Overview: Short-Term Rental Status in Clifton, AZ

Short-term rentals are allowed in Clifton, Arizona. However, the town does not appear to have specific short-term rental ordinances or regulations. As of October 2025, Clifton has updated its tax code to increase hotel and transient lodging taxes, indicating that short-term rental businesses are recognized and regulated through general lodging tax classifications rather than through dedicated STR ordinances.

How to Start a Short-Term Rental Business in Clifton, AZ

Starting a short-term rental business in Clifton requires several foundational steps:

1. Business Structure and Planning

• Establish your business entity (LLC, corporation, etc.)
• Develop a comprehensive business plan
• Secure adequate financing and insurance coverage
• Research local market demand and competition

2. Property Acquisition and Preparation

• Acquire or lease a suitable property for short-term rental use
• Ensure the property meets local building codes (Clifton uses 2009 IBC)
• Obtain any necessary building permits for modifications or improvements
• Equip and furnish the property according to market expectations

3. Regulatory Compliance

• Obtain a local business license from the Town of Clifton
• Register for state tax accounts
• Comply with Arizona's general lodging and hospitality regulations

4. Operational Setup

• Choose and integrate with short-term rental platforms (Airbnb, VRBO, etc.)
• Establish cleaning and maintenance protocols
• Create guest communication systems
• Develop pricing strategies

Required Documents, Permits, Licenses, and Guidelines

Local Requirements

Business License

• Requirement: All businesses operating in Clifton must obtain a local business license
• How to Apply: Applications available through the Town of Clifton website (cliftonaz.com)
• Related Regulations: Business license regulations may be found by searching for the Clifton Town Code on the town's website
• Contact: Town Hall at (928) 865-4146

Building Permits (if applicable)

• Code Base: 2009 Version of the International Building Codes (IBC)
• When Required: Major renovations, structural changes, or new construction
• Application Process: Through the MYGOV portal
• Contact: Building Inspector/Code Officer Angel Maldonado at (928) 322-7913 or Maldonado@townofclifton.com

State-Level Requirements

Arizona Transaction Privilege Tax (TPT)

• Hotel/Lodging Tax: Clifton charges 5% for hotel/lodging businesses
• Additional Hotel Tax: Additional 5% transient lodging tax
• Use Tax: 3% local use tax
• Registration: Required with Arizona Department of Revenue
• Filing: Regular TPT returns must be filed even if no tax is due
• Business Codes:
  • Hotels: 044 (5% rate)
  • Hotel/Motel Additional Tax: 144 (5% rate)
  • Use Tax Purchases: 029 (3% rate)

Specific Regulations for Short-Term Rentals

City-Level Regulations

Clifton Town Code: The Clifton Town Code is available online, though specific short-term rental ordinances were not found in the provided content. Investors should consult the complete town code for any applicable regulations.

County-Level Regulations

Greenlee County: No specific short-term rental regulations were identified in the provided content for Greenlee County, which governs Clifton.

State-Level Regulations

Arizona's regulations for short-term rentals fall under general hospitality and lodging laws:

Transient Lodging Classification

• Short-term rentals are typically classified as transient lodging or hotel/motel operations
• Must comply with Arizona's hotel and lodging regulations
• Required to collect and remit applicable transaction privilege taxes

Health and Safety Requirements

• Must comply with Arizona's landlord-tenant laws and health regulations
• Properties must meet habitability standards
• Fire safety and building code compliance required

Consumer Protection

• Must comply with Arizona's consumer protection laws
• Accurate advertising and listing requirements
• Guest privacy and data protection obligations

Contact Information

Town of Clifton Authorities

Town Hall/Municipal Offices

• Address: 510 N. Coronado Blvd., Clifton, AZ 85533
• Phone: (928) 865-4146
• Email: hello@townofclifton.com
• Website: cliftonaz.com
• Hours: Monday through Thursday 7 am – 5 pm

Business Licensing

• Contact: Town Clerk
• Phone: (928) 865-4146
• Online: Business license applications available at cliftonaz.com

Building/Code Enforcement

• Contact: Angel Maldonado, Building Inspector/Code Officer
• Phone: (928) 322-7913
• Email: Maldonado@townofclifton.com
• Hours: Monday – Thursday 7 a.m. – 5 p.m.

Code Enforcement

• Contact: Angel Maldonado (also serves as Code Officer)
• Phone: (928) 322-7913
• Email: Maldonado@townofclifton.com

Fire Department

• Contact: Fire Chief
• Email: firechief@townofclifton.com
• Website: Clifton Fire Department page on town website

State-Level Authorities

Arizona Department of Revenue

• Website: azdor.gov
• TPT Section: Business transaction privilege tax information and filing
• Phone: General contact information available on their website

Source Pages

Local Government Sources

• Town of Clifton FAQs - General municipal information, business licensing, building permits
• Clifton Town Code - Official municipal code (specific STR ordinances not found in provided content)

State Tax Information

• Arizona Department of Revenue - Rate and Code Updates - Clifton's October 2025 tax code updates affecting hotels and transient lodging

Legal Resources

• Cardis Law Group - Lease Agreements - General lease agreement legal information for Clifton area

Important Notes for Investors

1. Limited Local Regulation: Unlike larger Arizona cities, Clifton does not appear to have specific short-term rental ordinances, operating more under general hospitality and lodging classifications.

2. Tax Implications: The recent 2025 tax code changes significantly impact lodging businesses in Clifton, with total effective rates potentially reaching 10% for hotel operations (5% base + 5% additional).

3. Building Compliance: Any property modifications or new construction must comply with the 2009 International Building Codes as adopted by Clifton.

4. Market Considerations: As a small community, Clifton's short-term rental market may have unique characteristics compared to larger Arizona destinations.

5. Regulatory Monitoring: Given the lack of specific STR ordinances, investors should monitor for future regulatory changes at both the municipal and state levels.

This guide provides the current regulatory framework based on available information. Investors should verify all requirements with local authorities and consider consulting with local legal counsel familiar with Arizona hospitality and lodging regulations.