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REGULATEDevery claim verified 2026-07-16 against the sources below

Is a short-term rental legal in Scottsdale, AZ?

Short-term rentals (stays under 30 days) are legal in every residential zone in Scottsdale because Arizona state law (A.R.S. § 9-500.39) prohibits cities from banning or capping them, but Scottsdale runs one of the state's most demanding compliance regimes. A host must hold a $250/year city vacation-rental license for each property (Scottsdale Revised Code Ch. 18, Art. IX, enacted by Ord. 4566, effective Jan. 8, 2023), plus an Arizona TPT license and Maricopa County rental registration before renting. Operational duties include $500,000 liability insurance, written notification to neighbors with a sworn attestation, a 24-hour emergency contact who must respond in person within one hour, a sex-offender background check on the booking guest before every stay (waived if the platform performs it), a posted in-unit notice limiting occupancy to a single family of no more than six adults plus their related dependent children, smoke alarms, an evacuation floor-plan map, cleaning between stays, bi-monthly pest control, and pool barriers. STRs may not be used for any non-residential purpose — commercial events, weddings, retail, banquet/event-center use are prohibited (reinforced by Ord. 4719, adopted June 23, 2026), juveniles may not rent, and the city license number must appear in every advertisement. Fines are substantial (mandatory minimums of $500–$1,000 for most violations; escalating penalties up to $3,500 or three nights' rent), and three verified violations in 12 months trigger a one-year license suspension. Lodging taxes total roughly 13.97% (7.27% state/county + 1.70% city hotel + 5.0% city transient tax); platforms like Airbnb/Vrbo collect and remit for bookings made through them, but hosts must still hold a TPT license and file returns.

At a glance

Unhosted whole-home rentalYes
Hosted rental (host present)Yes
Primary residence requiredNo
Guest cap6 guests
Rules apply to stays under30 days

State preemption (A.R.S. § 9-500.39) bars Scottsdale from prohibiting or capping STRs or restricting them by zoning classification; the city's 2016 zoning text amendment (Ord. 4288, 3-TA-2016) added 'vacation rental or short-term rental' as a permitted use in all residential districts. No primary-residence requirement and no license cap exist. The 6-guest figure is an occupancy limit of 'a single family of one to six adults and, if any, their related dependent children' (as defined in Zoning Ordinance App. B Sec. 3.100), stated in the notice hosts must post under SRC Sec. 18-175(h) — related dependent children are in addition to the six adults. Rentals of 30+ days are not 'vacation rentals' and need no city STR license. Non-residential uses are prohibited: commercial events, retail, restaurant, banquet/event-center use, housing sex offenders, sober-living operation, adult-oriented business (SRC Sec. 18-171). HOAs may still ban STRs by private contract.

