TOWN CLERK DEPARTMENT
1020 W. Palomino Road FAQ Sheet
Chino Valley, AZ 86323
Phone (928) 636-2646 RENTAL PROPERTY, TAXES,
Fax (928) 636-2144
www.chinoaz.net LICENSES & YOU
Do you own rental property in the Town of Chino Valley or engage in the commercial
boarding of pets or horses? If so, your rentals or busi ness activity may be subject to a tax. You may
also need a Chino Valley business license. Read below to find out more.
Under the C hino V alley Tax Code (S ection 8A- 445), the Tow n levies a “transactio n privilege tax”
(TPT) on some rental properties, and property owners of such properties need to obtain a TPT license from
the Arizona Department of Revenue, who collects the tax for the Town. Under the Chi no Valley Town Code
(Chapter 110), the Town also requires anyone engaging in a business activity to obtain a business license
from the Town. These two licenses are related, but they are separate from one another and serve different
purposes.
The Town’s rental ta x applies to apar tments, ho uses, trailer spaces, or other rental units that are
rented, leased, or licensed or available for rent, lease, or license. A single-family house constitutes one unit,
while a duplex is two units and a tri-plex is three units.
The Town’s rental tax is 3% on the g ross business receipts. Gross rent r eceipts include rent, late
fees, sewer-trash charge s, and non-r efundable d eposits. Re ceipts EXEMPT are those charges to patients
receiving “personal care” or “directed care” by any licensed assisted living facility, center, or home.
To determine if your rental pro perty or busines s activity is subject to the rental tax or busines s
licensing requirements, see the table below.
Exempt Subject
Your Property Rental(s) from Tax * to Tax **
You own 0 commercial rentals within the State of Arizona, and you own less
than 3 residential rentals within the State, and you handle your own X
residential rental transactions.
You own 0 commercial rentals within the State of Arizona, and you own less
than 3 residential rentals within the State, and a property manager handles X
your residential rental transactions.
You own 1 or more commercial rentals within the Town of Chino Valley. X
You own 1 or more commercial rentals anywhere within the State of Arizona
X
and you own any number of residential rentals within the Town limits.
You own 3 or more residential rentals anywhere within the State of Arizona. X
You rent any “low-income unit” as defined in IRS Code Section 42). X
You engage in commercial boarding of any pets and horses. X
* If your rentals are EXEMPT from the privilege tax, you do not need a town business license for that
activity.
** If your rentals are SUBJECT to the privilege tax, you do need a town business license.
If you need a privilege tax license (TPT), contac t the Arizona Department of Revenue at (602) 5 42-
4576 or (800) 634-6494, or you can apply online at www.aztaxes.gov. The Town’s Tax Code is also online
at http://www.chinoaz.net/clerk/taxcode/taxcode.shtml . If you need a business license, go to
http://www.chinoaz.net/general/forms.shtml or visit Town Hall at 1020 W. Palomino Road. If you still have
questions, contact the Chino Valley Finance Department at (928) 636-2646.