Real Property Rentals

All Real Property Rentals in Fountain Hills are Taxable

  • Single Family Homes
  • Duplexes/Triplexes/Fourplexes
  • Apartments
  • Condominiums
  • Casitas/Rooms
  • Offices/Suites
  • Meeting Rooms
  • Commercial Buildings
  • Storage Facilities
  • Land 

Three main categories exist for property rentals:

  1. Long-Term Residential Rental
  2. Short-Term Residential/Vacation Rental
  3. Commercial Rental

Long-Term Residential Rentals

  • Rental/Lease periods of 30 days or longer

Step 1: Department of Revenue

All owners must have a valid Transaction Privilege Tax (TPT) license issued by the Department of Revenue (TPT Information & Application)

  • All payments by the Tenet or on behalf of the Landlord are taxable
  • TPT returns will be filed regularly using Region/City Code “FH” and Business Code “045” for Residential Rental
  • The current Residential Rental tax rate for Fountain Hills is 1.6%
  • The State and Maricopa County do not tax this rental activity

Step 2: Maricopa County

Property must be registered as a rental property with the Maricopa County Assessor’s Office (Maricopa County Rental Registration)

Step 3: Town of Fountain Hills

Property must be registered as a Long-Term Residential Rental with the Town of Fountain Hills (Fountain Hills Rental Registration)

  • No permit fee is required
  • No Business License is required
  • Property registration must be updated to Short-Term Residential/Vacation Rental before being advertised as available for rental periods of less than 30 days or be subject to penalties

Short-Term Residential/Vacation Rentals

  • Rental/Lease periods of less than 30 days
  • Considered as alternatives to Hotels/Motels but taxed in the same manner

Step 1: Department of Revenue

All owners must have a valid Transaction Privilege Tax (TPT) license issued by the Department of Revenue (TPT Information & Application)

  • Owners are still required to have a TPT license even if an Online Marketplace for Lodging (AirBnB, VRBO, HomeAway, etc.) is used
  • TPT will be reported using Region/City Code “FH” and Business Codes “044” for Hotels and “144” for Hotel/Motel Additional Tax
  • The current Hotel tax rate for Fountain Hills is 2.9%, and the current Additional Tax is 4.0%
  • The State and Maricopa County also tax this rental activity at a current combined rate of 7.27%
  • If an Online Marketplace for Lodging (OLM) is used, they should collect and remit rental taxes to the Department of Revenue on the owner’s behalf. However, the owner must still regularly file returns with the Department of Revenue and use Deduction Code “775” to report those payments made by the OLM.

Step 2: Maricopa County

Property must be registered as a rental property with the Maricopa County Assessor’s Office (Maricopa County Rental Registration)

Step 3: Town of Fountain Hills

Property must be registered as a Short-Term Residential/Vacation Rental with the Town of Fountain Hills (Fountain Hills Rental Registration)

  • An annual permit fee of $250 is required
  • No Business License is required
  • Subject to additional regulations as outlined in Town Code

Commercial Rentals

  • Rental/Lease of commercially zoned property for any length of time

Step 1: Department of Revenue

All owners must have a valid Transaction Privilege Tax (TPT) license issued by the Department of Revenue (TPT Information & Application)

  • TPT will be reported using Region/City Code “FH” and Business Codes “213” for Commercial Rental/Leasing/Licensing and “313” for Commercial Lease Additional Tax
  • The current Commercial Rental/Leasing/Licensing tax rate for Fountain Hills is 1.6%, and the current Commercial Lease Additional Tax is 1.3%
  • Maricopa County also taxes this rental activity at a rate of 0.5%

Step 2: Town of Fountain Hills

A Business License is required (Fountain Hills Business Licenses)

Additional Resources

Arizona Department of Revenue (azdor.gov)
1600 West Monroe Street
Phoenix, AZ 85007
(602) 255-3381

Maricopa County Assessor’s Office
301 West Jefferson Street
Phoenix, AZ 85003
(602) 506-3406