Chandler, AZ asked in Real Estate Law, Tax Law and Landlord - Tenant for Arizona

Q: My lease in Chandler, AZ says I have to pay a 2.5% tax, so if your rent is $1,000 per month, you will pay $25 tax

The issue is that the tax rate is 1.5% and the rental company takes the other 1% as an admin fee. They don’t disclose a monthly admin fee in the lease or tell you that the chandler tax is only 1.5%. I think this is deceptive but they are doing this to hundreds of renters. I’m also not sure what to claim on my federal tax since rental taxes are something I can itemize. Is there a case here? I’d not only like to stop paying the additional 1%, but I think they should refund all the tenants for this 1% fee disguised as a tax

1 Lawyer Answer
Peter H. Westby
Peter H. Westby
  • Landlord Tenant Lawyer
  • Scottsdale, AZ
  • Licensed in Arizona

A: If your landlord is overcharging for tax you might consider a complaint to the Arizona Department of Revenue, TPT, Division. This is something that the State of Arizona may investigate and pursue.

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