Airbnb & Short-Term Rental Management in Sedona, AZ

Rules & taxes

Sedona Short-Term Rental Rules & Taxes

Sedona runs one of the more detailed short-term rental programs in Arizona. State law (A.R.S. § 9-500.39) stops the city from banning rentals, but inside city limits every unit needs a permit and has to follow the rules below.

• A city permit for every rental unit

  Each short-term rental unit inside Sedona city limits needs its own City of Sedona permit, with an annual non-refundable, non-transferable fee of $210 per unit. Get your Arizona TPT license from the Department of Revenue before you apply.

  Source: City of Sedona: owner responsibilities

• Before you advertise

  The application covers contact details for the owner, any designee and an emergency contact, proof of the TPT license, and an acknowledgment that the owner and designees are not registered sex offenders. You also need at least $500,000 in aggregate liability insurance per unit and any required building safety approvals.

  Source: City of Sedona: owner responsibilitiesSource: City of Sedona: permit application

• Neighbor notice by certified mail or hand delivery

  Notify each single-family property adjacent to, directly across from and diagonally across the street from the rental. The notice includes the rental address, your city permit number and the emergency contact's name, address, email and 24-hour phone number.

  Source: City of Sedona: owner responsibilities

• Permit number on every listing, notice by the door

  Your city permit number goes on every advertisement and listing. Inside, post a laminated or shielded notice in 14-point or larger bold type within 10 feet of the main entrance that locates the fire and life-safety equipment and states the city's noise and waste rules.

  Source: City of Sedona: owner responsibilities

• No special events

  Sedona prohibits special events at short-term rentals, including weddings, receptions, retreats, workshops, trainings and conferences of any size, and your listings must say so. Violations can lead to citations and a permit revoked for one year.

  Source: City of Sedona: owner responsibilities

• Guest background checks

  At least 24 hours before check-in, run a sex offender background check on the guest, or keep evidence that the booking platform did. Keep a copy of each check for at least 12 months.

  Source: City of Sedona: owner responsibilities

• Sales tax and bed tax

  Sedona rentals owe sales tax and the transient occupancy (bed) tax, paid by you or by a third party such as the booking platform on your behalf. A rental without a valid Arizona TPT license cannot be rented or offered for rent.

  Source: City of Sedona: owner responsibilitiesSource: Arizona Department of Revenue: short-term lodging

• Penalties

  Violations of Sedona's short-term rental code carry penalties from $500 up to $3,500, and a permit can be suspended for up to 12 months.

  Source: City of Sedona: owner responsibilities

• The Village of Oak Creek is a different jurisdiction

  The Village of Oak Creek (Big Park) is unincorporated Yavapai County, outside Sedona city limits, so the city permit does not apply there. HOA covenants matter: the area's largest HOA lost a court case over its rental restriction as applied to one owner, and said in November 2024 it would keep enforcing it on other homes. Read the CC&Rs before you buy.

  Source: Sedona Red Rock News (Nov 2024)

Checked against the official city, Arizona Department of Revenue and Arizona Legislature sources linked above in October 2026. Fees, tax rates and rules change, so confirm with the city before you list. This is general information, not legal or tax advice.