ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: GE DP 7-4-2-0

HB 2663: short-term rentals; vacation rentals; licensing

Sponsor: Representative Kavanagh, LD 23

Caucus & COW

Overview

Modifies statute relating to short-term and vacation rentals.

History

Current statute prohibits a city, town or county (local jurisdiction) from restricting the use of or regulating vacation or short-term rentals and owners (rental owner) based on their classification, use or occupancy. A local jurisdiction 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).

An online lodging operator, including a rental owner, may not offer for rent or rent a lodging accommodation without a current transaction privilege tax license (TPT). The TPT license number must be included on the advertisement for a vacation or short-term rental (A.R.S. § 42-5042).

Provisions

1. Stipulates that a local jurisdiction may limit the percentage of vacation or short-term rentals based on the total housing stock in that local jurisdiction. (Sec. 1, 2)

2. Authorizes a local jurisdiction to require the following from a rental owner:

a) To obtain a local regulatory permit or license before offering rentals and to provide proof of a valid TPT license; and

b) To require a minimum two nights' rental period. (Sec. 1, 2)

3. States that vacation and short-term rentals are not residential rental dwelling units and are subject to the rules adopted by the Arizona Department of Health Services pertaining to the health and safety of transient lodging. (Sec. 1, 2)

4. Modifies statutory language regarding verified violations resulting in civil penalties and requires the Arizona Department of Revenue to suspend the rental owner's TPT license for 12 months upon the rental owner receiving three verified violations within the same 24-month period. (Sec. 3, 4)

5. Modifies the definition of vacation rental or short-term rental to exclude a timeshare. (Sec. 1, 2)

6. Makes technical and conforming changes. (Sec. 1-4)

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10. HB 2663

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