Gov. Ducey signs bill regulating short-term rental properties in Arizona

PHOENIX — Arizona Gov. Doug Ducey signed a bill Tuesday that adds limits to how short-term rentals can operate in the state.

HB 2672 requires property owners renting out space through apps like Airbnb or VRBO to provide authorities with contact information in case of a complaint, like for excessive noise.

The bill also prohibits rentals for the purpose of holding a special event that would otherwise require a permit or license, or for using the building as a retail space, restaurant or banquet hall.

“Most short-term rental homeowners are good neighbors,” Ducey wrote in a letter to Secretary of State Katie Hobbs on Tuesday.

“HB 2672 provides a straightforward enforcement mechanism to penalize ‘party house’ operators for not upholding existing laws on their properties.”

The bill also requires “online lodging operators” to obtain a transaction privilege tax license before offering rentals and list the license number on all advertisements.

Operators who violate these tax-related rules will be fined $250 for a first offense and $1,000 for subsequent offenses.

Ducey said he hopes no additional regulation will be needed, and he anticipates the law will have no impact on most renters.

The bill passed the House 41-19 and the Senate 17-12 before being sent to the governor’s desk.

Three years ago, Ducey signed a bill that stopped local governments from barring residents from using services such as Airbnb and VRBO to rent property.

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