# Short-term rental rules in Sedona, AZ

- Status: **REGULATED**
- Last verified: 2026-07-17 (every legal claim checked against the official sources listed below)
- Canonical page: https://strwatch.ai/sedona-az/

## Summary

Short-term rentals (stays under 30 days) are legal citywide in Sedona and cannot be banned or capped: A.R.S. § 9-500.39 (SB 1350 of 2016, amended by SB 1168 of 2022) preempts Arizona cities from prohibiting STRs or restricting them by use, but lets them require a local permit. Sedona requires an annual, non-refundable, non-transferable STR permit of $210 per rental unit (raised from $200 between Oct 2025 and Feb 2026; state law caps the fee at actual cost or $250) under Sedona City Code Chapter 5.25 (adopted by Ord. 2022-11, Nov. 22, 2022; mandatory since Feb. 15, 2023), applied through the GovOS/MUNIRevs portal. Before operating, an owner must hold an Arizona TPT license, carry at least $500,000 aggregate liability insurance per unit, register a 24/7 emergency contact, and notify adjacent, directly-across and diagonally-across single-family neighbors by certified mail or hand delivery. Ongoing duties: city permit number on every listing, TPT license number on every ad (A.R.S. § 42-5042), a posted safety/noise notice within 10 feet of the entrance, and a sex-offender background check on guests at least 24 hours before each check-in (records kept 12 months). Special events (weddings, retreats, workshops) at STRs are prohibited (SCC 5.25.050). Violations carry city penalties of $500 up to $3,500 (SCC 5.25.120) and permits can be suspended for 12 months after three verified violations in 12 months or one serious violation (SCC 5.25.110). Total lodging TPT is 13.90% in the Coconino County portion and 13.325% in the Yavapai County portion (state/county 6.90%/6.325% + Sedona 3.5% hotel tax + 3.5% bed tax); registered marketplaces like Airbnb/Vrbo must remit TPT on their bookings. A 2026 state bill (HB 2429) that would have allowed occupancy limits died in the Senate in April 2026.

## At a glance

- Unhosted whole-home rental: Yes
- Hosted rental (host present): Yes
- Primary residence required: No
- Guest cap: none verified
- Rules apply to stays under: 30 days

Notes: A.R.S. § 9-500.39 bars Arizona cities from prohibiting STRs, restricting them based on classification/use, or capping their number; Sedona's own FAQ confirms no cap is permitted. Both hosted (rooms, casitas, guest houses) and unhosted whole-home rentals are allowed with a city permit and TPT license (Sedona City Code Ch. 5.25). Rentals of 30+ days need no STR permit. Eligible: single-family homes, 1-4 unit buildings, condos/townhomes, individual rooms, guest houses/casitas. Not eligible: 5+ unit apartment complexes, RVs, tents, non-dwelling structures; commercial lodging (hotels, B&Bs) is exempt from the permit. Special events of any size (weddings, receptions, retreats, conferences) are prohibited at STRs (SCC 5.25.050). No occupancy/guest cap exists (state law did not authorize one as of 2026-07-17; HB 2429, which would have, died April 2026). Per § 9-500.39 as amended, accessory dwelling units permitted after Sept. 14, 2024 may be restricted from STR use unless the owner resides on the property.

## Requirements

### City of Sedona Short-Term Rental Permit (permit)

- Authority: City of Sedona (Short-Term Rental Program, GovOS/MUNIRevs portal)
- Cost: $210/year per rental unit (non-refundable, non-transferable); was $200/year until at least Oct 2025
- Renewal: Annual - expires one year from activation date; GovOS/MUNIRevs emails a 60-day renewal notice
- Official source: https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- Notes: Required for every rental of a dwelling unit under 30 consecutive days (Sedona City Code Ch. 5.25, adopted Ord. 2022-11, 11-22-2022; program mandatory since Feb. 15, 2023). Each unit needs its own permit. Application requires owner/designee contact info, emergency contact, and proof of a valid AZ TPT license. State law (A.R.S. § 9-500.39) caps the fee at actual issuance cost or $250, whichever is less. Verified on the city's official page via Wayback snapshots of 2026-02-12 and 2026-05-04 ($210) and 2025-03-21/2025-10-29 ($200) because sedonaaz.gov bot-walls direct fetches.

