ARTICLE VI.
SHORT-TERM RENTALS AND VACATION RENTALS
Sec. 8-150 Purpose.
This article is adopted to protect the health, safety, and welfare of the community of the city by enacting reasonable regulations for short-term rentals and vacation rentals. These regulations are in addition to other codes of the city.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-151 Definitions.
In this article, unless the context or definitions in A.R.S. § 9-500.39 indicate otherwise, the following terms or phrases are defined as follows:
“Advertisement” means any method of soliciting the use of property for vacation rental purposes.
“Applicant” means the owner or owner’s designee who applies with the city for a permit or renewal of a permit.
“Days” shall mean calendar days unless stated otherwise.
“Designee” and “agent” are interchangeable for purposes of this article and mean any person or persons with the charge, care, or control of any property, dwelling unit, or portion thereof. “Designee” includes the “emergency point of contact.”
“Emergency point of contact” means the owner or individual designated by the owner to: (1) serve as the local twenty-four (24) hour emergency point of contact for the vacation rental; and (2) respond to complaints and emergencies relating to the vacation rental in a timely manner as required by this article.
“Neighbor notification” means the written notice provided by the owner to each single-family residential property adjacent to the vacation rental property, directly across from the vacation rental property, and diagonally across the street of the vacation rental property that includes the valid permit number issued by the city, the physical address of the vacation rental, and the name, address, and twenty-four (24) hour telephone number of the emergency point of contact.
“Nonresidential use” means any use that is not permitted in a residential zoning district pursuant to a city zoning ordinance.
“Online lodging marketplace” has the same meaning prescribed in A.R.S. § 42-5076.
“Owner” means any person who, alone or with others, has title or interest in a property, dwelling unit, or portion thereof, with or without accompanying actual possession thereof, and includes any person who as agent, executor, administrator, trustee, or guardian has charge, care, or control of any property, dwelling unit, or portion thereof.
“Permit” means authorization by the city to operate a vacation rental in accordance with this article.
“Person” means an individual, public entity, firm, corporation, partnership, limited liability company, trust, association, or any other business entity or juridical person, whether operating on a for-profit or nonprofit basis.
“Short-term rental” and “vacation rental” are interchangeable for purposes of this article and mean any individually or collectively owned single-family or one (1) to four (4) family house or dwelling unit, or any unit or group of units in a condominium or cooperative, that is also a transient public lodging establishment or owner-occupied residential home offered for transient use. “Vacation rental” does not include:
(1) Accommodations or property that is classified for property taxation under A.R.S. § 42-12001; or
(2) Any unit that is used for any nonresidential use, including a special event that would otherwise require a permit, retail, restaurant, banquet space, or other similar use.
“Transaction privilege tax license” is the license issued by the State of Arizona pursuant to A.R.S. Title 42.
“Transient” has the same meaning prescribed in A.R.S. § 42-5070.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-152 Permit required—Penalties.
(a) Permit required. Prior to use of a property as a vacation rental, the owner of shall obtain an annual vacation rental permit from the city. Renting, or offering for rent, a vacation rental without complying with the permit requirement in this section is prohibited.
(b) Permit applications. The owner of a proposed vacation rental shall submit to the city a permit application on a form furnished by the city. The permit application shall be signed by the applicant and shall contain the following minimum information, which shall be made publicly available:
(1) The physical address of the residential property proposed to be used as a vacation rental.
(2) The name, address, and telephone number of the owner for which the vacation rental registration certificate is to be issued. If the property owner is an entity, the legal name of the entity and its statutory agent.
(3) The name, address, and telephone number of each designee of the owner, if any.
(4) The full name, address, and twenty-four (24) hour telephone number of the individual who will serve as the emergency point of contact.
(5) Proof of a valid transaction privilege tax license.
(6) Acknowledgment by the owner of an agreement to comply with all applicable laws, regulations, and ordinances, including the requirement that the owner and each designee shall not be a registered sex offender, been convicted of any felony act that resulted in death or serious physical injury, or been convicted of any felony use of a deadly weapon within the past five (5) years.
(7) Attestation of compliance with the notification required in this article.
(8) If the applicant is an individual, proof of lawful presence in the United States in accordance with A.R.S. §§ 1-502 and 41-1080.
(c) Permit fee. Every application, including any renewal application, for a vacation rental permit under this article shall be accompanied by a nonrefundable fee established by city council resolution.
(d) Issuance—Reasons for denial. The city shall issue or deny the permit within seven (7) business days after receipt of a complete application, except that the city may deny issuance of a permit for any of the following reasons:
(1) The applicant failed to provide the information required under subsection (b) of this section;
(2) The applicant failed to pay the permit fee required under subsection (c) of this section;
(3) The applicant provided false information;
(4) The owner or designee of the owner: (a) is a registered sex offender; (b) has been convicted of any felony act that resulted in death or serious physical injury; or (c) has been convicted of any felony use of a deadly weapon within five (5) years of submitting the application; or
(5) At the time of application, the owner has a suspended permit for the same vacation rental or any of the following applies: (a) one (1) violation at the vacation rental that resulted in or constituted any of the offenses described in section 8-154; or (b) three (3) violations of this article at the vacation rental within a twelve (12) month period, not including an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety.
