Arizona 2022 Regular Session

Arizona Senate Bill SCR1038 Compare Versions

Only one version of the bill is available at this time.

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1	1	REFERENCE TITLE: short-term rentals; vacation rentals. State of Arizona Senate Fifty-fifth Legislature Second Regular Session 2022 SCR 1038 Introduced by Senators Marsh: Alston, Bowie, Gabaldon, Gonzales, Otondo, Quezada, Steele, Tern; Representatives Jermaine, Longdon, Solorio A CONCURRENT RESOLUTION enacting and ordering the submission to the people of a measure relating to short-term and vacation rentals. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: short-term rentals; vacation rentals.
10	10	State of Arizona Senate Fifty-fifth Legislature Second Regular Session 2022
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12	12	Introduced by Senators Marsh: Alston, Bowie, Gabaldon, Gonzales, Otondo, Quezada, Steele, Tern; Representatives Jermaine, Longdon, Solorio
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14	14	REFERENCE TITLE: short-term rentals; vacation rentals.
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44	44	Senators Marsh: Alston, Bowie, Gabaldon, Gonzales, Otondo, Quezada, Steele, Tern; Representatives Jermaine, Longdon, Solorio
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50	50	A CONCURRENT RESOLUTION
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54	54	enacting and ordering the submission to the people of a measure relating to short-term and vacation rentals.
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64	64	Be it resolved by the Senate of the State of Arizona, the House of Representatives concurring: 1. Under the power of the referendum, as vested in the Legislature, the following measure, relating to short-term and vacation rentals, is enacted to become valid as a law if approved by the voters and on proclamation of the Governor: AN ACT repealing sections 9-500.39 and 11-269.17, ARIZONA REVISED STATUTES; amending sections 12-1134, 42-1125.02, 42-2003 and 42-5042, arizona revised statutes; RELATING TO short-term rentals and vacation rentals. Be it enacted by the Legislature of the State of Arizona: Section 1. Repeal Sections 9-500.39 and 11-269.17, Arizona Revised Statutes, are repealed. Sec. 2. Section 12-1134, Arizona Revised Statutes, is amended to read: START_STATUTE12-1134. Diminution in value; just compensation; exceptions; definitions A. If the existing rights to use, divide, sell or possess private real property are reduced by the enactment or applicability of any land use law enacted after the date the property is transferred to the owner and such action reduces the fair market value of the property, the owner is entitled to just compensation from this state or the political subdivision of this state that enacted the land use law. B. This section does not apply to land use laws that meet any of the following: 1. Limit or prohibit a use or division of real property for the protection of the public's health and safety, including rules and regulations relating to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, and pollution control. ; 2. Limit or prohibit the use or division of real property commonly and historically recognized as a public nuisance under common law. ; 3. Are required by federal law. ; 4. Limit or prohibit the use or division of a property for the purpose of housing sex offenders, selling illegal drugs, liquor control, or pornography, obscenity, nude or topless dancing, and other adult oriented businesses if the land use laws are consistent with the constitutions of this state and the United States. ; 5. Establish locations for utility facilities. ; 6. Do not directly regulate an owner's land. ; or 7. Were enacted before the effective date of this section December 7, 2006. 8. regulate a vacation rental or short-term rental. C. This state or the political subdivision of this state that enacted the land use law has the burden of demonstrating that the land use law is exempt pursuant to subsection B of this section. D. The owner shall not be required to first submit a land use application to remove, modify, vary or otherwise alter the application of the land use law to the owner's property as a prerequisite to demanding or receiving just compensation pursuant to this section. E. If a land use law continues to apply to private real property more than ninety days after the owner of the property makes a written demand in a specific amount for just compensation to this state or the political subdivision of this state that enacted the land use law, the owner has a cause of action for just compensation in a court in the county in which the property is located, unless this state or the political subdivision of this state and the owner reach an agreement on the amount of just compensation to be paid, or unless this state or the political subdivision of this state amends, or repeals, the land use law or issues to the landowner a binding waiver of enforcement of the land use law on the owner's specific parcel. F. Any demand for landowner relief or any waiver that is granted in lieu of compensation runs with the land. G. An action for just compensation based on diminution in value must be made or forever barred within three years of the effective date of the land use law, or of the first date the reduction of the existing rights to use, divide, sell or possess property applies to the owner's parcel, whichever is later. H. The remedy created by this section is in addition to any other remedy that is provided by the laws and constitution of this state or the United States and is not intended to modify or replace any other remedy. I. Nothing in This section prohibits does not prohibit this state or any political subdivision of this state from reaching an agreement with a private property owner to waive a claim for diminution in value regarding any proposed action by this state or a political subdivision of this state or action requested by the property owner. J. for the purposes of this section: 1. "TRANSIENT" HAS THE SAME MEANING PRESCRIBED IN SECTION 42-5070. 2. "VACATION RENTAL" OR "SHORT-TERM RENTAL": (a) MEANS ANY INDIVIDUALLY OR COLLECTIVELY OWNED SINGLE-FAMILY OR ONE-TO-FOUR-FAMILY HOUSE OR DWELLING UNIT OR ANY UNIT OR GROUP OF UNITS IN A CONDOMINIUM, COOPERATIVE OR TIMESHARE, THAT IS ALSO A TRANSIENT PUBLIC LODGING ESTABLISHMENT OR OWNER-OCCUPIED RESIDENTIAL HOME OFFERED FOR TRANSIENT USE IF THE ACCOMMODATIONS ARE NOT CLASSIFIED FOR PROPERTY TAXATION UNDER SECTION 42-12001. (b) Does nOT INCLUDE A UNIT THAT IS USED FOR ANY NONRESIDENTIAL USE, INCLUDING a RETAIL, RESTAURANT, BANQUET SPACE or EVENT CENTER use OR ANOTHER SIMILAR USE. END_STATUTE Sec. 3. Section 42-1125.02, Arizona Revised Statutes, is amended to read: START_STATUTE42-1125.02. Civil penalties; online lodging operators; definition A. An online lodging operator that fails to comply with section 42-5042 shall pay the following civil penalty: 1. For a first offense, $250. 2. For a second and any subsequent offense, $1,000. B. If an online lodging operator received a verified violation, the online lodging operator shall pay the following civil penalty: 1. For a first verified violation received for a property, either: (a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, $500. (b) If the city, town or county imposed a civil penalty on the online lodging operator for the verified violation, the difference between the amount prescribed in subdivision (a) of this paragraph and the amount of the civil penalty the city, town or county imposed on the online lodging operator for the verified violation. 2. For a second verified violation received on the same property within a twelve-month period, either: (a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, $1,000. (b) If the city, town or county imposed a civil penalty on the online lodging operator for the verified violation, the difference between the amount prescribed in subdivision (a) of this paragraph and the amount of the civil penalty the city, town or county imposed on the online lodging operator for the verified violation. 