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Arizona · Prescott

Prescott

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

Short-term rentals (legally "vacation rentals," defined as one or more residential dwellings in a residential zone rented for 29 consecutive days or less) are LEGAL in the City of Prescott and cannot be prohibited under Arizona state preemption (ARS 9-500.39: "A city or town may not prohibit vacation rentals or short-term rentals"). They are regulated under Prescott City Code Chapter 4-9 "Vacation Rentals," adopted by Ordinance 5014-1552 (passed 11-8-2016, effective 12-8-2016) and amended by Ord. 5052-1592 (11-28-2017), Ord. 2019-1655 (2-12-2019), and Ord. 2019-1704 (12-17-2019) — all confirmed verbatim in the codified chapter's history notes. A non-owner-occupied vacation rental located in residential zoning must obtain and annually renew a City of Prescott Vacation Rental Registration Certificate (Code 4-9-3, 4-9-5) BEFORE renting, plus a state Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue. Owner-occupied rentals (where the owner resides at the residence during the rental), properties in commercial zoning, and hotels/motels/bed-and-breakfasts do NOT require City vacation-rental registration and need only the state TPT license. Initial City registration is $95 ($30 annual vacation-rental registration fee + a one-time $65 health/safety inspection fee); renewal is $30/year. Key operating conditions: a 24/7 local contact person able to respond in person within 45 minutes; overnight occupancy capped at 2 persons (age 13+) plus 2 additional persons (age 13+) per bedroom; adjacent/immediate-proximity neighbor notification; a written rental agreement and posted Good Neighbor Brochure/certificate. Transient stays (<30 days) are taxed at a combined 12.275% = City Hotels TPT 2.95% (code 044) + City transient-occupancy/bed tax 3.00% (code 144) + State-and-Yavapai-County transient lodging 6.325% (code 025; state 5.5% + county 0.825%), all administered by ADOR. Under ARS 9-500.39, any local permit/license fee is capped at the lesser of the actual cost of issuing the permit/license or $250. NOTE: as of January 1, 2025, Arizona SB1131 prohibits cities from taxing long-term (30+ day) residential rentals, so stays of 30 days or more are no longer subject to any Prescott city TPT (former business code 045 discontinued).

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

Requirements checklist

  • state Arizona Transaction Privilege Tax (TPT) License Required
    Fee: — · Renewal: Annual, administered by ADOR · Applies to: All vacation rental operators within City limits (owner-occupied, non-owner-occupied residential, and commercial/hotel alike) that rent lodging for 29 consecutive days or less · official page ↗
  • city Vacation Rental Registration Certificate (Prescott City Code Ch. 4-9) Conditional
    Fee: $95 / initial application (first year) · Renewal: Annual; $30/year. Certificate is valid one (1) year (or portion of a year) from the date of application and requires renewal each year (Code 4-9-5(H)); a new registration is required within 14 days upon change of owner/agent or other material facts (Code 4-9-5(F)). · Applies to: Required for a vacation rental in residential zoning where the owner does NOT occupy the residence during the rental and the property is not a hotel/motel/bed-and-breakfast. Not required (only the state TPT license applies) where the owner occupies/resides at the residence during rental, the property is in commercial zoning, or it operates as a hotel/motel/B&B. · official page ↗
  • city Health/Safety Inspection (Building Department) Conditional
    Fee: $65 / one-time · Renewal: — · Applies to: Non-owner-occupied residential vacation rentals subject to City registration; must be completed before the City issues the registration certificate · official page ↗
  • city Local Contact Person (24/7, 45-minute in-person response) Required
    Fee: — · Renewal: — · Applies to: Every registered vacation rental during each rental term · official page ↗
  • city Adjacent / Immediate-Proximity Property Owner Notification Required
    Fee: — · Renewal: — · Applies to: Registered vacation rentals; owner must notify property owners in immediate proximity on all sides (per Yavapai County Assessor records) of the local contact person's name and 24-hour phone number · official page ↗
  • city Written Rental Agreement + Posted Good Neighbor Brochure / Certificate Required
    Fee: — · Renewal: — · Applies to: Each separate occasion of rental; owner/agent must execute a written rental agreement (4-9-6(G)) and provide/post the Good Neighbor Brochure, registration/business-license certificate, and maximum occupancy in a conspicuous place within the unit · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
City Hotels Transaction Privilege Tax — — — —
City Transient Occupancy / Bed Tax (Hotel/Motel Additional Tax) — — — —
State + Yavapai County Transient Lodging Tax — — — —
Combined Transient Lodging Tax (<30 days) — — — —
Long-term Residential Rental (30+ days) — — — —

Operating rules

Primary residence
No
Min stay (nights)
—
Max nights / year
—
Max occupancy
Overnight occupancy limited to not more than 2 persons (age 13+) plus an additional 2 persons (age 13+) per bedroom (Code 4-9-6(B)). Per the City's chart (formula 2 + 2 per bedroom): 0 bedrooms=2, 1 BR=4, 2 BR=6, 3 BR=8, 4 BR=10, 5 BR=12, 6 BR=14, 7 BR=16.
Zoning-restricted
No
Cap on licenses
No

Grandfathering: Not applicable — no numeric cap or ban exists, so no grandfathering scheme. State law (ARS 9-500.39) prohibits cities from prohibiting STRs.

