Prescott requires all short-term rental operators to obtain an annual city permit and a state Transaction Privilege Tax (TPT) license. Key requirements include maintaining $500,000 in liability insurance, notifying neighbors within 300 feet, and displaying the permit number on all listings. State law prevents the city from limiting the number of rental nights or requiring the property to be a primary residence.
To host an Airbnb in Prescott, you must first get a Transaction Privilege Tax (TPT) license from the state of Arizona. Then, you'll apply for an annual Short-Term Rental Permit from the city, which costs $250. Before applying, you need to notify all your neighbors within 300 feet and get proof of at least $500,000 in liability insurance. Once you have your permit, you must display the number on your Airbnb listing at all times.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
12.3%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
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Permit Fee
$250
Processing Time
1-2 weeks
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