By a unanimous vote, the Sedona City Council voted in favor of adopting an ordinance that gives it a small say in regard to the state’s recent law on short-term vacation rentals.
The vote came during the council’s Tuesday, Oct. 11, meeting.
“We think this is going to be effective in allowing us to track this activity and identify the people who are engaged in it,” City Attorney Robert Pickels said. “We want to make sure that we’re very sensitive to the fact that we adhere strictly to what’s authorized in statute and don’t deviate from that for obvious purposes.”
The ordinance states that those renting their homes will be required to obtain a city business license as well as obtain a transaction privilege taxes license with the state. However, online companies like Airbnb handle the TPT and business license as long as the customer continues working through them. If owners decide to rent their home on their own, they must file TPT with the state and obtain a city business license.
In regard to the purpose of the ordinance, Pickels recently said, “In an effort to ensure a smooth and seamless transition when SB 1350 goes into effect on Jan. 1, 2017, we are recommending a revised ordinance be adopted by council so that all interested parties will know what is expected of property owners planning to engage in short-term vacation rental activity.”
On May 12, Gov. Doug Ducey signed Senate Bill 1350 into law. Because Sedona’s ban on short-term rentals is no longer valid, the city is developing policies around areas like licensing, registration of an emergency contact and collection of taxes on properties permitted to operate under the provisions of the law.
Since 1995, the city of Sedona has, by ordinance, prohibited the rental of residential properties for less than 30 days. In 2008, Chapter 5 of the Sedona City Code was amended to proscribe and identify penalties for various activities related to the rental of residential properties for less than 30 days.
The new ordinance includes detailed definitions of what a vacation rental or short-term rental means as well as transient lodging. It also addresses the city’s requirement to have contact information on file of those who choose to rent their homes.
A portion of the proposed ordinance states that the “city of Sedona is committed to maintaining its small-town character, scenic beauty and natural resources that are the foundation of its economic strength and quality of life. The purpose of this chapter is to safeguard the public health and safety of the residents of Sedona and their visitors and guests while preserving the
residential character of neighborhoods, minimizing nuisance and providing equity with other residential and commercial uses.”