As part of our Government Affairs program Capitol Consulting provides Government Relations and Advocacy for AZREIA and ARPOLA in Phoenix, Tucson, Scottsdale, Tempe, Glendale and Mesa.  There is never a shortage of issues at the Municipal level.  Mayor and Council typically meet every two weeks and take a month off during the summer.

Election Update

The following Cities have elections coming up this August with a run off in November if necessary:

  • Buckeye – 3 Open Council Seats
  • Chandler – Mayor and 3 Open City Council Seats
  • Glendale – 3 Open Council Seats
  • Litchfield Park – Mayor; 3 open City Council Seats
  • Mesa – 3 Open Council Seats
  • Peoria – Mayor; 3 open City Council Seats
  • Queen Creek – Mayor; 3 open City Council Seats
  • Scottsdale – 3 open City Council Seats

Sales Tax on Residential Rent Update

As many of you are already aware the City of Tempe voters enacted a sales tax increase on May 18th.  The new tax will go into effect on July 1 which means that tenants should have received notice of the new tax no later than June 1.  The new tax rate is 2% (increased from 1.8%).

The City of Gilbert also considered a sales tax increase on their May ballot but it failed to garner the support needed to pass.  The Town of Buckeye is now considering a sales tax increase to resolve budget deficits.  Buckeye has the ability to increase their sales tax with a simple majority of the Mayor and Council.  We anticipate a vote later this month, if you have property in Buckeye we urge you to contact the Mayor and Councilmembers and ask them to oppose the sales tax increase  – http://www.buckeyeaz.gov/index.aspx?nid=29.

The City of Phoenix is considering reducing their current exemption which they do not tax for 3 or fewer units.  The City Innovation Ad Hoc committee is currently considering this proposal.  AZREIA and ARPOLA will be opposing this proposal as you may have already seen an action alert on this subject.  We will keep you posted as the proposal progresses through the ordinance process.

Finally we hear that the City of Tucson will also consider imposing sales tax on rent if their sales tax increase fails at the ballot this fall.  City of Tucson is the largest City in Arizona to exempt sales tax on residential rentals.

Please see the current rent tax table at the end of this article for up to date information on the larger cities that impose sales tax on residential rentals.  Friendly reminder to make sure you have the proper transaction privilege tax license in these cites and you have registered each rental property with the County assessor.