Governor Hobbs Proposes $3.50 Short-Term Rental Fee to Boost Chandler's Arizona Affordability

In her recent State of the State address, Governor Katie Hobbs unveiled a plan to introduce a $3.50 nightly fee on short-term rentals, such as those offered by Airbnb and Vrbo, to establish the Arizona Affordability Fund.

 

This initiative seeks to provide relief to residents grappling with escalating living expenses.

 

Governor Hobbs emphasized the minimal impact on tourists, stating, "By asking vacationers to kick in $3.50, less than a cup of coffee, we can deliver major change for the working people in our state who are struggling to get by."

 

The proposed fund aims to assist working-class families with utility bills, home weatherization to reduce energy costs, and the development of more affordable housing.

 

As Arizona enters its peak tourism season, with events like the Barrett-Jackson auction and the WM Phoenix Open on the horizon, the timing of this proposal is strategic.

 

Local business owners have expressed mixed reactions.

 

Rick Kenworthy, CEO of Scottsdale-based Travli Hospitality, managing over 100 properties, described the fee as a "drop in the bucket" compared to other costs and supports the measure if funds are used as intended.

 

Conversely, rental host Ryan Gerdes voiced concerns that even a small fee could impact visitor spending habits.

 

Airbnb's Policy Lead, Lauren Bouton, criticized the proposal, arguing it would make travel more expensive and unfairly disadvantage short-term rental hosts compared to corporate hotels.

 

While the fee remains a proposal, the commencement of the legislative session marks the beginning of formal discussions on the measure.

 

In related developments, Chandler, Arizona, is experiencing significant growth.

 

The city has attracted new businesses, including the expansion of Showit, a creative tech firm relocating its headquarters to downtown Chandler, and the arrival of Caribou Financial, an auto loan refinancing company establishing a new office in the area.

 

Additionally, the Chandler Fashion Center has announced a major redevelopment project, introducing new dining options and enhanced event spaces to cater to the growing community.

 

These developments reflect Chandler's dynamic business environment and its appeal to both established companies and new ventures.

 

As the city continues to evolve, the proposed short-term rental fee could play a role in balancing growth with affordability for residents.