Sedona, Arizona Short Term Rental Regulations

City Code of Ordinances

Using homes as short-term vacation rentals is permitted under Arizona law as of January 1, 2017. Sedona defined a short-term vacation rental as any rental of a portion or the entirety of a permitted housing unit for a period of time shorter than 30 days. Short-term vacation rentals include the following:

• Single-family houses
• 1 to 4 unit houses (duplexes, etc.)
• Condominiums, townhouses, cooperatives, or timeshares
• Individual rooms within any of above
• Guest houses, casitas, mother-in-law quarters

Business License Requirements

Without first procuring a current business license from the city and adhering to all business-specific rules outlined in the Sedona City Code, Sedona Land Development Code (SLDC), and Arizona Revised Statutes, no business is permitted to operate if it is physically situated within the city limits or taking part in a temporary special event. Section 8-300 of the Sedona City Tax Code mandates that a business license is required in addition to the privilege tax license. The fee for a license is $70. Refer to Business Licensing and Sedona Business License for more information.

Building and Housing Standards

A number of rules in the city's Land Development Code and City Code might affect your business. Building height, landscaping, parking, lighting, and signs are all subject to regulations. For more information, please refer to Land Development Code and City Code.

Tourist and Local Taxes

Short-Term rentals must pay transaction privilege tax (TPT) at the same rate as a hotel (transient occupancy tax). Consult the Arizona Department of Revenue for more information on applying for a TPT license.

Other Rules

It is also essential to understand and abide by other contracts or rules that bind you, such as city requirements, leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations. Visit Property Owner Information and Short-Term Rentals for more information.