Short-term rentals in Prescott, explained properly.

The application must be accompanied by a fee established by City Council resolution (4-9-5(B)), and the annual renewal carries a fee set the same way (4-9-5(H)). The amount is not shown in the chapter. We haven't reviewed the City fee schedule yet.

A registration certificate is valid for one year, or any portion of a year, from the date of application and must be renewed each year, with a fee set by City Council resolution (4-9-5(H)). The history note shows this subsection was amended by Ord. 2019-1655 (adopted February 12, 2019).

The City form, signed under penalty of perjury, must give: the property address; the owner's name, address and telephone; any agent's details; the local contact person's name, address and 24-hour telephone, with verification the person can respond within the chapter's time frames; evidence the contact's name and 24-hour number were given to property owners in immediate proximity on all sides, as shown in Yavapai County Assessor records; the number of bedrooms; the applicable overnight occupancy limit; and evidence of a valid transaction privilege tax license (4-9-5(A)).

On a change of property owner, owner's agent or other material facts in the annual registration, a new registration is required to continue operating, and the owner or agent must submit the registration and fee within fourteen days (4-9-5(F)).

A certificate may be denied if one for the same unit and owner was previously revoked (4-9-5(C)), or for failing to provide required information or to pay amounts owed to the City (4-9-5(D)). An applicant with a current City debt is ineligible for any new or additional licenses until it is resolved. A denial for any reason may be appealed in writing to the City Manager (4-9-5(G)).

The local contact person must be available 24/7 during each rental term to respond in person within 45 minutes to complaints about the condition, operation or conduct of occupants (4-9-2, 4-9-6(C)). A timely response means telephone contact with the responsible person within 30 minutes of a call and, if phone contact is not made, in-person contact within 45 minutes (4-9-6(H)). Failure to respond is grounds for penalties (4-9-6(I)).

Before each occupancy the owner or agent must sign a written rental agreement with a responsible person who provides name, age, address and a copy of government-issued identification. The agreement sets out occupancy limits, trash disposal and noise prohibitions, makes the responsible person legally responsible for all occupants and guests, and comes with a copy of the City's Good Neighbor Brochure. Agreements are kept at least two years and available to the City on request (4-9-6(G)).

The local contact person must post a copy of the registration certificate and the section's conditions in a conspicuous place in the unit (4-9-6(J)). Before occupancy, and posted in the unit, the renter must receive: the contact's name and 24-hour number; a Good Neighbor Brochure; the maximum overnight occupants; the trash pick-up day and rules; a notice that noise limits apply; a notice that occupants may be cited, fined or evicted; a notice that exceeding occupancy is a violation; and a copy of the chapter (4-9-6(K)).

The local contact person must ensure occupants do not create unreasonable noise disturbances, engage in disorderly conduct or violate the code or state law (4-9-6(D)), that trash is not stored within public view except as allowed in Section 7-4-15(A)(2) (4-9-6(E)), and that noise does not exceed the limits in Title V, Chapter 4 (4-9-6(F)). The noise limits and Section 7-4-15 themselves were not fetched.

The use of a vacation rental unit shall not violate any applicable conditions, covenants or other restrictions on real property (4-9-6(L)). The City code does not say which developments have such restrictions; check the recorded documents for the property.

The owner shall comply with Chapter 1 of this title and the City Model Tax Code concerning transient occupancy taxes (4-9-6(M)). We haven't reviewed that tax code yet, so the City rate and a combined total with the Arizona state rate are not shown on this page.

The owner is responsible for compliance with all applicable codes on fire, building, health and safety and all other relevant laws (4-9-6(A)). The chapter's requirements are in addition to any license, permit or fee required elsewhere in the code, and a permit under this chapter does not relieve anyone of the duty to comply with other provisions on use and occupancy (4-9-8(E), 4-9-9). Landlords and owners also give the City access for inspection or audit during normal business hours (4-9-7).

Any person who uses, or allows the use of, residential property in violation of the chapter is guilty of a misdemeanor for each day of the violation, punishable under Title 1, Chapter 3 (4-9-8(A)). A shorter compliance period may be set where the nature of the violation requires it (4-9-8(B)). The chapter's remedies are in addition to other legal remedies (4-9-8(D)). We haven't reviewed Title 1, Chapter 3, so no fine amounts are stated.

Upon the third or any subsequent violation of this chapter or any other provision of the City Code in any twelve-month period, the City Manager or designee may suspend or revoke the registration certificate (4-9-8(C)). A certificate may later be denied if one for the same unit and owner was revoked (4-9-5(C)).

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.