Overview: Are Short-Term Rentals Allowed in El Mirage, AZ?

Yes, short-term rentals are explicitly allowed in El Mirage, Arizona. Short-term rentals, defined as lodging rentals for stays of fewer than 30 days, are permitted under Arizona state law and are subject to both state transaction privilege tax (TPT) and applicable municipal requirements. However, El Mirage has limited city-specific STR regulations currently available, and operators must comply with state-level Arizona requirements and Maricopa County regulations.

How to Start a Short-Term Rental Business in El Mirage

Step 1: Obtain Required Licensing and Registration

State-Level Requirements (Mandatory):

• Register for an Arizona Transaction Privilege Tax (TPT) license through AZTaxes.gov
• Select the seasonal filing frequency option if operating seasonally
• The license remains active until cancelled
• Critical Requirement: Include your TPT license number on all advertising

County-Level Requirements (Mandatory):

• Register the property as a residential rental with the Maricopa County Assessor
• Failure to register may result in penalties and fines

City-Level Considerations:

• Contact the El Mirage Finance Department for any local business licensing requirements
• Verify if El Mirage has adopted any additional STR-specific ordinances (none currently identified in available city resources)

Step 2: Determine Your Business Structure

Direct Booking Operations:

• Use business code 025 to report lodging bookings for fewer than 30 days (state/county)
• Use business code 044 for city reporting (hotels classification)
• Use business code 144 if your city imposes additional hotel taxes

Online Lodging Marketplace (OLM) Operations:

• Report income using the same business codes as above
• Deduct 100% of income using deduction code 775 if 100% of bookings are through OLMs
• Obtain Form 5018 from the OLM confirming they collect and remit taxes
• Retain this form for your records as evidence of exempt transactions

Property Management Company (PMC) Operations:

• PMC can file returns and remit taxes on your behalf
• Each property requires separate licensing - multiple properties cannot be reported on the same return
• You remain ultimately liable for tax obligations

Required Documents, Permits, Licenses, and Guidelines

Essential Documentation:

State Tax Documentation:

• Arizona TPT License (obtained via AZTaxes.gov)
• Form 5018 (if using OLM for bookings)
• Business codes: 025 (state/county), 044 (city), 144 (additional hotel tax)
• Deduction code 775 (for OLM-facilitated bookings)

County Registration:

• Maricopa County Assessor residential rental registration
• Contact county assessor for specific registration requirements

City Requirements:

• Contact El Mirage Finance Department for business licensing requirements
• Building permits may be required for any property modifications
• Code compliance verification through El Mirage Development Services

Advertising Requirements:

• TPT license number must appear on all advertisements
• Ensure all marketing materials comply with state advertising requirements

Guidelines for Operations:

Taxable Income Definition: All income received in conjunction with property rental is taxable, including:

• Rental fees
• Security deposits (when non-refundable)
• Cancellation fees
• Housekeeping fees
• Any other charges to guests

Filing Requirements:

• File TPT returns even for periods with $0 income
• Register for e-file services at AZTaxes.gov for efficient filing
• Maintain detailed records of all income and expenses

Specific Regulations: City, County, and State Level

State of Arizona Regulations (A.R.S. § 42-5070)

Permitted Activities:

• Short-term rentals (less than 30 days) are explicitly allowed
• Subject to transient lodging classification and hotel classification under Model City Tax Code

Tax Obligations:

• State transaction privilege tax applies to all STR income
• Additional city hotel taxes may apply in certain municipalities
• Seasonal TPT licensing available for limited operation periods

Compliance Requirements:

• TPT license required before operating
• License number required on all advertisements
• Online marketplace reporting requirements (deduction code 775)
• Property management company registration requirements

Recent Legislative Changes:

• Senate Bill 1168 outlines additional STR regulations and civil penalties for violations

Maricopa County Requirements

County Assessor Registration:

• All residential rental properties must be registered with the county assessor
• Penalties and fines apply for unregistered properties
• Contact county assessor for registration procedures and requirements

El Mirage City Regulations

Current Status:

• No specific short-term rental ordinances found in available city resources
• Standard municipal business licensing requirements may apply
• Building safety and code compliance requirements are enforced
• Zoning compliance verified through Planning & Zoning Department

Key City Departments for STR Operators:

• Finance Department: Business licensing and tax information
• Development Services: Building permits and code compliance
• Planning & Zoning: Property use verification
• Code Compliance: Noise, parking, and nuisance regulations

Contact Information for Local Authorities

State of Arizona Department of Revenue

Primary STR Contact:

• Phone: (602) 716-RENT (7368)
• Email: [email protected]
• Website: azdor.gov
• Address: 1600 West Monroe Street, Phoenix, AZ 85007
• Online Portal: AZTaxes.gov (for license registration and filing)

El Mirage City Contacts

Finance Department (Business Licensing)

• Phone: (623) 973-2075 (main city line)
• Website: elmirageaz.gov
• Department: Finance/Business Licensing & Tax Information
• Address: City of El Mirage, 12145 N. Civic Center Plaza, El Mirage, AZ 85335

Development Services Department

• Phone: (623) 973-2075
• Services: Building permits, code compliance, inspections
• Website: elmirageaz.gov/194/Development-Services

Planning & Zoning Department

• Phone: (623) 973-2075
• Services: Zoning verification, land use compliance
• Website: elmirageaz.gov/217/Planning-Zoning

Maricopa County Assessor

• Phone: (602) 506-3406
• Website: maricopa.gov/assessor
• Services: Residential rental property registration

Links to Source Pages

Primary Regulatory Sources:

• Arizona Department of Revenue - Short-Term Lodging
• El Mirage City Website - Departments
• El Mirage Business Licensing Information
• El Mirage Code Compliance

Important State Resources:

• AZTaxes.gov Online Portal
• Arizona Transaction Privilege Tax Rate Table
• Senate Bill 1168 - STR Regulations

El Mirage Municipal Resources:

• El Mirage City Code Online
• El Mirage Building Permits & Inspections
• El Mirage Planning & Zoning

Important Notes for STR Investors

1. Regulatory Landscape: Arizona generally has investor-friendly STR regulations, but operators must ensure compliance with state TPT requirements and county registration mandates.

2. Market Position: El Mirage offers an affordable entry point into the Phoenix metropolitan rental market with strong appreciation potential and growing rental demand.

3. Professional Management: Consider engaging licensed property management companies familiar with Arizona STR regulations, particularly for handling tax filings and regulatory compliance.

4. Ongoing Monitoring: Stay informed about potential future municipal regulations, as cities throughout Arizona are increasingly adopting STR-specific ordinances.

5. Due Diligence: Always verify current requirements with local authorities before establishing operations, as regulations can change rapidly in this sector.

This guide provides a comprehensive foundation for STR investment in El Mirage, but investors should maintain direct contact with regulatory authorities for the most current requirements and any city-specific ordinances that may be adopted in the future.