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STRs in Flagstaff, Arizona, must register with city under new law

  • Jul 18, 2023 | Jennifer Sokolowsky

Short-term rental (STR) hosts in Flagstaff, Arizona, will be required to obtain a license to operate within the city under a new law passed by the Flagstaff City Council. The measure goes into effect November 1.

Under the new ordinance, STRs are defined as any residence that is rented for less than 30 days. Operators must pay a $175 fee for their annual license, an amount that will increase by $5 every year to cover costs to run the licensing program. Hosts who fail to register after receiving notice from the city can be fined up to $1,000 per month.

Operators must also designate an emergency contact who can be available 24/7 to quickly respond to issues with the rental property. Neighbors will be notified when a property receives an STR license and will be provided with emergency contact information.

Flagstaff is home to 1,045 STRs, 731 of which are already registered, according to the city.

The Flagstaff law was created in the wake of a new state law giving local governments more leeway to regulate STRs. The state measure went into effect in September of 2022.

The law now allows cities and towns to regulate short-term rentals by:

  • Requiring permits or licenses
  • Requiring community notification of operations
  • Mandating liability insurance coverage
  • Fining owners or management companies when guests violate ordinances

Flagstaff follows in the footsteps of other Arizona local governments in creating new STR regulations since the 2022 law went into effect, including Mesa and Paradise Valley.

Chandler amended its STR regulations in April to go into effect August 1. Under the new ordinance, STR operators must obtain a license, display emergency contact information, and notify neighbors. STRs may not be used for nonresidential activities.

In Scottsdale, the new STR ordinance went into effect on January 8, 2023. That law requires STR operators to register with the city, among other requirements. The city estimates that about 84% of Scottsdale’s STRs have registered as of July 3. Altogether, the city has received 3,852 short-term rental applications and approved 3,409.

Arizona state law requires short-term rental operators to hold a current state transaction privilege tax (TPT) license. That license number must be included in all ads.

Arizona short-term rental operators are also required to collect state transaction privilege tax and county excise tax from their guests and remit it to tax authorities. The state requires all short-term rental online marketplaces, such as Airbnb and Vrbo, to collect and remit state and local taxes on Arizona short-term rentals.

MyLodgeTax can help short-term rental operators in Arizona comply with state and local tax registration, collection, and filing requirements. For more on Arizona lodging taxes, see our state Vacation Rental Tax Guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.

Lodging tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Jennifer Sokolowsky
Avalara Author Jennifer Sokolowsky
Jennifer Sokolowsky writes about tax, legal, and tech topics. She has an extensive international background in journalism and marketing, including work with The Seattle Times, The Prague Post, Avvo, and Marriott.
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