AZ SB1116

Prohibits cities, towns, and taxing jurisdictions from levying transaction privilege, sales, or similar taxes on the business of renting or leasing real property for residential purposes, effective December 31, 2022, with exceptions for health care facilities, long-term care facilities, and transient lodging.

Requires property owners renting residential properties to reduce rent by January 1, 2023 by an amount equal to the eliminated transaction privilege tax on residential rent.

Amends residential rental property inspection program requirements for cities and counties, including notification procedures and prohibitions on licensing and registration requirements for rental properties.

Repeals section 42-6011 and modifies section 42-15103 to remove references to transaction privilege tax requirements on residential rent in county assessor notices.

Directs the Department of Revenue to notify residential rental transaction privilege tax licensees by October 31, 2022 that the tax will no longer be levied after December 31, 2022.