The negative neighborhood impacts of short-term rentals (STRs) are widely known and felt throughout the community. We would like to update our readers on the work the city is doing on this topic.

In 2016, the Arizona legislature passed a law requiring cities to allow STRs in residential areas. Since that time, the City of Flagstaff has been vocal about the negative impact we all face on our neighborhoods from unregulated hotels in our neighborhood. The city is also calling on other cities to join them in strengthening STR’s regional management.

During the 2022 legislative session, cities and counties were given limited authority to require STR licenses through local governments. Both the City of Flagstaff and Coconino County have created their own ordinances that require a license. Under current state law, a city can require each STR to pay an annual fee and, in some cases, suspend her STR license for multiple violations awarded.

The city is hosting an open house to gather community feedback on the draft ordinance on Monday, March 27. After his 60-day fee notice as required by law, the draft ordinance will be submitted to Flagstaff City Council for a first reading. Decree in June. Information about open houses is posted on the city’s website.

Residents will no doubt be disappointed that cities and counties are still prohibited by the state from regulating the number and location of STRs. The only tool legally available to the city is a license.

If your city or county prohibits STR from regulating, we ask that you treat it as a hotel operating STR under Arizona property tax laws. Most of his STR owners pay the required 10% residential primary property tax, but hotels are taxed, so legislation was passed to tax these properties at the commercial rate of 17% instead. I urge people to The City of Flagstaff will continue to state our need for regulation of her STR to the Arizona Legislature. I ask residents to do the same.