AZ SB1261

Cities and counties may establish occupancy limits for vacation rentals and short-term rentals, capped at two occupants per bedroom (up to four bedrooms) plus two additional adults per 1,000 square feet of livable space exceeding 3,000 square feet.

License suspension triggers are modified: two verified violations involving serious public health and safety threats within 24 months (previously three violations in 12 months) now qualify for permit suspension.

Three verified violations involving solid waste disposal or vehicle parking within 24 months can now result in permit suspension up to 12 months.

Building code violations that threaten public health or safety—including construction without permits or failure to remedy unsafe conditions—are added as grounds for single-violation permit suspension.

Owners are prohibited from advertising occupancy limits exceeding the maximum established by the city or county, with civil penalties imposed for each day of violation.