3. For a third and any subsequent verified violation received on the same property within the same twelve-month period, either: (a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, fifty percent of the gross monthly revenues of the lodging accommodation at which the violation occurred for the month in which the violation occurred or $1,500, whichever is greater. (b) If the city, town or county imposed a civil penalty on the online lodging operator for the verified violation, the difference between the amount prescribed in subdivision (a) of this paragraph and the amount of the civil penalty the city, town or county imposed on the online lodging operator for the verified violation. C. If the department imposes a civil penalty pursuant to subsection B, paragraph 1 of this section and the online lodging operator appeals the civil penalty, the hearing officer may waive or lower the civil penalty based on the online lodging operator's diligence in attempting to prohibit renters from violating state law or the city's or town's applicable laws, regulations or ordinances. In determining whether to waive or lower the civil penalty, the hearing officer shall consider both of the following: 1. Whether rules that prohibit activities violating state law or the city's or town's applicable laws, regulations or ordinances were included in the advertisement for the lodging accommodation, vacation rental or short-term rental. 2. Whether the rules described in paragraph 1 of this subsection were posted in a conspicuous location inside the lodging accommodation, vacation rental or short-term rental. D. B. For the purposes of this section, : 1. "Lodging accommodation" has the same meaning prescribed in section 42-5076. 2. "Online lodging marketplace" has the same meaning prescribed in section 42-5076. 3. "online lodging operator" has the same meaning prescribed in section 42-5076 and includes an owner of a vacation rental or short-term rental that is not offered through an online lodging marketplace. 4. "Vacation rental" and "short-term rental" have the same meanings prescribed in section 9-500.39 or 11-269.17. 5. "Verified violation" has the same meaning prescribed in section 9-500.39 or 11-269.17. END_STATUTE Sec. 4. Section 42-2003, Arizona Revised Statutes, is amended to read: START_STATUTE42-2003. Authorized disclosure of confidential information A. Confidential information relating to: 1. A taxpayer may be disclosed to the taxpayer, its successor in interest or a designee of the taxpayer who is authorized in writing by the taxpayer. A principal corporate officer of a parent corporation may execute a written authorization for a controlled subsidiary. 2. A corporate taxpayer may be disclosed to any principal officer, any person designated by a principal officer or any person designated in a resolution by the corporate board of directors or other similar governing body. If a corporate officer signs a statement under penalty of perjury representing that the officer is a principal officer, the department may rely on the statement until the statement is shown to be false. For the purposes of this paragraph, "principal officer" includes a chief executive officer, president, secretary, treasurer, vice president of tax, chief financial officer, chief operating officer or chief tax officer or any other corporate officer who has the authority to bind the taxpayer on matters related to state taxes. 3. A partnership may be disclosed to any partner of the partnership. This exception does not include disclosure of confidential information of a particular partner unless otherwise authorized. 4. A limited liability company may be disclosed to any member of the company or, if the company is manager-managed, to any manager. 5. An estate may be disclosed to the personal representative of the estate and to any heir, next of kin or beneficiary under the will of the decedent if the department finds that the heir, next of kin or beneficiary has a material interest that will be affected by the confidential information. 6. A trust may be disclosed to the trustee or trustees, jointly or separately, and to the grantor or any beneficiary of the trust if the department finds that the grantor or beneficiary has a material interest that will be affected by the confidential information. 7. A government entity may be disclosed to the head of the entity or a member of the governing board of the entity, or any employee of the entity who has been delegated the authorization in writing by the head of the entity or the governing board of the entity. 8. Any taxpayer may be disclosed if the taxpayer has waived any rights to confidentiality either in writing or on the record in any administrative or judicial proceeding. 9. The name and taxpayer identification numbers of persons issued direct payment permits may be publicly disclosed. 10. Any taxpayer may be disclosed during a meeting or telephone call if the taxpayer is present during the meeting or telephone call and authorizes the disclosure of confidential information. B. Confidential information may be disclosed to: 1. Any employee of the department whose official duties involve tax administration. 2. The office of the attorney general solely for its use in preparation for, or in an investigation that may result in, any proceeding involving tax administration before the department or any other agency or board of this state, or before any grand jury or any state or federal court. 3. The department of liquor licenses and control for its use in determining whether a spirituous liquor licensee has paid all transaction privilege taxes and affiliated excise taxes incurred as a result of the sale of spirituous liquor, as defined in section 4-101, at the licensed establishment and imposed on the licensed establishments by this state and its political subdivisions. 4. Other state tax officials whose official duties require the disclosure for proper tax administration purposes if the information is sought in connection with an investigation or any other proceeding conducted by the official. Any disclosure is limited to information of a taxpayer who is being investigated or who is a party to a proceeding conducted by the official. 5. The following agencies, officials and organizations, if they grant substantially similar privileges to the department for the type of information being sought, pursuant to statute and a written agreement between the department and the foreign country, agency, state, Indian tribe or organization: (a) The United States internal revenue service, alcohol and tobacco tax and trade bureau of the United States treasury, United States bureau of alcohol, tobacco, firearms and explosives of the United States department of justice, United States drug enforcement agency and federal bureau of investigation. (b) A state tax official of another state. (c) An organization of states, federation of tax administrators or multistate tax commission that operates an information exchange for tax administration purposes. (d) An agency, official or organization of a foreign country with responsibilities that are comparable to those listed in subdivision (a), (b) or (c) of this paragraph. (e) An agency, official or organization of an Indian tribal government with responsibilities comparable to the responsibilities of the agencies, officials or organizations identified in subdivision (a), (b) or (c) of this paragraph. 6. The auditor general, in connection with any audit of the department subject to the restrictions in section 42-2002, subsection D. 7. Any person to the extent necessary for effective tax administration in connection with: (a) The processing, storage, transmission, destruction and reproduction of the information. (b) The programming, maintenance, repair, testing and procurement of equipment for purposes of tax administration. (c) The collection of the taxpayer's civil liability. 8. The office of administrative hearings relating to taxes administered by the department pursuant to section 42-1101, but the department shall not disclose any confidential information without the taxpayer's written consent: (a) Regarding income tax or withholding tax. (b) On any tax issue relating to information associated with the reporting of income tax or withholding tax. 9. The United States treasury inspector general for tax administration for the purpose of reporting a violation of internal revenue code section 7213A (26 United States Code section 7213A), unauthorized inspection of returns or return information. 10. The financial management service of the United States treasury department for use in the treasury offset program. 11. The United States treasury department or its authorized agent for use in the state income tax levy program and in the electronic federal tax payment system. 