WHAT IS TAXABLE
All amounts paid by the renter to or on
behalf of the owner are taxable.
In addition to rent, taxable income includes
payments made by the tenant for:
Telecommunications (cable TV,
phone and internet service)
Common area maintenance
Pool service or landscape
Homeowner association fees
Late fees, court fees and legal fees
Repairs and/or improvements
Owner’s property taxes
Owner’s mortgages or home equity
DEDUCTIONS FROM INCOME
The following items may be taken as a
deduction on your tax return when they are
included in the gross revenue.
City tax collected or factored into
Bad debts on which tax was paid on a
previous month’s return.
Refundable security deposits, unless
they are retained.
Utility charges if individual meters
have been installed and each tenant
pays the exact amount billed by a
Room charges to qualifying health
The following items are NOT
Payments made for repairs, pool
service, landscape maintenance or
other service labor.
Homeowner association fees.
The Model City Tax Code is available on the
Town of Gilbert website - www.ci.gilbert.az.us
Town of Gilbert
50 East Civic Center Drive
Gilbert, Arizona 85296
Most municipalities charge tax to the
owners of leased or rented property. The
following guidelines apply only to those
properties located within the boundaries of
the Town of Gilbert, Arizona.
Commercial property tax rate:
All leased or rented commercial properties
located within the Town of Gilbert are
taxable. There are no exceptions. Even if
you lease the pro