OVERVIEW: ARE SHORT-TERM RENTALS ALLOWED IN SEDONA, AZ?

YES - Short-term rentals ARE allowed in Sedona, Arizona. However, they are strictly regulated and require both state and city permits to operate legally. The city has established a comprehensive regulatory framework through Chapter 5.25 of the Sedona City Code, implemented following Arizona Senate Bill 1168 signed by Governor Doug Ducey on July 6, 2022. Sedona currently has 1,116 registered short-term rentals operating within city limits, representing approximately 16.39% of the city's total housing inventory of 6,808 units.

HOW TO START A SHORT-TERM RENTAL BUSINESS IN SEDONA

Step-by-Step Process:

1. Obtain State Transaction Privilege Tax (TPT) License

   • Must be obtained BEFORE applying for a Sedona city permit
   • Apply through the Arizona Department of Revenue
   • TPT licenses are renewed annually in December and January

2. Contact Sedona Short-Term Rental Specialist

   • Email Teresah Arthur at tarthur@sedonaaz.gov with required information
   • Required information includes:
     • Property address to be permitted
     • Owner name(s)
     • Owner mailing address (must provide alternate address if not residing full-time at STR property)
     • Number of units to be rented on the property

3. Account Setup and Application

   • After account setup, you'll receive email with codes and instructions
   • Apply for permit through the MUNIRevs online system: https://sedonaaz.munirevs.com/log-in/
   • IMPORTANT: As of December 2024, each advertised unit requires its own permit (e.g., main house + casita = 2 permits required)

4. Permit Renewal Process

   • Renew online through existing MUNIRevs account under "OPEN TASKS"
   • Complete entire renewal form annually (not just updates)
   • Renew 1-2 weeks prior to expiration (city has up to 7 business days to approve)
   • Late renewals subject to late fees and citations

REQUIRED DOCUMENTS, PERMITS, LICENSES, AND GUIDELINES

State-Level Requirements:

• Arizona Transaction Privilege Tax (TPT) License - Required before city permit application
• Must be maintained current (renewed annually)

City-Level Requirements:

• Sedona Short-Term Rental Permit - Required for each advertised unit
• Valid TPT License number - Must be included on all renewal applications
• Property Owner Information - Full names and mailing addresses
• Emergency Contact Designation - Required per city code
• Insurance - Required per Sedona City Code Section 5.25.090
• Background Checks - Required per Sedona City Code Section 5.25.100

Post-Permit Requirements:

• Property Posting - Required per Sedona City Code Section 5.25.080
• Advertisement Compliance - Must include permit number and comply with Section 5.25.070
• Neighbor Notification - Required per Sedona City Code Section 5.25.060

Fee Structure:

• Permit Fees - Amount not specified in provided content
• Late Fees (effective January 1, 2026):
  • 2-90 days late: $50
  • 90+ days late: $100
  • Capped at $100 total
• Tax Rates:
  • Yavapai County: 13.325% total (6.325% + 3.5% bed tax + 3.5% hotel tax)
  • Coconino County: 13.90% total (6.9% + 3.5% bed tax + 3.5% hotel tax)

SPECIFIC REGULATIONS FOR SHORT-TERM RENTALS

City of Sedona Regulations (Sedona City Code Chapter 5.25):

Permitted Property Types:

• Single-family houses
• 1-4 unit houses (duplexes, etc.)
• Condominiums, townhouses, cooperatives
• Individual rooms within any permitted dwelling
• Guest houses, casitas, mother-in-law quarters

Prohibited Property Types:

• Structures not approved as dwelling units
• Unsafe structures (garages, sheds) not meeting building codes
• Apartment complexes with 5+ units
• Recreational Vehicles (RVs) or travel trailers
• Temporary structures (tents, inflatable dome tents)

Use Regulations:

• NO SPECIAL EVENTS ALLOWED - Sedona Short-Term Rental Code 5.25.050 explicitly prohibits all special events
• Special events include: weddings, wedding receptions, religious events, educational events, organized community events, outdoor entertainment, fee-based retreats, conferences, trainings, and workshops
• Violations subject to citations, penalties, and possible permit revocation for one year

Operational Requirements:

• Permit suspensions for violations (one-year suspension period)
• All advertising and operation must cease during suspension
• Appeal process available per Section 5.25.130
• Penalties per Section 5.25.120

Compliance Requirements:

• Complete renewal forms accurately (missing/invalid information results in denial as of October 23, 2025)
• Maintain valid, unexpired TPT License at all times
• Submit to annual permit renewals
• Respond to code enforcement violations

Arizona State Regulations:

• Defined as rental of part or all of any legally permitted dwelling unit for fewer than 30 consecutive days per A.R.S. §9-500.39
• State law (SB 1168) allows cities to require permits but prohibits capping the number of STRs
• No current cap on number of STRs in Sedona

Additional Considerations:

• 30+ Day Rentals: No permit required, but online listings must show 30-day minimum stay
• HOA Rules: Check homeowner association rules - city does not enforce HOA restrictions
• Commercial vs. Residential: STR permits are for residential properties only; commercial lodgings (hotels, B&Bs) require different licensing

CONTACT INFORMATION FOR LOCAL AUTHORITY

Primary Contacts:

Short-Term Rental Program Supervisor:

• Teresah Arthur
• Email: tarthur@sedonaaz.gov
• Phone: (928) 203-5198

Short-Term Rental Code Enforcement Officer:

• Brian Armstrong
• Email: barmstrong@sedonaaz.gov
• Phone: (928) 203-5126

24/7 Complaint Hotline:

• Phone: 928-203-5110
• Online Incident Report: https://lodging.munirevs.com/complaint/?cityid=688

City Hall Contact:

• Address: 102 Roadrunner Drive, Sedona, AZ 86336-3710
• Phone: (928) 282-3113
• Finance Department (tax questions): (928) 204-7185

Emergency Contacts:

• Life-threatening emergencies: Call 911 immediately
• Police Department: (928) 282-3100

LINKS TO SOURCE PAGES

1. City of Sedona Short-Term Rentals Main Page: https://www.sedonaaz.gov/your-government/departments/short-term-rentals

2. Short-Term Rentals FAQs: https://www.sedonaaz.gov/your-government/departments/community-development/vacation-rentals/vacation-rentals-faqs

3. Sedona City Code Chapter 5.25: https://sedona.municipal.codes/SCC/5.25

4. Arizona Department of Revenue TPT License: http://azdor.gov/business/transaction-privilege-tax

5. MUNIRevs Permit Application System: https://sedonaaz.munirevs.com/log-in/

6. STR Incident Report Form: https://lodging.munirevs.com/complaint/?cityid=688

7. Yavapai County GIS (Property Information): https://gis.yavapaiaz.gov/v4/map.aspx

8. Coconino County GIS (Property Information): https://www.arcgis.com/apps/webappviewer/index.html?id=868170827e4443d2be37eb60562446ae

9. Interactive STR Map (Red Rock News): https://www.redrocknews.com/str/

10. A.R.S. §9-500.39 (State STR Definition): http://www.azleg.gov/viewdocument/?docName=http://www.azleg.gov/ars/9/00500-39.htm

Note: Property owners must also comply with all applicable federal, state, and local laws, including zoning requirements, building codes, and tax obligations beyond those specifically related to short-term rental permits.