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No, the Crystal Lagoon project is not approved. The project is in its proposal stage awaiting the completion of a feasibility study, after which the study's findings will be presented to Town Council and the public.
It is anticipated that the feasibility studies will be completed sometime in October. Both firms will present their findings and recommendations to the Town Council at either a Council work session or a special session.
The feasibility study is being completed in partnership by Swaback Partners and Hunden Partners/Applied Economics with support from Crystal Lagoons.
Crystal Lagoons is the company that is providing technical details related to costs for a proposed swimming lagoon in Fountain Park. There is no cost to the town for technical information obtained from the company that will be used in the feasibility study.
Swaback Partners will help to identify programming needs of a swimming lagoon. The firm will also evaluate Fountain Park and potential locations for a possible lagoon. This will provide basic information such as the cost to build the facilities to support the lagoon. The firm will also provide conceptual renderings. The firm will be paid $20,000 for completing its scope of services.
Hunden Partners/Applied Economics will analyze the capital costs associated with building the lagoon. The firms will also estimate the cost of operating and maintaining the lagoon and related facilities expenses such as staffing, utilities, water, lagoon treatment, insurance, etc. The firms will also identify the various revenues that would be required to recover the cost of operations and maintenance of the lagoon and facilities. Hunden Partners will receive $18,800 for its services.
The Swaback Partners firm previously was contracted by the town to assist in developing a downtown plan for Fountain Hills. The plan was adopted by the Town Council in 2009. Swaback spent numerous hours in public involvement in the community and as part of the downtown plan, recognized the significance of Fountain Park and the downtown. Since Swaback was very familiar with Fountain Park, it made sense to contract with Swaback. The firm’s understanding of our downtown and park also meant we could expect a lower cost and quicker turnaround on a feasibility study.
Initially, the town made contact with Applied Economics to assist with identifying the costs and other fiscal impacts of the project. Applied Economics has an excellent reputation in the Valley for assisting cities in analyzing economic impacts of proposed public policies. Applied Economics ended up becoming a subconsultant to Hunden Partners on the lagoon project due to the fact that Hunden had more expertise if there were follow up work on the lagoon analyses relating to tourism impacts.
Crystal Lagoons is providing information to the consulting firms so the firms can properly cost out the excavation costs, capital costs, and water treatment costs for the proposed lagoon project.
Under the town code and procurement code, the town has the ability to identify and direct select certain types of consultants to provide professional services to the town. In the case of the feasibility studies in question, I informally requested the firms to submit proposals for a proposed lagoon project. Since I didn’t want to move forward on contracting with these firms until I had Council consensus on the proposed project, the proposed feasibility studies were brought up for discussion at the Council work session on this subject.
As was mentioned previously, Crystal Lagoons is providing information to the consulting firms so the firms can properly cost out the excavation costs, capital costs, and water treatment costs for the proposed lagoon project. While the information from Crystal Lagoons will be very helpful in the analyses required for the feasibility studies, there are other cost factors that will be examined such as the capital and operating costs for the beach and facilities, water, utilities, staffing, insurance, and other maintenance costs.
Even if this project were to proceed, it is not necessarily a foregone conclusion that Crystal Lagoons will receive the contract. Due to the anticipated size, scope, and dollar amount for the proposed project, it is conceivable that the project will be competitively bid. The Town Council could also determine that bidding out the project may not be in the best interests of the town because there may not be other companies with the expertise or background in building and maintaining such man-made beach and swimming lagoon facilities.
If the findings from the studies indicate that the lagoon project is not financially feasible for the town to undertake, then the project will go away. If the studies indicate that the lagoon is financially feasible, then the Town Council will need to make a decision if it wants to proceed with the project. If the Council wants to proceed, then there will need to be open houses and public hearings as the State Parks Department has indicated that the town will need to demonstrate community support before proceeding. This is due to the fact that the town applied for and expended Arizona Heritage Fund grants and federal grants to make improvements to Fountain Park. It is also anticipated that voters will have a say at the ballot box if the Town Council were to refer the proposed lagoon project to voters as a possible project to be financed by bonds.
