Qualified CPA Advice!

[Ryan Martin]

Hello All,

My name is Ryan and I've been running a STR on airbnb for about a year now. In Scottsdale and Arizona, you must file for a TPT license and file your state taxes monthly through the AZ Department of Revenue. I have read from others than you may not have to file monthly taxes if you work strictly through Airbnb or VRBO because taxes are paid through the platform on each booking.

1) Like to know if this is true and how to properly file my TPT license

and

2) If I do in fact need to file taxes with both the city and state monthly, can anyone recommend a good CPA out here? The firm I used last year was highly rated but sent me to a new associate who had less of an understanding of STR tax law than me and provided zero value and still cost me over $1,000 to file. In addition to annual tax filings I would be interested in bookkeeping to file the state taxes monthly as they require me to insert each individual expense for both city and state. It's time consuming.

Thank you for your help,

Ryan

[Sean O'Keefe]

@Ryan Martin

In addition to AZ State income taxes, there are at least 3 local taxes that you'll need to consider as a short-term rental owner: 

• Arizona Transaction Privilege Tax: 5.5% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Arizona Department of Revenue Transaction Privilege Tax website.
• County Excise Tax: The county excise tax rate varies by county. It is typically 0.28%-6.5% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Arizona Department of Revenue Transaction Privilege Tax website.
• Local Transient Occupancy Taxes: One or more of the following local transient occupancy taxes may apply: Transaction Privilege Tax, Transient Lodging Tax, Bed Tax, or Hotel-Motel Tax. The local transient occupancy tax rate varies by city. It is typically 1.5%-6.0% of the listing price including any cleaning fee for reservations 29 nights and shorter. Transaction Privilege Tax typically applies to all reservations, regardless of length of stay. For detailed information, visit the Arizona Department of Revenue Transaction Privilege Tax website.