Operating a short-term rental in Sedona requires a state Transaction Privilege Tax (TPT) license and an annual city permit. The regulations, shaped by state law, focus on neighborhood peace and safety, mandating a 24/7 emergency contact, neighbor notification, and $500,000 in liability insurance. The city permit number must be displayed on all listings, and a 'three-strikes' rule for violations can lead to a one-year operational ban.
To host an Airbnb in Sedona, you must first get a Transaction Privilege Tax (TPT) license from the state of Arizona. Next, you'll apply for an annual Short-Term Rental Permit from the City of Sedona, which costs $250. For the city permit, you'll need to show proof of $500,000 in liability insurance and prove that you've notified your immediate neighbors. It's critical to display your city permit number on your Airbnb listing to avoid fines. Be aware that you must have an emergency contact who can respond to any issues at the property within 60 minutes, 24/7.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
10.3%
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
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