Enforcement of Vacation and Short-Term Rentals

July 22, 2022

Enforcement of Vacation and Short-Term Rentals

Arizona Senate Bill 1168 – Chapter 343 was signed into law on July 06, 2022 by Governor Doug Ducey and will take effect on September 22, 2022. This legislation gives regulatory authority over short-term rental properties to local governments. In doing so, it requires owners to obtain necessary permits and/or licenses, limits the civil penalties imposed for verified violations, and allows the Arizona Department of Revenue (ADOR) to suspend an owner’s transaction privilege tax (TPT) license.

The Arizona State Senators that sponsored the legislation, J.D. Mesnard, R-Chandler, and Rep. Steve Kaiser, R-LD15, state that “it attempts to target irresponsible hosts while allowing Arizona’s short-term rental industry to continue to thrive.” Subsequently, this will “put a pause to misguided efforts to overregulate or outright ban short-term rentals in communities, which would threaten the state’s visitor economy and undermine Arizona’s record of supporting property rights.”

This law will accomplish these objectives through securities and consequences. It gives assurance that a local government is not permitted to restrict or regulate a vacation or short-term rental except to protect the public’s welfare or to enforce existing community ordinances related to noise, property maintenance, and a variety of other nuisances. There are provisions included within the law to deter poor behavior; after three verified violations, or even one very bad violation, an owner’s license can be suspended for up to one year.

Should you have questions, please contact PAAR’s Government Affairs Director at Loui@paar.org.