12. The Arizona commerce authority for its use in: (a) Qualifying renewable energy operations for the tax incentives under section 42-12006. (b) Qualifying businesses with a qualified facility for income tax credits under sections 43-1083.03 and 43-1164.04. (c) Fulfilling its annual reporting responsibility pursuant to section 41-1511, subsections U and V and section 41-1512, subsections U and V. (d) Certifying computer data centers for tax relief under section 41-1519. 13. A prosecutor for purposes of section 32-1164, subsection C. 14. The office of the state fire marshal for use in determining compliance with and enforcing title 37, chapter 9, article 5. 15. The department of transportation for its use in administering taxes, surcharges and penalties prescribed by title 28. 16. The Arizona health care cost containment system administration for its use in administering nursing facility provider assessments. 17. The department of administration risk management division and the office of the attorney general if the information relates to a claim against this state pursuant to section 12-821.01 involving the department of revenue. 18. Another state agency if the taxpayer authorizes the disclosure of confidential information in writing, including an authorization that is part of an application form or other document submitted to the agency. 19. The department of economic security for its use in determining whether an employer has paid all amounts due under the unemployment insurance program pursuant to title 23, chapter 4. 20. The department of health services for its use in determining the following: (a) Whether a medical marijuana dispensary is in compliance with the tax requirements of chapter 5 of this title for the purposes of section 36-2806, subsection A. (b) Whether a marijuana establishment, marijuana testing facility or dual licensee licensed under title 36, chapter 28.2 is in compliance with the tax obligations under this title or title 43. C. Confidential information may be disclosed in any state or federal judicial or administrative proceeding pertaining to tax administration pursuant to the following conditions: 1. One or more of the following circumstances must apply: (a) The taxpayer is a party to the proceeding. (b) The proceeding arose out of, or in connection with, determining the taxpayer's civil or criminal liability, or the collection of the taxpayer's civil liability, with respect to any tax imposed under this title or title 43. (c) The treatment of an item reflected on the taxpayer's return is directly related to the resolution of an issue in the proceeding. (d) Return information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer and directly affects the resolution of an issue in the proceeding. 2. Confidential information may not be disclosed under this subsection if the disclosure is prohibited by section 42-2002, subsection C or D. D. Identity information may be disclosed for purposes of notifying persons entitled to tax refunds if the department is unable to locate the persons after reasonable effort. E. The department, on the request of any person, shall provide the names and addresses of bingo licensees as defined in section 5-401, verify whether or not a person has a privilege license and number, a tobacco product distributor's license and number or a withholding license and number or disclose the information to be posted on the department's website or otherwise publicly accessible pursuant to section 42-1124, subsection F and section 42-3401. F. A department employee, in connection with the official duties relating to any audit, collection activity or civil or criminal investigation, may disclose return information to the extent that disclosure is necessary to obtain information that is not otherwise reasonably available. These official duties include the correct determination of and liability for tax, the amount to be collected or the enforcement of other state tax revenue laws. G. Confidential information relating to transaction privilege tax, use tax, severance tax, jet fuel excise and use tax and any other tax collected by the department on behalf of any jurisdiction may be disclosed to any county, city or town tax official if the information relates to a taxpayer who is or may be taxable by a county, city or town or who may be subject to audit by the department pursuant to section 42-6002. Any taxpayer information that is released by the department to the county, city or town: 1. May be used only for internal purposes, including audits. If there is a legitimate business need relating to enforcing laws, regulations and ordinances pursuant to section 9-500.39 or 11-269.17, a county, city or town tax official may redisclose transaction privilege tax information relating to a vacation rental or short-term rental property owner or online lodging operator from the new license report and license update report, subject to the following: (a) The information redisclosed is limited to the following: (i) The transaction privilege tax license number. (ii) The type of organization or ownership of the business. (iii) The legal business name and doing business as name, if different from the legal name. (iv) The business mailing address, tax record physical location address, telephone number, email address and fax number. (v) The date the business started in this state, the business description and the North American industry classification system code. (vi) The name, address and telephone number for each owner, partner, corporate officer, member, managing member or official of the employing unit. (b) Redisclosure is limited to nonelected officials in other units within the county, city or town. The information may not be redisclosed to an elected official or the elected official's staff. (c) All redisclosures of confidential information made pursuant to this paragraph are subject to paragraph 2 of this subsection. 2. May not be disclosed to the public in any manner that does not comply with confidentiality standards established by the department. The county, city or town shall agree in writing with the department that any release of confidential information that violates the confidentiality standards adopted by the department will result in the immediate suspension of any rights of the county, city or town to receive taxpayer information under this subsection. H. The department may disclose statistical information gathered from confidential information if it does not disclose confidential information attributable to any one taxpayer. The department may disclose statistical information gathered from confidential information, even if it discloses confidential information attributable to a taxpayer, to: 1. The state treasurer in order to comply with the requirements of section 42-5029, subsection A, paragraph 3. 2. The joint legislative income tax credit review committee, the joint legislative budget committee staff and the legislative staff in order to comply with the requirements of section 43-221. I. The department may disclose the aggregate amounts of any tax credit, tax deduction or tax exemption enacted after January 1, 1994. Information subject to disclosure under this subsection shall not be disclosed if a taxpayer demonstrates to the department that such information would give an unfair advantage to competitors. J. Except as provided in section 42-2002, subsection C, confidential information, described in section 42-2001, paragraph 1, subdivision (a), item (ii), may be disclosed to law enforcement agencies for law enforcement purposes. K. The department may provide transaction privilege tax license information to property tax officials in a county for the purpose of identification and verification of the tax status of commercial property. L. The department may provide transaction privilege tax, luxury tax, use tax, property tax and severance tax information to the ombudsman-citizens aide pursuant to title 41, chapter 8, article 5. M. Except as provided in section 42-2002, subsection D, a court may order the department to disclose confidential information pertaining to a party to an action. An order shall be made only on a showing of good cause and that the party seeking the information has made demand on the taxpayer for the information. N. This section does not prohibit the disclosure by the department of any information or documents submitted to the department by a bingo licensee. Before disclosing the information, the department shall obtain the name and address of the person requesting the information. O. If the department is required or permitted to disclose confidential information, it may charge the