Short-term rentals, aka vacation rentals in Sedona, are:
- Single-family houses
- 1-4 unit houses
- Or Individual rooms within any of the vacation rental types listed
Properties that wouldn't be considered vacation rentals:
- Unsafe structures that don't meet safety and health codes
- Apartment Complexes of 5+ units
- Retail space
- Banquet spaces
- Event centers
- Or anything else that is considered nonresidential
Before converting your property to a vacation rental you must:
- Have the safety of the structure approved
- Transaction Privilege Tax License
- Failure to pay these taxes will result in fines with interest
- Tax must be paid no matter what
- You must pay sales tax and transient occupancy tax at the exact same rates as hotels
- Be compliant with city regulations about noise, nuisances, etc.
To figure out what type of building permits you will need in your zoned district, you can call Community Development at 928-282-1154.
Make sure to check in with your local HOA to see if they allow vacation rentals in the neighborhood.
Fines and Fees
Any violations of the stated rules will result in either fines, fees, or enforcement actions.
Depending on your location, the Transaction privilege tax can be anywhere from 13.325% - 13.90%.