By Phil Riske | Managing Editor
(STATE CAPITOL) — A bill (S1072) that would require cities and towns to do away with sales taxes on rental properties moved through a House committee 6-2 late Monday with no debate. It had passed the Senate 26-3.
The bill is supported by the Arizona Association of Realtors and other housing and construction lobbies.
Dale Wiebusch of the Arizona League of Cities and Towns told the House County and Municipal Affairs Committee, however, the bill is unnecessary under rental control laws.
If enacted, the bill would be phased in beginning in 2019.
Meanwhile, the House Ways and Means Committee has narrowly advanced (5-4) a bill (HB2254) that would restrict a city, town or other taxing authority from leveling a tax or fee on the business of renting or leasing real property for residential purposes.
Cities say it will hurt their budgets and question whether landlords would actually refund the tax, which is included in monthly rent bills, to renters.
Maricopa Mayor Christian Price testified the tax is a necessity in his city.
The Multi-Housing Association, however, has testified the bill would eliminate double taxation, noting the owner’s property tax payment is folded into the monthly rent calculation.
Related: Mayors: Special-interest tax break harms cities, hurts public safety