person or agency requesting the information for the reasonable cost of its services. P. Except as provided in section 42-2002, subsection D, the department of revenue shall release confidential information as requested by the department of economic security pursuant to section 42-1122 or 46-291. Information disclosed under this subsection is limited to the same type of information that the United States internal revenue service is authorized to disclose under section 6103(l)(6) of the internal revenue code. Q. Except as provided in section 42-2002, subsection D, the department shall release confidential information as requested by the courts and clerks of the court pursuant to section 42-1122. R. To comply with the requirements of section 42-5031, the department may disclose to the state treasurer, to the county stadium district board of directors and to any city or town tax official that is part of the county stadium district confidential information attributable to a taxpayer's business activity conducted in the county stadium district. S. The department shall release to the attorney general confidential information as requested by the attorney general for purposes of determining compliance with or enforcing any of the following: 1. Any public health control law relating to tobacco sales as provided under title 36, chapter 6, article 14. 2. Any law relating to reduced cigarette ignition propensity standards as provided under title 37, chapter 9, article 5. 3. Sections 44-7101 and 44-7111, the master settlement agreement referred to in those sections and all agreements regarding disputes under the master settlement agreement. T. For proceedings before the department, the office of administrative hearings, the state board of tax appeals or any state or federal court involving penalties that were assessed against a return preparer, an electronic return preparer or a payroll service company pursuant to section 42-1103.02, 42-1125.01 or 43-419, confidential information may be disclosed only before the judge or administrative law judge adjudicating the proceeding, the parties to the proceeding and the parties' representatives in the proceeding prior to its introduction into evidence in the proceeding. The confidential information may be introduced as evidence in the proceeding only if the taxpayer's name, the names of any dependents listed on the return, all social security numbers, the taxpayer's address, the taxpayer's signature and any attachments containing any of the foregoing information are redacted and if either: 1. The treatment of an item reflected on such a return is or may be related to the resolution of an issue in the proceeding. 2. Such a return or the return information relates or may relate to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding. 3. The method of payment of the taxpayer's withholding tax liability or the method of filing the taxpayer's withholding tax return is an issue for the period. U. The department and attorney general may share the information specified in subsection S of this section with any of the following: 1. Federal, state or local agencies located in this state for the purposes of enforcement of the statutes or agreements specified in subsection S of this section or for the purposes of enforcement of corresponding laws of other states. 2. Indian tribes located in this state for the purposes of enforcement of the statutes or agreements specified in subsection S of this section. 3. A court, arbitrator, data clearinghouse or similar entity for the purpose of assessing compliance with or making calculations required by the master settlement agreement or agreements regarding disputes under the master settlement agreement, and with counsel for the parties or expert witnesses in any such proceeding, if the information otherwise remains confidential. V. The department may provide the name and address of qualifying hospitals and qualifying health care organizations, as defined in section 42-5001, to a business that is classified and reporting transaction privilege tax under the utilities classification. W. The department may disclose to an official of any city, town or county in a current agreement or considering a prospective agreement with the department as described in section 42-5032.02, subsection G any information relating to amounts that are subject to distribution and that are required by section 42-5032.02. Information disclosed by the department under this subsection: 1. May only be used by the city, town or county for internal purposes. 2. May not be disclosed to the public in any manner that does not comply with confidentiality standards established by the department. The city, town or county must agree with the department in writing that any release of confidential information that violates the confidentiality standards will result in the immediate suspension of any rights of the city, town or county to receive information under this subsection. X. Notwithstanding any other provision of this section, the department may not disclose information provided by an online lodging marketplace, as defined in section 42-5076, without the written consent of the online lodging marketplace, and the information may be disclosed only pursuant to subsection A, paragraphs 1 through 6, 8 and 10, subsection B, paragraphs 1, 2, 7 and 8 and subsections C, D and G of this section. Such information: 1. Is not subject to disclosure pursuant to title 39, relating to public records. 2. May not be disclosed to any agency of this state or of any county, city, town or other political subdivision of this state. END_STATUTE Sec. 5. Section 42-5042, Arizona Revised Statutes, is amended to read: START_STATUTE42-5042. Online lodging operators; requirements; definitions A. An online lodging operator may not offer for rent or rent a lodging accommodation without a current transaction privilege tax license. The online lodging operator shall list the transaction privilege tax license number on each advertisement for each lodging accommodation the online lodging operator maintains, including online lodging marketplace postings. B. For the purposes of this section: 1. "Lodging accommodation" has the same meaning prescribed in section 42-5076. 2. "Online lodging marketplace" has the same meaning prescribed in section 42-5076. 3. "Online lodging operator" has the same meaning prescribed in section 42-5076 and includes an owner of a vacation rental or short-term rental, as defined in section 9-500.39 or 11-269.17, that is not offered through an online lodging marketplace. END_STATUTE 2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article IV, part 1, section 1, Constitution of Arizona.
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66	66	Be it resolved by the Senate of the State of Arizona, the House of Representatives concurring:
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68	68	1. Under the power of the referendum, as vested in the Legislature, the following measure, relating to short-term and vacation rentals, is enacted to become valid as a law if approved by the voters and on proclamation of the Governor:
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70	70	AN ACT
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72	72	repealing sections 9-500.39 and 11-269.17, ARIZONA REVISED STATUTES; amending sections 12-1134, 42-1125.02, 42-2003 and 42-5042, arizona revised statutes; RELATING TO short-term rentals and vacation rentals.
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74	74	Be it enacted by the Legislature of the State of Arizona:
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76	76	Section 1. Repeal
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78	78	Sections 9-500.39 and 11-269.17, Arizona Revised Statutes, are repealed.
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80	80	Sec. 2. Section 12-1134, Arizona Revised Statutes, is amended to read:
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82	82	START_STATUTE12-1134. Diminution in value; just compensation; exceptions; definitions
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84	84	A. If the existing rights to use, divide, sell or possess private real property are reduced by the enactment or applicability of any land use law enacted after the date the property is transferred to the owner and such action reduces the fair market value of the property, the owner is entitled to just compensation from this state or the political subdivision of this state that enacted the land use law.
