A person in the business of leasing, licensing or renting any non-residential land, building or space must pay tax to the city of Phoenix on the units located within the city of Phoenix. The tax rate is 1. 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. Calculating the tax You may choose to charge the tax separately or you may include tax in your rental price. If you include tax in your rental price, you may factor in order to compute the amount of tax included in your gross income for deduction purposes. Computed Taxable Income Taxable income less computed taxable income equals your deduction for tax collected.