City of Tempe News
New rental tax effective October 1, 2006 – REVISED
TEMPE, Ariz.- The City of Tempe will charge a 1.8 percent privilege
(sales) tax on all residential rental units within Tempe effective
October 1, 2006. 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 new ordinance, 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 and 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.
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