AZ HB2728

Cities and towns are prohibited from banning vacation rentals or short-term rentals, and cannot restrict them based on their classification, use, or occupancy.

Cities, towns, and counties may regulate short-term rentals only for: public health and safety (fire, building codes, sanitation, traffic); residential zoning and nuisance ordinances applied equally to all properties; and prohibiting use for illegal purposes (sex offender housing, drug sales, adult-oriented businesses).

Cities, towns, and counties may regulate short-term rentals in the same manner as transient lodging businesses under property tax classification section 42-5070, but this does not subject online lodging marketplaces to transient lodging classification.

"Vacation rental" and "short-term rental" are defined as single-family to four-family homes or condominium/cooperative units offered for transient use and not classified for property taxation as commercial, excluding units used for retail, restaurants, or other nonresidential purposes.

Vacation rentals and short-term rentals are excluded from the definition of "residential rental dwelling units" in city, town, and county residential rental inspection and licensing programs.