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86	86	B. This section does not apply to land use laws that meet any of the following:
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88	88	1. Limit or prohibit a use or division of real property for the protection of the public's health and safety, including rules and regulations relating to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, and pollution control. ;
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90	90	2. Limit or prohibit the use or division of real property commonly and historically recognized as a public nuisance under common law. ;
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92	92	3. Are required by federal law. ;
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94	94	4. Limit or prohibit the use or division of a property for the purpose of housing sex offenders, selling illegal drugs, liquor control, or pornography, obscenity, nude or topless dancing, and other adult oriented businesses if the land use laws are consistent with the constitutions of this state and the United States. ;
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96	96	5. Establish locations for utility facilities. ;
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98	98	6. Do not directly regulate an owner's land. ; or
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100	100	7. Were enacted before the effective date of this section December 7, 2006.
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102	102	8. regulate a vacation rental or short-term rental.
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104	104	C. This state or the political subdivision of this state that enacted the land use law has the burden of demonstrating that the land use law is exempt pursuant to subsection B of this section.
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106	106	D. The owner shall not be required to first submit a land use application to remove, modify, vary or otherwise alter the application of the land use law to the owner's property as a prerequisite to demanding or receiving just compensation pursuant to this section.
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108	108	E. If a land use law continues to apply to private real property more than ninety days after the owner of the property makes a written demand in a specific amount for just compensation to this state or the political subdivision of this state that enacted the land use law, the owner has a cause of action for just compensation in a court in the county in which the property is located, unless this state or the political subdivision of this state and the owner reach an agreement on the amount of just compensation to be paid, or unless this state or the political subdivision of this state amends, or repeals, the land use law or issues to the landowner a binding waiver of enforcement of the land use law on the owner's specific parcel.
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110	110	F. Any demand for landowner relief or any waiver that is granted in lieu of compensation runs with the land.
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112	112	G. An action for just compensation based on diminution in value must be made or forever barred within three years of the effective date of the land use law, or of the first date the reduction of the existing rights to use, divide, sell or possess property applies to the owner's parcel, whichever is later.
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114	114	H. The remedy created by this section is in addition to any other remedy that is provided by the laws and constitution of this state or the United States and is not intended to modify or replace any other remedy.
115	115
116	116	I. Nothing in This section prohibits does not prohibit this state or any political subdivision of this state from reaching an agreement with a private property owner to waive a claim for diminution in value regarding any proposed action by this state or a political subdivision of this state or action requested by the property owner.
117	117
118	118	J. for the purposes of this section:
119	119
120	120	1. "TRANSIENT" HAS THE SAME MEANING PRESCRIBED IN SECTION 42-5070.
121	121
122	122	2. "VACATION RENTAL" OR "SHORT-TERM RENTAL":
123	123
124	124	(a) MEANS ANY INDIVIDUALLY OR COLLECTIVELY OWNED SINGLE-FAMILY OR ONE-TO-FOUR-FAMILY HOUSE OR DWELLING UNIT OR ANY UNIT OR GROUP OF UNITS IN A CONDOMINIUM, COOPERATIVE OR TIMESHARE, THAT IS ALSO A TRANSIENT PUBLIC LODGING ESTABLISHMENT OR OWNER-OCCUPIED RESIDENTIAL HOME OFFERED FOR TRANSIENT USE IF THE ACCOMMODATIONS ARE NOT CLASSIFIED FOR PROPERTY TAXATION UNDER SECTION 42-12001.
125	125
126	126	(b) Does nOT INCLUDE A UNIT THAT IS USED FOR ANY NONRESIDENTIAL USE, INCLUDING a RETAIL, RESTAURANT, BANQUET SPACE or EVENT CENTER use OR ANOTHER SIMILAR USE. END_STATUTE
127	127
128	128	Sec. 3. Section 42-1125.02, Arizona Revised Statutes, is amended to read:
129	129
130	130	START_STATUTE42-1125.02. Civil penalties; online lodging operators; definition
131	131
132	132	A. An online lodging operator that fails to comply with section 42-5042 shall pay the following civil penalty:
133	133
134	134	1. For a first offense, $250.
135	135
136	136	2. For a second and any subsequent offense, $1,000.
137	137
138	138	B. If an online lodging operator received a verified violation, the online lodging operator shall pay the following civil penalty:
139	139
140	140	1. For a first verified violation received for a property, either:
141	141
142	142	(a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, $500.
143	143
144	144	(b) If the city, town or county imposed a civil penalty on the online lodging operator for the verified violation, the difference between the amount prescribed in subdivision (a) of this paragraph and the amount of the civil penalty the city, town or county imposed on the online lodging operator for the verified violation.
145	145
146	146	2. For a second verified violation received on the same property within a twelve-month period, either:
147	147
148	148	(a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, $1,000.
149	149
150	150	(b) If the city, town or county imposed a civil penalty on the online lodging operator for the verified violation, the difference between the amount prescribed in subdivision (a) of this paragraph and the amount of the civil penalty the city, town or county imposed on the online lodging operator for the verified violation.
151	151
152	152	3. For a third and any subsequent verified violation received on the same property within the same twelve-month period, either:
153	153
154	154	(a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, fifty percent of the gross monthly revenues of the lodging accommodation at which the violation occurred for the month in which the violation occurred or $1,500, whichever is greater.
155	155
156	156	(b) If the city, town or county imposed a civil penalty on the online lodging operator for the verified violation, the difference between the amount prescribed in subdivision (a) of this paragraph and the amount of the civil penalty the city, town or county imposed on the online lodging operator for the verified violation.
157	157
158	158	C. If the department imposes a civil penalty pursuant to subsection B, paragraph 1 of this section and the online lodging operator appeals the civil penalty, the hearing officer may waive or lower the civil penalty based on the online lodging operator's diligence in attempting to prohibit renters from violating state law or the city's or town's applicable laws, regulations or ordinances. In determining whether to waive or lower the civil penalty, the hearing officer shall consider both of the following:
159	159
160	160	1. Whether rules that prohibit activities violating state law or the city's or town's applicable laws, regulations or ordinances were included in the advertisement for the lodging accommodation, vacation rental or short-term rental.
