Arizona is one of the most owner-friendly short-term rental states in the country. State law actually prevents cities from banning STRs outright. But owner-friendly does not mean unregulated: Scottsdale, Phoenix, and Paradise Valley each run their own licensing programs, the tax system has three layers, and the fines for getting it wrong now have real teeth. Here is everything an Arizona STR owner needs to know in 2026, in plain English. (One note before we start: this is gen