Without Arizona’s rental tax some cities face budget shortfalls [Video]

The lifting of the rental tax with the start of the new year is saving renters around $30 a month, while cities are needing to make up millions in their budget.

PHOENIX — The new year is bringing some slight relief for renters but headaches for cities as the residential rental tax was eliminated starting on the first of the year.

Phoenix’s residential rental tax rate had been set at 2.3%, while Mesa’s tax rate was set at 2%. Taking a median Maricopa County rent of about $1,500, and an average of 2% tax, the rental tax elimination is saving renters about $30 a month.

Valley renter Carmen Terrell with the Valley Tenants Union says she’s skeptical of the change.

“What else is going to be tacked on? Because at the end of the day, it’s just shifting to something else,” Terrell said.

The tax rate varies slightly among Arizona’s …