For the past 2 years I have rented a single family home in the City of Chandler, AZ. My latest property manager asked me if I wanted to register with the City tax and license Division and said it was mandatory. I believe that I paid $17 to register with the city, and then the city sent me notice. The notice stated that Rental Properties in AZ are required to be registered with the County Assessor's office and asked me to provide a schedule listing total rents received by month for this unit for the last three years that I've owned the property. I'm assuming that they want to tax me on the rental income over the past 2 years.
The problem is that I have lost several 10's of thousands of dollars on this property and the cash flow is approx. $800 neg every month. Are they going to hit me up for 2 years worth of taxes on the rental income + interest/fees, etc for not registering this property? I have property in other areas of AZ and the taxes are for the state, not the city. How is this possible? Is there something that can be done about this robbery? Is this practice done in other states and is it legal?
The problem is that I have lost several 10's of thousands of dollars on this property and the cash flow is approx. $800 neg every month. Are they going to hit me up for 2 years worth of taxes on the rental income + interest/fees, etc for not registering this property? I have property in other areas of AZ and the taxes are for the state, not the city. How is this possible? Is there something that can be done about this robbery? Is this practice done in other states and is it legal?
