Real Estate Rental

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Real Estate Rental Tax

Who Is Taxed?

Businesses that lease, license for use, or rent real property located within the City of Goodyear. Income from the rental of both Commercial and Residential properties is taxable.

Examples of taxable facilities include, but are not limited to:

  • office buildings
  • stores
  • factories
  • farm land
  • parking and storage facilities
  • banquet halls
  • meeting rooms
  • apartments
  • trailer parks
  • residences

Tax Rate on Real Property Rentals

The sales tax rate on real property rentals is 2.5% of gross income. In addition to a local sales tax, the City of Goodyear imposes a 2.5% Transient Lodging Tax (leasing to persons staying less than thirty days).

Procedures for Sales Tax Payment

The City of Goodyear is in the State collection system. Please apply for a City sales tax license through the Arizona Department of Revenue; then report and pay City sales tax on the state sales tax return under the city code GY000 (2.5%) and additionally GY003 (2.5%) for Transient Lodging Tax where applicable. A license application can be obtained by contacting the City of Goodyear, Finance Department or the Arizona Department of Revenue, License Department, 1600 W. Monroe, Phoenix, AZ 85007 602-542-2076, or by visiting the State's website.

Various Tax Situations

Income from Goodyear rental property is considered taxable if you currently receive rent for, or have available for rent within the State of Arizona:

  • Commercial Only - One or more commercial units
  • Residential Only - Two or more residential units*

*Unless managed by a property management group in which case all residential units (even one) are taxable.