AZ HB2566

Redefines "vacation rental" and "short-term rental" with specific day limits: less than 60 days per year for whole property rentals without owner on-site, or less than 120 days per year with owner residing on-site during transient use.

Increases the maximum permit/license fee cities and counties may charge from $250 to $500, and extends the permit processing timeline from 7 to 30 business days.

Adds new grounds for permit denial, including if a previous property owner had a suspended permit or outstanding civil penalties that transfer to subsequent owners.

Expands violations warranting permit suspension to include knowingly allowing nonresidential use or intentionally avoiding transaction privilege tax for bookings made without registered online lodging marketplaces.

Requires owners to provide a copy of their valid transaction privilege tax license to the city/town or county, and mandates (rather than permits) display of tax license numbers on advertisements when no local permit is required.