If the Lagoon is approved, our Fountain is expected to remain intact. A barrier between the lagoon and the base of the fountain is intended to keep separation between the lake water and the lagoon. This barrier should maintain a safe distance between the Fountain and the edge of the Lagoon.
Class 3: Person lives full-time in his primary residence.Class 3: Person owns the home and a qualifying family member lives there.Class 4.1: Second home - Person lives somewhere else, but has a house here. Person either does not rent or rents part time.Class 4.2: Residential Rental property
Short-Term rental – rentals of less than 30 days – 13.87%
(Consisting of Fountain Hills 2.6%; Fountain Hills Transient/Bed Tax 4.0%; Maricopa County 7.27%)
Long-Term rental – rentals of 30 or more days – 1.6%
Step 1: Obtain a Transaction Privilege Tax (TPT) license with the Arizona Department of Revenue. If you have rental income, you must pay taxes on the rent to the Department of Revenue, who forwards the tax collected to the Town of Fountain Hills. Most property owners charge the tenant for the tax on the rental property.
The main phone line: (602) 255-3381
Information about Transaction Privilege Taxes on residential rentals (602) 716-7368
General questions about the process:
To download the residential rental application:
short-term (less than 30 days)
long-term (30 or more days)https://azdor.gov/forms/tpt-forms/residential-rentals-only-application
Once you have received your Transaction Privilege Tax license, the Department of Revenue will send you the forms you need to fill out with instructions. You may also file and pay taxes online. For more information, contact the Department of Revenue.
Step 2: Register as a Residential Rental with the Maricopa County Assessor's Office.
When you rent a residence in Maricopa County, you must register as Class 4.2 - Residential Rental.
Phone number: (602) 506-3406
Email address: email@example.com
Online: You can check to see if you are already registered as a class 4 Residential Rental by entering your address or assessor’s parcel number here: https://mcassessor.maricopa.gov/
General questions about the process: https://mcassessor.maricopa.gov/help/register-a-rental.php
To download the application: https://mcassessor.maricopa.gov/static/docs/Residential-Rental-Property-Registration.pdf
Step 3: Fill out the online form on the Town of Fountain Hills website
Go to https://www.fh.az.gov/rentalsPhone: (480) 397-2482Email: RentalTax@fh.az.gov
Once you begin paying taxes, you will be compliant with the Town of Fountain Hills. The Town of Fountain Hills will cease its efforts to ensure compliance if transaction privilege taxes are paid regularly.
The Town of Fountain Hills requires all rental properties to pay the rental tax. Please follow the steps to become compliant. The three steps are:
See FAQ “Three Things to Do to Become Compliant & Pay Taxes”.
All rental properties are required to pay the tax.
This is a sales tax on rental income similar to what you are charged on purchases at Target. If you are charging your tenant taxes on their rent, you just send in the tax they pay. If you do not charge your tenant tax, you will have to pay the taxes.
All rental properties are subject to the rental tax. If you charge your tenants the tax, you will not have to pay the tax from your own funds.
You pay the Arizona Department of Revenue. The Department of Revenue will forward the money to the Town of Fountain Hills.
You owe tax on all rental income.
You will need to call the Maricopa County Assessor’s Office and the Arizona Department of Revenue. The phone number for Maricopa County Assessor’s Office is (602) 506-3406 and the number for Arizona Department of Revenue is (602) 716-7368. Both agencies have people specifically dedicated for these questions.
Please provide us with the Transaction Privilege Tax license number by filling out the form online at https://www.fh.az.gov/rentals.
If they are a qualifying family member and are paying rent, taxes are still due. However, they can be classified by Maricopa County Assessor’s Office as a Primary Residence with a Qualified Family Member. Read more at this link https://mcassessor.maricopa.gov/faq/faq-rental-registration.php.
Please notify the Town by calling (480) 397-2482 or emailing at firstname.lastname@example.org. We will be unable to share their status with you, but the Town of Fountain Hills will follow up.
