Arizona renters see slight relief with lifting of rental tax, while cities face millions in budget impacts

PHOENIX – The new year is bringing some slight relief for renters but headaches for cities as the residential rental tax was eliminated starting on the first of the year. Phoenix’s residential rental tax rate had been set at 2.3%, while Mesa’s tax rate was set at 2%. Taking a median Maricopa County rent of about $1,500, and an average of 2% tax, the rental tax elimination is saving renters about $30 a month.

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