Short-term rentals in Safford, explained properly.

The owner must provide: name, address, phone number and email address of the owner or designee (for an entity, its statutory agent); the address of the rental; proof of compliance with A.R.S. 42-5005 on transaction privilege tax and municipal privilege tax licenses; an emergency point of contact who is responsible for responding to complaints or emergencies in a timely manner, in person if public safety personnel require it, by phone or by email at any time of day, before the rental is offered or rented; an acknowledgement of an agreement to comply with all applicable laws, regulations and ordinances; a statement that neither the owner nor the designee is a registered sex offender and that neither has been convicted of a felony that resulted in death or serious physical injury or of a felony use of a deadly weapon in the past five years; and a statement on whether the owner or an online lodging marketplace will run sex offender background checks on booking guests (5.05.020(A)(1) to (7)).

The business license shall be displayed on each advertisement for a vacation rental or short-term rental that the owner or the owner's designee maintains (5.05.020(B)).

If the owner of a vacation or short-term rental receives one or more verified violations at the same rental property in the same 12-month period, the City may assess up to $500 or up to one night's rent as advertised, whichever is greater, for the first verified violation; up to $1,000 or two nights' rent as advertised, whichever is greater, for the second; and up to $3,500 or three nights' rent as advertised, whichever is greater, for a third and any later violation (5.05.030(A)). Verified violations that arise out of the same response to an incident count as one verified violation (5.05.030(C)). A verified violation is a finding of guilt or civil responsibility, finally adjudicated, for violating Chapter 5.05, any state law or a local ordinance relating to a purpose set out in the section (5.05.010).

A short-term or vacation rental license may be revoked for a period of up to 12 months after three verified violations within a 12-month period, not counting a verified violation based on an aesthetic, solid waste disposal or vehicle parking matter that is not also a serious threat to public health and safety (5.05.020(D)(1)). One violation can also be enough if it results in or constitutes a felony offense committed at or near the rental by the owner or designee; a serious physical injury or wrongful death resulting from the knowing, intentional or reckless conduct of the owner or designee; the owner or designee knowingly or intentionally housing a sex offender, allowing offenses related to adult-oriented businesses, sexual offenses or prostitution, or operating or maintaining a sober living home; or the owner or designee knowingly or intentionally allowing use of the rental for a special event that would otherwise need a permit or license, or for a retail, restaurant, banquet space or similar use (5.05.020(D)(2)).

If the owner has provided contact information under 5.05.020(A)(4) and the City issues a citation for a violation of applicable laws, regulations or ordinances that occurred on the rental property, the City makes a reasonable attempt to notify the owner or designee of the citation within seven business days after the citation is issued, using that contact information. If the owner has not provided contact information, the City is not required to give the notice (5.05.030(D)).

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.