A property management company is a business that acts on behalf of a property owner overseeing the operation and management of the owner’s rental properties. This may include filing returns and remitting applicable taxes to the Arizona Department of Revenue (ADOR).

One such tax, known as transaction privilege tax (TPT), is imposed when property owners are engaged in business under the residential rental classification by the Model City Tax Code. ADOR is responsible for collecting TPT for the municipalities that impose such a tax. (Property management companies and taxpayers can use the Residential Rental Licensing Matrix to determine if a city tax license is required.)

In the spirit of continuous improvement, ADOR is introducing upgraded features to assist property managers. The first enhancement is a newly created email address, PropertyManagementCompanies@azdor.gov, for use solely by those in the property management company industry. This email address will be monitored by agency subject matter experts from teams including License and Registration Penalty Review, and Taxpayer Information and Assistance. This email address will not be posted on ADOR’s website or on any printed resources so that the Department can ensure it is maintained for property management company use only. Property managers are therefore encouraged to share this newly created email address with others in the industry and send all property management related inquiries to: PropertyManagementCompanies@azdor.gov.

Please discontinue the use of the email address PMCData@azdor.gov as this email address will no longer be serviced.

The second enhancement is to the Department’s Interactive Voice Response (IVR) used by its call center staff. ADOR is adding specific prompts for the property management company industry. Through the upgrades in the IVR, when a property manager calls the Department and follows the appropriate prompts, they will be directed to a dedicated line staffed by members of the teams mentioned above. ADOR is working on implementing the IVR changes with a target implementation by the end of May.

Finally, ADOR has implemented a Reconciliation Template into www.AZTaxes.gov for use by property managers. A template can now be downloaded, completed, and saved to the property manager’s computer, then uploaded into AZTaxes.gov. A link has been added in AZTaxes.gov to the “File Residential Rentals Review and Submit  – Property Managers page” to provide property managers with a way to reconcile before submitting their returns. Once clicked, the link will generate a comma-separated values file (CSV file) containing the following information: license number; period end date; net taxable; city excess; state excess; state excess credit; account credit; and tax amount due. The property manager can download and convert this data into Excel format.  

The Arizona REALTORS® would like to thank ADOR Director Robert Woods, as well as ADOR Southern Regional Office Director Tamika Stallworth, for their hard work in implementing these important changes. Additional thanks to West and Southeast REALTORS® of the Valley Government Affairs Director, Liz Recchia, for her assistance throughout this process.

For additional information, property managers are encouraged to visit ADOR’s Property Management Company Resource Page.