vacation rentals; short-term rentals; regulation

HB 2740 prevents Arizona cities and towns from banning or restricting short-term rentals (like vacation rentals) based on their classification or use. It allows local governments to regulate only in specific areas: protecting public health/safety (e.g., fire codes), applying zoning rules equally to all properties, banning rentals for prohibited uses (e.g., illegal drugs), and requiring owners to provide tax license details and emergency contact information. The bill mandates a local permit system with a $500 fee cap, requires $500,000 liability insurance (or use of platforms with equivalent coverage), and forces owners of new accessory dwelling units (built after Sept. 2024) to reside on-site if renting them out. Cities must process permits within 30 business days and may impose $1,000 civil penalties for non-compliance with permit or contact requirements.