Phoenix Arizona

Rental tax change effective October 1

TEMPE, Ariz.- Effective Oct. 1, 2006, all residential rentals in Tempe
will be subject to the city’s 1.8 percent privilege (sales) tax ,
regardless of the number of units owned. Previously, the tax only
applied to an individual who owned two or more residential rental units
in Arizona with one of the rentals located in Tempe.

To help citizens understand this ordinance change, the Tax & License
Division will hold free, hour-long taxpayer information seminars in City
Council Chambers at Tempe City Hall, 31 E. Fifth St.:

* Aug. 9, from 10-11 a.m., 2-3 p.m. and 7-8 p.m.
* Sept. 13, from 10-11 a.m., 2-3 p.m. and 7-8 p.m.

This change is one out of the nine recommendations given to the City
Council by the Ad Hoc Rental Housing Task Force created in June 2005 to
develop new ideas to reduce the negative effects of rentals on
single-family neighborhoods.

For more information on this change, call 480-350-2955.