Do I need a permit for short-term rentals in Prescott?

**Yes**, Prescott requires a Short-Term Rental Vacation Rental License for all rentals. You need to obtain an annual license, which currently costs $250. This license ensures that your property meets all safety and compliance standards as set by the city. Failure to obtain a license may result in fines.

What is the TOT tax rate in Prescott?

**3%** is the Transient Occupancy Tax (TOT) rate for short-term rentals in Prescott. You need to collect this tax from your guests for all stays under 30 days. This tax is in addition to the standard Arizona Transaction Privilege Tax (TPT), which you must also collect and remit to the state.

Are short-term rentals allowed in Prescott?

**Yes**, short-term rentals are generally allowed in Prescott, but you need to comply with all local regulations. This includes obtaining the required Short-Term Rental Vacation Rental License and remitting all applicable taxes. Always check with the city's zoning department to confirm that your property is in a compliant zone.

How much does an STR permit cost in Prescott?

**$250** is the current annual fee for a Short-Term Rental Vacation Rental License in Prescott. You need to renew this license each year to continue operating your short-term rental legally. In addition to the local license, you will also need a valid Arizona Transaction Privilege Tax (TPT) license.

What happens if I operate an illegal STR in Prescott?

**Operating illegally** can result in fines and penalties from the City of Prescott. You need to obtain the required Short-Term Rental Vacation Rental License and comply with all local regulations. Operating without the necessary permits and licenses can lead to significant fines and potential legal action, so ensure you are compliant.

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Regulation Details

Eligibility(7)

•Prescott prohibits STRs in the following property types: Non-residential structures, Travel trailers, RVs.
•Prescott: You can have a co-host or property manager help manage your listing.
•Prescott does NOT require the property to be a primary residence. Investment properties are allowed.
•Prescott, AZ: You can have a co-host or property manager help manage your listing.

Requirements(17)

•Prescott STR warning: A $250 annual fee is required, which is higher than many other AZ cities.
•Prescott, AZ has different permit classes: Residential STR. Hosted vs. unhosted rentals have different requirements.
•Prescott, AZ: You must display your permit/registration number on your listing. Platforms may remove non-compliant listings.

Application Process(8)

•Step-by-step guide to get an STR permit in Prescott: Step 1: Obtain Arizona TPT License - Register with the Arizona Department of Revenue to receive a Transaction Privilege Tax license. Documents needed: Business entity info. Estimated time: 1-5 days. Cost: 12. More info: https://azdor.gov/transaction-privilege-tax Step 2: Apply for City STR License - Submit the City of Prescott Short-Term Rental application online via the citizen portal. Documents needed: AZ TPT License, Insurance Certificate, Floor Plan. Estimated time: 14 days. Cost: 250. More info: https://www.prescott-az.gov/business-development/short-term-rentals/ Step 3: Neighbor Notification - The city requires proof that neighbors have been provided with emergency contact information for the rental. Documents needed: Written notification log. Estimated time: 1 day.

Fees & Costs(3)

•Prescott: Liability insurance of $500k is mandatory and must be verified during application.
•Prescott charges a registration fee of $250 (annual).
•Prescott: A $250 annual fee is required, which is higher than many other AZ cities.

Taxes(3)

•Prescott charges a Transient Occupancy Tax of 3%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Platforms collect State TPT; however, hosts may still be responsible for the 3% local TOT if not collected by platform.
•Prescott: The 3% City Transient Occupancy Tax is in addition to the standard Transaction Privilege Tax (TPT).

Limits & Restrictions(5)

•Prescott, AZ occupancy calculation: Limited by building and fire code capacity. Count your bedrooms to determine your max guest limit.
•Prescott: Verify you are within City of Prescott limits; Yavapai County has different (and currently more lenient) rules.
•Prescott enforces quiet hours: 10:00 PM to 7:00 AM.
•Prescott limits stays to a maximum of 29 nights.

Safety Requirements(1)

•Prescott requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Compliance with all fire, building, and health codes, Floor plan showing emergency exits.

Penalties(3)

•Prescott: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Prescott, AZ: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(3)

•Prescott, AZ: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Prescott: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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Regulation Details

Eligibility(7)

Requirements(17)

Application Process(8)

Fees & Costs(3)

Taxes(3)

Limits & Restrictions(5)

Safety Requirements(1)

Penalties(3)

Exemptions(3)

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