Short-Term Rental Laws in Sedona, Arizona

Sedona operates under AZ SB 1350 preemption — cannot ban STR but uses occupant-cap + density framework. STR occupancy capped at 2 adults per bedroom + 4 children (effectively limiting whole-home rentals in larger properties). Required: city permit + emergency contact + neighbor notification + property insurance + parking plan. Sedona was among the first AZ cities to push back on STR proliferation; ongoing efforts to tighten nuisance enforcement.

STR allowed in residential and commercial zones per AZ SB 1350. Sedona adds: max 2 adults per bedroom + 4 children, designated emergency contact within 1 hour driving distance, mandatory neighbor notification, property insurance $500K minimum, and parking plan (street parking restrictions enforced). Yavapai County (north Sedona) and Coconino County (south Sedona) have parallel registries; check parcel jurisdiction.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Sedona Code Enforcement actively investigates noise + parking complaints. Operating unregistered: $1,000+ per-violation + back-tax. Permit renewable annually with re-verification of insurance + emergency contact. Sedona tracks STR permit data publicly via its dashboard and has been documenting STR impact on housing supply for proposed future regulatory tightening (subject to SB 1350 preemption limits).

Combined short-term lodging tax in Sedona is approximately 13.550% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Arizona State TPT 5.5% + Coconino/Yavapai County options + Sedona city 3.5% + Sedona bed tax 3% — combined ~13.55% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.