AZ HB2026

Amends Arizona Revised Statutes section 42-6004 to prohibit cities and towns with populations over 100,000 in counties with populations over 500,000 from levying transaction privilege, sales, use, franchise or similar taxes on residential real property rentals and leases.

Requires cities and towns already levying such taxes on residential rentals as of January 1, 2016 to reduce the tax rate by 25% annually for four consecutive years beginning July 1, 2017.

Mandates complete repeal of any residential rental tax by June 30, 2020 for affected cities and towns.

Defines residential real property to include dwelling units, lodging facilities, and trailer or mobile home spaces leased for at least 30 consecutive days or intended as principal residence, but excludes health care facilities, long-term care facilities, and transient lodging businesses.

Applies retroactively from December 31, 2015.