AZ SB1350

Prohibits cities and counties from banning vacation rentals or short-term rentals, but allows regulation for public health and safety, residential zoning, and prohibition of illegal activities.

Establishes an "online lodging marketplace" classification subject to a 5.5% state transaction privilege tax, with marketplaces able to register to collect and remit taxes on behalf of online lodging operators.

Allows online lodging operators to exclude income from taxation when the online lodging marketplace they use is registered with the department and remitting applicable taxes.

Creates a hospitality studies scholarship fund administered by the Arizona Board of Regents to provide financial assistance to students in hospitality programs at state universities.

Establishes a joint legislative study committee on transient lodging to examine state and local regulations affecting various lodging accommodations, with the committee terminating December 31, 2020.