Sedona AZ (September 23, 2016) -With the passing of Senate Bill (SB) 1350, which now prohibits cities and towns from banning the use of single family residences for short term vacation rentals, the city of Sedona’s Community Development Department encourages those interested in renting their property as a short term rental to contact the Community Development Department to discuss the state regulation and city policies the property owner will need to follow.
Since 1995, the rental of single-family homes for periods of less than 30 days has been prohibited within the Sedona city limits. However, during the 2016 state legislative session, SB 1350 was introduced with the intent of streamlining the collection and distribution of transaction privilege taxes for online booking agencies like Airbnb and Vacation Rentals by Owner (VRBO) that market short term vacation rental properties. As the bill progressed, an amendment was offered by Senator Debbie Lesko that would prevent cities and towns from having local ordinances that don’t allow the use of single-family residences for short term vacation rentals.
On May 12, 2016, Arizona Governor Doug Ducey signed SB 1350 into law, making it Arizona Revised Statutes (A.R.S) 9-500.39, which will go into effect December 31, 2016. Thus, because the city’s ban on short term rentals is no longer valid, the city is developing policies around the licensing, registration of an emergency contact, collection of taxes, etc. on properties permitted to operate under the provisions of A.R.S. 9-500.39.
However, something that is important for residents to know is what constitutes as a short term rental. It is defined as an individually or collectively owned single-family or up-to-four unit home or dwelling unit, a condominium or cooperative/timeshare.
Deciphering more specifically what is and isn’t a short-term rental can be a complex issue. As an example, the state legislation around this issue doesn’t specify rules on Accessory Dwelling Units (ADUs). While originally it was thought ADUs and guest houses were not able to be considered short-term rentals, “upon further analysis in response to citizen input, we have come to the conclusion that legally constructed and permitted guest houses and ADUs can in fact be rented as short-term rentals. This is a good example of how we are working through the intricacies before the December 31st deadline when A.R.S. 9-500.39 goes into effect,” said Robert Pickels, city attorney, city of Sedona.
However, the following are not allowed to be short term rentals:
- Apartments, unless properly zoned for lodging use
- Any ADU or guest house which is illegally constructed and unpermitted through the city of Sedona
“We want to be proactive and make sure residents understand the ins and outs of how this law affects our community. We are developing policies around this law to ensure compatibility, safety of our residents and the collection of revenue,” added Warren Campbell, assistant director of community development, city of Sedona.
Those who are considering renting their property within the city of Sedona as a short term rental, or less than 30 days, are encouraged to contact the Community Development Department at 102 Roadrunner Drive or via telephone at 928-282-1154 to discuss the state regulation and city policies by which the property will need to be compliant with. In short, “stay tuned, and don’t presume,” said Campbell.
