Sedona

The City of Sedona strictly regulates short-term rentals under Chapter 5.25, requiring an annual $250 permit, neighbor notifications, and $500,000 in liability insurance. While Arizona state law prevents cities from banning STRs entirely, Sedona aggressively enforces health, safety, and tax compliance with significant daily fines for violations.

To host an Airbnb in the City of Sedona, you must first get a state tax license (TPT) and then apply for a specific Sedona STR permit which costs $250 per year. You are required to notify your neighbors that you are hosting and provide them with a 24/7 emergency contact number. Your property must have at least $500,000 in liability insurance and you cannot use an ADU (like a guest house) built after 2017 as a rental. You must also display your permit number on all listing sites like Airbnb and VRBO.