ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session

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HB 2481: short-term rentals; enforcement; penalties

Sponsor:  Representative Kavanagh, LD 23

Committee on Government & Elections

Overview

Makes various changes to statute relating to vacation and short-term rental properties.

History

The terms vacation and short-term rentals are defined in statute as any collectively or individually owned single or one-to-four-family house or dwelling unit that is also a transient public lodging establishment.  Vacation and short-term rentals do not include a unit that is used for any nonresidential use, including banquet space, retail, restaurant, event center or another similar use.

Current statute prohibits a city, town or county from restricting the use of or regulating vacation or short-term rentals based on their classification, use or occupancy.  A city, town or county is allowed to regulate vacation and short-term rentals for the following reasons:

1) Protecting the public's health and safety;

2) Adopting and enforcing residential use and zoning ordinances;

3) Limiting or prohibiting the use of a vacation or short-term rental for the purposes of housing sex offenders; and

4) Requiring the owner of a vacation or short-term rental to provide contact information for the owner or designee (A.R.S. §§ 9-500.39, 11-269.17).

Provisions

1. Allows a city, town or county to regulate a vacation or short-term rental as follows:

a) To adopt and enforce reasonable residential use and zoning ordinances;

b) To require the owner to license or register the vacation or short-term rental with the city, town or county; and

i. The city, town or county must report all verified violations of a licensed or registered vacation or short-term rental to the Arizona Department of Revenue.

c) To restrict the occupancy of a vacation or short-term rental to two adults per bedroom plus two additional adults or to the lesser of the occupancy limit of the city, town or county. (Sec. 1, 3)

2. Prohibits a vacation or short-term rental from advertising to exceed the occupancy limit of the dwelling for rental or any nonresidential use.

a) Specifies that a violation of the occupancy limit advertising is not a verified violation.

b) Allows a city, town or county to impose a civil penalty for each day the property is in violation. (Sec. 1, 3)

3. Maintains that a vacation or short-term rental is not subject to statute relating to residential rental inspection programs. (Sec. 1, 3)

4. Stipulates that a city, town or county may not regulate an online lodging marketplace. (Sec. 1, 3)

5. Designates a petty offense if an online lodging operator falsifies information to an online lodging marketplace. (Sec. 5)

6. States that a city, town or county may not prohibit the operation of a vacation or short-term rental based only on its status if the owner of the vacation or short-term rental has both of the following:

a) As of May 1, 2021, a valid transaction privilege tax license; and

b) As of June 2, 2021, provided the owner's or designee's contact information to the city, town or county where the vacation or short-term rental is located, if required by ordinance.

c) Specifies that the above requirements do not apply if the property changes title or ownership. (Sec. 6)

7. Adds a definition of online lodging marketplace. (Sec. 1, 3)

8. Modifies the definitions of vacation rental or short-term rental and residential rental dwelling unit. (Sec. 2, 4)

9. Makes technical and conforming changes. (Sec. 1-5)

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13.                   HB 2481

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