Key Takeaways

• Arizona Senate Bill 1131 eliminates tenant-paid rental taxes starting in 2025, reducing monthly housing costs for renters.
• The law requires landlords to pass the tax savings directly to tenants by lowering asking rents.
• The bill was initially vetoed but later revised and passed as part of broader negotiations over Proposition 400.
• Supporters view the law as needed relief amid rapidly rising rents and growing rent-burdened households.
• Opponents warn of significant municipal revenue losses and potential cuts to city services.