(e) Notice of denial—Appeal. The city manager or designee shall give notice of the denial of an application to the applicant by mailing the notice to applicant at the address listed on the application. The notice of the denial shall inform the applicant of the right to appeal the denial as provided for in section 8-158.
(f) Maintaining accurate information—Violations. All applicants and persons holding permits issued pursuant to this article shall give prior written notice to the city manager or designee of any material change in information submitted in connection with an application for a permit or renewal of a permit. The notice shall be provided to the city manager not less than ten (10) days prior to the effective date of the change. Any information required for an application under this section is deemed to be material for purposes of this section. A violation of this subsection is a civil offense.
(g) Term of permit—Renewal application. All permits issued under this article shall be valid for a period of one (1) year from the date of their issuance unless suspended or revoked. Except where the city has received a new application along with the requisite fees, it shall be unlawful for any person to operate a vacation rental after the expiration date recorded upon the face of the vacation rental permit.
(h) Operating without a permit—Penalties. A vacation rental that fails to apply for a permit or license within thirty (30) days of the permit application being made available by the city shall immediately cease operations. In addition to any other penalty pursuant to the city code, the city may impose a civil penalty of up to one thousand dollars ($1,000.00) per month against the owner if the owner or owner’s designee fails to apply for permit within thirty (30) days of receiving the written notice of violation from the city. Representations or advertisements including online listings that reference the property, house or dwelling unit location within the city is prima facie evidence that a vacation rental is operating in the city.
(i) Nontransferable. No permit shall be transferable either as to location or as to person.
(j) Implementation. The city manager or designee shall develop the necessary forms and/or database necessary to implement this section.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-153 Emergency point of contact requirements—Penalties.
(a) Emergency responses—Violations. When requested by a police officer, the owner or emergency point of contact whose name appears on the permit application must be on the vacation rental premises, or be available over the phone or text, within sixty (60) minutes of the request.
(b) Nonemergency responses—Violations. The owner or emergency point of contact shall respond to all other complaints relating to the vacation rental in person, over the phone, by email, or by text within twenty-four (24) hours of the request.
(c) Maintaining accurate emergency information. All applicants and persons holding permits issued pursuant to this article shall give prior written notice to the city manager or designee of any change to the contact information provided to the city for the emergency point of contact. The notice shall be provided to the city manager not less than ten (10) days prior to the effective date of the change.
(d) Violations. In addition to any other penalty pursuant to the city code, a violation of this section shall be a civil offense.
(e) Penalties. In addition to any other penalty pursuant to the city code, an owner shall be subject to civil penalties of up to one thousand dollars ($1,000.00) for every thirty (30) days the owner fails to provide notice to the city as required under this subsection. Before imposing the initial civil penalty, the city shall provide thirty (30) days’ notice to the owner by mailing a notice of violation to the owner’s mailing address that was provided to the city. The notice of the violation shall inform the applicant of the right to appeal the denial as provided for in section 8-158. Notwithstanding the date of the notice of violation, the date for calculating the penalties shall be the first day the vacation rental is occupied following the owner’s failure to provide the notice to the city regarding the change.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-154 Compliance with the law—Prohibited uses.
(a) A vacation rental shall comply with the federal, state, and local laws, including laws relating to public health and safety, sanitation, solid waste, hazardous waste, tax privilege licensing, property tax registration, traffic control, pollution control, noise, property maintenance, and nuisance abatement.
(b) No person or entity shall operate a vacation rental in violation of this article or other law. In addition, the use of a vacation rental property for any of the following uses or purposes is strictly prohibited:
(1) Any nonresidential use;
(2) Holding a special event that requires a permit or license pursuant to a city ordinance or state law or rule;
(3) Operating a retail business, restaurant, event center, banquet hall or similar use;
(4) Housing sex offenders;
(5) Operating or maintaining a sober living home;
(6) Selling liquor, illegal drugs, or pornography;
(7) Operating a nude or topless dancing;
(8) Adult-oriented business; or
(9) Any other use prohibited by A.R.S. § 9-500.39 or the city code.
(c) A vacation rental lacking a valid transaction privilege tax license issued by the State of Arizona shall not be rented or offered for rent.
(d) No person or entity may receive payment or accept a fee, directly or indirectly, for facilitating the rental of a vacation rental operating in violation of this Code or other law.
(e) In addition to any other penalty pursuant to the city code, any person who causes, allows, facilitates, aides, or abets any violation of this article shall be subject to a civil offense.
(f) The failure of any designee to comply with this article shall not relieve the owner of liability under this article.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-155 Neighbor notification required.