What you need to operate

RequirementAuthorityCostOfficial source
City of Scottsdale Vacation Rental License City of Scottsdale Tax and Business Licensing
SRC Secs. 18-151—18-153 (Ord. 4566, adopted 10/25/2022, eff. 1/8/2023). One license per dwelling unit. City must issue or deny within 7 business days of complete application. Application requires TPT license proof, emergency contact, owner/designee attestation of no sex-offender registration or disqualifying felony (Sec. 18-154). Operating unlicensed: fine of not less than $1,000 per violation, non-suspendable (Sec. 18-151(d)); failure to apply after written city notice adds $1,000 per 30-day period (Sec. 18-152(b)). Apply via aca-prod.accela.com/scottsdale; confirmed on city owners page and licensing guide (scottsdaleaz.gov, updated 7/1/2026).
 $250 per property per year (non-refundable, includes renewals)
renewal: annual (valid 1 year from issuance; non-transferable)
 source
Arizona Transaction Privilege Tax (TPT) License Arizona Department of Revenue
Required per rental property before offering it for rent (A.R.S. § 42-5042(A), quoted in Scottsdale's official Transient Lodging brochure). TPT number is prerequisite for the city license. TPT license number must be listed on every advertisement; state penalty $250 first offense / $1,000 subsequent (A.R.S. § 42-1121.02). Use region codes MAR (county) and SC (city); NAICS 721199. Must file returns (including $0 returns) even when a platform remits.
 Not verified
renewal: annual
 source
Maricopa County Residential Rental Property Registration Maricopa County Assessor
Required by A.R.S. § 33-1902; per the city's official licensing guide it is illegal to rent before registering with the Maricopa County Assessor (mcassessor.maricopa.gov).
 Not verified source
Liability insurance ($500,000 minimum) City of Scottsdale
SRC Sec. 18-173: at least $500,000 aggregate per property, or every transaction conducted through an online lodging marketplace providing equal/greater primary coverage. Proof due to city within 30 days of licensure and on demand. Violation: minimum $500 fine (reducible to $100 once insured).
 varies (market rate)
renewal: continuous
 source
Neighbor notification and compliance attestation City of Scottsdale
SRC Sec. 18-191: before first offering the rental (existing rentals: within 30 days of licensure), written notice to all adjacent single-family properties and those directly/diagonally across the street (or all units on the same floor in multi-family), containing license number, property address, and name/address/24-hour phone of emergency contact; owner then files an attestation with the city. Violation: minimum $500 fine (reducible to $100 on compliance).
 Not verified
renewal: re-notify within 15 business days whenever contact info changes
 source
24-hour emergency contact with 1-hour in-person response City of Scottsdale
SRC Secs. 18-154(a)(4), 18-172: emergency contact must be a real person and, when requested by public safety personnel, respond in person within 1 hour. Minimum fines: $500 for failure to respond, $250 for failure to arrive within the hour, $500 for owners who knowingly/recklessly let the contact fail.
 Not verified
renewal: update within 10 business days of any change (SRC Sec. 18-160)
 source
Sex-offender background check on booking guest City of Scottsdale
SRC Sec. 18-176: owner/designee must check the booking person against the U.S. DOJ national sex offender public website no later than 24 hours before each stay and retain the printout for 12 months (inspectable on demand). Mandatory minimum $1,000 fine, non-suspendable. Requirement is satisfied/waived if the online lodging marketplace performs the check (consistent with A.R.S. § 9-500.39).
 Not verified
renewal: before every stay (no later than 24 hours prior)
 source
Health/safety operational requirements and posted in-unit notice City of Scottsdale
SRC Sec. 18-175 (as amended by Ord. 4609, 8/22/2023): working smoke alarms maintained per NFPA 72; posted floor-plan map with egress routes and emergency info; cleaning between stays; at least bi-monthly pest control; trash set-out rules; pool/spa/hot tub barrier compliance per SRC Ch. 31; and a prescribed 14-point laminated notice on the front and back doors listing prohibited uses, the 6-adult single-family occupancy limit, the 24-hour contact, and the city license number. Ads must also display the city license number (Sec. 18-174; minimum $500 fine, reducible to $100). Juveniles may not rent, and owners may not knowingly rent to juveniles (Sec. 18-178, Ord. 4627, 5/6/2024; minimum $1,000 fine).
 Not verified
renewal: continuous
 source

Taxes on guests & hosts

TaxRateApplies toPlatform collectsOfficial source
Arizona/Maricopa County Transient Lodging TPT (business code 025) 7.27% of gross lodging income (combined state 5.6%-base + county excise; ADOR rate table effective May 1, 2026). Note: platform-facilitated income is instead taxed under Online Lodging Marketplace code 325 at 5.72% for Maricopa, remitted by the platform. All rental stays under 30 consecutive days, including cleaning/pet/no-show/cancellation fees and forfeited deposits Yes source
City of Scottsdale Hotel/Motel Privilege Tax (business code 044) 1.70% of gross income (reduced from 1.75% by Ord. 4676, effective July 1, 2025) Lodging furnished for less than 30 consecutive days within Scottsdale Yes source
City of Scottsdale Additional Transient Tax (business code 144) 5.0% of gross income charged for lodging furnished to a transient (<30 days) Transient lodging income including resort fees, no-show and cancellation revenue Yes source