### Arizona Transaction Privilege Tax (TPT) license (license)

- Authority: Arizona Department of Revenue (AZTaxes.gov)
- Cost: $12 state license fee (A.R.S. § 42-5005(A)); Sedona municipal license fee $2, renewal $0 (ADOR Sedona profile)
- Renewal: Annual
- Official source: https://azdor.gov/business/transaction-privilege-tax/short-term-lodging
- Notes: A.R.S. § 42-5042 requires online lodging operators to obtain a current TPT license before offering lodging for rent and to list the TPT license number on each advertisement; civil penalty $250 first offense, $1,000 subsequent. The city requires proof of TPT license before issuing the STR permit. ADOR: file returns even for $0 periods; direct bookings reported under codes 025 (state/county) and 044/144 (city).

### Liability insurance (insurance)

- Authority: City of Sedona / A.R.S. § 9-500.39
- Cost: Market rate - minimum $500,000 aggregate coverage per rental unit
- Renewal: Continuous
- Official source: https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- Notes: City requires liability insurance of at least $500,000 aggregate per unit (SCC 5.25.090); A.R.S. § 9-500.39 authorizes requiring this minimum or equivalent coverage through an online lodging marketplace.

### Neighbor notification (other)

- Authority: City of Sedona
- Cost: Certified mail costs only
- Official source: https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- Notes: Before operating, owner must notify each single-family property adjacent to, directly across from, and diagonally across the street from the STR (SCC 5.25.060; authorized by A.R.S. § 9-500.39). Notice must include STR address, city permit number, and emergency contact name, physical address, email and 24-hour phone; sent by certified mail return-receipt or hand-delivered.

### Emergency contact registration and upkeep (registration)

- Authority: City of Sedona
- Cost: not verified
- Renewal: Update GovOS/MUNIRevs account within 10 days of any change
- Official source: https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- Notes: Owner, owner's designee and 24/7 emergency contact information required (SCC 5.25.040). City runs a 24/7 complaint hotline (928-203-5110) that calls the emergency contact. Contact info is public record. A.R.S. § 9-500.39 allows fines up to $1,000 per 30 days for failing to provide emergency contact after notice.

### Sex offender background check per booking (other)

- Authority: City of Sedona
- Cost: not verified
- Renewal: Every booking - at least 24 hours before check-in
- Official source: https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- Notes: Owner must conduct a sex offender background check at least 24 hours before guest check-in or show the online lodging marketplace did so (SCC 5.25.100); keep each check 12 months after booking and provide to the city on request. No sex offender may rent or occupy the STR; marketplace failure does not relieve the owner.

### Advertising requirements (other)

- Authority: City of Sedona / Arizona Department of Revenue
- Cost: not verified
- Official source: https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- Notes: City STR permit number must appear on every advertisement and listing (SCC 5.25.070); AZ TPT license number must appear on each ad (A.R.S. § 42-5042). Listings must state Sedona's special-event prohibition; 30+ day rentals must show a 30-day minimum stay in listings or the city will require a permit.

### On-site posted notice (other)

- Authority: City of Sedona
- Cost: not verified
- Official source: https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- Notes: Laminated or shielded notice in 14-point or larger bold font posted within 10 feet of the unit's primary entrance, locating fire/life-safety equipment and stating city noise and waste-disposal rules (SCC 5.25.080). Trash cans out no earlier than noon the day before pickup, in by 11:59 p.m. pickup day.

## Taxes

- **State + county TPT on transient lodging (business code 025)**: Coconino County portion of Sedona: 6.90% combined; Yavapai County portion: 6.325% combined (state transient lodging rate 5.5% + county excise) — applies to Gross income from lodging stays under 30 days (Sedona straddles both counties); platform collects: yes. Source: https://azdor.gov/sites/default/files/document/TPT_RATETABLE_07012026.pdf
- **City of Sedona hotel TPT (business code 044)**: 3.50% — applies to Lodging stays under 30 days within Sedona city limits (city code SE); platform collects: yes. Source: https://azdor.gov/model-city-tax-code/city-profile/sedona
- **City of Sedona hotel/motel additional tax - bed tax (business code 144)**: 3.50% (3.0% originally; 3.5% effective Jan 1, 2014) — applies to Lodging stays under 30 days; stacks with code 044 for a total city rate of 7.0% and combined totals of 13.90% (Coconino side) / 13.325% (Yavapai side), figures confirmed on the city's official STR FAQ; platform collects: yes. Source: https://azdor.gov/model-city-tax-code/city-profile/sedona

