Bill > HB2362

This bill amends Arizona law to reclassify certain short-term rental properties for tax purposes and to update registration requirements for residential rental properties. Specifically, it introduces a new classification for properties rented to lodgers for less than thirty days for more than 180 days in a calendar year, which will now be valued at full cash value and fall under "class one" property, unless it's the owner's primary residence (class three) or a residential rental (class four). The bill also requires owners of residential rental properties to report if their property is rented for periods of less than thirty days, and it updates penalties and procedures related to property classification reviews, particularly for properties potentially being used as rentals while classified as primary residences. These changes are set to take effect for tax years beginning after December 31, 2026.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/84122