Vacation Rentals - Property Owner Responsibilities
Ensure the safety of the structure.
The building must be an approved structure. For example, if you wish to convert your garage, workshop or other accessory structure into a vacation rental, you must get the required building permits before you begin remodeling and conversion work.
- We strongly encourage you to install basic safety measures such as: fire extinguishers, smoke and carbon monoxide detectors, deadbolt locks, etc.
- Contact the Community Development Department at 928-282-1154 or go to the Permits page for details.
A transaction privilege tax license from the Arizona Department of Revenue is required for all properties used for vacation rentals.
- Vacation rentals must remit sales tax and transient occupancy tax (bed tax) at the same rates as hotels. Check with the county in which your home is located to determine the sales tax rate because each county has different rates.
- These taxes must be paid regardless of whether or not you charge your guests tax in addition to the money they pay you for rent.
- As the property owner, it is your responsibility to collect the money and remit the taxes you collect to the Arizona Department of Revenue or ensure that a third party vendor does this on your behalf. Currently Airbnb is the only third party vendor the city is aware of that collects and remits taxes on behalf of its clients.
- Failure to make timely tax payments can result in fines and interest.
- For more information about sales tax remittance contact the city’s Finance Department at (928) 204-7185.
Compliance with city ordinances and regulations is important to protect property owners engaged in vacation rentals, their neighbors, and the safety and quality of Sedona’s neighborhoods.
- The city is in the process of creating an inventory of properties listed for vacation rentals to ensure compliance.
- Property owners engaged in vacation rentals that come into compliance with all applicable rules and regulations before October 31, 2017 will receive relief from any additional fines, penalties or interest related to noncompliance issues and code violations.
- Properties found to be in violation of any rules and regulations after October 31, 2017 will be subject to additional fines, fees and enforcement actions.
- If you will be improving your property, some improvements (that may not require a building permit) must also comply with the Land Development Code.
- Property owners are responsible for ensuring that renters are complying with all applicable rules and regulations such as noise, nuisances, etc.