161	161
162	162	2. Whether the rules described in paragraph 1 of this subsection were posted in a conspicuous location inside the lodging accommodation, vacation rental or short-term rental.
163	163
164	164	D. B. For the purposes of this section, :
165	165
166	166	1. "Lodging accommodation" has the same meaning prescribed in section 42-5076.
167	167
168	168	2. "Online lodging marketplace" has the same meaning prescribed in section 42-5076.
169	169
170	170	3. "online lodging operator" has the same meaning prescribed in section 42-5076 and includes an owner of a vacation rental or short-term rental that is not offered through an online lodging marketplace.
171	171
172	172	4. "Vacation rental" and "short-term rental" have the same meanings prescribed in section 9-500.39 or 11-269.17.
173	173
174	174	5. "Verified violation" has the same meaning prescribed in section 9-500.39 or 11-269.17. END_STATUTE
175	175
176	176	Sec. 4. Section 42-2003, Arizona Revised Statutes, is amended to read:
177	177
178	178	START_STATUTE42-2003. Authorized disclosure of confidential information
179	179
180	180	A. Confidential information relating to:
181	181
182	182	1. A taxpayer may be disclosed to the taxpayer, its successor in interest or a designee of the taxpayer who is authorized in writing by the taxpayer. A principal corporate officer of a parent corporation may execute a written authorization for a controlled subsidiary.
183	183
184	184	2. A corporate taxpayer may be disclosed to any principal officer, any person designated by a principal officer or any person designated in a resolution by the corporate board of directors or other similar governing body. If a corporate officer signs a statement under penalty of perjury representing that the officer is a principal officer, the department may rely on the statement until the statement is shown to be false. For the purposes of this paragraph, "principal officer" includes a chief executive officer, president, secretary, treasurer, vice president of tax, chief financial officer, chief operating officer or chief tax officer or any other corporate officer who has the authority to bind the taxpayer on matters related to state taxes.
185	185
186	186	3. A partnership may be disclosed to any partner of the partnership. This exception does not include disclosure of confidential information of a particular partner unless otherwise authorized.
187	187
188	188	4. A limited liability company may be disclosed to any member of the company or, if the company is manager-managed, to any manager.
189	189
190	190	5. An estate may be disclosed to the personal representative of the estate and to any heir, next of kin or beneficiary under the will of the decedent if the department finds that the heir, next of kin or beneficiary has a material interest that will be affected by the confidential information.
191	191
192	192	6. A trust may be disclosed to the trustee or trustees, jointly or separately, and to the grantor or any beneficiary of the trust if the department finds that the grantor or beneficiary has a material interest that will be affected by the confidential information.
193	193
194	194	7. A government entity may be disclosed to the head of the entity or a member of the governing board of the entity, or any employee of the entity who has been delegated the authorization in writing by the head of the entity or the governing board of the entity.
195	195
196	196	8. Any taxpayer may be disclosed if the taxpayer has waived any rights to confidentiality either in writing or on the record in any administrative or judicial proceeding.
197	197
198	198	9. The name and taxpayer identification numbers of persons issued direct payment permits may be publicly disclosed.
199	199
200	200	10. Any taxpayer may be disclosed during a meeting or telephone call if the taxpayer is present during the meeting or telephone call and authorizes the disclosure of confidential information.
201	201
202	202	B. Confidential information may be disclosed to:
203	203
204	204	1. Any employee of the department whose official duties involve tax administration.
205	205
206	206	2. The office of the attorney general solely for its use in preparation for, or in an investigation that may result in, any proceeding involving tax administration before the department or any other agency or board of this state, or before any grand jury or any state or federal court.
207	207
208	208	3. The department of liquor licenses and control for its use in determining whether a spirituous liquor licensee has paid all transaction privilege taxes and affiliated excise taxes incurred as a result of the sale of spirituous liquor, as defined in section 4-101, at the licensed establishment and imposed on the licensed establishments by this state and its political subdivisions.
209	209
210	210	4. Other state tax officials whose official duties require the disclosure for proper tax administration purposes if the information is sought in connection with an investigation or any other proceeding conducted by the official. Any disclosure is limited to information of a taxpayer who is being investigated or who is a party to a proceeding conducted by the official.
211	211
212	212	5. The following agencies, officials and organizations, if they grant substantially similar privileges to the department for the type of information being sought, pursuant to statute and a written agreement between the department and the foreign country, agency, state, Indian tribe or organization:
213	213
214	214	(a) The United States internal revenue service, alcohol and tobacco tax and trade bureau of the United States treasury, United States bureau of alcohol, tobacco, firearms and explosives of the United States department of justice, United States drug enforcement agency and federal bureau of investigation.
215	215
216	216	(b) A state tax official of another state.
217	217
218	218	(c) An organization of states, federation of tax administrators or multistate tax commission that operates an information exchange for tax administration purposes.
219	219
220	220	(d) An agency, official or organization of a foreign country with responsibilities that are comparable to those listed in subdivision (a), (b) or (c) of this paragraph.
221	221
222	222	(e) An agency, official or organization of an Indian tribal government with responsibilities comparable to the responsibilities of the agencies, officials or organizations identified in subdivision (a), (b) or (c) of this paragraph.
223	223
224	224	6. The auditor general, in connection with any audit of the department subject to the restrictions in section 42-2002, subsection D.
225	225
226	226	7. Any person to the extent necessary for effective tax administration in connection with:
227	227
228	228	(a) The processing, storage, transmission, destruction and reproduction of the information.
229	229
230	230	(b) The programming, maintenance, repair, testing and procurement of equipment for purposes of tax administration.
231	231
232	232	(c) The collection of the taxpayer's civil liability.
233	233
234	234	8. The office of administrative hearings relating to taxes administered by the department pursuant to section 42-1101, but the department shall not disclose any confidential information without the taxpayer's written consent:
235	235
236	236	(a) Regarding income tax or withholding tax.
237	237
238	238	(b) On any tax issue relating to information associated with the reporting of income tax or withholding tax.
239	239
240	240	9. The United States treasury inspector general for tax administration for the purpose of reporting a violation of internal revenue code section 7213A (26 United States Code section 7213A), unauthorized inspection of returns or return information.
241	241
242	242	10. The financial management service of the United States treasury department for use in the treasury offset program.
243	243
244	244	11. The United States treasury department or its authorized agent for use in the state income tax levy program and in the electronic federal tax payment system.
