Short-term rental owners in Scottsdale must obtain and maintain an annual city license for each property, costing $250 per year12.

This is in addition to state and county requirements. To apply for a license, owners need to:

1. Obtain a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue23
2. Provide proof of $500,000 in general liability insurance coverage12
3. Designate a 24/7 emergency contact who can respond on-site within 1 hour1
4. Submit owner information, property details, and attestations of compliance with laws and background checks1

Operational Requirements

Once licensed, short-term rental operators must:

• Notify neighbors within 300 feet of the rental property within 30 days of receiving the license12
• Display the city-provided notice inside the rental property with license number, contact info, and other required information1
• Limit occupancy to a maximum of 6 adults (or 2 adults per bedroom, whichever is less), plus their minor children1
• Use the property only for lodging, not events1
• Provide off-street parking1

Recent Updates

As of June 6, 2024, Scottsdale has implemented new rules to address nuisance parties:

• Promoters can be held responsible for "nuisance parties"5
• Police can remove non-residents from a property during a declared nuisance party5
• Minors are prohibited from renting short-term rentals5

Tax Obligations

Short-term rental operators in Scottsdale are required to:

• Collect state transaction privilege tax and county excise tax from guests5
• Remit collected taxes to the appropriate authorities5

Display their TPT license number in all advertisements5

Scottsdale, Arizona applies the same short-term rental laws to both owner-occupied and non-owner-occupied properties.

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