Tempe Hotel Occupancy and Short-Term Rental Taxes

Taxation and Finance Arizona 4 Minutes Read ยท published February 20, 2026 Flag of Arizona

In Tempe, Arizona, hotel occupancy fees and short-term rental taxes apply to transient lodging providers and hosts who rent rooms or entire properties for short stays. This guide explains the local rules, registration and collection responsibilities, enforcement paths, and where to find the official city and state sources for rates and forms. Use the listed official pages to confirm current percentages, deadlines, and any local permit requirements before registering or collecting taxes.

Confirm classification and registration with both city and state sites before listing a short-term rental.

What is taxed and who pays

Tempe taxes transient lodging and similar accommodations that are sold for short-term stays. Typically the business or operator that provides the lodging is responsible for collecting and remitting the tax to the city and for any state transaction privilege tax (TPT) obligations. For the controlling municipal code and ordinance language see the Tempe Municipal Code (Municode) page Tempe Municipal Code[1] and the City of Tempe business tax and licensing pages City of Tempe - Business Tax & Licensing[2]. For Arizona TPT classification and state filing rules see the Arizona Department of Revenue pages for transaction privilege tax Arizona Department of Revenue - TPT[3].

Key compliance steps

  • Register for any required City of Tempe business tax account and license.
  • Determine whether transient lodging tax and state TPT apply to each listing you operate.
  • Collect tax from guests at the point of sale and maintain records of receipts and remittances.
  • File returns and remit payments by the City and State deadlines.

Penalties & Enforcement

Enforcement of occupancy fees and short-term rental taxes in Tempe is handled by the city finance or revenue division and code compliance units; state TPT enforcement is handled by the Arizona Department of Revenue. Specific monetary penalties, escalation schedules, and administrative hearing processes are located in the municipal code and official city guidance. If a specific fine amount or escalation matrix is not stated on the official page cited, the guide below notes that it is "not specified on the cited page" and points you to the municipal source for detail.[1]

  • Fine amounts: not specified on the cited page; consult the cited municipal code or business tax pages for exact figures.[1]
  • Escalation: first, repeat, or continuing offences and per-day continuing penalties are not specified on the cited city pages and must be confirmed in the municipal code or via the finance office.[1]
  • Non-monetary sanctions: administrative orders, stop-sale or cease-and-desist notices, permits suspension or revocation, and referral to municipal court may apply per city authority; specific remedies are described in the municipal code or enforcement procedures.
  • Enforcer and complaint pathway: City of Tempe Finance/Revenue and Code Compliance handle local enforcement; complaints and inquiries should be submitted through the City of Tempe business tax and licensing pages or Code Compliance contact points.[2]
  • Appeals and review: appeal routes and time limits for administrative decisions or fines are governed by the municipal code and administrative hearing rules; specific appeal periods are not specified on the cited pages and should be confirmed with the city finance or legal office.[1]
  • Defences and discretion: defenses such as valid permits, exemptions, or reasonable cause are evaluated under city rules; check the municipal code and any exemption clauses available on the official pages.
If you receive a notice, act promptly to request the prescribed appeal or hearing within the timeframe the notice specifies.

Applications & Forms

Available forms and applications: The City of Tempe publishes business tax registration, license application, and payment/filing portals on its Business Tax & Licensing page. Where the city does publish a named form or application number, use the city link above to download or submit online; if no specific form number appears on the cited page, state "not specified on the cited page." For state TPT registration and forms see the Arizona Department of Revenue site for registration and return filing.[2][3]

How-To

  1. Determine whether your rental is classified as "transient lodging" under the City of Tempe Municipal Code and the Arizona Department of Revenue TPT classifications.
  2. Register for a City of Tempe business tax or lodging account through the Business Tax & Licensing portal and obtain any required local permits.
  3. Register with the Arizona Department of Revenue for TPT (if applicable) and set up filing and payment schedules.
  4. Collect the correct occupancy and TPT amounts from guests, keep accurate records, and remit on time to both city and state.
  5. If audited or issued a notice, follow the city or state appeal procedures and provide requested records promptly.
Keep clear transaction records for at least the retention period the city or state requires.

FAQ

Who must collect Tempe hotel occupancy or short-term rental taxes?
Typically the operator or platform acting as the seller of lodging must collect and remit city occupancy taxes and state TPT if applicable; confirm status on the Tempe Business Tax & Licensing and Arizona Department of Revenue pages.[2][3]
What rates apply to Tempe short-term rentals?
Exact local transient lodging rates and any additional municipal fees must be confirmed on the municipal code or City of Tempe finance pages; the cited city pages should show current percentages or state "not specified on the cited page."[1]
How do I appeal a penalty or assessment?
Appeal procedures and deadlines are set out in the municipal code or the notice you receive; contact City of Tempe Finance or the administrative hearing office as directed on the notice for appeal instructions.[2]

Key Takeaways

  • Confirm classification and register with both City of Tempe and Arizona DOR before listing.
  • Collect taxes at point of sale and maintain clear records for audits.
  • Contact City of Tempe Finance or Code Compliance promptly if you receive a notice.

Help and Support / Resources

  1. [1] Tempe Municipal Code (Municode), City of Tempe
  2. [2] City of Tempe - Business Tax & Licensing
  3. [3] Arizona Department of Revenue - Transaction Privilege Tax

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