Short-term rentals in Paradise Valley, explained properly.

Every registration and permit application must include: the name and contact information (address, telephone number and email address) of the Owner; the rental's physical address; the name and contact information of the Owner or of an Owner's Representative responsible for responding to complaints in person, by telephone or by email under Section 10-14-5(A)(1); the name, address and contact information of a designated emergency contact; and the phone number of the rental's phone(s) required under Section 10-14-5(B)(6). The code says this information shall be made publicly available. An application missing any required information is rejected as incomplete and must be re-submitted (10-14-3(H)). Sections 10-14-5(A)(1) and 10-14-5(B)(6) were not read.

Section 10-14-3(F) sets a nonrefundable $250.00 permit fee, payable before a permit is issued; failure to pay is a ground for denial (10-14-3(I)(2)). The fee is stated in the Code section itself; confirm the current amount with the Town before applying.

The Town issues or denies a permit within seven business days of receiving the information required by Sections 10-14-3(A) and (B) and otherwise in accordance with A.R.S. 9-835 (10-14-3(H)). Within seven business days of a complete application the Town may deny it for: failure to provide the required information; failure to pay the permit fee; the Owner already having a suspended permit for the same rental at the time of application; false information; or the Owner or Owner's Representative being a registered sex offender or having been convicted, within the past five years, of a felony act that resulted in death or serious physical injury or of a felony use of a deadly weapon (10-14-3(I)). The Town immediately revokes a permit on discovering grounds for denial that existed when it was issued (10-14-3(J)).

All permits are valid for one year from issuance (10-14-3(L)(1)). A renewal application must include a copy of any notice of violation or disciplinary action the owner has received (10-14-3(L)(2)). A permit may not be renewed while there are outstanding causes for denial, suspension, revocation or other sanctions (10-14-3(L)(3)). It is unlawful to operate after the expiration date on the permit unless the Town has received a complete renewal application with the requisite fees (10-14-3(L)(4)). The renewal fee amount was not read.

Section 10-14-3(K) states that no permit granted under the Article is transferable from one person to another or from one location to another.

Section 10-14-3(G) requires the Short-Term Rental Owner to provide evidence of at least $500,000 aggregate general liability insurance for each short-term rental, either by contracting for the insurance directly or by advertising through an Online Lodging Marketplace that provides equal or greater coverage for that rental as part of the advertising agreement.

Section 10-14-3(C) requires the Owner to display the permit number issued by the Town on each advertisement for the rental and to give each booking guest a statement of applicable Town rules and regulations, or direct the guest to them, and inform the guest that renting the unit is an agreement to comply with them. The state requirement to show the TPT license number in advertising comes from the Arizona layer (see the state rules).

Section 10-14-4(F) requires the Owner, within twenty-four hours of every booking, to perform a background check on every guest to ensure there are no sex offenders at the rental. The requirement may be met by evidence that the Online Lodging Marketplace where the rental is booked conducted a sex-offender background check of every guest. Failing to keep a full copy of the background check on each guest for twelve months after the booking date is a separate violation. An owner who permits a sex offender to occupy the rental is in violation.

Section 10-14-4(I) bars these nonresidential uses. Section 10-14-4(J) treats any violation of a noise, welfare, property-maintenance or other nuisance ordinance permitted under A.R.S. 9-500.39(B)(2) as a nonresidential use. Section 10-14-4(F) adds that, in line with A.R.S. 9-500.39(B)(3), a rental may not be rented, advertised or used for housing sex offenders, operating a sober living home, selling illegal drugs, liquor control, pornography, obscenity, nude or topless dancing, or other adult-oriented businesses, performances, parties or activities. Section 10-14-4(G) bars urination, defecation, nudity and sexual acts where the public can reasonably see them, and Section 10-14-4(H) bars using motor homes, campers, trailers, boats, buses and similar equipment allowed to be stored on residentially-zoned property for sleeping or habitation, per Section 1007 of the Zoning Ordinance (not read).

Section 10-14-4(A) states the compliance duty. Section 10-14-4(D) bars anyone from receiving payment or accepting a fee, directly or indirectly, for facilitating the rental of a short-term rental operating in violation of the Code or other applicable law. Section 10-14-4(E) makes any renter who causes, permits, facilitates, aids or abets a violation subject to a civil sanction under Section 10-14-6(B), which was not read.

Section 10-14-3(D) applies to any person or entity who offers for rent or accepts a fee for booking a short-term rental that is not registered with and permitted by the Town (or, where applicable, registered with the Maricopa County Assessor under A.R.S. 33-1902). Each day's failure to comply with a notice of violation or other order is a separate violation. A rental that failed to apply for a permit within thirty calendar days of the Town making the permit application process available must immediately cease operations. The penalty amounts in Section 10-14-6 were not read.

Under Section 10-14-3(M) the Town Manager or designee starts an administrative process to suspend a permit for no less than three and no more than twelve months for: (1) three violations of the Article within a 12-month period, not counting an aesthetic, solid-waste or vehicle-parking violation that is not also a serious threat to public health and safety; or (2) one violation of the Article, or of another legal requirement enacted to protect public health and safety, that results in or constitutes a felony offense at or near the rental by the Owner or Owner's Representative, a serious physical injury or wrongful death from their knowing, intentional or reckless conduct, knowingly or intentionally housing a sex offender, allowing adult-oriented or sexual offenses or prostitution, or operating a sober living home, or knowingly or intentionally allowing a special event that would need a permit or license under state law or rule, or a retail, restaurant, banquet or similar use. For an attempted or completed felony arising from the occupancy or use of a rental that results in death or actual or attempted serious physical injury, the Town Attorney may seek a court order suspending the property's use as a short-term rental for up to twelve months. Notice of any suspension and the right of appeal are given as the Article provides (Section 10-14-7 was not read).

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.