Do short-term or vacation rental properties pay taxes?

Yes. All short-term and vacation rental properties in Paradise Valley are required to pay both Transaction Privilege (Sales) Tax and a Transient Tax (bed tax).   Property owners are responsible for obtaining a TPT license from the Arizona Department of Revenue.  Property owners who ONLY book through an Online Lodging Marketplace (OLM) (with applicable taxes paid by the OLM) must still file a tax return showing the gross receipts received from the OLM with a deduction equal to the amount received from the OLM.

The Arizona Department of Revenue (DOR) issues tax licenses and collects taxes on behalf of the Town. You may submit the license application online at: https://azdor.gov/transaction-privilege-tax/tpt-license/applying-tpt-license .   See also: https://azdor.gov/transaction-privilege-tax/residential-rental-guidelines 

In addition to completing a Transaction Privilege (Sales) Tax License, property owners must also register the rental property with the Maricopa County Assessor’s Office.


Show All Answers

1. What is short-term or vacation rental?
2. Are short-term or vacation rentals allowed in Paradise Valley?
3. Are short-term or vacation rentals allowed in every neighborhood?
4. May residential properties be rented for commercial events?
5. Do short-term or vacation rental properties pay taxes?