Avalara MyLodgeTax > Blog > State and Local News > STR operators have new rules to follow in Gila County, Arizona

STR operators have new rules to follow in Gila County, Arizona

  • Feb 27, 2024 | Jennifer Sokolowsky

Neighborhood homes in Arizona with mountains in the background.

Gila County, Arizona, has adopted new regulations for short-term rentals (STRs); they go into effect May 31, 2024.

Under the new ordinance, STR operators must pay a $250 fee for an annual, nontransferable county permit, and they must obtain a separate permit for each unit. Permit numbers must be included on any advertisements or listings for the rental property. 

Hosts are also required to designate an emergency point of contact who can be available 24 hours a day. This contact must respond in person within one hour when requested by public safety personnel.

The law also includes requirements for operators to:

  • Limit occupancy to two guests per bedroom
  • Maintain liability insurance coverage of at least $500,000, unless they have coverage through an STR marketplace
  • Notify nearby neighbors in advance that they intend to operate an STR property
  • Run sex-offender background checks on guests and keep background check records for a year
  • Follow health and safety rules for trash disposal, required smoke alarm/carbon monoxide detectors, pest control, parking, and more
  • Post county ordinances and fire escape plans

STRs may not be used for nonresidential activities, including special events, that would otherwise require a county or state permit. 

Operators who violate the regulations may face fines starting at $250, and the county can revoke permits of operators after three verified violations within a year. The county will use some of the funds from permits to hire a code compliance officer to aid in enforcement.

More local governments crack down on STRs

Arizona passed a law in 2022 that gave local governments more power to regulate STRs. The measure 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

Since then, several local governments have placed stricter regulations on STRs.

In late 2023, Phoenix tightened its STR ordinance. Among other rules, the law requires short-term rental operators to:

  • Register with the city or face a fine of $1,000 per month
  • Post their permit number on any advertisements
  • Provide proof their STR property is insured for at least $500,000
  • Respond to police calls within an hour
  • Inform neighborhood residents and associations that they intend to operate an STR

Other cities and counties in Arizona that have passed new STR measures over the past few years include Chandler, Coconino County, Flagstaff, and Scottsdale.

Following Arizona STR tax rules

Gila County STRs are subject to state and local lodging taxes. In Arizona, lodging taxes operate a bit differently than in other states. Vendors are taxed for the privilege of doing business in the state, with taxes levied on short-term rental businesses according to their gross receipts. Short-term rental business owners may pass the taxes on to their guests.

Arizona state law requires STR operators to have a state transaction privilege tax (TPT) license. The license number must be included in all ads. Hosts must collect state TPT and county excise tax from their guests and remit it to tax authorities. The state requires all STR marketplaces, such as Airbnb and Vrbo, to collect and remit state and local taxes on STRs.

Avalara 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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Learn more about AZ lodging tax rules