AZ SCR1038

Repeals sections 9-500.39 and 11-269.17 of Arizona Revised Statutes relating to vacation rental and short-term rental regulations in cities and towns.

Amends section 12-1134 to add an exception to landowner compensation claims for land use laws that regulate vacation rentals or short-term rentals, preventing owners from seeking damages for diminished property value due to such regulations.

Modifies section 42-1125.02 to simplify civil penalties for online lodging operators who fail to comply with tax requirements, reducing reliance on local enforcement penalties and creating a streamlined state penalty structure of $250 for first offense and $1,000 for subsequent offenses.

Amends section 42-2003 to restrict disclosure of confidential tax information from online lodging marketplaces and clarifies what transaction privilege tax information counties, cities, and towns can access for enforcing vacation rental and short-term rental laws.

Requires submission of this measure to Arizona voters at the next general election for approval.