Short-term rentals in Litchfield Park, explained properly.

Section 8-8-3(I) says no permit is transferable as to location or as to a person. A change in the information given on the application requires prior written notice to the city manager at least ten days before the change takes effect (Sec. 8-8-3(F)).

The application names an emergency point of contact with a 24-hour telephone number. When a police officer asks, the owner or contact must be on the premises or available by phone or text within sixty minutes (Sec. 8-8-4(A)). Other complaints must be answered in person, by phone, email or text within twenty-four hours (Sec. 8-8-4(B)). A change in contact information needs prior written notice to the city manager at least ten days before it takes effect, and failing to give that notice can bring a civil penalty of up to $1,000 for every thirty days after thirty days' notice of violation (Sec. 8-8-4(C), (E)).

Before offering the rental for the first time, the owner or designee gives written notice, in the City's form, to each single-family residential property adjacent to the rental, directly across from it and diagonally across the street. The notice shows the City permit number, the rental's address and the emergency contact's name, address, email and 24-hour phone number. Any change to that information needs further notice at least five days before the change, and the owner gives the City an attestation of compliance before the first rental (Sec. 8-8-6).

The owner or owner's designee is responsible for displaying the City permit number on each advertisement for the vacation rental. Each advertisement without it is a separate violation (Sec. 8-8-7). Online listings that reference a property in the City are prima facie evidence that a vacation rental is operating there (Sec. 8-8-3(H)).

The owner must display the name, phone number and email address of the owner or designee and of the emergency point of contact in a conspicuous place within three feet of the primary entrance. Each day the information is not displayed is a separate violation (Sec. 8-8-8).

Before the rental is offered or rented for the first time, liability insurance appropriate to cover the rental in the aggregate of at least five hundred thousand dollars must be provided by the owner or the online marketplace platform. Proof must reach the City no later than ten days before the first rental. Each day without the required insurance is a separate violation (Sec. 8-8-9).

No sex offender may rent or occupy the rental. Within twenty-four hours of every booking and before check-in, the owner or the online lodging marketplace must run a sex offender background check on each booked guest. The owner keeps a full copy of each check for at least twelve months after the booking date and gives it to the City on a police officer's request. A marketplace's failure to run the check does not relieve the owner of liability (Sec. 8-8-10).

Rentals must meet the City's minimum habitability standards and have a working smoke and carbon monoxide alarm system maintained annually under NFPA 72, with inspection and maintenance records kept for the City. A portable multipurpose fire extinguisher, installed and maintained under NFPA 10, is required in any kitchen area, on each floor and within twenty feet of every outdoor fire feature. A rental with a swimming pool must meet the pool safety requirements of A.R.S. 36-1681(A), (B) and (C) regardless of when the pool was installed (Sec. 8-8-11).

Section 8-8-5(B) lists uses that are strictly prohibited at a vacation rental: any nonresidential use; holding a special event that requires a permit or license; operating a retail business, restaurant, event center, banquet hall or similar use; housing sex offenders; operating or maintaining a sober living home; selling liquor, illegal drugs or pornography; a nude or topless dancing business; obscenity; an adult-oriented business; and other uses prohibited by A.R.S. 9-500.39. A rental without a valid Arizona transaction privilege tax license may not be rented or offered for rent (Sec. 8-8-5(C)).

For a verified violation of any provision of the article, the City may impose a civil penalty on the owner of up to $500 or one night's advertised rent, whichever is greater, for a first violation; up to $1,000 or two nights' rent for a second; and up to $3,500 or three nights' rent for a third and any later violation, counted within the same twelve-month period for the same rental. Violations arising from the same response to an incident count as one. A rental that does not apply for a permit within thirty days of the application process being made available must stop operating immediately, and the City may impose a civil penalty of up to $1,000 per month if the owner does not apply within thirty days of written notice (Secs. 8-8-3(H), 8-8-13). The remedies are cumulative.

The City may start an administrative process to suspend a permit for up to twelve months for three verified violations within twelve months (not counting aesthetic, solid waste or parking violations that are not also a serious threat to health and safety), or for one verified violation involving a felony at or near the rental, serious injury or wrongful death from knowing, intentional or reckless conduct, knowingly housing a sex offender or operating a sober living home, or a special event that would need a permit (Sec. 8-8-12). A felony act at a rental that results in death or actual or attempted serious injury is grounds for a court-ordered suspension of up to twelve months (Sec. 8-8-15). A denial, suspension or penalty may be appealed by written notice to the city manager within thirty days of the decision letter, and an appeal does not stay a suspension (Sec. 8-8-14).

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.