Overview: Are Short-Term Rentals Allowed in Panguitch, UT?

YES, short-term rentals are explicitly allowed in Panguitch, UT. However, the city has implemented comprehensive regulations to manage their growth and impact on the community. STRs are permitted as follows:

• Commercial zones: STRs are a permitted use with no numerical limits
• Residential and Agricultural zones: STRs are allowed as conditional uses but are subject to a strict cap of 30 total licenses
• Other zoning districts: STRs are prohibited

Critical Update: The city's most recent STR Ordinance 2025-1 took effect on June 1, 2025, replacing the previous 2022 ordinance. This new ordinance establishes significant restrictions, including a 30-license cap in residential/agricultural zones and a waiting list system for new applications.

How to Start a Short-Term Rental Business in Panguitch

Step 1: Determine Property Eligibility

• Verify zoning: Confirm your property is in a zone where STRs are allowed (commercial, residential, or agricultural)
• Check cap status: If in residential/agricultural zones, verify if the 30-license cap has been reached
• Assess property requirements: Ensure the property has frontage on a city street with minimum 24-foot wide travel surface

Step 2: Complete Preliminary Application

• Submit preliminary STR application to the City
• If the cap is reached: Your application will be placed on a waiting list (first-come, first-served basis)
• If approved: You have 30 days to submit a complete STR permit application

Step 3: Obtain Required Approvals

1. STR Inspection (Building Official or approved third-party inspector)
2. Conditional Use Permit (City Council - if required for residential/agricultural zones)
3. Business License (City Council)
4. Utah State Tax Registration (Transient Room Tax and Sales/Use Tax numbers)

Step 4: Post-Approval Requirements

• Complete yearly safety inspection acknowledgment
• Maintain active STR listing (continuous 30+ days of inactivity may result in revocation)
• Comply with ongoing operational requirements

Required Documents, Permits, Licenses, and Guidelines

Core Documents Required:

1. STR Inspection Certificate

   • Safety compliance verification
   • Building standards compliance
   • IRC (International Residential Code) compliance

2. Conditional Use Permit (for residential/agricultural zones)

   • Required for all STRs in these zones
   • Not required for commercial zones
   • Application fee as per City Fee Resolution

3. Business License

   • Panguitch City Business License
   • Must include Utah State Tax Commission numbers
   • Annual renewal required
   • Failure to renew within same calendar year = permanent revocation

4. Utah State Tax Registration

   • Transient Room Tax number
   • Sales and Use Tax number
   • Required before business license issuance

Additional Documentation Requirements:

• Manager/Local Contact Information: Name, address, phone number
• Property Documentation: Proof of ownership/equitable interest
• Resident Verification (if applicable): Documents showing 183+ consecutive days of Panguitch residency
• Insurance Verification: Liability coverage documentation
• Property Management Company License (if using management company)

Specific Regulations for Short-Term Rentals

Cap and Waiting List System

• Residential/Agricultural Zones: Maximum 30 STR licenses total
• Commercial Zones: No limit on number of STRs
• Waiting List: First-come, first-served when cap is reached
• Active Use Requirement: Must maintain active listing; 30+ days of inactivity may result in permit revocation

Owner Restrictions

• Residents: May own up to 2 STRs in residential/agricultural zones
• Non-residents: May own only 1 STR in residential/agricultural zones
• Multiple Properties: Separate permit and license required for each STR property

Zoning and Property Requirements

• Maximum: 1 STR unit per parcel in all zoning districts
• ADU Restrictions:
  • For properties with primary dwelling + ADU: STR permit only granted if owner lives on same property
  • ADUs in residential/agricultural zones limited to owner-occupied scenarios
• Property Standards:
  • Minimum 24-foot wide travel surface street frontage required
  • No STR permits for properties without proper street access

Parking Regulations

• Off-street parking required on same lot as STR
• Ratio: 1 vehicle per bedroom (tandem spaces allowed on driveway)
• Right-of-way parking: Maximum 3 standard vehicles on city right-of-way
• Traffic compliance: No obstruction of traffic flow or neighboring property rights
• Overnight camping restrictions:
  • No camp trailers allowed
  • No motorhomes allowed
  • Tent camping allowed only if occupancy limits maintained

Safety and Building Standards

Mandatory Safety Equipment:

• At least one operable fire extinguisher
• Smoke detectors in each bedroom, major living areas, and each floor
• Carbon monoxide detectors on each floor (if gas appliances present)
• Graspable handrails (1¼ to 2 inches) on all staircases
• GFCI plugs within 6 feet of wet areas and all exterior outlets
• Sleeping rooms must meet IRC egress requirements

