AZ HB2362

Reclassifies residential properties used as short-term rentals (less than 30 days per stay) for more than 180 days per calendar year as class one commercial property for tax purposes, rather than class four residential property.

Requires property owners to report to the county assessor whether their residential rental property is rented for periods of less than 30 days.

Maintains class three (owner-occupied primary residence) or class four residential classification for properties rented short-term for 180 days or less per calendar year.

Authorizes county assessors to reclassify properties to class one commercial or class four residential if owners fail to respond to verification notices, with appeal rights to the county board of supervisors.

Applies to tax years beginning after December 31, 2026.