Changes to Arizona Laws for Vacation and Short-term Rentals (HB 2672)

Changes to Arizona Laws for Vacation and Short-term Rentals

During the most recent legislative session, Gov. Doug Ducey signed a bill that directly impacts Arizona vacation and short-term rental property owners.? With the passage of House Bill 2672, there are now specific limits on vacation home use as well as newly added requirements. ?Here are some of the changes to the Arizona laws for vacation and short-term rentals.

Current Law ?

Until recently, Arizona homeowners using companies like VBRO, HomeAway, and Airbnb have been able to rent their properties to vacation and short-term guests with little local or state regulation. ?Currently, Arizona law prohibits a city or county from restricting the use of or regulating vacation or short-term rentals based on their classification, use or occupancy, except for: the protection of public health and safety; adopting and enforcing residential use and zoning ordinances, including ordinances related to noise, protection of welfare, property maintenance and other nuisance issues; and limiting the properties use for specific operations and purposes. However, outside of these prohibitions, local governments could do relatively little to restrict or limit property owners uses even when short-term and vacation rentals created tension between community residents and those seeking to generate revenue from their properties.

HB 2672

In response, the Legislature passed House Bill 2672 (HB 2672), which will go into effect later this summer, and makes numerous changes for vacation and short-term rentals including:

  • Prohibiting an online lodging operator, such as those using companies like Airbnb and VBRO, from renting out a property without a transaction privilege tax (TPT) license;
  • Creating civil penalties for verified violations relating to vacation or short-term rental uses;
  • Allowing local governments to require that vacation and short-term rental owners provide their contact information or that of their designee before offering the property for rent or renting it out;
  • Prohibiting owners from renting their properties for nonresidential purposes including for events which would ordinarily require a licensee or permit such as retail, restaurant, banquet space, or a similar use; and
  • Requiring local governments to notify the Arizona Department of Revenue within 30 days if the owner has a verified violation of a local ordinance, law, or regulation, and whether a penalty was assessed and the amount.

Attorney Laura B. Bramnick is an experienced Arizona real estate attorney who can help you manage your Arizona short-term and vacation rental issues.? If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona and throughout the state of Arizona, contact Laura B. Bramnick to schedule your consultation.


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