AZ HB2556

Amends Arizona statutes (sections 9-500.39 and 11-269.17) to revise how cities, towns, and counties regulate vacation rentals and short-term rentals, applying the same rules to both municipalities and unincorporated county areas.

Redefines "vacation rental" and "short-term rental" with specific day-per-year thresholds based on occupancy type (less than 60-120 days per year depending on whether owner is on-site, with different limits for whole property vs. room rentals and hotel transient lodging).

Requires owners to provide transaction privilege tax licenses and emergency contact information before renting; allows cities/towns/counties to impose permits with fees up to $500, with issuance decisions required within 30 business days of application.

Establishes civil penalties for violations: up to $500 or one night's rent (whichever is greater) for first violation; up to $1,000 or two nights' rent for second; up to $3,500 or three nights' rent for third and subsequent violations within 12 months.

Permits suspension of permits/licenses for three verified violations in 12 months or one serious violation involving felonies, sex offenders, death, serious injury, illegal drugs, sober living homes, or nonresidential use; adds penalties and suspensions transfer to subsequent owners of the same property.