Short-term rental rules · Prescott Valley, Arizona
Short-term rentals in Prescott Valley, explained properly.
The Town of Prescott Valley regulates short-term rentals through Section 13-08-090 of its Zoning chapter, which allows them as Arizona law requires but only with a Town vacation rental license. The application needs the owner's or agent's contact details, proof of Arizona transaction privilege tax compliance, a 24-hour emergency contact and the fee, and the Town decides within seven business days. Owners must notify neighbors before the first rental, show the license number in every advertisement, carry $500,000 in liability insurance (or use a marketplace with equal coverage) and provide guest parking on site. Sex offender housing, sober living homes, adult-oriented businesses and event or retail uses are prohibited. Civil penalties run up to $500, $1,000 and $3,500 (or one, two and three nights' rent if greater), and the license can be suspended for up to 12 months. We haven't reviewed the zoning use tables, the license fee schedule, the parking section or the Town transient tax yet, so confirm zoning before you buy.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Conditional: allowed with a Town vacation rental license under A.R.S. § 9-500.39, but the zoning use tables that decide where haven't been reviewed yet [1] [2] ClauseConfirming |
| Is a Town vacation rental license required? | Yes: the owner must obtain and maintain a Town vacation rental license; the Town issues or denies it within seven business days. Excluded from the definition: a unit used for any nonresidential use, such as retail, restaurant, banquet space or an event center [1] Clause |
| Must the owner live on the property? | No: the owner may name a designee or agent to respond to complaints and emergencies, and the Town's contact information can be the owner's or the owner's designee's [1] Clause |
| Are certain uses of a rental prohibited? | Yes: housing sex offenders, operating a structured sober living home, selling illegal drugs, liquor control or pornography, obscenity, nude or topless dancing and other adult-oriented businesses are prohibited, as are special events that need a permit and retail, restaurant, banquet or similar uses [1] Clause |
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Detailed rules
The full picture, section by section
Licensing
| Town license fee | The applicable fee; the amount and its effective date haven't been reviewed yet [1] ClauseConfirming The application must include the applicable fee (13-08-090(F)(6)), and failure to pay the required license fee is a ground for denial (J)(2). The amount is not shown in the section. We haven't reviewed the Town fee schedule yet. |
|---|---|
| Application decision time and denial grounds | The Town issues or denies the license number within seven business days of receiving the required information [1] Clause The Town may deny issuance for failure to provide the required information, failure to pay the fee, a suspended permit or license for the same rental at the time of application, false information, or an owner or designee who is a registered sex offender or has been convicted within the past five years of a felony that resulted in death or serious physical injury or a felony use of a deadly weapon (13-08-090(J)). |
Operating requirements
| Emergency contact | Required before offering for rent or renting: a contact who can respond at any time of day in person if public safety personnel require, by phone or by email; civil penalty of $1,000 for every 30 days the owner fails to provide it [1] Clause The owner gives the Town the contact information for the owner or the owner's designee before offering the rental for rent (13-08-090(E)). The Town gives 30 days' notice before imposing the first civil penalty. If contact information was provided and the Town issues a citation for a violation at the property, the Town makes a reasonable attempt to notify the owner or designee within seven business days (P). |
|---|---|
| Neighbor notice before the first rental | Notify all single-family residential properties adjacent to and directly and diagonally across the street, and give the Town an attestation of notification [1] Clause The notice goes out before the rental is offered for rent for the first time. In a multi-family building, notice is sufficient if given to residents on the same floor. The notice includes the Town license number, the rental's address and the 24-hour emergency contact, and a new notice is sent if the contact information changes. The attestation lists the license number, the address of each property notified, how each was notified, and the name and contact information of the person attesting (13-08-090(G)). |
| License number in advertisements | The Town vacation rental license number must appear on each advertisement the owner or designee maintains [1] Clause Sec. 13-08-090(H) applies to each advertisement for the rental that the owner or the owner's designee maintains. |
| Liability insurance | At least $500,000 in the aggregate, or advertise and offer the rental through an online lodging marketplace that provides equal or greater coverage [1] Clause Sec. 13-08-090(I). The coverage amount is stated in the aggregate. |
| Guest parking | Guests' parking must be provided on site under the residential parking requirements in section 13-10-050 [1] ClauseConfirming Sec. 13-08-090(B). We haven't reviewed section 13-10-050 yet, so the number of spaces isn't shown on this page. |
| Guest sex offender background checks | The owner must provide sex offender background checks on a guest; waived if an online lodging marketplace performs the check on the booking guest [1] Clause Sec. 13-08-090(L). |
| Compliance with other Town Code rules | Owners and guests must comply with all applicable Town Code requirements, including noise, fireworks, prostitution, offensive premises, nuisance lighting, refuse collection and property maintenance [1] Clause Sec. 13-08-090(C). The noise, nuisance and refuse chapters of the Code haven't been reviewed yet. |
Enforcement
| Civil penalties | For verified violations at the same rental within 12 months: up to $500 (or one night's advertised rent, if greater) for the first, up to $1,000 (or two nights' rent) for the second, and up to $3,500 (or three nights' rent) for the third and each later one [1] Clause Multiple verified violations arising from the same response to an incident count as one (13-08-090(O)). A verified violation means a finding of guilt or civil responsibility, finally adjudicated, for violating any state law or this section (S)(4). A rental that has not applied for a license within thirty days after written notice of the failure faces a further civil penalty of $1,000 per month (N). |
|---|---|
| License suspension | The Town may start an administrative process to suspend the license for up to 12 months after three verified violations in 12 months, or one serious verified violation [1] Clause Three verified violations within a 12-month period count, but not a verified aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety. One verified violation counts if it is a felony at or near the rental by the owner or designee; a serious physical injury or wrongful death from knowing, intentional or reckless conduct of the owner or designee; knowingly housing a sex offender, allowing adult-oriented or prostitution offenses, or operating a sober living home; or knowingly allowing a permit-requiring special event or a retail, restaurant or banquet use. A court may suspend the property's use for up to 12 months after an attempted or completed felony arising from the occupancy that results in death or actual or attempted serious physical injury (13-08-090(K)). |
State law that also applies
| Permit cap or density limit? | None — state law does not allow caps [3] Clause 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. |
|---|---|
| State tax registration required? | Yes — Arizona TPT license [4] Clause 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. |
| State TPT rate on lodging | 5.5% (state) [5] Clause 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. |
| Must file even with no rentals? | Yes — $0 TPT return required [4] Clause 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. |
| County assessor rental registration required? | Yes — register the rental with the County Assessor [4] [3] Clause 1 Clause 2 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. |
Changes
Recent and pending changes
We read Section 13-08-090 (Vacation rentals and short-term rentals) of the Town Code of Prescott Valley and the code's title page as published by American Legal and captured on October 19, 2026. The zoning use tables, section 13-10-050 (parking), the license application form and fee schedule, the Town transient tax provisions and Town Council agendas haven't been reviewed yet, so we will watch the Code for changes.
Sources
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.