245	245
246	246	12. The Arizona commerce authority for its use in:
247	247
248	248	(a) Qualifying renewable energy operations for the tax incentives under section 42-12006.
249	249
250	250	(b) Qualifying businesses with a qualified facility for income tax credits under sections 43-1083.03 and 43-1164.04.
251	251
252	252	(c) Fulfilling its annual reporting responsibility pursuant to section 41-1511, subsections U and V and section 41-1512, subsections U and V.
253	253
254	254	(d) Certifying computer data centers for tax relief under section 41-1519.
255	255
256	256	13. A prosecutor for purposes of section 32-1164, subsection C.
257	257
258	258	14. The office of the state fire marshal for use in determining compliance with and enforcing title 37, chapter 9, article 5.
259	259
260	260	15. The department of transportation for its use in administering taxes, surcharges and penalties prescribed by title 28.
261	261
262	262	16. The Arizona health care cost containment system administration for its use in administering nursing facility provider assessments.
263	263
264	264	17. The department of administration risk management division and the office of the attorney general if the information relates to a claim against this state pursuant to section 12-821.01 involving the department of revenue.
265	265
266	266	18. Another state agency if the taxpayer authorizes the disclosure of confidential information in writing, including an authorization that is part of an application form or other document submitted to the agency.
267	267
268	268	19. The department of economic security for its use in determining whether an employer has paid all amounts due under the unemployment insurance program pursuant to title 23, chapter 4.
269	269
270	270	20. The department of health services for its use in determining the following:
271	271
272	272	(a) Whether a medical marijuana dispensary is in compliance with the tax requirements of chapter 5 of this title for the purposes of section 36-2806, subsection A.
273	273
274	274	(b) Whether a marijuana establishment, marijuana testing facility or dual licensee licensed under title 36, chapter 28.2 is in compliance with the tax obligations under this title or title 43.
275	275
276	276	C. Confidential information may be disclosed in any state or federal judicial or administrative proceeding pertaining to tax administration pursuant to the following conditions:
277	277
278	278	1. One or more of the following circumstances must apply:
279	279
280	280	(a) The taxpayer is a party to the proceeding.
281	281
282	282	(b) The proceeding arose out of, or in connection with, determining the taxpayer's civil or criminal liability, or the collection of the taxpayer's civil liability, with respect to any tax imposed under this title or title 43.
283	283
284	284	(c) The treatment of an item reflected on the taxpayer's return is directly related to the resolution of an issue in the proceeding.
285	285
286	286	(d) Return information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer and directly affects the resolution of an issue in the proceeding.
287	287
288	288	2. Confidential information may not be disclosed under this subsection if the disclosure is prohibited by section 42-2002, subsection C or D.
289	289
290	290	D. Identity information may be disclosed for purposes of notifying persons entitled to tax refunds if the department is unable to locate the persons after reasonable effort.
291	291
292	292	E. The department, on the request of any person, shall provide the names and addresses of bingo licensees as defined in section 5-401, verify whether or not a person has a privilege license and number, a tobacco product distributor's license and number or a withholding license and number or disclose the information to be posted on the department's website or otherwise publicly accessible pursuant to section 42-1124, subsection F and section 42-3401.
293	293
294	294	F. A department employee, in connection with the official duties relating to any audit, collection activity or civil or criminal investigation, may disclose return information to the extent that disclosure is necessary to obtain information that is not otherwise reasonably available. These official duties include the correct determination of and liability for tax, the amount to be collected or the enforcement of other state tax revenue laws.
295	295
296	296	G. Confidential information relating to transaction privilege tax, use tax, severance tax, jet fuel excise and use tax and any other tax collected by the department on behalf of any jurisdiction may be disclosed to any county, city or town tax official if the information relates to a taxpayer who is or may be taxable by a county, city or town or who may be subject to audit by the department pursuant to section 42-6002. Any taxpayer information that is released by the department to the county, city or town:
297	297
298	298	1. May be used only for internal purposes, including audits. If there is a legitimate business need relating to enforcing laws, regulations and ordinances pursuant to section 9-500.39 or 11-269.17, a county, city or town tax official may redisclose transaction privilege tax information relating to a vacation rental or short-term rental property owner or online lodging operator from the new license report and license update report, subject to the following:
299	299
300	300	(a) The information redisclosed is limited to the following:
301	301
302	302	(i) The transaction privilege tax license number.
303	303
304	304	(ii) The type of organization or ownership of the business.
305	305
306	306	(iii) The legal business name and doing business as name, if different from the legal name.
307	307
308	308	(iv) The business mailing address, tax record physical location address, telephone number, email address and fax number.
309	309
310	310	(v) The date the business started in this state, the business description and the North American industry classification system code.
311	311
312	312	(vi) The name, address and telephone number for each owner, partner, corporate officer, member, managing member or official of the employing unit.
313	313
314	314	(b) Redisclosure is limited to nonelected officials in other units within the county, city or town. The information may not be redisclosed to an elected official or the elected official's staff.
315	315
316	316	(c) All redisclosures of confidential information made pursuant to this paragraph are subject to paragraph 2 of this subsection.
317	317
318	318	2. May not be disclosed to the public in any manner that does not comply with confidentiality standards established by the department. The county, city or town shall agree in writing with the department that any release of confidential information that violates the confidentiality standards adopted by the department will result in the immediate suspension of any rights of the county, city or town to receive taxpayer information under this subsection.
319	319
320	320	H. The department may disclose statistical information gathered from confidential information if it does not disclose confidential information attributable to any one taxpayer. The department may disclose statistical information gathered from confidential information, even if it discloses confidential information attributable to a taxpayer, to:
321	321
322	322	1. The state treasurer in order to comply with the requirements of section 42-5029, subsection A, paragraph 3.
323	323
324	324	2. The joint legislative income tax credit review committee, the joint legislative budget committee staff and the legislative staff in order to comply with the requirements of section 43-221.
325	325
326	326	I. The department may disclose the aggregate amounts of any tax credit, tax deduction or tax exemption enacted after January 1, 1994. Information subject to disclosure under this subsection shall not be disclosed if a taxpayer demonstrates to the department that such information would give an unfair advantage to competitors.
327	327
328	328	J. Except as provided in section 42-2002, subsection C, confidential information, described in section 42-2001, paragraph 1, subdivision (a), item (ii), may be disclosed to law enforcement agencies for law enforcement purposes.
