Short-term rental rules · Sedona, Arizona
Short-term rentals in Sedona, explained properly.
Arizona state law bars Sedona from banning or capping short-term rentals outright, but the city requires an annual $210 STR permit per unit, a TPT license, a 24/7 emergency contact, neighbor notification, at least $500,000 of liability insurance, and a sex offender background check on each booking guest, and bans hosting special events. ADUs completed on or after September 14, 2024 can only be STRs if the owner lives in the main house. State law caps what cities can charge for the permit at $250 or actual cost, whichever is less.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Yes, citywide — Arizona state law (A.R.S. § 9-500.39) prohibits municipalities from banning short-term rentals outright [1] [2] |
| Permit required? | Yes — an annual STR permit ($210 per rental unit, non-refundable) is required for every property offered as a short-term rental; each separately advertised unit (e.g., a main house plus a casita) needs its own permit [3] [4] |
| State TPT license required | Property owners must obtain a Transaction Privilege Tax (TPT) License from the Arizona Department of Revenue before applying for a city permit, and must keep it current with each renewal [3] |
| Late renewal penalty | Effective January 1, 2026: a $50 fee if renewal is 2-90 days late, rising to a flat $100 if more than 90 days late [3] |
| Occupancy limit | No guest cap appears in Sedona's STR ordinance (City Code Chapter 5.25) or the city's owner-responsibilities page; a secondary guide cites 2 guests per bedroom plus 2 (e.g., 3 bedrooms = 8), varying with septic/sewer capacity, but this is not confirmed by the city [5]Confirming |
| Combined lodging tax (TPT) | 13.35% for properties in the Yavapai County part of Sedona or 13.90% in the Coconino County part: the city's 3.5% hotel TPT plus 3.5% additional bed tax (7% city), plus the state/county transient lodging rate of 6.35% (Yavapai) or 6.90% (Coconino), per the Arizona Department of Revenue's January 1, 2026 rate table [6] [7] [5] |
| Special events prohibited | Short-term rentals cannot advertise or host a special event of any size that requires a special event permit or license — including weddings, receptions, religious, educational or organized community events, outdoor entertainment, fee-based retreats, conferences, trainings and workshops. The code also bars any non-residential use, such as operating an event center, banquet hall, restaurant or retail business [3] [8] |
| 24/7 emergency contact requirement | An emergency contact must be designated; when a police officer requests it, the contact must respond in person, by phone or by email within 60 minutes, and all other complaints must be addressed within 24 hours. Contact changes must be reported to the city within 10 days [8] [5] |
| Liability insurance required | Yes — the owner, owner's designee or booking platform must carry liability insurance covering the rental of at least $500,000 in the aggregate, with proof due to the city within 10 calendar days of a request [8] [1] |
| State cap on permit fees | Arizona state law caps a city's STR permit fee at the actual cost of issuing the permit or $250, whichever is less; Sedona currently charges $210 per rental unit per year [1] [4] |
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Detailed rules
The full picture, section by section
Eligibility & zoning
| ADUs restricted from STR use | An ADU issued a certificate of occupancy on or after September 14, 2024 cannot be used as a short-term rental unless the property owner's primary residence is the main house on the same lot. Guest quarters with a certificate of occupancy from before that date, and not modified without a required permit, are legal nonconforming and can still be STRs without owner occupancy [8] [5] |
|---|---|
| State law bars a citywide permit cap | Arizona law (A.R.S. § 9-500.39) bars cities from prohibiting STRs and gives no city, of any size, authority to cap the number of STR permits, so Sedona has no citywide ceiling. SB 1076, a 2026 bill that would have let cities under 70,000 population cap permits and set spacing rules, died in committee when the 2026 session adjourned [1] [9] [2] |
Licensing & application
| Incomplete applications are denied outright | As of October 23, 2025, applications submitted with missing or invalid information are denied rather than held for correction, making it important to submit a complete application the first time [3] |
|---|---|
| Renewal process and timing | Renewals are handled online via a MUNIRevs account; renewal reminders go out 4-6 weeks before expiration, and the city recommends renewing 1-2 weeks before the deadline; most renewals are approved within 2-3 days, with up to 7 business days allowed [3] |
| Background check required | At least 24 hours before check-in, the owner or designee must run a sex offender background check on the booking guest (a check done by the booking platform counts) and keep a full copy for at least 12 months. Registered sex offenders may not rent or occupy an STR, and the owner stays liable if a platform fails to run the check [8] |
Operations & requirements
| Neighbor notification required | Before advertising or renting, the owner must notify every single-family property adjacent to, directly across from, and diagonally across the street from the rental, by certified mail (return receipt) or hand delivery, giving the permit number, address and a 24-hour emergency phone number, and must file an attestation with the city. Any change must be re-notified within 5 calendar days. A laminated notice (14-point bold) with the emergency contact, permit number, safety equipment, and noise and trash rules must also be posted within 10 feet of the main entrance [8] [4] |
|---|---|
| Quiet hours | 9 p.m. to 7 a.m. — Sedona's citywide residential noise code bars yelling, shouting and unreasonably loud, disturbing noise in residential areas between these hours (unnecessary or excessive noise that disturbs neighbors is barred at any time). This is a general city rule, not STR-specific, and STRs must post the city's noise rules on site [10] [5] |
| Parking requirement | A secondary guide says adequate off-street parking is required for guests; Sedona's STR ordinance (Chapter 5.25) and owner-responsibilities page do not mention parking, so any requirement would come from general zoning rules and is unconfirmed [5]Confirming |
Taxes & fees
| TPT license renews annually | The Arizona TPT license renews yearly in December/January with the Arizona Department of Revenue, separately from the city's own STR permit renewal [3] |
|---|
Changes
Recent and pending changes
We re-checked the live text of A.R.S. § 9-500.39, Sedona City Code Chapter 5.25 section by section (current through Initiative Ordinance 2026-01, July 21, 2026), the noise code (SCC 8.25.060), the city's Short-Term Rentals and owner-responsibilities pages, the Arizona Department of Revenue's January 1, 2026 rate table, and 2026 Arizona bill status. None of the 2026 state STR bills became law: SB 1076 (caps and spacing for cities under 70,000) died in committee, HB 2429 (occupancy) passed the House but stalled in the Senate, and SB 1105 (ADU STR ban) was never heard before the session adjourned. The most recent Chapter 5.25 amendments are Ord. 2025-02 (March 25, 2025) and Ord. 2025-10 (October 14, 2025). The city's own 'pending legislation' page still describes an older, undated bill (SB 1554) and appears stale. Arizona's legislature revisits STR preemption almost every session, so watch the 2027 session.
Sedona amended Chapter 5.25 to add permit suspension authority (including for false application information) and a one-time late renewal fee ($50 up to 90 days late, $100 after that, effective January 1, 2026). From October 23, 2025, incomplete or invalid applications and renewals are denied.
Sedona rewrote much of Chapter 5.25, including the rule that ADUs with a certificate of occupancy on or after September 14, 2024 can only be STRs if the owner's primary residence is the main house, with older guest quarters grandfathered.
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.