Sedona Short-Term Rental Laws (2026)

Can you operate a short-term rental in Sedona?

Arizona preempts local STR bans: under A.R.S. § 9-500.39(A), a city may not prohibit vacation or short-term rentals, and there are no caps or zoning exclusions in Sedona. Cities may, however, run a mandatory permit program, and Sedona does — operating without a permit is itself a violation. Rentals must stay residential: state law and Sedona's code both prohibit using an STR for special events or other nonresidential uses.

Permits & licenses in Sedona

Sedona runs an annual STR permit program through the MUNIRevs/GovOS portal, with one permit required per advertised unit (a main house plus casita is two permits). A valid Arizona TPT license is a prerequisite for both new applications and every renewal, and since October 2025 applications with missing or invalid information are denied outright.

1. 1

   Get an Arizona TPT license

   Register with the Arizona Department of Revenue at AZTaxes.gov before applying to the city — Sedona will not approve a permit or renewal without a valid, unexpired TPT license.

2. 2

   Set up your city account

   Email the STR program (property address, owner names, owner mailing address, and number of units to be rented) to have a MUNIRevs/GovOS account created; you then receive codes and instructions to apply.

3. 3

   Apply per unit with required info

   Each advertised unit needs its own permit. State law limits what the city can require: owner/agent contact info, property address, proof of TPT compliance, emergency contact info, and an agreement to comply with applicable laws (A.R.S. § 9-500.39(B)(5)).

4. 4

   Notify neighbors before first rental

   Before renting for the first time, notify all adjacent single-family properties and those directly and diagonally across the street, and file an attestation of notification compliance with the city (A.R.S. § 9-500.39(B)(6)).

5. 5

   Renew annually on time

   Renew via MUNIRevs 1-2 weeks before the printed expiration date; the city has up to 7 business days to approve. As of January 1, 2026, late renewals incur a one-time late fee: $50 if 2-90 days late, $100 if 90+ days late (capped at $100).

Fees: Annual, non-refundable per-unit permit fee applies (state law caps it at the city's actual cost or $250, whichever is less — see Sedona's fee schedule); plus $50-$100 one-time late fee for late renewals as of 2026.

Short-term rental taxes in Sedona

Stays under 30 days are subject to Arizona transaction privilege tax under the transient lodging classification (state/county, business code 025) plus city hotel tax under the Model City Tax Code (code 044), and an additional city hotel/bed tax where imposed (code 144). If you book exclusively through an online lodging marketplace like Airbnb or Vrbo, the platform collects and remits TPT and you deduct that income on your return with deduction code 775 — but you must still file, including $0 returns for periods with no rentals.

Operating rules

Penalties for illegal short-term rentals in Sedona

Enforcement follows the state's verified-violations regime (restructured by SB1168, codified in A.R.S. § 9-500.39), with escalating civil penalties, permit suspension, and separate fines for unpermitted operation. Sedona adds its own code enforcement, a 24/7 complaint hotline, and permit revocation for event-hosting violations.

• ⚠Verified violations within 12 months: up to $500 or one night's advertised rent (first), up to $1,000 or two nights' rent (second), up to $3,500 or three nights' rent (third and subsequent), whichever is greater (A.R.S. § 9-500.39(F))
• ⚠Permit suspension up to 12 months for three verified violations in a 12-month period, or one serious violation (felony at the property, serious injury/wrongful death from owner conduct, knowingly housing a sex offender, or hosting a prohibited special event) (A.R.S. § 9-500.39(D))
• ⚠Operating without applying for a permit: rental must cease operations, plus civil penalty of up to $1,000 per month after 30 days' written notice (A.R.S. § 9-500.39(G))
• ⚠Failure to provide emergency contact info: up to $1,000 per 30 days, after 30 days' notice (A.R.S. § 9-500.39(B)(4))
• ⚠Sedona-specific: special-event violations can bring citations, penalties, and permit revocation for one year (Sedona STR Code 5.25.050, 5.25.110, 5.25.120); late permit renewal adds a one-time $50-$100 fee as of Jan 1, 2026
• ⚠Sedona runs a 24/7 STR complaint hotline (928-203-5110) and a dedicated STR code enforcement officer

Official sources

1. [1]A.R.S. § 9-500.39 — Limits on regulation of vacation rentals and short-term rentals; state preemption; civil penalties
2. [2]Short-Term Rentals | City of Sedona
3. [3]Permit Application Requirements | City of Sedona
4. [4]Short-Term Rentals FAQs | City of Sedona
5. [5]Short-Term Lodging | Arizona Department of Revenue
6. [6]Transaction Privilege Tax | Arizona Department of Revenue

Summarized from the official sources above as of 2026-07-03. Informational, not legal advice — always confirm requirements with the jurisdiction before acting.