A person who has three or more residential units rented or available for rent in the state of Arizona must pay tax to the city of Phoenix on the units located within the city of Phoenix. A person who has one unit of commercial property for rent plus one or more units of residential property available for rent in the state of Arizona must pay tax on the units located within the city of Phoenix. A property manager or broker who manages three or more residential rental units must pay tax to the city of Phoenix on the units located within the city of Phoenix. In this case, the property manager or broker may obtain the license and report the tax on the residential rental income for a property owner. The property manager or broker is taxable even if an individual owner would not be taxable.
All payments made by the renter to, or on behalf of, the lessor are taxable.
Taxable income includes payments for property taxes, repairs, improvements, telecommunications, utilities, pet fees, nonrefundable deposits and common area maintenance charges. Utility charges if individual utility meters are installed and each tenant pays the exact amount billed by the utility company. Room charges to patients in primary care facilities. Rental to state-licensed, nonprofit primary health care facility. Primary health care facilities only include nonprofit hospitals, licensed nursing care institutions, licensed residential care institutions or licensed kidney dialysis centers.