By Melissa Rosequist | Daily Independent
A new bill has passed the Arizona Legislature giving municipalities authority to issue licenses and permits to short-term rentals.
Senate Bill 1168, which passed the Arizona Senate and House of Representatives on June 24, is supported by both the short-term rental industry and local cities.
The bill is now in the hands of Gov. Doug Ducey to sign. According to officials at the Town of Paradise Valley, where short-term rentals are numerous, SB1168 grants cities and towns the authority to issue short-term rental licenses or permits, and within guidelines, allows suspension of those permits for up to a year.
The bill was sponsored by J.D. Mesnard, R-Chandler, and co-sponsored by Steve Kaiser, R-Phoenix.
“While the bar is very high to suspend STRs, cities and towns do not take this new authority lightly, just as we do with all of our land use permits,” said Town Manager Jill Keimach. “We anticipate that our new enforcement power to suspend will make a difference for owners and/or managers who repeatedly bring bad actors into our neighborhoods. While we can always use more tools and stronger enforcement regulations, we’re happy to have some new tools to attempt to better safeguard our community.”
Cities and towns will be able to permit all short-term rentals; officials say there is not currently any limit on how many short-term rental properties will be allowed, or disallowed in a municipality.
Scottsdale resident David Mason has been an opponent of short-term rentals, including being a member on Scottsdale’s short-term rental task force. He says SB1168 is a good first step and a great effort.
“However, unfortunately, SB1168 has some serious flaws that should receive immediate attention in the 2023 session,” Mason said. “Given the magnitude of the issues and the lengthy negotiations, one would have hoped for more thoughtful drafting without some of the below flaws.”
Mason lists the licensing process as a flaw, pointing out that the owner of the property, not the property itself, is what’s licensed.
“If the owner is an LLC, all fines and suspensions can be legally evaded by simply transferring ownership of the property from LLC1 to LLC2,” Mason says.
Ultimately, Mason commends the Legislature for passing the bill.
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