Coconino County’s New Ordinance and Arizona’s New Senate Bill 1350

In a recent article, we explored the proposed Coconino County ordinance to regulate short-term vacation rentals. We also explored the impact of Senate Bill 1350, a recent initiative to restrict investor-owned vacation rentals. Here are our three top takeaways. Read on to learn more about how these new regulations will affect your business. And be sure to follow us on Twitter for updates! Until then, stay tuned to the local news for more updates!

Ordinance to regulate short-term vacation rentals

A new ordinance will regulate short-term vacation rentals in Coconine County beginning Nov. 19. The ordinance establishes occupancy limits, parking requirements, and noise enforcement. The planning and zoning department of Coconino County spent over a year drafting the new ordinance, and the Vacation Rental Owners Association praised the new regulations. But is this right for Coconino County?

The new ordinance would limit the overnight occupancy of a short-term vacation rental to two people who are 13 years old or older. The number of people may be higher for vacation rentals, but only if the occupancy limit is at least two per bedroom. The city or town could revoke a short-term vacation rental registration certificate if they violate the new law. The council heard the first of three readings of the bill on Jan. 13, and the next reading will take place at the regular meeting on Jan. 20 at 7 p.m.

Impact of Senate Bill 1350 on Coconino County Vacation Rental Owners Association

Arizona Governor Doug Ducey signed Senate Bill 1350 into law in May 2016, limiting cities’ ability to ban short-term “vacation rentals.” Although the law is not enforceable by counties, it does have a dramatic effect on zoning ordinances, including in Sedona and Coconino counties. These zoning regulations govern how properties can rent out their property.

The bill does not address many of the issues highlighted by lawmakers, and it does not specifically address short-term rentals. Since 2015, Gov. Doug Ducey has signed legislation eliminating local regulation of these properties. Since then, several measures have been introduced to restore local control and limit the number of vacation rentals in any community, but Ducey has threatened vetoes. Mesnard’s bill, however, avoids this debate because it is based on a principle that applies to all short-term rentals, including hotels.

Impact of proposed ordinance on investor-owned vacation rentals

An Arizona state lawmaker is taking steps to make sure that vacation rental owners pay their fair share of property taxes. A recent bill approved by the Senate Finance Committee would require residential property that is used more than 90 days a year as a short-term rental to be classified as a commercial property. Hotels are currently assessed at 18 percent of “full cash value” – the supposed market value – while long-term rentals are assessed at 10 percent.

This law would regulate short-term rentals in the same way as other short-term rentals, with some exceptions for safety and public health. To start, homeowners would have to obtain a short-term rental license. Any fees collected would go to the city or town to pay for administrative costs associated with regulation. Short-term rental property owners would also be prohibited from conducting commercial activities such as holding weddings and other social events. This would greatly impact tourism communities.