Gilbert, Arizona Short Term Rental Regulations

City Code of Ordinances

Short-term residential rental (STRs), often known as a vacation rental, is defined as the rental of rental properties for residential purposes by the same tenant at the time of the first reservation for less than 30 days.

STRs in the Town of Gilbert follows the passage of House Bill 2672, which led to certain modifications in the management of short-term residential rental properties that became effective on the 27th of August 2019.

Business License Requirements

For the Town of Gilbert, residential rental property owners must obtain and hold an Arizona Department of Revenue (AZDOR) transaction privilege taxes (TPT) license. The license must be kept in the owner's name, not that of a management company. As long as the legal entity of each property is the same, owners are permitted to list numerous residential rental properties around the state under a single TPT license.

The quickest way to complete the application is online at www.aztaxes.gov or via paper at www.azdor.gov in the Forms Category of the TPT area under Residential Rental Transaction Privilege Tax Application.

You must submit a paper application for your TPT license file if your primary address is outside the United States.

Building and Housing Standards

The Town of Gilbert has rules and regulations that follow the Land Development Code. Some rules and regulations that apply to residential and non-residential properties may apply to your listing. Please refer to Building Code and Site Regulation for more information.

Tourist and Local Taxes

Federal Rent Subsidies are taxable. Aside from the rent, the taxable income also comprises any payments made by the renter for:

• Utilities
• Pet Rent/Fees
• Telecommunications (phone, cable TV, and internet service)
• Non-refundable deposits
• Forfeited deposits
• Common area maintenance
• Landscape maintenance or pool service
• Homeowner association fees
• Late fees, court fees, and legal fees
• Repairs and/or improvements
• Owner's property taxes
• Owner's mortgages or home equity loans

Please visit GilbertAZ.gov/TaxCompliance and aztaxes.gov for more information.

Other Rules

For the Town of Gilbert, the transaction privilege tax is managed by the Arizona Department of Revenue (AZDOR). This implies that the AZDOR will handle the licensing, reporting, and payment of Town of Gilbert transaction privilege taxes (TPT) and distribute the applicable monies to the municipality. Understanding and abiding by the town's regulations and guidelines are also important. Visit the Town of Gilbert, Arizona website for more details.