Short Term Rental License Information

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SECTION A

The cost of the short-term rental license is $250 per property, per year (non-refundable).

  • Pay by Phone: 928-472-5000

  • Mail: You may also pay for the license by sending a check in the mail to:

Town of Payson Finance
303 N. Beeline Hwy
Payson, AZ85541

Step 1: Obtain a Transaction Privilege Sales Tax (TPT) license from the Arizona Department of Revenue. A valid TPT license is required for each rental property in Payson in accordance with A.R.S. § 33-1902, your TPT number will be needed to apply for the Town of Payson permit. Obtain your TPT license from ADOR at Applying for a TPT License | Arizona Department of Revenue (azdor.gov)

STEP 2: Town of Payson Business License is required if an owner owns 3 or more properties within incorporated Payson. To obtain a business license go to Business | Payson, AZ (paysonaz.gov).

STEP 3: Complete Gila County Requirements Each property must be registered with Gila County as required by ARS 33-1902 – it is illegal to rent a property before it is registered with the Gila County Assessor. Register with Gila County at Rental Property (gilacountyaz.gov).

STEP 4: Complete the Payson Permit License Application

  1. Complete an application for each property.
    1. If the property owner is an entity, the legal name of the entity and its statutory agent must be provided and
    2. You must identify each designee of the owner, if any.

  2. Provide a twenty-four (24) hour emergency point of contact number, including full name and address.

  3. Agree to comply with all applicable laws, regulations, and ordinances, including the requirement that the owner and each designee shall not be a registered sex offender, convicted of any felony act that resulted in death or serious physical injury, or convicted of any felony use of a deadly weapon within the past five years.

  4. Provide evidence of liability insurance appropriate to cover the vacation rental in the aggregate of at least $500,000 or evidence that each vacation rental transaction will be provided through a platform that provides equal or greater primary liability insurance coverage for the vacation rental.

  5. If the applicant is an individual, verify lawful presence in the United States in accordance with A.R.S. and §41-1080.

  6. Provide evidence of commercial trash hauling services to the vacation rental physical address.

SECTION B

Short-Term rental hosts are required to:

  1. Notify Neighbors. 

    After receiving their Payson STR license (or any time there is a change to the information provided in the original application), or prior to offering a vacation rental for rent for the first time or within 7 days of license issuance, whichever is sooner, the owner or designee shall provide neighbor notification to each single-family residential property adjacent to the vacation rental property, directly across from the vacation rental property, and diagonally across the street of the vacation rental property. The neighbor notification shall be provided in writing in the form required by the Town and shall include the following minimum information:

    1. The permit number issued by the Town.

    2. The physical address of the vacation rental; and

    3. The name, physical address, email address, and twenty-four (24) hour telephone number of the emergency point of contact.

    For your convenience, the Town has created a “Good Neighbor” brochureGood Neighbor JPG

  2. Maintain and update emergency contact information.

    If the emergency/management contact information changes for a licensed rental property, the owner must update the Short-Term Rental License and provide the new property contact information to neighbors.

  3. Advertise Required Disclosure. 

    To protect the peace, health, safety, and general welfare of the Town’s residents and visitors, the owner or owner’s designee shall complete and prominently display the following statement in the Short-Term Rental’s Online Lodging Marketplace or other listing:

    The Owner of this property will provide you with pertinent safety information, explain your responsibilities under the Town of Payson Town Code, and expect you to certify your compliance therewith.

    You must not use this property for any nonresidential or other prohibited activity or use, as defined in Town of Payson Town Code Section 116.05.  Any renter who causes, permits, facilitates, aides, or abets such prohibited use of this property shall be subject to a civil infraction carrying a mandatory penalty of a minimum of $500.00, in addition to any other penalties which the Town may impose.

    The use of this Short-Term Rental to house sex offenders is prohibited by State Law and by the Town of Payson Town Code. The Owner of this Short-Term Rental is required to perform a background check on you and your guests prior to your stay. 

  4. Post Contact Information at the Vacation Rental. 

    The owner of the vacation rental must display the name, phone number, and email address of the owner or designee, and emergency point of contact in a conspicuous place within fifteen (15) feet of the primary entrance of the vacation rental.

  5. Advertise Required Booking Information.

    To protect the peace, health, safety, and general welfare of the Town’s residents and visitors, the owner of a Short-Term Rental shall (1) provide each booking guest with a statement of applicable Town rules and regulations, or direct each booking guest thereto, and inform the booking guest that rental of the unit constitutes an agreement to comply with such rules and regulations, and (2) display the Permit number issued by the Town on each advertisement for such Short-Term Rental.