(a) Neighbor notification. Prior to offering a vacation rental for rent for the first time, the owner or designee shall provide neighbor notification to each single-family residential property adjacent to the vacation rental property, directly across from the vacation rental property, and diagonally across the street of the vacation rental property. The neighbor notification shall be provided in writing in the form required by the city and shall include the following minimum information:
(1) The permit number issued by the city;
(2) The physical address of the vacation rental; and
(3) The name, physical address, email address, and twenty-four (24) hour telephone number of the emergency point of contact.
(b) Additional neighbor notification required. Any change to the information provided under subsection (a) of this section shall require additional neighbor notification by the owner or designee not later than five (5) days prior to each change. The additional notification shall be provided in the manner required by subsection (a) of this section.
(c) Attestation. At the time of the application, the owner or designee shall provide to the city an attestation of compliance with the neighbor notification required by this section.
(d) Violations. In addition to any other penalty pursuant to the city code, a violation of this section shall be a civil offense.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-156 Permit suspensions.
(a) Permit suspensions. The city may initiate an administrative process to suspend a vacation rental permit for a period of up to twelve (12) months for any of the following:
(1) Three (3) verified violations of this article within a twelve (12) month period, not including any such violation based on an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety.
(2) One (1) verified violation that results in or constitutes any of the following:
a. A felony offense committed at or in the vicinity of a vacation rental by the owner of the vacation rental or by the owner’s designee;
b. A serious physical injury or wrongful death at or related to a vacation rental resulting from the knowing, intentional or reckless conduct of the owner of the vacation rental or the owner’s designee;
c. The owner of the vacation rental or the owner’s designee knowingly or intentionally housing a sex offender, allowing offenses related to adult-oriented businesses, sexual offenses, or prostitution, or operating or maintaining a sober living home; or
d. The owner of the vacation rental or the owner’s designee knowingly or intentionally allowing the use of a vacation rental for a special event that would otherwise require a permit or license pursuant to the city code or a state law or rule or for a retail, restaurant, banquet space or other similar use.
(b) Appeals. A decision to suspend a permit may be appealed by the owner as set forth in section 8-158.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-157 Enhanced penalties.
(a) The remedies in this article are cumulative and the city may proceed under one (1) or more such remedies.
(b) In addition to any other penalty pursuant to the city code, and notwithstanding any other law, the city may impose a civil penalty of the following amounts against an owner if the owner causes, allows, facilitates, aides, or abets a verified violation of any provision of this article or fails to perform any act or duty required by this article, related to the same vacation rental property within the same twelve (12) month period:
(1) Up to five hundred dollars ($500.00) or up to an amount equal to one (1) night’s rent for the vacation rental as advertised, whichever is greater, for the first violation.
(2) Up to one thousand dollars ($1,000.00) or up to an amount equal to two (2) nights’ rent for the vacation rental as advertised, whichever is greater, for the second violation.
(3) Up to three thousand five hundred dollars ($3,500.00) or up to an amount equal to three (3) nights’ rent for the vacation rental as advertised, whichever is greater, for a third and any subsequent violation.
If multiple violations arise out of the same response to an incident at a vacation rental, those violations are considered one (1) violation for the purpose of assessing civil penalties.
(c) In addition to any other penalty pursuant to this Code, any property that operates as a vacation rental and fails to apply for vacation rental permit in accordance with this article within thirty (30) days of the application process being made available by the city, must cease operations immediately. In addition to any fines imposed pursuant to this section, the city may impose a civil penalty of up to one thousand dollars ($1,000.00) per month against the owner if the owner or owner’s designee fails to apply within thirty (30) days of receiving written notice of the failure to comply with this article.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-158 Appeals.
(a) Any person aggrieved by any decision with respect to the denial of or a refusal to issue a vacation rental permit, the suspension of a vacation rental permit, or a penalty imposed pursuant to this article may appeal the decision by filing a written notice of appeal with the city manager no later than thirty (30) days from the date of the decision letter. The notice of appeal shall be on a form approved by the city.
(b) An appeal under this section does not operate as a stay of the permit suspension.
(c) This section is not applicable to judicial actions brought pursuant to section 8-159 or to penalties including fines imposed by a court.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-159 Judicial relief.
(a) Notwithstanding section 8-154, any attempted or completed felony act, arising from the occupancy or use of a vacation rental that results in a death, or actual or attempted serious physical injury, shall be grounds for judicial relief in the form of a suspension of the property’s use as a vacation rental for a period that shall not exceed twelve (12) months.
(b) The city attorney may initiate proceedings in the city court or other court of competent jurisdiction to enforce this section.
(Ord. No. 1952, § 1, 8-15-23)
Sec. 8-160 Severability.
In the event any section or provision of this article shall be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of this article as a whole or any part thereof other than the part so declared to be invalid or unconstitutional.
(Ord. No. 1952, § 1, 8-15-23)