Go online to http://www.azdor.gov and apply for a license. Alternatively, you can print the online form, fill it out and mail it in. Make sure you enclose a check for the city fee per property and the state license fee, if appropriate.
Airbnb charges your renter and remits those taxes to the Arizona Department of Revenue on your behalf. However, you still must follow all the steps to become compliant. It is the property owner’s responsibility to report the taxes paid to the Arizona Department of Revenue on the Transaction Privilege Tax TPT-EZ or TPT-2 forms.
The Transaction Privilege Tax is self‐reporting. This means that you fill out the Transaction Privilege Tax form required by the Arizona Department of Revenue. This form helps you calculate your Transaction Privilege Taxes due. Once you calculate the correct taxes due, you will send payment to the Arizona Department of Revenue, who will forward to the Town of Fountain Hills. To start, first obtain a Transaction Privilege Tax license and the Arizona Department of Revenue will send the forms needed to begin reporting and paying taxes.
The Town of Fountain Hills requires all rental properties to pay the rental tax. You only pay taxes on rental income. Please obtain a Transaction Privilege Tax license while you wait for the property to be rented.
"Residential rental property" means property that is used as leased or rented property for residential purposes. However, it is better to register it this way now, since if you start renting it full time in the future, you may not remember to change your property class to a residential rental. There are stringent penalties for not registering your property correctly.
Please notify the Town so we can remove your name from our list of potential rental properties. The Town will first research why your name was put on the list. If an ad was placed for your property, your property address will stay in the database for one year, unless you are a new owner.
Please provide the Town with your information, specifically telephone number, email address, property address, full name, Assessor’s Parcel Number (APN) or parcel number, when last rented, your Transaction Privilege Tax license number, and if you are compliant with the Maricopa County Assessor’s Office (no longer a class 4.2). Upon verification, the Town will remove your property from our list of potential rental properties.
Please correct your address with Maricopa County Assessor’s Office. That Office is where we obtained your mailing address.
The properties for which you have not paid tax. Please provide all the property addresses and unit numbers of your rentals on the Town’s website at https://www.fh.az.gov/rentals.
Call the Arizona Department of Revenue at (602) 716-7368, who can assist you and explain the correct process.
You, as the property owner, still need to have a valid Transaction Privilege Tax license for each location you rent.
You are still ultimately responsible to ensure the Transaction Privilege Taxes are being paid. Call and confirm with your accountant to ensure that Transaction Privilege Taxes are being properly filed on your behalf.
One must file for and receive a Transaction Privilege Tax license. Then the Arizona Department of Revenue will send you the forms you need to report the income.
Yes, you must properly register your property with the county. You may call them at (602) 506-3406 or email at email@example.com. You may also print the form at https://mcassessor.maricopa.gov/static/docs/Residential-Rental-Property-Registration.pdf.
Tax is due on the gross rent. You need to obtain a Transaction Privilege Tax license. Once you have your Transaction Privilege Tax license, call the Town with Transaction Privilege Tax license number so we can update our records.
Please call the Arizona Department of Revenue (for Transaction Privilege Tax questions or filing taxes) at (602) 716-7368 or the Maricopa County Assessor’s Office (for classification as a rental) at (602) 506-3406. You may contact the Town and request to have forms, instructions, and links to more information emailed to you. The Town of Fountain Hills will be unable to provide tax advice.
Please insure that your property is correctly registered with the Maricopa County Assessor’s Office as a class 3 property. If you have questions of a complex nature regarding your potential rental property, ask the Arizona Department of Revenue.
Yes, unless you have some other identifying number you use while in the US.
The decision is yours. However, if you keep it and continue to rent, you will need to register the property and pay the taxes due.
We will mark you as “pending” in our database. Please advise the Town of the license number when you receive it.
Yes. Please contact the Maricopa County Assessor’s Office and the Arizona Department of Revenue for further information.
The Maricopa County Assessor’s Office shows the home as classified as a 4.2, a residential rental property. Please contact the Maricopa County Assessor’s Office to change the classification.
