2
RESIDENTIAL RENTALS
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 Scottsdale on the units located within the City of Scottsdale.
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 Scottsdale.
A property manager or broker who manages one or more residential rental units must pay tax to
the City of Scottsdale on the units located within the City of Scottsdale. The owner of the
property would obtain a transaction privilege tax license with the Arizona Department of
Revenue and engage the property manager to file taxes on their license. The property manager
or broker would obtain a property manager company license with the Arizona Department of
Revenue and link their account with the property owner’s account.
The property manager or broker is taxable even if an individual owner would not be taxable.
Examples of residential rentals include:
• Houses
• Apartments
• Manufactured Homes
• Time Shares
Residential rentals for less than 30 days are subject to an additional 5.0% transient tax.
(See Hotel/Motel brochure)
Scottsdale Property Treatment
Owner has one residential rental property in Scottsdale
that is rented on a long term basis (greater than 29 days)
and no other residential or commercial rentals in the State
Non-taxable since the rental is on a
long-term basis
Owner has one residential rental property in Scottsdale
that is rented on a short term basis (less than 30 days)
and no other residential or commercial property rentals in
Taxable under the transient lodging
classification since the rental is on
a short-
term basis of less than 30
days
Owner has one residential rental property in Scottsdale
and one commercial property in another city/town in
Arizona
Taxable due to the commercial
rental property
Owner has a tri-plex rental property in Scottsdale with all
units rented or available for rent
Taxable since a tri-plex has three
separate units
Owner has one residential rental property in three
different cities/towns, with one in Scottsdale
Taxable due to having three units in
the State
Owner has a property manager taking care of renting their
one residential rental property in Scottsdale
Taxable due to the property
manager renting the property for
the owner. Property manager
would report on the owner’s license
*This is not an exhaustive list of scenarios.
Other cities and towns in Arizona may tax residential rentals differently. For additional
information on taxability for other cities/towns for residential rentals see:
https://azdor.gov/sites/default/files/media/TPT_2017_residentialrental-matrix.pdf