Rental Property and City Sales Taxes

Many cities in the Greater Phoenix market are going after landlords for failure to pay sales tax on their rental properties. As a landlord, you are required to have your rental properties descinated as such in the tax records.

Valley cities, in an effort to find tax revenues, are combing information sources to find homes incorrectly identified as owner occupied when in fact they are rentals. Lnadlords may have to pay back taxes, fines and such when caught.

A recent article in the Arizona Republic talks about how Valley cities are taking action. Here is a link to the article for your edification.

The vaious Valley cities have different rules for landlords reporting rental properties, so you would be well advised to check with the tax officials in the city where your properties lie and make adjustments as required.

Best to you,

The Urban Team… your investment home real estate team.