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Kate's avatar

I’m glad someone still has “hope” for reigning in short term rentals (STRs). I’ve been working with other neighborhood stakeholders at the state & local level to return local control of STRs since Ducey signed Debbie Lesko’s, ALEC written, SB1350 in 2016. Along the way I have learned a few things:

1. This is a nonpartisan issue. The nuisance, disruption to daily life, and increased calls to police have affected AZ residents across the political spectrum. And we have heard from a large share of them.

2. For every 1% increase of STRs in a city, increases long-term rental rates by 2.3%.

3. They falsely inflate home values. An STR is often sold on the MLS as a business, with proforma, future bookings, and usually at a higher price per square foot. At close of escrow, that sale becomes a comparable to be used in appraisal reports for non-STR properties.

4. All STRs are required to pay Transaction Privilege Tax (TPT). There are an estimated 65,000-70,000 STRs in the state of AZ, yet according to ADORs most recent annual report, only about 5,500 STRs have TPT accounts.

5. All state & local taxes collected by any of the 100+ short-term rental sites now operating in AZ, are returned to AZ in a lump sum. With no addresses included, it is impossible to know the exact number in operation or which properties are collecting the correct amount of taxes.

6. STRs are not the cause of the housing crisis, but they definitely play a part. So why on earth would we (stakeholders /residents) support any bills that call for the rampant building of housing units, when state legislators won’t bother to ensure said housing units are built for residents NOT investors?

7. As a former STR host himself, Majority Leader, Warren Peterson has made it very clear that he will not advance any bills that further regulate or impede these businesses, effectively putting investors ahead of residents.

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Algo Mas's avatar

Kolodin...you are wasting taxpayer money and your time. Join your buddy John Kavanaugh and do a brain search.

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