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Ducey approves 3-strike rule for Arizona's rowdy short-term rentals

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

PHOENIX — Gov. Doug Ducey has signed legislation that attempts to rein in short-term rental properties that become a public nuisance in local communities. 

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

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

These licenses can obligate property owners to provide cities with the following information:

  • Name, address, phone number, and email address for the owner or owner's agent 
  • Address of the vacation or short-term rental 
  • Proof of compliance with transaction privilege tax licensure. 
  • Emergency contact information 
  • Acknowledgment of an agreement to comply with all applicable laws, regulations, and ordinances
  • Pay a fee not to exceed the actual cost of issuing the permit or $250, whichever is less.  

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

SB 1168 additionally allows for permits to be suspended if a short-term rental has had at least three health and safety violations within a 12-month span.

Local governments can attempt to suspend a property's license for a single violation if that violation involves a felony offense committed at the residence, a wrongful death occurring on the property, or if a host intentionally houses a sex offender. 

State Sen. J.D. 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 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,” Mesnard said in a statement. 

Airbnb claims to have generated an estimated $87 million in taxes for Arizona between 2017 and 2020. The tech company says it's supportive of the signed legislation. 

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

RELATED: How Glendale's new short-term rental rules might affect the 2023 Super Bowl

RELATED: Airbnb taking steps to crack down on holiday parties in Arizona

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