Zoning: Vacation rentals are permitted in single-family and multifamily residential zones; Chapter 4-9 regulates them there for health/safety but does not prohibit or cap them (consistent with ARS 9-500.39, which bars use/occupancy/classification-based zoning restrictions on STRs). Code 4-9-2(B) states the chapter 'is not intended to further regulate hotels, motels, inns, time-share units, bed and breakfasts, or nonvacation type rental arrangements.' Owner-occupied rentals (owner resides during rental) are excluded from the City registration regime.

  • There is NO minimum-night requirement and NO annual cap on nights; a 'vacation rental' is simply any rental of 29 consecutive days or less (Code 4-9-3(A)).
  • There is NO primary-residence/owner-occupancy requirement. Owner-occupancy is instead an EXEMPTION path: if the owner resides at the residence during the rental, the activity is outside the City vacation-rental registration regime.
  • Arizona ARS 9-500.39(A) preempts local bans ('A city or town may not prohibit vacation rentals or short-term rentals') and caps any local regulatory permit/license fee at the lesser of the actual cost of issuing the permit/license or $250.
  • CORRECTED from draft: stays of 30+ days are no longer taxed by the City. Effective January 1, 2025, Arizona SB1131 prohibits cities from levying TPT on long-term (30+ day) residential rentals; former Prescott business code 045 (residential rental, 2%/2.95%) is discontinued. The draft's claim that 30+ day stays are 'taxed at 2.95% city' is obsolete.

Enforcement

Active enforcement
unknown
Fines
—
Notes
Enforcing authority and denial/revocation grounds are verified from Code 4-9; exact dollar penalty amounts are not quote-anchored here and should be confirmed against Code 4-9 enforcement subsections and Chapter 1 before publishing.

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Frequently asked questions

Is Airbnb legal in Prescott?
Short-term rentals (legally "vacation rentals," defined as one or more residential dwellings in a residential zone rented for 29 consecutive days or less) are LEGAL in the City of Prescott and cannot be prohibited under Arizona state preemption (ARS 9-500.39: "A city or town may not prohibit vacation rentals or short-term rentals"). They are regulated under Prescott City Code Chapter 4-9 "Vacation Rentals," adopted by Ordinance 5014-1552 (passed 11-8-2016, effective 12-8-2016) and amended by Ord. 5052-1592 (11-28-2017), Ord. 2019-1655 (2-12-2019), and Ord. 2019-1704 (12-17-2019) — all confirmed verbatim in the codified chapter's history notes. A non-owner-occupied vacation rental located in residential zoning must obtain and annually renew a City of Prescott Vacation Rental Registration Certificate (Code 4-9-3, 4-9-5) BEFORE renting, plus a state Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue. Owner-occupied rentals (where the owner resides at the residence during the rental), properties in commercial zoning, and hotels/motels/bed-and-breakfasts do NOT require City vacation-rental registration and need only the state TPT license. Initial City registration is $95 ($30 annual vacation-rental registration fee + a one-time $65 health/safety inspection fee); renewal is $30/year. Key operating conditions: a 24/7 local contact person able to respond in person within 45 minutes; overnight occupancy capped at 2 persons (age 13+) plus 2 additional persons (age 13+) per bedroom; adjacent/immediate-proximity neighbor notification; a written rental agreement and posted Good Neighbor Brochure/certificate. Transient stays (<30 days) are taxed at a combined 12.275% = City Hotels TPT 2.95% (code 044) + City transient-occupancy/bed tax 3.00% (code 144) + State-and-Yavapai-County transient lodging 6.325% (code 025; state 5.5% + county 0.825%), all administered by ADOR. Under ARS 9-500.39, any local permit/license fee is capped at the lesser of the actual cost of issuing the permit/license or $250. NOTE: as of January 1, 2025, Arizona SB1131 prohibits cities from taxing long-term (30+ day) residential rentals, so stays of 30 days or more are no longer subject to any Prescott city TPT (former business code 045 discontinued).
Do I need a license or registration for a short-term rental in Prescott?
Yes — Prescott requires: Arizona Transaction Privilege Tax (TPT) License; Vacation Rental Registration Certificate (Prescott City Code Ch. 4-9); Health/Safety Inspection (Building Department). See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Prescott?
City Hotels Transaction Privilege Tax, City Transient Occupancy / Bed Tax (Hotel/Motel Additional Tax), State + Yavapai County Transient Lodging Tax, Combined Transient Lodging Tax (<30 days), Long-term Residential Rental (30+ days). Use the lodging-tax estimator on this page for a specific stay.

Official sources

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