## Enforcement

- Penalties: City: violations of Sedona City Code Ch. 5.25 are punishable as a misdemeanor and civil offense with penalties from $500 up to $3,500 (SCC 5.25.120, per the city's official STR pages). Permit suspension up to 12 months for three verified violations within 12 months (excluding purely aesthetic/solid-waste/parking violations not threatening health/safety) or one serious violation (felony at the property, serious injury/wrongful death, housing a sex offender, sober-living operation, or holding a special event/nonresidential use) - SCC 5.25.110, verified text; one-year wait to reapply after denial/revocation. State (A.R.S. § 9-500.39): civil penalties per 12-month period of up to the greater of $500 or one night's rent (1st), $1,000 or two nights (2nd), $3,500 or three nights (3rd+); up to $1,000 per 30 days for failure to provide emergency contact. TPT advertising violations: $250 first / $1,000 subsequent offense (A.R.S. § 42-5042).
- Platform liability: Online lodging marketplaces must be licensed with ADOR and remit all state, county and city TPT on transactions they facilitate (A.R.S. § 42-5005(L), mandatory since Jan 1, 2019); hosts deduct OLM-collected income under deduction code 775. City sex-offender check duty remains on the owner even if the marketplace fails to run it.
- Notes: City operates a 24/7 STR complaint hotline (928-203-5110) with a dedicated Short-Term Rental Program Supervisor; complaints route to the emergency contact, code enforcement, or police (noise after 10 p.m.). Suspension notices allow a hearing request within 15 days; appeals per SCC 5.25.130.

## Pending changes

- HB 2429 (57th Leg., 2nd Reg. Sess., 2026) would have amended A.R.S. § 9-500.39 to let cities set STR occupancy limits (roughly two occupants per bedroom plus two additional, excluding minors) and extend the verified-violation lookback for suspensions from 12 to 24 months. Passed the Arizona House (twice, after amendment) but missed Senate committee deadlines and was reported 'likely dead' for the 2026 session on April 7, 2026; never reached the Governor. Similar preemption-loosening bills recur each session - watch the 2027 session. (proposed, 2026-04-07) — https://azcapitoltimes.com/news/2026/04/07/arizona-short-term-rental-bill-likely-dead-for-the-year/
- Sedona 'Rent Local' incentive program (verified on the city's official page, snapshot 2025-04-26): pays STR owners who sign a 1-year+ lease with a local worker and refrain from short-term renting - $6,000-$10,000/year for full units (studio to 3BR), $3,000-$5,000/year for shared-space rooms. The city's housing section now lists a '2026 Balanced Housing Strategy' whose STR-relevant provisions have not been verified - current program status and any new incentives/rules are pending re-verification. (proposed, 2025-04-26) — https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/housing/owners/rent-local-program

## Not yet verified (we say so instead of guessing)

- BOT-WALLS: www.sedonaaz.gov (Akamai) returns 403 to all non-browser fetchers and to the research agent's headless browser; sedona.municipal.codes (Cloudflare/General Code) allowed one request then IP-blocked. All city-page facts were instead verified against Wayback Machine captures of the official pages (most recent: 2026-05-04 for the responsibilities page, 2026-04-02 for the FAQ). A reviewer with a full headless browser should confirm the live pages match, especially the permit-application-requirements page (never archived, never fetched).
- PERMIT FEE: $210/year verified on the city's official responsibilities page as archived 2026-02-12 and 2026-05-04 (was $200 through at least 2025-10-29). Search-engine snippets of the current live page also say $210, but the live page could not be fetched directly; confirm $210 is still current as of 2026-07-17 and find the effective date of the increase (likely the FY2026 Consolidated City Fee Schedule, which is bot-walled).
- CITY CODE TEXT: Of Sedona City Code Ch. 5.25, only the chapter table of contents (sections 5.25.010-5.25.140, code current through Ord. 2024-09 of 11-12-2024 as of the Dec 2024 snapshot) and the full text of § 5.25.110 (Permit suspensions, citing Ord. 2022-11 § 1, 11-22-2022 and Res. 2022-36) were read directly from the official code portal. Sections 5.25.030 (permit/renewal), .050 (use regulations), .060, .070, .080, .090, .100, .120 (penalties) were verified only through the city's own official STR pages summarizing them. Reviewer should pull full chapter text from sedona.municipal.codes/SCC/5.25 and check for any post-2024 amendments.
- PENALTY RANGE: The '$500 up to $3,500' city penalty figure comes from the city's official Property Owner Responsibilities page (citing SCC 5.25.120), not from the code section text itself, which could not be fetched.
- MAX GUESTS: Set to null - no occupancy cap was found and state law did not authorize one as of the 2026 session (HB 2429, which would have, died). Confirm Sedona has not adopted any occupancy standard through another mechanism.
- PERMIT ISSUANCE TIMELINE: A.R.S. § 9-500.39 requires cities to issue or deny a permit within 7 business days; whether Sedona's process states this was not verified.
- 2026 LEGISLATION: HB 2429 reported 'likely dead' on 2026-04-07 (Arizona Capitol Times) and the session's final bill signings have occurred per Arizona Mirror; the fate of SB 1076 (Finchem) and SB 1105 (Kavanagh), both of which would also have amended § 9-500.39, was not individually verified. Confirm neither was enacted in the 2026 session.
- RENT LOCAL: Program details verified from the official city page as archived 2025-04-26; its current funding/status as of 2026-07-17 is unverified (the city site's housing section now references a '2026 Balanced Housing Strategy').
- ONLINE LODGING MARKETPLACE RATE: The July 2026 rate table shows a separate 'Online Lodging Marketplace' state/county code 325 rate (Coconino 6.60%, Yavapai 6.325%) that differs slightly from the operator code 025 rate on the Coconino side (6.90%); the taxes[] entries use the operator (025) rates that the city FAQ also quotes. A tax professional should confirm which combined rate applies to marketplace-facilitated bookings on the Coconino side.

