Blog Post

AZ TPT (sales tax) Licensing & Renewal

Appfolio Websites • November 7, 2019

It's renewal time for AZ sales tax licenses

Since 1997, the State of Arizona has required businesses in most Arizona cities to file and pay all sales tax activity through a transaction privilege tax (TPT) license, also called a sales tax license.

The Arizona Department of Revenue’s web page describes the investment/rental business like this:

The rental of real property for a period of 30 or more consecutive days for residential purposes only.

Residential rentals are a business and are subject to the sales tax rate imposed by the City in which the property is located. Here is a link to see your property’s sales tax rate https://aztaxes.gov/Home/Address/

Individual owners of investment/rental property are required, by law, to obtain and maintain a TPT license regardless of whether the rental/ investment is owner-managed or managed through a property management company.

TPT licenses are to be renewed by January 1st. Each license's term is for one calendar year. For example: if you sign up for a license on September 1, 2019, you are required to renew that license by January 1, 2020.

Renewal letters are currently being sent by the Arizona Department of Revenue for the upcoming 2020 calendar year.

Renewal can be completed online, sent via USPS or arranged for by a property management company on behalf of its client.

Arizona does not charge a State sales tax fee, licensing and renewal fees are determined by each City.

Here is a link to 2020's renewal rates as well as other helpful TPT license renewal information https://azdor.gov/transaction-privilege-tax/tpt-license/renewing-tpt-license

Ashford Management is proficient in matters relating to TPT. Sales tax compliance & filing is included in our management fee. Contact us today to learn more about how we can leverage you.

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