Arizona County Reclassifies STRs to Commercial, Drawing Opposition

7/28/2026

Mohave County, Arizona, has begun reclassifying full-time short-term rentals as commercial properties, increasing their property tax assessment ratio from 10% to 15%. Assessor Jeanne Kentch says the change creates fairness by taxing year-round vacation rentals similarly to hotels and motels, after state lawmakers declined to address the issue. More than 900 properties have already been reclassified, with thousands more expected. Opponents, including industry groups and legal experts, argue the policy violates Arizona law, which classifies STRs as residential properties. Property owners warn the higher taxes could increase mortgage payments and are considering legal challenges to the policy.

Arizona Capitol Times (07/24/26) Jakob Thorington

Why It Matters: A county taxing STRs like hotels despite a state law classifying them as residential is a fight worth watching; the coming legal challenge could decide whether other Arizona counties can follow suit.