Units with >5 sleeping rooms or >10 occupants: Written approval from Building Official required

Privacy Fencing Requirements

• New STRs (post-6/1/2025): Privacy fencing required for all
• All STRs allowing pets: Fully enclosed privacy fenced area required
• Fencing standards: Must comply with Panguitch City fencing ordinance
• ** Trespass complaints**: May result in permit suspension until fencing installed

Signage Requirements

• Minimum size: 8 square feet
• Maximum size: 15 square feet
• Required information:
  • Unique STR name as it appears on listing platforms
  • Physical address of STR
  • 24/7 phone number for owner/manager/local contact person
• Lighting: Low wattage, downlit manner only
• Historical Main Street District: Exceptions possible with Planning Commission recommendation and City Council approval

Operational Requirements

Manager/Local Contact Availability:

• Must be "readily available" during occupied periods
• 1-hour response requirement to complaints
• Responsible for guest conduct management

Required Unit Posting (in conspicuous location):

• Copy of STR business license
• Owner/manager/local contact information with local emergency contacts
• Location of fire extinguishers and emergency exits
• STR-specific rules list
• Maximum occupancy and vehicle allowance
• Available parking spaces
• Trash pickup day and exterior storage rules
• Property boundary and parking map

Noise and Nuisance Regulations

Quiet Hours: 10:00 PM - 8:00 AM (no outside recreational activities)

Prohibited Activities:

• Unreasonable noise out of character with neighborhood
• Shouting, fighting, loud music
• Racing cars/off-highway vehicles on streets
• Trespassing on neighboring properties
• Disorderly or illegal conduct
• Pet noise, roaming without owner present, uncleaned messes

Complaint and Enforcement Process

1. 1st Complaint: Letter sent to property owner
2. 2nd Complaint: Letter notifying conditional use permit in jeopardy
3. 3rd Complaint: Infraction notice and mandatory City Council meeting

Tax Compliance Requirements:

• Collect and remit Transient Room Taxes
• Remit appropriate Sales and Use Taxes
• Annual tax compliance verification required for business license renewal
• 1+ year tax delinquency = permit/license suspension

Enforcement Penalties

Operating Without Permits:

• 1st notice: Certified letter requesting compliance
• 2nd notice (after 30 days): City Attorney notice of penalties
• 3rd violation (after 14 days): Class C Misdemeanor, $100/day fine, property lien

Permitted STR Violations:

• Up to $750 fine per violation
• Potential permit/license revocation
• Each day of violation = separate offense

Contact Information

Primary Contacts

Panguitch City Office

• Phone: (435) 676-8585
• Email: panguitchcity@panguitch.com
• Physical Address: 25 S 200 E, Panguitch, UT 84759

City Clerk - Tyrissa Howell

• Email: tyrissa.howell@panguitch.com
• Phone: (435) 676-8585

City Manager - Mat Houston

• Phone: (435) 676-8585
• Scheduling Inquiries: Contact for opening ceremony prayer appointments

Meeting Information

Panguitch City Council Meetings

• Location: 25 S 200 E, Panguitch, UT 84759
• Public Notices: Posted on Utah.gov Public Notice Website

Links to Source Pages

Official Documents

1. Current STR Ordinance 2025-1:

   • www.utah.gov/pmn/sitemap/notice/996587.html
   • PDF Version: www.utah.gov/pmn/files/1266617.pdf

2. Previous Ordinance 2022-01 (Superseded):

   • panguitch.com/wp-content/uploads/2022/03/2022-1-Ord-Short-Term-Rental.pdf

3. 2021-2 Ordinance (Historical, Superseded):

   • www.utah.gov/pmn/files/693339.pdf

Additional Resources

• Panguitch City Public Notices: www.utah.gov/pmn/
• Utah State Tax Commission: For transient room and sales tax registration
• Panguitch City Official Website: Contact city directly for current fee schedules and application forms

Important Notes for Investors:

• The 30-license cap in residential/agricultural zones represents a significant restriction that may limit investment opportunities
• The waiting list system means new permits may take considerable time to obtain
• Enforcement has become more stringent under the 2025 ordinance
• Commercial zone properties offer better investment potential due to unlimited licensing
• Annual compliance requirements are substantial and ongoing costs should be factored into business planning
• Tax compliance is strictly enforced and delinquency results in automatic permit/license suspension

This guide represents the current regulatory environment as of the 2025 ordinance. Investors should verify current requirements directly with Panguitch City as regulations may evolve.