ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House: GE DPA 8-5-0-0

HB 2481: short-term rentals; enforcement; penalties

Sponsor:  Representative Kavanagh, LD 23

Caucus & COW

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.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes technical and conforming changes. (Sec. 1-5)

Amendments

Committee on Government & Elections

1.   Includes, in the allowance for a city, town or county to regulate a vacation or short-term rental, the following:

a)   Restricting vacation and short-term rentals to specific zoning districts;

b)   Requiring vacation or short-term rentals to obtain a variance or use permit;

c)   Adopting separation requirements; and

d)   Limiting the number of vacation or short-term rentals.

2.   Stipulates that a zoning ordinance may not have the effect of prohibiting all vacation or short-term rentals.

3.   Allows a city, town or county to regulate a vacation or short-term rental as follows, unless otherwise stated in the city or town code:

a)   To require a multiunit residential structure that is operated or owned by or on behalf of an online lodging marketplace to comply with building code requirements for a transient lodging structure if 50 percent or more of the units are rented or listed as vacation or short-term rentals;

b)   To restrict renting or listing a multiunit residential structure as a vacation or short-term rental units not more than 50 percent of the units of the multiunit residential structure; and

c)   To authorize more than 50 percent of the units of a multiunit residential structure to be rented or listed as a vacation or short-term rental within 12 months of completing construction of the multiunit residential property.

i.   Specifies that construction is complete upon issuance of a certificate of occupancy by the city or town unless a different time is specified in the city or town code.

4.   Defines building code.

5.   Makes technical and conforming changes.

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9.                     HB 2481

10.  Initials SJ  Page 0 Caucus & COW

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