Ducey signs new rules for Arizona short-term rental properties

Legislation recently signed by the governor allows cities in Arizona to set new rules for short-term rental properties.

PHOENIX — Governor Doug Ducey signed legislation that tries to curb short-term rentals that become a public nuisance in local communities.

Senate Bill 1168 allows local cities to set regulations on vacation properties rented through popular home-sharing services like Airbnb.

The bill requires owners of short-term rentals to obtain local licenses and permits.

These licenses may require landowners to provide cities with the following information:

  • Name, address, telephone number and email address of owner or owner’s agent
  • Address of vacation or short-term rental
  • Proof of compliance with transaction lien tax license.
  • Emergency contact details
  • Acknowledgment of an agreement to comply with all applicable laws, regulations and ordinances
  • Pay a fee not exceeding the actual cost of issuing the permit or $250, whichever is less.

RELATED: City of Scottsdale getting tough on short-term rental properties

SB 1168 further allows licenses to be suspended if a short-term hire has had at least three health and safety violations in a 12-month period.

Local governments may attempt to suspend a property’s license for a single violation if that violation involves a crime committed at the residence, a wrongful death occurring on the property, or if a host intentionally harbors a sex offender.

State Sen. JD Mesnard, R-Chandler, sponsored the legislation and said it attempts to target irresponsible hosts while allowing Arizona’s short-term rental industry to continue to thrive.

“This meaningful compromise will help end misguided efforts to over-regulate or outright ban short-term rentals in communities, which would threaten the state’s visitor economy and undermine Arizona’s balance sheet. when it comes to supporting property rights,” Mesnard said in a statement.

Airbnb says it generated about $87 million in taxes for Arizona between 2017 and 2020. The tech company says it supports the signed legislation.

“SB 1168 is proof that elected officials and community stakeholders can come together to craft fair and sensible short-term rental rules that address community concerns and preserve the economic benefits of short-term rentals,” said said John Choi, director of public policy at Airbnb.

RELATED: How Glendale’s New Short-Term Rental Rules Could Affect the 2023 Super Bowl

RELATED: Airbnb Takes Steps to Crack Down on Arizona Holiday Parties

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