The Arizona Legislature is considering a bill that will limit your sales tax on rent in the future!

Please contact your Senator today and ask them to support SB1239!
Currently Arizona is one of two states, the other being Alaska, that allow Cities to collect sales tax from residential renters. SB1239 Sponsored by Senator Barbara Leff will prevent cities and towns from increasing their sales tax on residential renters above the tax rate that is in place as of January 1, 2010.

A Few Facts on Rental Sales Tax and SB1239

In the late 1970’s the State Legislature abolished the state sales tax on residential rentals. During the 1980’s many cities and towns started to charge sales tax on residential rentals creating a new source of revenue. Because monthly rents include pass through operating expenses such as property and utility taxes residential renters are subject to double taxation as a result of sales tax on rent.

• Click here for more facts about SB1239
• Click here to view SB1239

Other impacts:

• Sales tax on rent affects your pocket book- a sales tax on rent can easily add $10, $20 or even more to your monthly rent.
• Since Homeowners do not pay a sales tax on their mortgage, a sales tax on rent is both unfair and arbitrary.
• Renters use the same roadways, sewer systems, water lines and schools as homeowners. Yet renters are taxed, and Homeowners are not.
• Residential renters do not benefit from the Homeowners Rebate.
• Sales tax on rent is a regressive and outdated tax only allowed by one other state (Alaska).
• Approximately 1/3 of all Arizonans are residential renters.

How you can get involved

1. Call or email your state Senator. Respectfully ask them to support SB1039 in the Senate Finance Committee. Click here to find your Senator. If you Senator is Barbara Leff you do not need to call or email her as she is the Sponsor of the bill, you can email her and thank her for her support.
2. Sign our petition asking legislators to cap sales tax on rent. (Petition is on the right hand column of this site.)
3. Click Here to Tell Your Friends about this website and ask them to sign our petition asking legislators to cap sales tax on rent!
4. Attend the Senate Finance Committee Hearing. Details to follow.