Advocacy group the Arizona Tax Research Association wants lawmakers to clarify property classification to ensure proper taxation in the next legislative session.
Sean McCarthy, senior research analyst at The Arizona Tax Research Association (ATRA) thinks a clarification is needed on how property taxes should be administered depending on the home's usage.
"I think there's pretty substantial policy difference between somebody who might rent out their home for once a year during the Phoenix Open or a Super Bowl versus somebody who is doing it all the time with their, you know, three or four for houses that they own," McCarthy told KJZZ. "And so I think lawmakers can have to decide how they classify those properties."
McCarthy confirmed the ATRA has been engaged in conversations regarding taxation of short-term rentals and is available to help legislators sort out any details and provide guidance based on their expertise.
Regarding the state budget, McCarthy spoke about the importance of not over-committing to future expenditures despite a strong economy.
"The most important part of any legislative session is the state budget and passing a state budget that is prudent and takes into account the available revenues without going above and beyond what you'd expect, naturally." McCarthy said. "But, more importantly, not committing to too much ongoing spending, but trying to be prudent with the revenue growth that is there with a strong economy, and not over committing the state with too much ongoing spending."
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