Bill barring city residential rental tax passes state Senate

Published: Friday, February 10, 2023 - 5:05pm

A bill that bars cities from collecting taxes on residential rentals passed the state Senate on Thursday.

Bill sponsor Sen. Steve Kaiser (R-Phoenix) says the goal is to provide financial relief to working families. 

"Renters pay property taxes just like homeowners, but then 70 cities and towns have also decided to penalize a constituent just because they rent. And we know a lot of times rent is not a choice, it’s the only option," Kaiser said.  

Democratic Senator Mitzi Epstein (Tempe) opposed the measure because she worries renters won’t see the benefit if landlords raise prices to make up the difference.

She also worried it would hurt a source of revenue for cities.

The bill now needs House approval. 

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