Can Paradise Valley residents rent their homes?
Yes. Residential-zoned property rental is permitted by Section 1004 of the Town of Paradise Valley Zoning Ordinance. However, the entire property must be rented as a whole. Accessory buildings may not be leased, subleased, or rented separate and apart from the main building and no main building may be leased, subleased, or rented separate and apart from an accessory building.
The Town of Paradise Valley levies a privilege tax on the gross business receipts derived from the rental of commercial and residential properties. All residential and commercial rental properties are subject to the tax.
If you rent your property for more than 30 consecutive days, the gross receipts from the rental are subject to a 1.65% tax.
Short-term (vacation) Rental
If you rent your property for less than 30 consecutive days, the following taxes apply:
|Arizona Transient Lodging Tax||7.27%|
|Paradise Valley Transient Lodging Tax||3.40%|
|Paradise Valley Sales Tax||2.50%|
As of June 1st, 2018 residents are not required to apply for a Town of Paradise Valley Business License. However, Residents are required to apply for an Arizona Department of Revenue Transaction Privilege (Sales) Tax (TPT) License from the Arizona Department of Revenue (DOR). DOR issues tax licenses and collects taxes on behalf of the Town.
If you rent your property exclusively through the online vacation rental company Airbnb, it is not necessary to obtain a TPT License. The State of Arizona negotiated an agreement Airbnb whereby they will remit taxes on behalf of owners.
Here are some things to keep in mind before you rent.
As you know, Paradise Valley prides itself on our unique setting, pristine neighborhoods, top-rated resorts, and outstanding quality of life. The Town government seeks to protect the Town’s unique and valued character while upholding the law, applying the law fairly and impartially, and limiting its interference with individual decision making and property rights. The information shared below is provided for informational purposes only, and is not intended to be a comprehensive listing of the law, rules, or issues concerning short-term rentals. You may wish to consider the following:
In sum, the field of short term vacation rentals via online listings represents an evolving area with various impacts, costs and benefits – both known and unknown. We hope the information above proves helpful. Again, please be aware that the foregoing items are not intended to be a comprehensive listing or set of the issues impacting short-term rentals. The Town follows a limited government model, and does not seek to identify all federal and state laws that may impact short-term rentals or to identify all of the possible legal consequences of owning or operating a short-term rental. Rather, the Town’s role is largely reactive in this regard, in investigating and responding to any complaint received about a home in Paradise Valley – no matter the use or status of the home.
For questions about licensing, please call Duncan Miller, Town Clerk, at 480.348.3610.