaces like Airbnb may collect and remit on the operator's behalf, but the operator remains licensed.
Failure to license or remit TPT may result in penalties up to 25 percent of tax due plus interest and potential criminal charges.
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