Arizona · Paradise Valley

Paradise Valley

Name: Paradise Valley short-term rental regulations
Creator: RuleGrid
License: https://creativecommons.org/licenses/by/4.0/

city Allowed with registration Verified · last verified 2026-07-15

Short-term / vacation rentals are legal in Paradise Valley but must be registered, permitted, and hold a state TPT license before being offered. Under Arizona preemption (A.R.S. 9-500.39) the Town cannot ban STRs or cap the number of permits; it regulates them for health/safety, life-safety equipment, insurance, nuisance, and prohibits non-residential/event use. Permit fee is $250 (nonrefundable), permit valid one year with annual renewal.

Not legal advice. Last verified 2026-07-15 · sources linked below.

Requirements checklist

city Town of Paradise Valley Short-Term Rental Permit Required

Fee: $250 / one_time · Renewal: CORRECTED (was 'not specified/needs_review'): Town Code 10-14 'Term of Permit; Renewal' provides the permit is valid one (1) year from issuance and must be renewed annually. It is unlawful to operate after the expiration date unless the Town has received a complete renewal application with the requisite fees. Owner must also notify the Town in writing of any change to required information within 7 business days. · Applies to: Every short-term/vacation rental property offered for transient use (stays under 30 days) within the Town · official page ↗
city Town STR registration (on Town-specified form) Required

Fee: — · Renewal: Notify the Town in writing within 7 business days of any change to required information. · Applies to: Owner or owner's representative before offering the STR for rent · official page ↗
state Arizona Transaction Privilege Tax (TPT) license Required

Fee: $12 / one_time · Renewal: Annual TPT license renewal via Arizona Department of Revenue (AZTaxes.gov); no state renewal fee. · Applies to: All STR owners; income from stays under 30 days is subject to Arizona TPT (transient lodging, business code 025) · official page ↗
county Maricopa County Assessor residential-rental registration (A.R.S. 33-1902) Conditional

Fee: — · Renewal: Keep registration current with the Maricopa County Assessor. · Applies to: Owners of residential rental property, including STRs, in Maricopa County ('where applicable' per the ordinance) · official page ↗
city General liability insurance (min. $500,000 aggregate) Conditional

Fee: — · Renewal: Must be maintained for the duration of STR operation. · Applies to: Each short-term rental; satisfied either by owner-purchased coverage or by advertising through an online lodging marketplace providing equal/greater coverage · official page ↗
city Designated emergency / complaint-response contact Required

Fee: — · Renewal: Keep contact information current; notify Town within 7 business days of changes. · Applies to: Every permitted STR; owner or a representative reachable to respond to complaints in a timely manner · official page ↗
city Life-safety equipment and postings (smoke/CO alarms, fire extinguisher, evacuation map, 911-capable phone, pool barrier) Required

Fee: — · Renewal: Maintained continuously for the duration of STR operation. · Applies to: Every permitted STR · official page ↗

Taxes

Tax	Rate	Administered by	Airbnb remits	Vrbo remits
Town of Paradise Valley Transaction Privilege (Sales) Tax	2.5%	Arizona Department of Revenue (collected on behalf of the Town)	—	—
Town of Paradise Valley Transient (Bed) Tax	3.4%	Arizona Department of Revenue (collected on behalf of the Town)	—	—
Arizona State Transaction Privilege Tax — Transient Lodging class (025)	5.5%	Arizona Department of Revenue	—	—
Maricopa County Transient Lodging Excise Tax	1.77%	Arizona Department of Revenue	—	—

Lodging-tax estimator

Estimate the combined transient/lodging tax (~13.2%) on a stay in Paradise Valley. Estimate only — not tax advice.

Nightly rate ($) Nights

Operating rules

Primary residence: No
Min stay (nights): —
Max nights / year: —
Max occupancy: No numeric annual-night or maximum-occupancy cap is set by the ordinance (confirmed after reading the full current Article 10-14 text). A.R.S. 9-500.39 preempts use-, classification-, and occupancy-based limits; the Town instead regulates via generally applicable building/fire/health/sanitation codes, life-safety equipment, insurance, and nuisance provisions. Guests are limited only by such generally applicable codes.
Zoning-restricted: No
Cap on licenses: No

Zoning: State law (A.R.S. 9-500.39) preempts zoning-based bans on STRs; residential dwellings may be used as STRs town-wide. Non-residential/commercial use of the dwelling is prohibited: Town Code 10-14 provides 'No Short-Term Rental may be used for any Nonresidential Uses, including but not limited to, an event that requires a permit or license... Banquet Space, Event Center, or other similar use, such as weddings and pop-up bars.'

Arizona A.R.S. 9-500.39 preempts municipalities from prohibiting STRs or restricting them based on classification, use, or occupancy; Paradise Valley therefore cannot ban STRs or cap the number of permits.
Commercial/non-residential use of the dwelling (events, weddings, banquet/event-center, pop-up bars, retail, restaurant) is prohibited by Town Code 10-14.
Local permit fee is capped at $250 by A.R.S. 9-500.39(B)(5)(f) ('$250, whichever is less'); Paradise Valley charges the full nonrefundable $250.
HOAs and CC&Rs may independently restrict or prohibit STRs; the state statute does not preempt private HOA restrictions.
State-law nuance (added on verification): A.R.S. 9-500.39(B)(9) requires an owner of an accessory dwelling unit (ADU) that received final zoning/permit approval after September 14, 2024 to reside on the property; otherwise no primary-residence requirement applies.
SB1487 history (context): The Town's original Ordinance 2022-03 was challenged; the AG found most provisions valid but the Town amended Chapter 10 (April 28, 2022) — e.g., the insurance requirement now reads $500,000 (not the original $1,000,000) and change-notification is now 7 business days (not the original 'ten days prior'). The record here reflects the CURRENT amended code (Municode update 2026-03-03).

Enforcement

Active enforcement: unknown
Fines: COMPLETED (draft was truncated). Town Code 10-14-6 mirrors A.R.S. 9-500.39 graduated civil penalties for verified violations within the same 12-month period: up to $500 or one night's rent (whichever is greater) for the first violation; up to $1,000 or two nights' rent for the second; up to $3,500 or three nights' rent for the third and any subsequent violation. The Town may also impose a $1,000/month civil penalty on an owner who fails to register/obtain a permit, and unpermitted operation carries a mandatory civil infraction of at least $500. A completed/attempted felony arising from occupancy that results in death or serious physical injury is a ground for permit suspension.

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Frequently asked questions

Is Airbnb legal in Paradise Valley?

Do I need a license or registration for a short-term rental in Paradise Valley?

Yes — Paradise Valley requires: Town of Paradise Valley Short-Term Rental Permit; Town STR registration (on Town-specified form); Arizona Transaction Privilege Tax (TPT) license. See the requirements checklist for fees, renewal, and official links.

What taxes apply to short-term rentals in Paradise Valley?

Town of Paradise Valley Transaction Privilege (Sales) Tax (2.5%), Town of Paradise Valley Transient (Bed) Tax (3.4%), Arizona State Transaction Privilege Tax — Transient Lodging class (025) (5.5%), Maricopa County Transient Lodging Excise Tax (1.77%) — roughly 13.2% combined. Use the lodging-tax estimator on this page for a specific stay.

Official sources

Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.