Arizona Statewide Rule
Arizona Transaction Privilege Tax on Short-Term Rentals
Key Facts
- State TPT rate
- 5.5% transient lodging
- License required
- Yes, ADOR TPT license
- Statute
- A.R.S. Title 42, Ch. 5
- Marketplace collection
- Permitted under A.R.S. 42-5005
Summary
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.
5. To require the owner of a vacation rental or short-term rental to obtain and maintain a local regulatory permit or license. As a condition of issuance of a permit or license, the application for the permit or license may require an applicant to provide only the following: (a) The name, address, telephone number and email address for the owner or owner's agent. (b) The address of the vacation rental or short-term rental. (c) Proof of compliance with section 42-5005. (d) Contact information required pursuant to paragraph 4 of this subsection. (e) Acknowledgment of an agreement to comply with all applicable laws, regulations and ordinances. (f) A fee not to exceed the actual cost of issuing the permit or license or $250, whichever is less.
Full Breakdown
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.
Violations & Penalties
Failure to license or remit TPT may result in penalties up to 25 percent of tax due plus interest and potential criminal charges.
Frequently Asked Questions
Do Arizona Airbnb hosts need a TPT license?
What taxes apply to Arizona vacation rentals?
Sources
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