Every short-term rental unit must comply with federal, state, and local laws, including laws relating to public health and safety, sanitation, solid waste, hazardous waste, tax privilege licensing, property tax registration, traffic control, pollution control, noise, property maintenance and nuisance abatement.

Before you rent

Before you advertise and operate a short-term rental, you must:

• Apply for a transaction privilege tax (TPT) license from the Arizona Department of Revenue. Call 602-255-3381 with questions.
• Get a City permit and pay the annual non-refundable, non-transferable fee of $210 per rental unit. Each short-term rental unit requires its own City-issued short-term rental permit.
• Provide contact information for the owner, owner designee, and emergency contact.
• Maintain liability insurance for each rental unit(s) in the aggregate of at least $500,000.
• Get all required building safety approvals and permits to ensure the safety of the structure. Contact the Community Development Department at 928-282-1154 or go to the Building Permits page for details.
• Notify each single-family property adjacent to, directly across from, and diagonally across the street from the short-term rental property. Notice must include the short-term rental address, the short-term rental permit number issued by the City, and the name, physical address, email address and 24-hour telephone number of the emergency contact. Notice must be sent in writing by certified mail, return receipt requested, or hand-delivered.

When you rent

When you advertise and operate a short-term rental, you must:

• Collect and pay sales tax and transient occupancy tax (bed tax) in a timely manner or ensure that a third-party vendor does this on your behalf. A short-term rental lacking a valid transaction privilege tax license issued by the state of Arizona shall not be rented or offered for rent.
• Include the short-term rental permit number issued by the City on every advertisement and listing.
• Post a laminated or shielded notice in 14-point or larger bold font within 10 feet of the unit’s primary entrance, clearly locating any fire or life safety equipment in the unit and stating the City’s noise and waste disposal regulations. Review this template for the notice.
• Maintain accurate contact information in your GovOS/MUNIRevs account. Changes must be made within ten (10) days prior to the changes taking place. Read how you can update your permit information.
• Conduct a sex offender background check at least 24-hours prior to a guest’s check-in or provide evidence that the check was conducted by the online lodging marketplace where the short-term rental is booked. The owner must keep a full copy of each background check for a minimum of 12 months after the booking date and provide a copy to the City upon request. No sex offender shall be permitted to rent or occupy the short-term rental. The failure of an online lodging marketplace to conduct a background check does not relieve the owner of liability under this Section.
• Comply with Sedona’s prohibition of special events at your rental. Include this notice in your online listings and inform your guests that Sedona does not allow special events, including weddings, wedding receptions, retreats, workshops, and conferences of any size to be held at short-term rentals.
  • Special events include but are not limited to weddings, wedding receptions, and for-profit events such as retreats, conferences, trainings, and workshops. See Sedona Land Development Code section 9.4 for the full list.
  • Short-term rentals violating the special event prohibition may be subject to citations and penalties up to and including having their permit revoked for one year.
• Comply with trash regulations by placing cans at the curb no earlier than noon the day prior to pickup and removing cans from the street by 11:59 p.m. on the day of pickup. Trash must be bagged and securely tied except for clean recyclables, fully contained within the trash can with the lid closed and secure. Violations will result in fines per City code.

What happens if you don't comply?

Short-term rental permits can be suspended for up to 12 months. Read about the permit suspension process in Sedona City Code Section 5.25.110.

Are there penalties and fees?

Causing, allowing, facilitating, aiding, or abetting any violation of the City code for short-term rentals including failure to comply is punishable as a misdemeanor, constitutes a civil offense, and may be subject to a penalty from $500.00 up to $3,500. Read about penalties in Sedona City Code Section 5.25.120.