Airbnb Rules in Arizona | Airbnb Laws, Taxes, and Regulations

Arizona is home to exhilarating canyons which include the Grand Canyon, monuments, national parks, and forests in the state. It is best known for its weather and geography. More so, it is the sixth-largest state, sharing a border with New Mexico, Utah, and Colorado.

According to Arizona’s tourism, 32.1 million people visited in 2020 making it a great opportunity to expand or grow your Airbnb rental business. Additionally, based on AirDna stats, the average daily rate is $158 with an occupancy rate of 71% and a revenue of $2,203.

With that in mind, Arizona is a lucrative market and understanding the laws and regulations is of utmost importance. In a nutshell, the article will guide you through:

• What is a short-term rental in Arizona?
• Airbnb laws in Arizona
• Short-term rental regulations
• Taxes
• Building and housing standards
• Other rules

What is a Short-term Rental in Arizona?

Any legally permitted individually or collectively owned:

• single-family houses
• 1-to-4 family houses
• A dwelling unit or any unit or group of units in a condominium
• Cooperative or timeshare
• Individual rooms within any of above
• Guest houses, casitas, mother-in-law quarters

Offered for transient use if the accommodations are not classified for property taxation under section 42-12001 for less than thirty consecutive days, wherein guests pay a fee are considered as a short-term rental.

Though, it does not include units that are used for any nonresidential use which includes retail, restaurant, banquet space, event center, or any similar use.

Airbnb Laws in Arizona

Is Vacation Rental Registration Required?

Yes! A vacation rental is required to be registered with the City of Phoenix with the help of a user guide that must include the following information:

• Name of the property owner. If the property owner is a business entity, the name of the statutory agent
• Address of the vacation rental
• Phone number and email address of who is responsible and authority to respond to complaints in person at any time of the day. This information must also be displayed visually visible within 10 feet of the main entrance inside of the vacation rental.

Also, take note, each vacation rental registered by the owner, the City of Phoenix will provide a registration number, however, if there is any change in the information given above, a new vacation rental registration must be submitted within 10 days by the owner.

Short-term Rental Regulations

Zoning and Ordinance

• Determine the zoning of the property and if its approved structure
• Shall provide all parking for guests on-site following Article 13-24 “Off-Street Parking Requirements” of the code
• Shall comply with all applicable requirements of this Code, including those related to noise, fireworks, prostitution, offensive premises, nuisance lighting, refuse collection, and property maintenance.
• Shall provide guests with a 24-hour emergency point of contact

Violations

Uses of the property for the following purpose are prohibited:

1. any nonresidential use
2. operating a retail business, restaurant, event center, banquet hall, or similar use
3. holding events requires a permit or license pursuant to a city or town ordinance or state law or rule
4. housing sex offenders
5. selling liquor, illegal drugs or pornography
6. operating nude or topless dancing
7. obscenity
8. adult-oriented business
9. operating or maintaining a sober living home and other uses prohibited by A.R.S. 9-500.39

• Renting, or offering for rent, a vacation rental without complying with the registration requirement in Section 10-194 is prohibited.
• When requested by a police officer, the owner or whose name appears on the vacation rental registration must be on the premises, or be available over the phone or text, within 60 minutes after receiving the request. Failure to do so is a violation of this Article.
• An online lodging operator should provide the following statement in its offer to rent a vacation rental on any chosen online lodging marketplace:

“This property cannot be used for purposes identified in the City of Phoenix Ordinance Section 10-195(c). The City of Phoenix short-term registration number for this property is _____________”

• The online lodging marketplace is not responsible for any violation committed by an online lodging operator that advertises on the online lodging marketplace’s platform.

Penalties

The City’s new regulations are imposed to cut out party houses and ensure safe neighborhoods for both locals and guests. Be aware that hosts are required to post emergency contact info at their homes and respond to police inquiries if needed within the hour.

Any vacation rental owner who violates any provision of the Article or fails to perform any act or duty required will be subjected to fines within the 12-month period as follows:

• 1st offense- $500
• 2nd offense- $1000
• 3rd offense- $1500

Short-term Rental Tax

In Arizona, guests who book Airbnb listings for 29 nights and shorter are subject to, as part of their reservations, the following:

Transaction Privilege Tax - 5.5% of the listing price including cleaning fee will be charged.

County Excise Tax - Tax rates vary depending on the county. Ideally, 0.28%- 6.5% of the listing price including any cleaning fee.

Local Transient Occupancy Taxes - One or more of the following local transient occupancy taxes may apply: Transaction Privilege Tax, Transient Lodging Tax, Bed Tax, or Hotel-Motel Tax. The local transient occupancy tax varies by city, typically, 1.5%- 6.0% of the listing including any cleaning fee.

Take note, regardless of the length of stay, Transaction Privilege Tax applies to all reservations. For more information, visit the Arizona Department of Revenue Transaction Privilege Tax website and the Arizona Department of Revenue Online Lodging Marketplace (OLM) Factsheet.

Building and Housing Standards

There are rules and regulations stipulating construction, design, and maintenance standards for buildings which can be referred to the City’s Building Codes for detailed information, including regulations, health, and safety.

Note that residential and non-residential uses that may be relevant to your listing may be applicable to certain regulations. For more information, contact the Planning & Development Department.

Other Rules

Be aware of other contracts or rules that bind you, such as:

• Leases
• Condo board
• Co-op rules
• HOA rules to determine if short term rentals are permitted
• Rules established by tenant organizations

It is also important to read and understand the lease agreement as well as abide by them. More so, if it is applicable, check with your landlord.