The State of Arizona does not apply state-level licenses or permits to vacation rentals. While Article 9 of the Arizona Statutes prevents Arizona cities and towns from prohibiting short term rentals, it allows them to require owners to obtain and maintain a local regulatory permit.
If a business is selling a product or engaging in a service subject to TPT, that business will likely need a license from the Arizona Department of Revenue (ADOR) and a TPT, or business/occupational license, from the city or cities in which the business has a base or operation.
Individual owners of taxable rental properties are required by law to obtain a TPT license with ADOR regardless if the owners rent the property themselves or employ a property management company (PMC). A license is only required for cities that impose a tax on residential rental activity.
If you own a property/building that you are renting out, you will need to obtain the state transaction privilege tax (TPT) license from AZDOR.
In order to be a landlord in Arizona, there are certain licenses and permits that you need to obtain. This includes a business license and a residential rental license from the City of Phoenix. These licenses are essential to ensure compliance with local regulations and to legally operate your rental property.
All owners of property engaging the service of a property management company (PMC) for short-term lodging or commercial rentals are required to obtain a TPT license. Owners of residential rental properties are not required to obtain a TPT license after January 1, 2025.
Residential rental property must be registered with the County Assessor ing to Arizona law (A.R.S. § 33-1902). The intent of this law is to maintain an accurate record of rental properties so that towns, cities and the county can enforce laws about slums and blight in rental properties.
Any business operating in Arizona (with taxable business activities) needs to register with the Arizona Department of Revenue (ADOR).