by Tom Joyce
Arizona – a popular vacation destination with thousands of short-term rental listings protected by legislation from most limitations – will soon allow cities to further regulate them. It will be up to cities to enact and enforce them.
Arizona Gov. Doug Ducey signed SB 1168 into law, allowing cities and towns to “govern short-term rentals via licenses or permits, notifications and liability insurance, as well as the ability to fine owners or management companies when their property occupants violate community ordinances,” his office said.
Law enforcement will be able to impose the greater of $500 or one night’s rent, as advertised the property’s listing, for the first “verified violation.” The penalties increase to $1,000 and $3,500, or two and three nights’ rent if more, for the next two verified violations.
On the third violation within 12 months, the state Department of Revenue can hold hearings that could lead to a 12-month suspension of the listing.
Verified violations don’t apply to crowded parked cars that aren’t dangerous, aesthetic violations or piled up garbage.
Scottsdale, a city of fewer than 250,000 but AirDNA says it is home to more than 6,100 short-term rental listings, is planning to have ordinances in place when the law takes effect in September. Communications Director Kelly Corsette said Friday that the city was instrumental in getting the law changed.
“Governor Ducey signed SB 1168 on July 6, and Scottsdale is working with the League of Arizona Cities and Towns in drafting a model ordinance to help municipalities enact the local license and permit provisions contained in the bill,” he said. “The state law goes into effect Sept. 24, 2022, and staff will bring an ordinance to the Scottsdale City Council in a timely manner so that Scottsdale can receive the additional protections allowed under the new state law.”
While the bill imposes a more stringent fine structure and a method leading to a 12-month suspension of a listing, Airbnb supported the bill.
Other legislation introduced in the now-ended session would have fully-restored cities’ ability to regulate STRs, including limit the number and location of where they could be established.
State Sen. J.D. Mesnard, R-Chandler, and Rep. Steve Kaiser, R-Phoenix, sponsored the bill.
Mesnard said that the new rules would make communities more peaceful places to live.
“The goal of this bill is to create clear and sensible parameters for the vacation rental industry within Arizona, while looking after families and residents who shouldn’t have to put up with noisy and unruly party houses within their neighborhoods,” Mesnard said in the press release. “This new legislation will empower municipalities to enforce commonsense rules that will help create a safe and peaceful environment for all who live, vacation and do business within our state.”
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Tom Joyce is a contributor at The Center Square.
Photo “Doug Ducey” by Governor Doug Ducey. Background Photo “Arizona State Capital” by Tony the Marine. CC BY-SA 3.0.