  6. Conduct Background Checks. 

    No sex offender shall be permitted to rent or occupy the vacation rental. Owners who allow a sex offender at the vacation rental shall be found in violation of this section.

    Within twenty-four (24) hours of every booking, a sex offender background check on each guest shall be conducted by the owner or by the online lodging marketplace on which the vacation rental is advertised.  The owner shall demonstrate compliance with this requirement by retaining a full copy of each background check for a minimum of twelve (12) months after the booking date and providing the copy to the Town upon a request by a police officer.

    In addition to any other penalty pursuant to the Town Code, any person who violates this section shall be subject to a civil offense.

    The failure of an online lodging marketplace to conduct a background check shall not relieve the owner of liability.

  7. Complete Fire Inspections.

    Hosts are required to complete an inspection within 90 days of the license being approved. After completing the STR application, you can schedule your home fire inspection here.

  8. Address Complaints.

    An owner or owner’s representative shall (a) affirmatively respond to complaints in person, over the phone, or by email, and (b) abate the incident from which the complaint arose in a timely manner regardless of when the owner receives notice of the complaint. If such a response is due within one hour under this chapter’s definition of timely manner, the response is deemed necessary to protect the peace, health, safety, and welfare of the public, and the owner or owner’s representative shall so respond in person. If the response is due within 24 hours, the owner or the owner’s representative shall respond either in person, by telephone, or by email. Failure of the owner or the owner’s representative to respond to a complaint as provided herein is a violation and the owner shall be deemed responsible for such violation regardless of whether the owner’s representative has been designated.

  9. Inform Guests of Rules and Regulations.

    Prior to the commencement of the occupancy or during check-in, the owner shall explain and describe all rules and regulations applicable to the use of the property as a short-term rental including, but not limited to, parking restrictions, restrictions on noise and amplified sound, trash collection schedules, special event and nonresidential use restrictions, fire evacuation routes, and any other information, as required by this Code, applicable to the short-term rental and the surrounding neighborhood. Prior to or upon the booking guest’s arrival at the short-term rental, the owner shall provide the booking guest with a written copy of the statement of rules and regulations acknowledged by the booking guest at the time of booking as required by § 116.11(A)4. The owner shall keep a record of compliance with this section. 

  10. Contract Commercial Trash Hauling Services.

    Trash and refuse shall not be left stored within public view, except in proper collection containers for the purpose of collection by the solid waste service provider.

  11. Post Notice. 

    The following notice must be completed in 14-point or larger bold font, on a laminated or otherwise similarly shielded paper, and prominently displayed on the inside of the front door and the primary door to the backyard or in a conspicuous location near each such door. The notice below shall also include information regarding the location of all fire extinguishers and Town of Payson parking and waste disposal regulations.


NOTICE

USE OF THIS PROPERTY FOR ANY OF THE FOLLOWING PURPOSES IS PROHIBITED; VIOLATORS MAY BE SUBJECT TO SUBSTANTIAL PENALTIES: 

  1. Housing sex offenders;
  2. Operating or maintaining a sober living home;
  3. Selling controlled substances, liquor, or pornography;
  4. Obscenity, Nude or topless dancing, and other adult-oriented businesses, performances, parties, or activities in which value is given in exchange for an adult-oriented service;
  5. Any uses prohibited under A.R.S. § 9-500.39, or federal, state, or local law; or
  6. Any use that disturbs neighboring properties’ peace and enjoyment including, but not limited to, excessive noise, impeding traffic, obstruction of public streets by crowds or vehicles, use or possession of illegal drugs, drinking in public areas, the service of alcohol to minors or consumption of alcohol by minors, fighting, disturbing the peace, and/or littering. 

USE OF THIS PROPERTY FOR ANY OF THE FOLLOWING PURPOSES IS PROHIBITED; VIOLATORS MAY BE SUBJECT TO SUBSTANTIAL PENALTIES: 

Use for any nonresidential use, including: 

  1. For a special event that would otherwise require a permit or license pursuant to Town ordinance or a state law or rule; or
  2. Operating a retail business, restaurant, event center, banquet space, or similar use.

Your local contact person’s name is ____________________ and can be reached by phone 24 hours a day, seven days a week, at _____- _____ - _________ 

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