FOR JANUARY 2025

The revisions to the Residential Lease Agreement were made in direct response to the repeal of the rental tax and the Agreement’s release date will match the repeal’s effective date of January 1, 2025.

Repealing the rental tax has been a legislative priority for the Arizona REALTORS® which successfully passed Senate Bill 1131 last legislative session.  Currently, Arizona is one of only two states that allow a rental tax on residential rental properties that averages $600 annually based on a $2,000/month lease.  It is a regressive tax on our state’s poorest citizens that inhibits their ability to save for a down payment towards purchasing a home and otherwise negatively impacts housing affordability.  Furthermore, the tax system used to report and collect the rental tax was inconsistent, error-prone, and confusing.  Arizona REALTOR® members who manage properties are ecstatic that they will no longer have to account for, or be blamed for, problematic tax payments.

In short, all mention of rental tax amounts, prorations and collections have been removed from the Agreement to comply with Arizona law.  Furthermore, the Risk Management Committee felt it important to notify landlords, tenants, and REALTORS® that 1) the rental tax had been repealed; 2) rental tax is still owed on short-term rentals; and 3) landlords are prohibited from charging or collecting any amounts attributable or traceable to the repealed rental tax.  Therefore, a new information box was inserted into the Residential Lease Agreement to prominently display the changes in Arizona law.

A redlined version of the revised Residential Lease Agreement can be found here.

Aaron M. Green, Esq., a licensed Arizona attorney, is the General Counsel for the Arizona Association of REALTORS®.  This article is of a general nature and reflects only the opinion of the author at the time it was drafted.  It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.

Prior Form Revisions

The Arizona REALTORS® strives to keep all its forms up to date as laws change or industry practice evolves.  Once released, the forms library contained on all of the Arizona REALTORS® forms licensing platforms are updated. 

Form updates are made to minimize your risks and ensure legal compliance. Don’t take a chance with outdated forms.  All prior Arizona REALTORS® form revisions (2014 – 2025) can be found at:  https://www.aaronline.com/2019/05/20/form-revision-updates/