HB 2558 Summary

• Amends Arizona law to allow cities, towns, and counties to limit the number of vacation rentals and short-term rentals either by population-based caps or overall numerical caps on allowed properties.

• Applies the same regulatory framework to both cities/towns (Section 9-500.39) and counties (Section 11-269.17) regarding vacation rental limitations and restrictions.

• Maintains existing prohibitions on vacation rentals being used for nonresidential purposes such as retail, restaurants, banquet spaces, or special events requiring permits.

• Preserves local government authority to regulate vacation rentals for public health and safety, zoning, nuisance control, emergency contact requirements, permit/license issuance, and liability insurance requirements.