Arizona Attorney General Investigates Alleged Rental Tax Misconduct
In the wake of a new law abolishing rental tax levied by cities and towns, Arizona’s Attorney General, Kris Mayes, has initiated an inquiry into claims that some landlords might be charging tenants disguised fees. These fees reportedly mirror the now-banned rental tax.
Implemented on January 1st, the legislation backed by Republicans aims to relieve tenants of this financial burden. However, tenants have voiced concerns that their rental costs remain unaffected, suggesting landlords may have introduced equivalent new charges.
“We suspect that there is a lot more out there and this is probably just the tip of the iceberg, so my office is looking at this,” Mayes stated earlier this week. She further emphasized that landlords attempting to circumvent the law by introducing such fees would face legal action.
One notable case involves Tradelands LLC, a property management firm in Mesa. At their Madrid Courtyard Apartment complex, Mayes’ office discovered a new “administrative fee” that effectively replaced the erstwhile rental tax.
In a direct address to Tradelands, Senior Litigation Counsel Heather Hamel reiterated the unlawfulness of such practices, stating, “The AGO demands that you end this unlawful practice.” She clarified that any new fees must be legally incorporated into lease agreements with tenant approval.
Tradelands, in response, explained their position via email, asserting that their actions were not intended to breach the law. They pledged to remove the administrative fee and reimburse tenants who had already been charged.
According to the legislation, landlords bear the responsibility of proving that any new fees are not substitutes for the rental tax. Yet, the law does not specify penalties for those who might breach its provisions.
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