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Short-Term Rental Regulations
in Sedona, AZ

Last verified: March 2026 · Report an update

Zoning & Conditions

STRs are permitted but require an annual permit per unit and a valid Arizona TPT license. Owners must maintain $500,000 liability insurance, conduct sex offender background checks on guests, and notify all adjacent neighbors via certified mail or hand-delivery. Special events are prohibited, and the permit number must be included in all advertisements.

How to Obtain a Permit

1) Obtain an Arizona Transaction Privilege Tax (TPT) license. 2) Email property and owner details to the Short-Term Rental Specialist (tarthur@sedonaaz.gov) to set up an account. 3) Complete the application via the Sedona MUNIRevs portal, pay the $210 annual fee, and provide proof of insurance and neighbor notification.

Regulatory Updates — Sedona

Proposed and recent legislation

PassedAugust 2023

Sedona STR Regulatory Package Within Preemption Limits

Sedona enacted a package of STR regulations targeting noise, parking, trash, and occupancy — the tools available under Arizona's preemption framework. The package includes strict quiet hours, occupancy caps tied to bedroom count, mandatory trash enclosures, and off-street parking requirements.

FailedApril 2025

Arizona Legislature Considers Preemption Amendments

Several Arizona municipalities including Sedona have lobbied the legislature to amend ARS 9-500.39 to give cities more authority to regulate STR density in residential neighborhoods. Proposed amendments have repeatedly failed to advance, maintaining the current preemption framework.

PassedJanuary 2024

Sedona STR Registration and Inspection Program

Sedona implemented a registration program requiring all STR operators to register annually, pass a safety inspection, designate a 24/7 local contact, and display their registration number in all listings. Registration fees fund dedicated STR enforcement staff.

Official Resources

Official Sedona STR regulation source

Local Resources & Advocacy

Arizona Short-Term Rental AllianceStatewide

Statewide advocacy organization defending Arizona's ARS 9-500.39 preemption law against municipal attempts to weaken it, and providing compliance resources for operators in regulated markets like Sedona.

Sedona Chamber of Commerce & Tourism BureauLocal

Destination marketing and business advocacy organization for Sedona. Tracks tourism and hospitality regulations and provides permit compliance resources for vacation rental operators.

Vacation Rental Management Association (VRMA)National

National trade association providing compliance resources and regulatory monitoring for vacation rental managers in high-demand destination markets like Sedona.

Frequently Asked Questions

Are short-term rentals allowed in Sedona, AZ?
STRs are permitted but require an annual permit per unit and a valid Arizona TPT license. Owners must maintain $500,000 liability insurance, conduct sex offender background checks on guests, and notify all adjacent neighbors via certified mail or hand-delivery. Special events are prohibited, and the permit number must be included in all advertisements.
Is a permit required to operate a short-term rental in Sedona?
Yes, a permit is required to operate a short-term rental in Sedona. 1) Obtain an Arizona Transaction Privilege Tax (TPT) license. 2) Email property and owner details to the Short-Term Rental Specialist (tarthur@sedonaaz.gov) to set up an account. 3) Complete the application via the Sedona MUNIRevs portal, pay the $210 annual fee, and provide proof of insurance and neighbor notification.
How do I get a short-term rental permit in Sedona?
1) Obtain an Arizona Transaction Privilege Tax (TPT) license. 2) Email property and owner details to the Short-Term Rental Specialist (tarthur@sedonaaz.gov) to set up an account. 3) Complete the application via the Sedona MUNIRevs portal, pay the $210 annual fee, and provide proof of insurance and neighbor notification.
Does Sedona allow short-term rentals in residential neighborhoods?
Yes, under Arizona's preemption law (ARS 9-500.39), Sedona cannot use zoning to prohibit STRs in residential areas. However, Sedona has enacted strict noise, parking, occupancy, and nuisance rules that apply to all STRs city-wide. Operators must register annually, pass a safety inspection, and designate a 24/7 local contact. The city actively enforces these rules and will revoke registrations for repeat violations.
What taxes apply to Sedona vacation rental income?
Arizona imposes a Transaction Privilege Tax (TPT) on short-term rental income at the state rate of 5.6%. Yavapai County adds a TPT surcharge, and the City of Sedona imposes its own municipal TPT. The combined effective rate on rental income is typically 12–14%. Operators must register with the Arizona Department of Revenue for TPT; major platforms like Airbnb and Vrbo collect and remit Arizona state and most local TPT on behalf of hosts.
What are Sedona's occupancy and noise rules for vacation rentals?
Sedona caps STR occupancy at two persons per bedroom plus two additional guests (up to a defined maximum). Quiet hours run from 10 PM to 7 AM, and violations carry escalating fines: $250 for the first offense, $500 for the second, and $1,000 for the third. A third violation within 12 months can trigger registration revocation. Parking requirements mandate that all guest vehicles park off-street; overflow street parking is prohibited at STR properties.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction