The following information is being provided in an effort to clear up any confusion over the upcoming tax change regarding Residential Rental.
Residential Rental tax will continue to be a taxable activity through 12/31/2024. The City of Prescott tax rate for Residential Rental (business code 045) is 2%. All owners of Residential Rental properties will continue to file their returns on the regular due dates as required for the 2023 calendar year.
There will be no change to the tax on Vacation rentals or Hotel, ‘short-term’ rentals less than 30 days. The City Transaction Privilege Tax (TPT) as well as the State TPT will remain the same for these activities operating in the City of Prescott. The current combined tax rate is 11.325%. The breakdown of the combined rate is below.
Business Codes & Tax Rate: Lodging -Hotels – City 044 = 2%, Transient Lodging – City 144 = 3%, Transient Lodging – State 025 = 6.325%. Total = 11.325%
Please contact City of Prescott Tax & Licensing at 928-777-1268 with any questions.
