A.R.S. § 9-500.39; § 11-269.17
In force (as amended)
CURRENT STATUS
/ ARIZONA BUILDING LAW
Arizona does not let cities, towns, or counties ban short-term rentals. Instead, state law lists exactly what a local government may regulate: health and safety rules, nuisance and zoning ordinances applied the same way as to other homes, a local permit with a capped fee, neighbor notice, insurance, emergency contact information, and, for a property with a casita, a rule that the owner live on site. Everything outside that list is off-limits to the city. The city statute and the county statute are near-identical; the county version applies to unincorporated land.
/ LAW RECORD
In force (as amended)
CURRENT STATUShttps://www.azleg.gov/ars/9/00500-39.htm
PRIMARY SOURCE URLThis page is general information for property owners, not legal advice.
Arizona does not let cities, towns, or counties ban short-term rentals. Instead, state law lists exactly what a local government may regulate: health and safety rules, nuisance and zoning ordinances applied the same way as to other homes, a local permit with a capped fee, neighbor notice, insurance, emergency contact information, and, for a property with a casita, a rule that the owner live on site. Everything outside that list is off-limits to the city. The city statute and the county statute are near-identical; the county version applies to unincorporated land.
No local bans. "A city or town may not prohibit vacation rentals or short-term rentals" (§ 9-500.39(A)). "A county may not prohibit vacation rentals or short-term rentals" (§ 11-269.17(A)).
What is a short-term rental. "any individually or collectively owned single-family or one-to-four-family house or dwelling unit or any unit or group of units in a condominium or cooperative that is also a transient public lodging establishment or owner-occupied residential home offered for transient use if the accommodations are not classified for property taxation under section 42-12001" (§ 9-500.39(L)(4)(a)). It "Does not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use" (§ 9-500.39(L)(4)(b)).
What a city or county may regulate (§ 9-500.39(B)(1)–(9); county mirror at § 11-269.17(B)):
Permit decisions. A city that requires a permit "shall issue or deny the permit or license within seven business days" and may deny only for missing application items, unpaid fee, a currently suspended permit for the same property, false information, or an owner or designee who is a registered sex offender or has a qualifying felony conviction within five years (§ 9-500.39(C)).
Suspension. Cities with a permit program must adopt a process to suspend a permit for up to twelve months after three verified violations in twelve months (not counting aesthetic, waste, or parking violations that are not a serious threat), or after one verified violation involving a felony by the owner, serious injury or wrongful death from the owner's knowing or reckless conduct, knowingly housing a sex offender or allowing prohibited adult or sober-living uses, or knowingly allowing a special event or retail, restaurant, or banquet use (§ 9-500.39(D)).
Civil penalties for verified violations within twelve months: up to $500 or one night's advertised rent for the first; up to $1,000 or two nights' rent for the second; up to $3,500 or three nights' rent for the third and later, whichever is greater in each case (§ 9-500.39(F)). An STR that fails to apply for a required permit within thirty days of the program opening "must cease operations," with a further penalty of up to $1,000 per month after written notice (§ 9-500.39(G)). Multiple violations from one incident response count as one (§ 9-500.39(H)).
No events. "A vacation rental or short-term rental may not be used for nonresidential uses, including for a special event that would otherwise require a permit or license … or for a retail, restaurant, banquet space or other similar use" (§ 9-500.39(K)).
Background checks. A city that requires sex-offender checks on guests must waive them if the online lodging marketplace performs the check (§ 9-500.39(E)).
Assessor registration still applies. The section "does not exempt an owner of a residential rental property, as defined in section 33-1901, from maintaining with the assessor of the county" the rental registration required by Title 33, chapter 17 (§ 9-500.39(J)).
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