SB1131 is a bill that proposes significant changes to the taxation and regulation of residential rental properties in Arizona. The bill aims to prohibit cities, towns, and other taxing jurisdictions from levying taxes or fees on the business of renting or leasing real property for residential purposes, effective January 1, 2025. It also requires landlords to stop charging tenants the amount of the repealed transaction privilege tax (TPT) on residential rentals by the same date. In any legal challenge regarding the lawfulness of charges, the landlord bears the burden of proof to show that the charges are not related to the repealed TPT.

Additionally, the bill mandates the Arizona Department of Revenue (ADOR) to separately account for revenues collected from remote sellers and requires municipalities to use these funds for public safety purposes before any other municipal purpose. The bill also includes provisions for ADOR to notify TPT licensees about the upcoming changes and repeals the rent reduction requirement on January 1, 2027. The bill makes various technical and conforming changes, including adjustments to the language regarding public hearing notices and the removal of certain tax-related provisions. The bill's effective date is the general effective date, with some provisions having a delayed effective date.

Statutes affected:
Introduced Version: 20-1097.05
Senate Engrossed Version: 9-462.01
House Engrossed Version: 9-1304, 11-1704, 33-1314, 33-1332, 42-5029, 42-6004, 42-6011, 42-15103, 14-3911, 33-1370, 35-146, 35-147, 42-1116, 42-5014, 42-5070, 42-5010, 42-5155, 42-5010.01, 42-5061, 42-5164, 42-5205, 42-1118, 42-1254, 42-5030, 42-5030.01, 42-5031, 42-5032, 42-5032.01, 42-5032.02, 49-282, 17-273, 15-2084, 15-1648, 15-1472, 42-5031.01, 15-971, 2001-2002, 2002-2003, 2003-2004, 2004-2005, 2005-2006, 15-154, 15-154.01, 15-241, 43-1072.01, 15-977, 41-2257, 41-2258, 42-5033, 42-5033.01, 42-6010, 9-626, 41-194.01, 15-1402, 15-1403, 15-1409, 42-5073, 28-5201, 20-762, 28-1461, 28-1301, 41-1519, 42-5075, 32-101, 42-5001, 42-5063, 9-463.05, 11-1102, 28-9552, 28-9551, 28-9503, 28-9501, 44-1302, 9-505
Chaptered Version: 9-1304, 11-1704, 33-1314, 33-1332, 42-5029, 42-6004, 42-6011, 42-15103, 14-3911, 33-1370, 35-146, 35-147, 42-1116, 42-5014, 42-5070, 42-5010, 42-5155, 42-5010.01, 42-5061, 42-5164, 42-5205, 42-1118, 42-1254, 42-5030, 42-5030.01, 42-5031, 42-5032, 42-5032.01, 42-5032.02, 49-282, 17-273, 15-2084, 15-1648, 15-1472, 42-5031.01, 15-971, 2001-2002, 2002-2003, 2003-2004, 2004-2005, 2005-2006, 15-154, 15-154.01, 15-241, 43-1072.01, 15-977, 41-2257, 41-2258, 42-5033, 42-5033.01, 42-6010, 9-626, 41-194.01, 15-1402, 15-1403, 15-1409, 42-5073, 28-5201, 20-762, 28-1461, 28-1301, 41-1519, 42-5075, 32-101, 42-5001, 42-5063, 9-463.05, 11-1102, 28-9552, 28-9551, 28-9503, 28-9501, 44-1302, 9-505