Effective January 8, 2023, short term rentals in Scottsdale now require a privilege tax number and a license. Every rental home is required to be registered as a rental in Maricopa County, but each city sets their own regulations regarding short term rental homes.
Short term rentals in the Phoenix Metro have received more press lately as some of these are located within Homeowner Association neighborhoods. HOA's have their own sets of regulations. Several HOA's have attempted to block short term rentals for a variety of reasons. Mostly nuisance, parking, and extended parties in short term rentals.
Therefore, if you own a home in any city, not just Scottsdale, and it is being used as as short term rental home, you'll first have to register it with Maricopa County. Check with the city in which your home is located as to specific regulations by city.
If your home is in the City of Scottsdale, you'll need to comply with the new ordinance and obtain a license. But first, you must obtain a Transaction Privilege Sales Tax from the IRS.
You'll also be required to carry additional liability insurance of $500,000 or more. The licensing process will limit the number of guests to 6 adults but may include minor children over and above 6 people. The requirement also includes notifying your neighbors with your contact information for communication purposes. Posting the notice on the insides of a front and back door is also required in 14 point font. And a short term rental home can be used as a "venue." So if you're planning on hosting a bachelorette party in a home in Scottsdale, keep the number under 6 adults and obey the rules posted below.
For more information, check out these publications by the City of Scottsdale
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