Key Takeaways
- Flagstaff held a first reading on STR license fee changes but hasn’t disclosed the new rates.
- Current annual license fees are $175 with built-in $5 yearly increases to fund the program.
- Operators face $1,000 monthly fines for operating without proper licensing after receiving notice.
A city in Arizona is considering increasing short-term rental fees.
The city of Flagstaff held a first reading on changes to its short-term rental licensing fees at a May 5 city council meeting.
The Arizona mountain town did not disclose what the new rates would be, but operators with properties in this area should prepare to pay more, should the preliminary discussion move forward.
Flagstaff already requires all operators to obtain an annual license for any residential unit rented for fewer than 30 days.
The current fee stands at $175, though the original ordinance included a provision for $5 annual increases to cover program costs.
Operators who fail to register after receiving notice face fines of up to $1,000 per month.
What the licensing program requires
Flagstaff launched its short-term rental licensing system in November 2023, following a wave of new regulations across Arizona cities.
The program requires operators to notify neighbors in writing, provide 24-hour emergency contact information, and maintain a current transaction privilege tax license. Applications must be completed online, and license numbers must appear in all advertising.
Related: New York County votes to tax short-term rentals like hotels
According to the City of Flagstaff, a second reading of the ordinance will be discussed at a future council meeting.
If approved, the fee changes would likely take effect later this year.
Operators with properties near Northern Arizona University or the Grand Canyon corridor should monitor the city’s STR portal for updates on the final rates and implementation timeline.