## Sources

- A.R.S. § 9-500.39 - Vacation rentals; short-term rentals; regulation (current text) (official, accessed 2026-07-17): https://www.azleg.gov/ars/9/00500-39.htm
- A.R.S. § 42-5005 - TPT licenses; fees; online lodging marketplace registration (subsec. L) (official, accessed 2026-07-17): https://www.azleg.gov/ars/42/05005.htm
- A.R.S. § 42-5042 - Online lodging operators; requirements; civil penalty (official, accessed 2026-07-17): https://www.azleg.gov/ars/42/05042.htm
- ADOR - Sedona Transaction Privilege Tax & Use Tax Rates (city profile, code SE) (official, accessed 2026-07-17): https://azdor.gov/model-city-tax-code/city-profile/sedona
- ADOR - TPT and Other Tax Rate Tables, July 1, 2026 (codes 025/325, city SE) (official, accessed 2026-07-17): https://azdor.gov/sites/default/files/document/TPT_RATETABLE_07012026.pdf
- ADOR - Short-Term Lodging guidance (codes 025/044/144, OLM deduction 775) (official, accessed 2026-07-17): https://azdor.gov/business/transaction-privilege-tax/short-term-lodging
- Sedona City Code Ch. 5.25 Short-Term Rental Regulation - chapter contents (via Wayback snapshot 2024-12-07 of official General Code portal) (official, accessed 2026-07-17): https://web.archive.org/web/20241207095809/https://sedona.municipal.codes/SCC/5.25
- Sedona City Code § 5.25.110 Permit suspensions - full text (via Wayback snapshot 2025-10-31) (official, accessed 2026-07-17): https://web.archive.org/web/20251031220731/https://sedona.municipal.codes/SCC/5.25.110
- City of Sedona - STR Property Owner Responsibilities ($210 fee; via Wayback snapshot 2026-05-04) (official, accessed 2026-07-17): https://web.archive.org/web/20260504200850/https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- City of Sedona - STR Property Owner Responsibilities ($200 fee; via Wayback snapshots 2025-03-21 and 2025-10-29) (official, accessed 2026-07-17): https://web.archive.org/web/20250321023340/https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities
- City of Sedona - Short-Term Rentals FAQ (tax totals, permit rules; via Wayback snapshot 2026-04-02) (official, accessed 2026-07-17): https://web.archive.org/web/20260402034533/https://www.sedonaaz.gov/your-government/departments/community-development/vacation-rentals/vacation-rentals-faqs
- City of Sedona news release - Apply for a city of Sedona short-term rental permit (2023-02-02; via Wayback snapshot 2026-04-12) (official, accessed 2026-07-17): https://web.archive.org/web/20260412203955/https://www.sedonaaz.gov/Home/Components/News/News/5787/473
- City of Sedona - Rent Local Program (via Wayback snapshot 2025-04-26) (official, accessed 2026-07-17): https://web.archive.org/web/20250426234424/https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/housing/owners/rent-local-program
- HB 2429 (2026) House Engrossed - vacation rentals; short-term rentals; occupancy (official, accessed 2026-07-17): https://www.azleg.gov/legtext/57leg/2R/bills/HB2429H.pdf
- KJZZ - Arizona short-term rental bill now goes after 'repeat bad actors' (2026-03-11) (news, accessed 2026-07-17): https://www.kjzz.org/politics/2026-03-11/arizona-short-term-rental-bill-now-goes-after-repeat-bad-actors-to-limit-overnight-occupancy
- Arizona Capitol Times - Arizona short-term rental bill likely dead for the year (2026-04-07) (news, accessed 2026-07-17): https://azcapitoltimes.com/news/2026/04/07/arizona-short-term-rental-bill-likely-dead-for-the-year/

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Educational information, not legal advice. Published by STRWatch (Laniakea Technologies LLC).