Arizona, Maricopa County Airbnb Tax Collection and Remittance

[Rebecca362]

01/23/20

Airbnb collects and remits taxes in Phoenix, AZ (Maricopa County) and while they give some information, I can't get exact percentages.

Maricopa County charges 7.27% Transient lodging - 

https://azdor.gov/transaction-privilege-tax/tax-rate-table

Does anyone know the breakdown of the other taxes collected:? The ADOR website is not as helpful as one would like, and the reps are even less helpful. Any info that can be provided on the current taxes and % breakdown for Phoenix, AZ / Maricopa county would be greatly appreciated.

BTW here's the Airbnb verbiage: https://www.airbnb.com/help/article/2295/occupancy-tax-collection-and-remittance-by-airbnb-in-arizon...

State of Arizona

Guests who book Airbnb listings that are located in the State of Arizona will pay the following taxes as part of their reservation:

• Arizona Transaction Privilege Tax: 5.5% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Arizona Department of Revenue Transaction Privilege Tax website.
• County Excise Tax: The county excise tax rate varies by county. It is typically 0.28%-6.5% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Arizona Department of Revenue Transaction Privilege Tax website.
• Local Transient Occupancy Taxes: One or more of the following local transient occupancy taxes may apply: Transaction Privilege Tax, Transient Lodging Tax, Bed Tax, or Hotel-Motel Tax. The local transient occupancy tax rate varies by city. It is typically 1.5%-6.0% of the listing price including any cleaning fee for reservations 29 nights and shorter. Transaction Privilege Tax typically applies to all reservations, regardless of length of stay. For detailed information, visit the Arizona Department of Revenue Transaction Privilege Tax website.

[Rebecca362]

I've done some more digging and found out the following, as well as some helpful tools (as of 1/24/20):

1. To operate a rental you first need to get a Transaction Privilege Tax License. I was told by the AZ Dept of Revenue (ADOR) to check with each city to find out if this is needed, then I found an article that describes this information in much better detail: www.avalara.com/mylodgetax/en/blog/2019/06/new-arizona-law-requires-tax-license-number-to-be-include... 
2. What each County/City collects: to figure out what taxes need to be collected for a specific short term rental (note that it includes taxes for ALL types of categories in the drop-down menu - so you'll need to select rentals under 30 days), go this calculator and enter the address:  aztaxes.gov/Home/Address/
3. What Airbnb collects and remits: As I understand it, Airbnb collects and remits all state and local taxes, but you may still need to have your CPA file a form every quarter. I'm not a tax professional so please talk to your accountant/CPA for more. You can read more here: azdor.gov/transaction-privilege-tax/online-lodging-marketplace

I'm still educating myself, so if I learn more will post it it in this thread. 

[Rachel1941]

@Rebecca362 Thank you! This information is incredibly helpful! 

[Rachad5]

Hello, received a letter for AZDOR that I didn’t file TPT for 2024. Appreciate insights on what others are doing. I saw conversations from 2017 and one said they file as zero income due to Airbnb paying the taxes. Is there any more current info? If not, I plan to do the same. Appreciate any help!