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The Myths & Realities of Rental Property Accounting in Metro-Phoenix

Because of all of the licensing and tax rules/regulations in many cities within Metro Phoenix, it can get very confusing to figure out exactly what you need to do in order to be in compliance. One of the myths I hear as a property manager is that rental tax is only required when multiple properties are owned in the city however this is very far from the truth!  Even if you only own one rental property the city wants their monthly or quarterly tax.  The cities monthly rental amount ranges from approximately 1.5 to 3% of the monthly rent and are required to be paid with the appropriate filing forms either monthly or quarterly depending on the city.  Before you can pay the tax you must file for your license through the appropriate city.  In addition to the taxes, the Maricopa County Assessor’s office requires you to register your property as a rental.  Fortunately this step only needs to be done one time and the fee is minimal.  Keep in mind if you do not live within Arizona you will be required to supply the Assessor with a statutory agent who is willing to accept all service on your behalf.  For additional information you may contact the Assessor through their website  Additional you may contact the Arizona Department of Revenue through their website