Legally Speaking Q&A: Missed End of TPT Tax

Mark Zinman | Zona Law

Question: I just learned about the end of the TPT tax effective January 1, 2025. Unfortunately, I didn’t send out a notice to my tenants. What should I do?

Answer: Even if you didn’t send out a notice beforehand, you should immediately stop charging TPT Tax on your residential rentals. If you charged it this month already, you need to be sure you refund those amounts to your residents. It is less important whether you gave notice, and more important that you properly reduce the rent and remove the TPT tax. There are statutory penalties for failing to remove the tax.