Transient Occupancy Tax
This tax is imposed on the occupancy of space or
use of furnishings or other services or
accommodations in a hotel, motel, or any other
structure intended for occupancy by transients for
dwelling, lodging, or sleeping purposes for a period
of 29 consecutive calendar days or less.
Transient occupancy tax rate
The transient occupancy tax rate is 3.0% of the total amount charged for
occupancy of space including the use of furnishings. This tax is assessed
above and beyond the 1.75% transaction privilege tax. (Note: The
Transaction Privilege Tax rate increased from 1.5% to 1.75% effective 07/01/2006)
Occupancy for over 29 days
A transient is a person who obtains lodging for not more than 29 consecutive
days. Long term rentals of more than 29 days would not be subject to the 3% Mesa
Transient Occupancy Tax, if at the inception of the stay, your staff can
reasonably determine that the guest will remain more than 29 consecutive days.
In order for your staff to make this determination, the guest would either have
to prepay the entire rental charge for more than 29 days or sign a binding lease
covering a period of more than 29 consecutive days. If either the prepayment or
signing of a lease occurs, then the entire stay, including the first 29 days,
would be exempt from the Mesa Transient Occupancy Tax.
The fact that the guest may have
actually stayed more than 29 consecutive days is not
in itself sufficient to claim exemption from the
tax. As stated above, prepayment or a binding lease
must be present at the beginning of the stay.
Without such prepayment or lease, the 3% Mesa
Transient Occupancy Tax is applicable for the entire
duration of the guest stay. See the Arizona
Department of Revenue website at
http://www.revenue.state.az.us/ResearchStats/rulings/tpr94-5.htm
for the definition of “Transient”.
Please note that the separate
Mesa Transaction Privilege (Sales) Tax of 1.75% is
applicable to all rental amounts regardless of the
length of stay.
Go to Hotels & Motels for information about the
privilege license tax on hotels & motels.
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