Short-term rentals in Gilbert, explained properly.

The Town license page says that effective October 1, 2026 the short-term rental license and renewal fee will be $250. Article III says every application, including a renewal, must be accompanied by a non-refundable fee of $100.00 as established by town council resolution (14-78(c)). A June 2023 Town notice of intent proposed the original $100 registration fee and $100 annual renewal fee. The council resolution or fee schedule that sets the $250 amount was not available to read, so the amount is marked for review until the schedule can be confirmed. The fee is non-refundable (14-78(c)).

The signed application (on the Town form) must contain at least: the physical address; the owner's name, address, email and phone (or, for an entity, its legal name and statutory agent); each designee of the owner, if any; an agent for service of process; the emergency point of contact with a 24-hour phone number; proof of a valid transaction privilege tax license; an attestation of compliance with neighbor notification; evidence that the rental is registered with the Maricopa County Assessor's Office under A.R.S. § 33-1902; and, for an individual applicant, proof of lawful presence in the United States (14-78(b)). The listed information is made publicly available. The owner must give written notice of any change in the application information to the finance and management services director at least 10 days before the change takes effect (14-78(f)). The Town page says that if the property is the owner's primary residence and only specific portions are rented (one bedroom, a casita), Maricopa County registration is not needed, but proof of ownership must still be uploaded with the application.

Licenses are valid for one year from the date of issuance. Unless the Town has received a new application with the required fees, it is unlawful to operate a short-term rental after the expiration date on the face of the license (14-78(g)). Every renewal application is accompanied by the license fee (14-78(c)).

14-78(d) says the Town shall issue or deny the license within 7 business days after receipt of a complete application, except that it may deny for: failure to provide the required application information; failure to pay the fee; false information; the owner or designee being a registered sex offender, having a felony conviction that resulted in death or serious physical injury, or having a felony conviction for use of a deadly weapon within five years of the application; or, at the time of application, a suspended license for the same rental, one violation that resulted in or constituted an offense described in 14-83, or three violations of the article at the rental within 12 months (not counting aesthetic, solid waste or vehicle parking violations that are not a serious threat to public health and safety). Denial notice is emailed and carries the right to appeal (14-78(e)).

The Town license page lists four steps: obtain an Arizona TPT license from the Department of Revenue (each property address listed on the license); complete Maricopa County Assessor registration; complete neighbor notification (postcards are available at 50 E Civic Center Drive, or owners can mail their own letters); then register the property in the Neumo portal with the account number and activation code sent by Neumo. Questions go to [email protected]. Complaints about a rental can be made to the 24/7 hotline at 480-805-8141 or through the online complaint form.

The license application must name an emergency point of contact with a 24-hour phone number. When a police officer asks, the owner or contact named on the application must be on the premises or reachable by phone or text within one hour (14-79(a)). All other complaints must be answered in person, by phone, by email or by text within 24 hours (14-79(b)). The owner must give written notice to the finance and management services director at least 10 days before any change to the emergency contact information, and failure to give notice is a violation (14-79(c)). Using a designee does not relieve the owner of liability (14-79(d)). Failure to give the notice carries a civil penalty of up to $500 for every 30 days (14-79(e)).

Before offering a short-term rental for the first time, the owner or designee must give written notice, in the form required by the Town, to each single-family residential property adjacent to, directly across from and diagonally across the street from the rental. The notice states the physical address and the name, address, email and 24-hour phone number of the emergency point of contact (14-81(a)). Any change to that information requires additional notice not later than 5 days before the change (14-81(b)), and an attestation of compliance goes to the Town with the application (14-81(c)). The Town page adds that in a multi-family building all units on the same floor must be notified, and it tells owners to notify neighbors of contact changes within 10 days; the code text says 5 days before, so the code is followed here.

14-80(a) requires a short-term rental to comply with federal, state and local laws and regulations, including laws on public health and safety, sanitation, solid waste, hazardous waste, tax privilege licensing, property tax registration, traffic control, pollution control, noise, property maintenance and nuisance abatement. The Town page tells owners to give renters its Good Neighbor Guide. The Town noise and nuisance limits and the zoning ordinance were not read.

14-83 sets civil penalties for a verified violation of the article, or failure to perform a required duty, at the same rental in the same 12-month period: up to $250.00 or up to one night's advertised rent, whichever is greater, for the first; up to $500.00 or two nights' rent, whichever is greater, for the second; and up to $1,750.00 or three nights' rent, whichever is greater, for a third and any later violation. Violations arising out of the same response to an incident count as one. The remedies are cumulative. The Gilbert Municipal Court has jurisdiction over violations (14-86). Failure to give notice of an emergency contact change carries up to $500 for every 30 days (14-79(e)).

14-78(h) makes it unlawful to operate without a license. A short-term rental that fails to apply within 30 days of the license application being made available by the Town must immediately cease operations. In addition to any other penalty, an owner is subject to a civil penalty of up to $500.00 per month if the owner or designee fails to apply within 30 days of receiving the Town's written notice of violation. An online listing that references the property location in the Town is prima facie evidence that a short-term rental is operating there. The Town page provides a form to appeal the fine for operating without a license.

14-82 lets the Town start an administrative process to suspend a license for up to 12 months for three verified violations of the article within 12 months (aesthetic, solid waste disposal and vehicle parking violations that are not also a serious threat to public health and safety do not count), or for one verified violation that results in or constitutes a felony at or near the rental by the owner or designee, serious physical injury or wrongful death from knowing, intentional or reckless conduct, knowingly housing a sex offender, allowing adult-oriented, sexual or prostitution offenses or running a sober living home, or knowingly allowing a special event, retail, restaurant or banquet use. A person aggrieved by a license denial or suspension may appeal by written notice to the finance and management services director within 30 days of the decision being emailed (14-84(a)); an appeal does not stay a suspension (14-84(b)). A felony tied to the rental that causes death or serious physical injury can also lead to court-ordered suspension of the property's use for up to 12 months (14-85).

Applies to: Subject to change if state law is amended

A.R.S. § 9-500.39(A) bars Arizona cities and towns from prohibiting short-term rentals, and subsection (B) lists the only ways they may regulate them (health and safety rules, zoning and nuisance rules applied like other residential property, emergency contact, a local permit, neighbor notice, permit number in ads, insurance, and owner residency on some properties with an accessory dwelling unit). Permit caps and minimum-distance or spacing limits are not on that list, and the statute applies to cities of every size.

Short-term rental income (stays under 30 days) is subject to Arizona transaction privilege tax (TPT), so hosts need a TPT license from the Arizona Department of Revenue (a seasonal license can be chosen on AZTaxes.gov) and must include the TPT license number in any advertising for the rental. A city business license, where a city requires one, is separate from the TPT license.

Arizona's state transaction privilege tax rate on the transient lodging classification (A.R.S. § 42-5070) is 5.5%, set by A.R.S. § 42-5010(A)(2). County and city taxes are added on top and vary by location.

Hosts must file a TPT return for every period even if the property was not rented, filing a $0 return rather than skipping the filing.

Separately from tax licensing, every Arizona county requires residential rental properties to be registered with the County Assessor, and penalties can apply to rentals that are not registered. A.R.S. § 9-500.39(J) keeps this duty in place for short-term rental owners.