Starting January 1, Arizona cities can no longer impose sales taxes on residential rentals, potentially reducing monthly payments for renters. While 75 of the 91 cities currently charge these taxes, the repeal will result in a collective loss of about $230 million annually for affected cities. Governor Hobbs initially vetoed the repeal but later approved it with provisions ensuring landlords must pass tax savings to tenants. The law includes measures to address concerns about lost city revenues and the impact on local budgets.
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