In the Town of Fountain Hills, a short term rental (STR) is a residence rented out for transient occupancy for less than 30 days. The following is a complete guideline for Fountain Hill’s short term rental regulations so that anyone can be a responsible host when using platforms like Airbnb, VRBO, and other similar services. This rundown should give you a good start in understanding your local laws.
All residential properties in Fountain Hills used as STRs must be registered as rentals with Maricopa County.
Residents leasing or renting property inside the Town must register their property and pay tax. Regardless of the number of rentals owned, all real estate rentals are subject to tax.
Short Term Residential Rentals
Fountain Hills’ short term rentals are guest stays for less than thirty consecutive days. Furthermore, they are dwelling units which are:
- Also known as Hotel/Motel and Transient Lodging.
- Taxable to the Town and County.
- Property Owners need to have their own TPT License.
- There is no need for a Business License
- Have a combined Tax Rate of 14.17%.
Some online listing platforms may report or/and pay on the property owner’s behalf. However, property owners should contact them first to see if they provide this service.
Short Term Rental Registration Steps
Fountain Hills requires all rental units to pay the rental tax. To become compliant, property owners must follow the steps below. The steps are as follows:
- Apply for a transaction privilege tax license with the Arizona Department of Revenue. Property owners may apply online at www.azdor.gov, phone at (602) 716-7368, or email at [email protected].
- Register the rental property with Maricopa County. https://mcassessor.maricopa.gov/static/docs/Residential-Rental-Property-Registration.pdf. (Not commercial properties).
- Register the property with the Town of Fountain Hills at https://www.fh.az.gov/rentals.
- File returns and pay transaction privilege tax when it is due on http://www.AZTaxes.gov.
Transaction Privilege Tax
The Arizona Department of Revenue administers the TPT (Transaction Privilege Tax) for the Town of Fountain Hills. Therefore, all property owners must report and pay the transaction privilege tax to the Department of Revenue. Taxes might be included in the overall price or invoiced separately to your renter. In case property owners use a property management company, they will still need their own tax license with the Department of Revenue.
Transient Occupancy Tax
Short term rentals are subject to a TOT (Transient Occupancy Tax) of 4% for the Town and 7.27% for the County.
Due Date
Tax reports and payments are due by the 20th of the month after the reporting period.
Note: The purchaser of rental property may be responsible for the taxes owed by the previous landlord.
Other Regulations
As a responsible host, you must comprehend and abide by other vacation rental rules and regulations that bind you. These include leases, community rules, HOA rules, or other guidelines set up by tenant associations. Feel free to reach out to your landlord, housing authority, or community council to find out more. To get more information about other short term rental regulations, you can also visit Fountain Hill’s official website or contact us.