MOHAVE COUNTY – The City of Kingman would like to remind everyone of a significant change in tax law impacting residential rental property owners and property management companies within city limits. Effective January 1, 2025, cities and towns across Arizona, including Kingman, will no longer collect Transaction Privilege Tax (TPT) on income derived from long-term residential rentals of 30 days or more. This change follows the passage of Senate Bill 1131 by the Arizona Legislature in 2023, which eliminated the authority of municipalities to impose this tax.
At the time of the bill’s passage, 75 cities and towns statewide collected residential rental TPT. The Arizona Department of Revenue (ADOR) has been working to notify property owners and management companies of these changes. Property owners who collected TPT for rental periods prior to January 1, 2025, must still remit those taxes in compliance with ADOR’s filing and payment requirements.
For those who are not engaged in any other taxable business activity and have been using business code 045 (rental of residential real property for 30 or more consecutive days), it is recommended to cancel your TPT license. This can be done by marking “Close Your Account” on www.AZTaxes.gov or selecting “Final Return” on Form TPT-EZ when submitting the final tax return of the year.
The City of Kingman encourages all residential rental property owners to ensure compliance with the new regulations and to complete any necessary steps before the new law takes effect. For more information on this change and frequently asked questions, please visit www.azdor.gov/business/residential-rental. If you need further assistance, please call the Finance Department or the Arizona Department of Revenue’s Customer Care line at (602) 255-3381.
