Executive Overview

Short-term rentals ARE ALLOWED in Casa Grande, Arizona. The city explicitly permits STR operations under Arizona state law, with the ordinance taking effect January 1, 2025. Casa Grande cannot deny or restrict short-term rentals due to A.R.S. §9-500.39, which authorizes STRs in all Arizona municipalities. However, the city has implemented a regulatory framework designed to protect residents and property owners while maintaining neighborhood compatibility.

Starting a Short-Term Rental Business in Casa Grande

Step-by-Step Process

1. Property Assessment & Compliance

   • Verify your property zoning allows short-term rentals (contact Planning & Development Department)
   • Ensure the property meets all safety and building codes
   • Consider local neighborhood compatibility factors

2. Obtain Required Permits and Licenses

   • Apply for Casa Grande Short-Term Rental Permit ($115 initial fee)
   • Obtain Arizona Transaction Privilege Tax (TPT) License
   • Complete background check requirements

3. Setup Tax Collection and Remittance

   • Register for city and state tax collection
   • Implement tax collection system for guest payments
   • Establish remittance schedule with Arizona Department of Revenue

4. Listing and Operations Setup

   • Display TPT license number on all advertising platforms
   • Set up property management systems (in-house or professional)
   • Establish guest screening and occupancy limit procedures

Required Documents, Permits, and Licenses

City-Level Requirements

• Short-Term Rental Permit: $115 initial fee, valid for one calendar year
• Annual Renewal Fee: $115
• Background Check: Required for permit approval
• Property Compliance Documentation: As required by city code

State-Level Requirements

• Transaction Privilege Tax (TPT) License: Arizona's sales tax license
• Hotel and Hotel/Motel Tax Registration: For transient lodging
• Power of Attorney Forms: If using property management companies

Advertising Requirements

• TPT license number must be displayed on all rental listings
• Compliance with platform-specific listing requirements

Specific Regulations

City of Casa Grande Regulations

Permit Operations:

• Permits valid for one calendar year from issuance date
• Mandatory for all STR operations regardless of rental frequency
• Required even when using online lodging marketplaces (Airbnb, Vrbo, etc.)

Property Management Requirements:

• Background checks required for permit approval
• Occupancy limits and tenant qualification procedures established
• Annual property inspections may be required

Enforcement and Penalties:

• City can suspend STR permits for up to one year for violations
• Permit suspension authority for disruptive activities
• Appeal process available through City Manager's Office

Operational Standards:

• Must comply with neighborhood compatibility standards
• Guest behavior and occupancy limits enforced
• Property maintenance and safety standards required

Pinal County Level

• County-level STR regulations mirror state requirements
• Zoning compliance verification may be required through county planning departments
• Property tax implications as investment property classification

Arizona State Regulations

Tax Requirements:

• Hotel and Hotel/Motel Tax obligations apply to all STRs
• Transaction Privilege Tax (TPT) collection and remittance
• Income reporting requirements for federal and state tax purposes

Online Lodging Marketplace (OLM) Rules:

• OLMs collect and remit applicable taxes
• Property owners must still report OLM income on TPT returns
• Deduction code 775 for 100% of OLM income reporting required
• TPT license remains mandatory regardless of OLM usage

Property Management Company (PMC) Arrangements:

• PMCs may handle tax filing and payment
• Property owners must still obtain individual TPT licenses
• Each property requires separate licensing under multiple PMC arrangements
• Power of Attorney documentation required for PMC representation

Contact Information

City of Casa Grande

Short-Term Rental Program Contact

• Email: STR@casagrandeaz.gov
• Phone: 520-421-8600
• Address: 510 E Florence Blvd, Casa Grande, AZ 85122

City Manager's Office (Appeals)

• Email: citymanager@casagrandeaz.gov
• Phone: 520-421-8600

Planning & Development Department

• Phone: 520-421-8600
• Purpose: Zoning compliance verification and permitting

Arizona State Authorities

Arizona Department of Revenue

• Website: azdor.gov
• Short-Term Lodging Section: azdor.gov/business/transaction-privilege-tax/short-term-lodging
• Online Lodging Marketplace Information: azdor.gov/business/transaction-privilege-tax/online-lodging-marketplace

Source Links

Primary Regulatory Sources

• City of Casa Grande Short-Term Rentals FAQ
• Arizona Revised Statutes § 9-500.39
• Arizona Revised Statutes § 42-5070

News and Implementation

• Casa Grande to regulate short-term rentals beginning Jan. 1

Municipal Resources

• City of Casa Grande Code Library

State Tax Authority

• Arizona Department of Revenue - Short Term Lodging

Investment Consideration: Casa Grande presents a supportive regulatory environment for STR investors, with clear pathways to compliance and reasonable fee structures. The city's location between Phoenix and Tucson, combined with its growing tourism and business economy, creates multiple revenue opportunities for well-managed short-term rental properties. However, investors must maintain strict compliance with both city and state regulations to ensure long-term operational success.