• Each city in Arizona has different rules about renting property and how rental tax is charged.apartment for rent image by dead_account from Fotolia.com
  
  The amount paid in rental sales tax is dependent on where the rental unit is located in the state of Arizona. Each city in Arizona has different laws and rates of sales tax that are required to be paid by a landlord. In most cases, renters will be unaware of any additional charges on their rental bill, as most landlords include these fees in the price of renting the unit. The sales tax ranges between 1 and 3 percent throughout the state.
  
  

Percentage

• Each city in Arizona has enacted a different rental sales tax percentage requirement for renters and landlords. It is important that both renters and landlords check with their local municipality to see the exact percentage that is necessary to be paid. In some cases, a landlord may need to own and be renting more than one, two or three units within that city in order to be required to pay this tax. However, in other cases, only one unit is required. In addition, some cities require that a commercial or business occupancy rental automatically be required to pay the tax, while in other cities, a commercial or business rental may be exempt.
  
  

Landlords & Tenants

• Property owners or landlords are responsible for paying the rental sales tax. Whether the property is residential or commercial, the actual owner of the property is responsible for the payment of all taxes due on the property--not the occupant of the property. On all lease agreements, the tax amount will be clearly stated if it is a part of the lease agreement. For instance, if the rent is $1000 a month, and there is a 2-percent rental sales tax, the tax due would be $20 a month. So, the landlord can either charge the occupant $1020 for rent, or waive the fee and pay it on his own to the city.
  
  

Residential vs. Commercial Real Estate

• Whether the property is a residential rental or commercial rental does not matter in terms of the percentage of the rental sales tax being levied. However, there are differences in each city regarding whether or not the tax needs to be paid based on the type of property being rented. For instance, in some cities, a commercial real estate landlord may need to own three or more units in order to be required to pay the tax. In other cities, residential property owners may need to be renting more than five units, such as in an apartment complex. It is important to check with the local municipality or tax assessor's office regarding the laws in each individual city.