Residential Rental Tax and License
Hey all. I recently purchased a property in Phoenix and I'm a bit confused about the "Residential Rental Income Tax" and licensing requirements. We don't have this here in my local market. I looked through the treasurer's site and it says that all residential rental properties must pay a tax on the income but based on the licensing matrix, I don't need a residential rental license. So if I'm understanding this correctly, I owe 2.3% (?) of tax on the rental income but I don't require a license to operate? I've seen on other listings that the tenant pays the tax. Is this common practice?