The governor signed Senate Bill 1131 into law on Aug. 1, 2023. This bill will make residential rental non-taxable (business class 045) beginning Jan. 1, 2025. This bill does not apply to health care facilities, long-term care facilities, hotels, motels, short term rentals, or other transient lodging businesses.

The transition to centralized licensing, reporting and payment of Transaction Privilege (Sales) taxes to the Arizona Department of Revenue began with the January 2017 tax return. Contact the Arizona Department of Revenue for licensing, filing and payment of Transaction Privilege (sales) tax, including amounts owed to Scottsdale.

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Transaction Privilege (Sales) and Use Taxes

In order to engage or continue in business, a Transaction Privilege (Sales) Tax license is required. It is the business owner's responsibility to make an application and obtain a license with the Arizona Department of Revenue. Even if you have no income to report, you must write zero in the appropriate areas, then sign and submit your tax return.

Reporting & Payment Process

The online process is completed using the www.aztaxes.gov website.

Steps:

  1. Apply for a combined Arizona & Scottsdale sales tax license. Be sure to add Scottsdale as a Region Code (SC)
  2. File & pay sales tax. Be sure to file the return first, then pay the return.

Email sales tax questions or suggestions to Business Regulations.

Tax Refund Request

Effective July 1, 2019 the Arizona Department of Revenue administers all refund claims for Transaction Privilege (Sales) and Use Taxes for ALL taxing jurisdictions in Arizona. See the instructions at: https://azdor.gov/transaction-privilege-tax/tpt-refund for submitting a refund claim. All documents are to be returned solely to the Arizona Department of Revenue.

Claim of Exemption for Affiliated Party

As of July 1st, 2013 income derived from commercial leases between two businesses with at least 80% common ownership is exempt from transaction privilege tax. This applies to leases between affiliated companies, businesses, persons or reciprocal insurers if the lessor holds a controlling interest in the lessee or vice versa. If you have any questions concerning this exemption, please call the Business Services office at 480-312-2400.

Claim of Exemption Form (PDF)

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