HB 2663
Initials SJ Page 1 Government & Elections
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
HB 2663: short-term rentals; vacation rentals; licensing
Sponsor: Representative Kavanagh, LD 23
Committee on Government & Elections
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)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note