As lawmakers return to Arizona Capitol, ending apartment rental tax becomes a bargaining chip

After Arizona Gov. Katie Hobbs vetoed a bill to eliminate rent tax in February, legislators revived it and passed it in June. They held onto it as part of negotiations to send Proposition 400, a renewal of the transit tax, to voters in 2024. This version of the bill holds off on ending the tax until January 2025. Throughout the state, 70 municipalities tax rent, including Phoenix and many other major Valley population centers.