If your daughter is not paying rent, no Transaction Privilege Tax license is needed until rent is collected. The Maricopa County Assessor’s Office class should be Class 3 with a qualifying family member. This class can be changed with the Maricopa County Assessor’s Office.
Currently, VRBO (or other short-term rental company) only charges your renter and remits taxes on your behalf by agreement with you. Check with your short‐term rental company to see what your agreement is. The owner is responsible for ensuring that the proper taxes are paid. The owner also must have a Transaction Privilege Tax license and report at least annually. The Arizona Department of Revenue will tell you how often you should report. You may use the owner’s statement, provided by the short-term rental company, as proof of the payment of taxes when you file the return.
Yes. Do not complete the Fountain Hills online registration until you receive the Transaction Privilege Tax license from the Arizona Department of Revenue. You must obtain the Transaction Privilege Tax license from the Department of Revenue. It takes about 1‐2 weeks to receive the license.
Please call the Arizona Department of Revenue at (602) 716-7368 or the Maricopa County Assessor’s Office at (602) 506-3406.
Please contact the Arizona Department of Revenue at (602) 716-7368 or use this form https://azdor.gov/forms/tpt-forms/business-account-update.
Please complete the “Business Account Update” form from the Arizona Department of Revenue. You can make changes to your license on the form. The form is available at https://azdor.gov/forms/tpt-forms/business-account-update.
Yes. Both the Maricopa County Assessor’s Office and Town require the information so we can update our records.
Please register online with the Town at https://www.fh.az.gov/rentals and enter your Transaction Privilege Tax license number.
The Arizona Department of Revenue form will not take any date earlier that 1995. Just enter 1/1/1995 as the beginning rental date
If audited, you will need to obtain a Transaction Privilege Tax license and pay the back taxes. We would recommend that you do so now so that no penalties are assessed upon the audit.
You should classify the property properly with the Maricopa County Assessor’s Office based on how it will be used in the future. You should also obtain a Transaction Privilege Tax license and pay the appropriate back taxes.
The Town of Fountain Hills does not require a business license for a rental property, but the Arizona Department of Revenue requires that you have a Transaction Privilege Tax license. You do need to register the property with the Maricopa County Assessor’s Office.
You should also register the property correctly with the Maricopa County Assessor’s Office as a primary residence, class 3.
Please contact the Arizona Department of Revenue to find out how to report and pay back taxes.
The Town has had a residential rental tax since 2004. However, like you, many people were not aware of the law and the tax requirements.
You are named as a statutory agent for a neighbor/friend of yours. You need to remove your name as statutory agent with the Maricopa County Assessor’s Office.
Class 4 is a mixed class, probably a duplex, where he lives in one side, and rents the other side. You need to obtain a Transaction Privilege Tax license and register with the Maricopa County Assessor’s Office.
Assessor’s Parcel Number (APN) is the number that was assigned when Fountain Hills began as a community many years ago. You can find the parcel number for your property on the Assessor’s website at https://mcassessor.maricopa.gov/.
The Town saw your property for rent on a website, such as Zillow. You need to become compliant and let the Town of Fountain Hills know you are paying taxes.
Per the Maricopa County Assessor’s Office, a ‘qualified family member’ includes only:
No, only one Transaction Privilege Tax license is needed for each owner. However, each rental property will require a separate location under each Transaction Privilege License.
All payments are due by the 20th of the month following the end of the reporting period.
You will need to contact the Maricopa County Assessor’s Office. You may either call them at (602) 506-3406 or email at firstname.lastname@example.org.
Even if you had zero rental income, you are still required to file a return. On the return, you will indicate no activity for the reporting period by entering zero in the revenue column.
You will need to complete the Arizona Department of Revenue form 82179B – Taxpayer Notice of Claim – Real Property. Please contact the Department of Revenue at (602) 255-3381 if you have questions.
A letter needs to be sent to the Maricopa County Assessor’s Office explaining that you no longer have a rental property and want to change the classification of that property to a vacation home. A vacation home is not considered your primary residence.