Arizona Cities Expect New Revenue From Short-Term Rental Taxes

Published: Thursday, December 29, 2016 - 8:57am
Updated: Thursday, December 29, 2016 - 2:16pm

The city of Scottsdale estimates it has nearly 3,000 short-term rentals, like those listed on Airbnb.

Right now, they’re illegal in the city.

That changes in January, when a state law that prevents cities from banning the rentals takes effect.

Senate Bill 1350 allows cities to regulate, but not ban, short-term rentals like Scottsdale did.

“Usually there’s a stability in a neighborhood of people knowing their neighbors,” said Randy Grant, Scottsdale’s director of planning and development services. “With short-term rentals, people can be coming in and out of that house every two or three or four days.”

Also in January, Airbnb will begin collecting state and local taxes from Arizona lodgers. Scottsdale estimates that will generate more than $1 million in new revenue each year.

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