329	329
330	330	K. The department may provide transaction privilege tax license information to property tax officials in a county for the purpose of identification and verification of the tax status of commercial property.
331	331
332	332	L. The department may provide transaction privilege tax, luxury tax, use tax, property tax and severance tax information to the ombudsman-citizens aide pursuant to title 41, chapter 8, article 5.
333	333
334	334	M. Except as provided in section 42-2002, subsection D, a court may order the department to disclose confidential information pertaining to a party to an action. An order shall be made only on a showing of good cause and that the party seeking the information has made demand on the taxpayer for the information.
335	335
336	336	N. This section does not prohibit the disclosure by the department of any information or documents submitted to the department by a bingo licensee. Before disclosing the information, the department shall obtain the name and address of the person requesting the information.
337	337
338	338	O. If the department is required or permitted to disclose confidential information, it may charge the person or agency requesting the information for the reasonable cost of its services.
339	339
340	340	P. Except as provided in section 42-2002, subsection D, the department of revenue shall release confidential information as requested by the department of economic security pursuant to section 42-1122 or 46-291. Information disclosed under this subsection is limited to the same type of information that the United States internal revenue service is authorized to disclose under section 6103(l)(6) of the internal revenue code.
341	341
342	342	Q. Except as provided in section 42-2002, subsection D, the department shall release confidential information as requested by the courts and clerks of the court pursuant to section 42-1122.
343	343
344	344	R. To comply with the requirements of section 42-5031, the department may disclose to the state treasurer, to the county stadium district board of directors and to any city or town tax official that is part of the county stadium district confidential information attributable to a taxpayer's business activity conducted in the county stadium district.
345	345
346	346	S. The department shall release to the attorney general confidential information as requested by the attorney general for purposes of determining compliance with or enforcing any of the following:
347	347
348	348	1. Any public health control law relating to tobacco sales as provided under title 36, chapter 6, article 14.
349	349
350	350	2. Any law relating to reduced cigarette ignition propensity standards as provided under title 37, chapter 9, article 5.
351	351
352	352	3. Sections 44-7101 and 44-7111, the master settlement agreement referred to in those sections and all agreements regarding disputes under the master settlement agreement.
353	353
354	354	T. For proceedings before the department, the office of administrative hearings, the state board of tax appeals or any state or federal court involving penalties that were assessed against a return preparer, an electronic return preparer or a payroll service company pursuant to section 42-1103.02, 42-1125.01 or 43-419, confidential information may be disclosed only before the judge or administrative law judge adjudicating the proceeding, the parties to the proceeding and the parties' representatives in the proceeding prior to its introduction into evidence in the proceeding. The confidential information may be introduced as evidence in the proceeding only if the taxpayer's name, the names of any dependents listed on the return, all social security numbers, the taxpayer's address, the taxpayer's signature and any attachments containing any of the foregoing information are redacted and if either:
355	355
356	356	1. The treatment of an item reflected on such a return is or may be related to the resolution of an issue in the proceeding.
357	357
358	358	2. Such a return or the return information relates or may relate to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding.
359	359
360	360	3. The method of payment of the taxpayer's withholding tax liability or the method of filing the taxpayer's withholding tax return is an issue for the period.
361	361
362	362	U. The department and attorney general may share the information specified in subsection S of this section with any of the following:
363	363
364	364	1. Federal, state or local agencies located in this state for the purposes of enforcement of the statutes or agreements specified in subsection S of this section or for the purposes of enforcement of corresponding laws of other states.
365	365
366	366	2. Indian tribes located in this state for the purposes of enforcement of the statutes or agreements specified in subsection S of this section.
367	367
368	368	3. A court, arbitrator, data clearinghouse or similar entity for the purpose of assessing compliance with or making calculations required by the master settlement agreement or agreements regarding disputes under the master settlement agreement, and with counsel for the parties or expert witnesses in any such proceeding, if the information otherwise remains confidential.
369	369
370	370	V. The department may provide the name and address of qualifying hospitals and qualifying health care organizations, as defined in section 42-5001, to a business that is classified and reporting transaction privilege tax under the utilities classification.
371	371
372	372	W. The department may disclose to an official of any city, town or county in a current agreement or considering a prospective agreement with the department as described in section 42-5032.02, subsection G any information relating to amounts that are subject to distribution and that are required by section 42-5032.02. Information disclosed by the department under this subsection:
373	373
374	374	1. May only be used by the city, town or county for internal purposes.
375	375
376	376	2. May not be disclosed to the public in any manner that does not comply with confidentiality standards established by the department. The city, town or county must agree with the department in writing that any release of confidential information that violates the confidentiality standards will result in the immediate suspension of any rights of the city, town or county to receive information under this subsection.
377	377
378	378	X. Notwithstanding any other provision of this section, the department may not disclose information provided by an online lodging marketplace, as defined in section 42-5076, without the written consent of the online lodging marketplace, and the information may be disclosed only pursuant to subsection A, paragraphs 1 through 6, 8 and 10, subsection B, paragraphs 1, 2, 7 and 8 and subsections C, D and G of this section. Such information:
379	379
380	380	1. Is not subject to disclosure pursuant to title 39, relating to public records.
381	381
382	382	2. May not be disclosed to any agency of this state or of any county, city, town or other political subdivision of this state. END_STATUTE
383	383
384	384	Sec. 5. Section 42-5042, Arizona Revised Statutes, is amended to read:
385	385
386	386	START_STATUTE42-5042. Online lodging operators; requirements; definitions
387	387
388	388	A. An online lodging operator may not offer for rent or rent a lodging accommodation without a current transaction privilege tax license. The online lodging operator shall list the transaction privilege tax license number on each advertisement for each lodging accommodation the online lodging operator maintains, including online lodging marketplace postings.
389	389
390	390	B. For the purposes of this section:
391	391
392	392	1. "Lodging accommodation" has the same meaning prescribed in section 42-5076.
393	393
394	394	2. "Online lodging marketplace" has the same meaning prescribed in section 42-5076.
395	395
396	396	3. "Online lodging operator" has the same meaning prescribed in section 42-5076 and includes an owner of a vacation rental or short-term rental, as defined in section 9-500.39 or 11-269.17, that is not offered through an online lodging marketplace. END_STATUTE
397	397
398	398	2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article IV, part 1, section 1, Constitution of Arizona.