You owe tax and are required to have a Transient Lodging Tax License [PDF] if you are:
- Operating a Hotel or Motel
- Leasing a vacation rental home, house, apartment, dwelling, or other lodging facility for less than 30 days
Transient lodging tax rate
|City of Mesa
||Business Code 44
|City of Mesa TLT
||Business Code 144
|State of Arizona
||Business Code 25
| Total TLT
The transient lodging tax rate is 5.0% 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.
Examples of hotel/motel income which is taxable includes, but is not limited to:
- Guest room charges
- Meeting/banquet room charges
- Food/beverage charges
- Movie charges
- Local telephone call charges
- Commissions received on vending machine income
See the Hotel/Motel Tax Brochure and the Arizona Tax Matrix for Hotel/Motel Lodging Industry for more information
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 5% Mesa Transient Lodging 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 Lodging 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 5% Mesa Transient Lodging Tax is applicable for the entire duration of the guest stay.
Brokers shall file a return and remit tax imposed on the activity on behalf of the principal. (Regulation 5-10-100.1)
The separate Mesa Transaction Privilege (Sales) Tax of 1.75% is applicable to all rental amounts regardless of the length of stay.