Out of State Landlord required to file Az Income Tax?

[freemkt]

Originally Posted by S. Chris Webb

Your rental property may also be subject to Transaction Privilege Tax, depending on the municipal juresdiction. By law, you must register your property as a rental with the county within ten days (assuming your rental is in Maricopa County) or be subject to fines. You must also have a statutory agent that resides within the state. Different cities have different rules on whether you must file TPT returns (monthly or quarterly). Check out the Arizona Department of Revenue's link.

I am not a lawyer or accountant. The above is not intended to be taken as legal or financial advice.

Okay, you're not a lawyer or accountant, but perhaps someone else here is.

I've seen this tax explicitly added to rent, e.g. $1000 per month plus 2.5% TPT; it's customarily added to rent the same way sales taxes are added at the register.

Can someone explain how this is not effectively a tax on renters, and in the context of a tax on renters, how is that fair? Shelter is generally regarded as a necessity, but in AZ it's a taxable privilege to rent shelter?

[CheyDee]

Originally Posted by freemkt

Okay, you're not a lawyer or accountant, but perhaps someone else here is.

I've seen this tax explicitly added to rent, e.g. $1000 per month plus 2.5% TPT; it's customarily added to rent the same way sales taxes are added at the register.

Can someone explain how this is not effectively a tax on renters, and in the context of a tax on renters, how is that fair? Shelter is generally regarded as a necessity, but in AZ it's a taxable privilege to rent shelter?

I'm neither an attorney nor accountant, but this may help explain it. Here is a snippet:

"Whether the property is residential or commercial, the actual owner of the property is responsible for the payment of all taxes due on the property--not the occupant of the property. On all lease agreements, the tax amount will be clearly stated if it is a part of the lease agreement. For instance, if the rent is $1000 a month, and there is a 2-percent rental sales tax, the tax due would be $20 a month. So, the landlord can either charge the occupant $1020 for rent, or waive the fee and pay it on his own to the city."

[Zippyman]

Originally Posted by freemkt

Okay, you're not a lawyer or accountant, but perhaps someone else here is.

I've seen this tax explicitly added to rent, e.g. $1000 per month plus 2.5% TPT; it's customarily added to rent the same way sales taxes are added at the register.

Can someone explain how this is not effectively a tax on renters, and in the context of a tax on renters, how is that fair? Shelter is generally regarded as a necessity, but in AZ it's a taxable privilege to rent shelter?

It is a tax on renters. Renters generally don't vote, so they're fair game to politicians looking for an easy budget fix. Landlords generally do vote, and large companies that own big complexes are represented by lobbyists, so the renter is the obvious target.

[stephen431]

Originally Posted by freemkt

Okay, you're not a lawyer or accountant, but perhaps someone else here is.

I've seen this tax explicitly added to rent, e.g. $1000 per month plus 2.5% TPT; it's customarily added to rent the same way sales taxes are added at the register.

Can someone explain how this is not effectively a tax on renters, and in the context of a tax on renters, how is that fair? Shelter is generally regarded as a necessity, but in AZ it's a taxable privilege to rent shelter?

The state isn't charging it. Cities are. I know Scottsdale charges a 1.65% TPT tax on residential rentals, and I believe Phoenix charges a residential rental TPT tax as well.

This is not income tax, it's Arizona's version of sales tax. Income tax will depend both on the tax laws where you earned the money, and where you reside.