Short-term rentals in Scottsdale, explained properly.

Because Arizona law preempts local bans, Scottsdale cannot restrict short-term rentals to specific zoning districts the way it can other land uses; any legally occupiable residential property can be licensed.

State law (A.R.S. § 33-1902) requires short-term rental properties to be registered with the county assessor before occupancy; renting before registering is illegal.

1) Obtain an Arizona TPT license from the Department of Revenue listing Scottsdale as the region. 2) Apply for the annual Scottsdale short-term/vacation rental license with owner/agent contact info, property address, proof of TPT license, emergency contact, and proof of insurance. 3) Within 30 days of receiving the city license, notify neighbors in writing (adjacent single-family properties, properties directly and diagonally across the street, and, in multi-family buildings, all units on the same floor) with the license number, property address, and the emergency contact's name, address and 24-hour phone number. 4) Register with the Maricopa County Assessor before occupancy. 5) Post an in-unit notice (license number and emergency contact) inside the front and backyard doors in 14-point bold font on laminated paper.

Licensees must designate a 24-hour emergency/management contact. Whenever that contact information changes, the owner must update the city license and also send the new contact information to the neighbors who received the original notice.

The city manager or designee must initiate revocation proceedings if any grounds for denial exist on an already-issued license. An applicant whose license is denied or revoked cannot reapply for one year.

Applies to: Noise decibel specifics not confirmed — needs review

Short-term rentals fall under SRC 18-121 (Nuisance Parties & Unlawful Gatherings), which holds owners accountable for repeated unruly gatherings at the property. Occupancy is limited to a single family of one to six adults plus their related dependent children, and this limit must appear on the in-unit notice. Specific noise decibel limits were not found in the sources reviewed.

Operating without a license is a civil offense with a minimum $1,000 fine on first violation. A second or subsequent violation within one year is a class one misdemeanor with a minimum $2,000 fine; courts cannot suspend any part of this fine.

Within any 12-month period per property: first verified violation up to $500 or one night's rent (whichever is greater); second up to $1,000 or two nights' rent; third and subsequent up to $3,500 or three nights' rent. Payment is due within 30 days unless appealed.

The city suspends a license after three verified violations within a 12-month period (excluding minor aesthetic/parking issues), or after a single serious violation (felony activity, serious injury, housing a registered sex offender in violation of rules, or an unpermitted special event). Standard suspension is one year, reducible to six months if the owner shows substantial preventive steps.

Scottsdale code (SRC § 18-171) already barred non-residential uses of STRs, including banquet space and event centers. Ordinance 4719 (on the June 23, 2026 City Council agenda) adds a definition of "event center" to SRC § 18-2 so police and code enforcement can apply that ban: organized gatherings with a commercial purpose, event-type impacts, or activities requiring a city permit, including weddings, receptions, corporate events and conferences. Ordinary residential gatherings incidental to the lawful residential occupancy of the home are excluded.

The $250 annual fee applies per licensed property and is intended to fully cover the city's licensing and enforcement costs.

Applies to: City information page (1.75%) conflicts with the official rate schedule (1.70%)

Scottsdale's official rate schedule (effective July 1, 2025) lists a 1.70% city hotel/motel transaction privilege tax (business code 044) plus a 5.0% additional hotel tax (code 144), for 6.70% in city tax on lodging. The city's general STR information page instead cites a 1.75% city sales tax alongside the five percent transient tax; the dated rate schedule is used here.

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.