Enforcement

PenaltiesCity verified-violation penalties (SRC Sec. 18-177, mirroring A.R.S. § 9-500.39): 1st violation up to $500 or one night's advertised rent (whichever greater); 2nd up to $1,000 or two nights' rent; 3rd+ up to $3,500 or three nights' rent, within a 12-month period. Operating without a license: fine of not less than $1,000 per violation, court may not suspend any part (Sec. 18-151(d)); +$1,000 per 30 days for failing to apply after written notice (Sec. 18-152(b)). Mandatory minimum $1,000 fines for background-check violations (Sec. 18-176) and renting to juveniles (Sec. 18-178); minimum $500 fines for insurance, advertising, neighbor-notification, and emergency-response failures (Secs. 18-172—18-174, 18-191). License suspension for 1 year (reducible to 6 months) after 3 verified violations in 12 months or 1 serious violation (felony, serious injury/wrongful death, housing sex offenders, event/retail use) (Sec. 18-158); judicial suspension up to 12 months for felony acts causing death or serious injury (Sec. 18-159); 1-year reapplication ban after denial/revocation (Sec. 18-157). State-level: ADOR fines $250 (first) / $1,000 (subsequent) for missing TPT license or ad number (A.R.S. § 42-1121.02, per city Transient Lodging brochure).
Platform liabilityOnline lodging marketplaces registered with ADOR are responsible for collecting and remitting state, county, and city TPT on bookings they facilitate (A.R.S. Title 42; azdor.gov Short-Term Lodging page); hosts deduct that income with code 775 but must keep filing returns. A marketplace's guest sex-offender check and its >=$500k primary liability coverage each satisfy the corresponding city requirement (SRC Secs. 18-173, 18-176; A.R.S. § 9-500.39). The city license number must appear on each listing; listings referencing a Scottsdale location are prima facie evidence of operation (Sec. 18-151(c)).
NotesScottsdale runs a dedicated STR enforcement program: an STR Resource Center (str.scottsdaleaz.gov) with a public license map, a complaint line (480-312-RENT) and ScottsdaleEZ online complaints, and a nuisance-party ordinance (SRC 18-121) holding owners accountable for unruly gatherings. Ordinance 4719 (June 2026) added an 'event center' definition so police can act against party/event houses even without catching the event in progress.

Pending changes

What we could not verify (6)

  • Effective date of Ordinance 4719: adoption (June 23, 2026) is verified via the city's official news release, but the release does not state an effective date and the ordinance is not yet in the Municode codification (version June 10, 2026). Arizona general-law ordinances typically take effect 30 days after adoption (~July 23, 2026), but this was not verified for this specific ordinance.
  • Legislative history attribution (SB 1350 of 2016 creating the preemption, SB 1168 of 2022 adding local licensing authority): the current text of A.R.S. § 9-500.39 and SB 1350 were verified against azleg.gov/city records, but the SB 1168 session law itself was not fetched; the licensing/penalty provisions it added are verified as present in the current statute.
  • State TPT license application fee and Maricopa County rental-registration fee: requirements verified against official sources, but exact dollar amounts were not verified and are set to null (do not assume $12/location or $0 without checking aztaxes.gov and mcassessor.maricopa.gov).
  • HB 2429's failure to advance in the Senate is verified only via news reports (KJZZ, Sedona Red Rock News, AZ Capitol Times); the azleg.gov bill-status page could not be read directly (dynamic page).
  • Occupancy: the 6-adult single-family limit appears in the mandatory posted notice under SRC 18-175(h) and references the Zoning Ordinance definition of 'family'; the underlying zoning definition text (App. B Sec. 3.100) was not itself fetched.
  • Scottsdale's 5.0% transient tax and 1.70% hotel rate are from the city's July 2025 brochure and ADOR's Scottsdale city profile; ADOR rate table Table 2 (city rates page) was not separately extracted to triple-check, though the two fetched official sources agree.

Sources

A markdown mirror of this page lives at /scottsdale-az.md for AI tools and researchers.

STRWatch publishes educational information about short-term rental regulation, verified against the official sources linked above as of the date shown. It is not legal advice, and rules change — a city can move between our verification passes. For decisions with money at stake, confirm with the authority linked above or a local attorney.