In accordance with state law, short term rentals (e.g. Airbnb, VRBO, etc.) have always been permitted in the Town of Oro Valley. Thus far, short term rentals have not been problematic. In fact, they contribute to the local economy; however, due to their growing popularity, the Town of Oro Valley decided to implement a licensing system to ensure that short term rentals continue to be a successful endeavor while also providing for the safety and quality of life for surrounding neighbors. To that end, Oro Valley Town Council adopted ORDINANCE NO. (O)23-01 on January 4, 2023, with an effective date of February 3, 2023.
Understanding that some individuals may need some time to familiarize themselves with the process and complete their licensing process, Town Council allowed for a 90-day implementation period, during which time the ordinance will not be enforced.
Registering a short term rental license will be similar to the online process for applying for a business license. Visit the short term rental application page to view a list of required documents and create your online portal account.
Town staff will be assisting owners as they navigate the licensing system and requirements during the 90-day time frame. After May 5, the regulatory enforcement period begins, at which point Town staff will begin investigating complaints received regarding possible lack of licensing, not displaying the neighbor notification form on the property, or lack of a town license number on rental promotions. Town staff will not be proactively inspecting properties and short term rental platforms for compliance. Rather, staff will respond to public complaints they receive.
If you have questions, please view the FAQ on this page or contact Sarah Cox at 520-229-4831 or scox@orovalleyaz.gov.
IMPORTANT DATES
- February 3, 2023 – Date the ordinance goes into effect
- March 8 – Town staff will hold two Q&A informational meetings via Zoom. Meeting 1 will be 9 to 11 a.m. Meeting 2 will be 3 to 5 p.m. Zoom links will be provided on or about March 1 via press release, social media and the short term rental web page.
- May 5, 2023 – Deadline to register short term rental properties
May 6, 2023 – Enforcement of ordinance begins
WHAT ARE VACATION RENTAL & SHORT TERM RENTAL PROPERTIES?
Vacation rentals or Short term rentals are dwelling units for a rental term of less than 30 days to transient guests. They are considered the same as traditional dwelling units and are allowed by-right in all residential districts. Vacation and Short Term rentals cannot be used for non-residential uses, including retail, restaurant, banquet space, event center, or other similar use, are prohibited.
If you are looking to register a vacation rental or short term rental property, click here.
COMPLAINTS
For complaints related to vacation or short term rental use or zoning code violations, call the Community and Economic Development Department at (520) 229-4800.
For criminal or similar complaints, call the Oro Valley Police Department at (520) 229-4900. For emergencies, call 9-1-1.
Loud or Unruly Gatherings
Under Oro Valley’s Nuisance Parties and Unlawful Gatherings ordinance, property owners are accountable for repeated unruly gatherings or parties. This ordinance applies to all private residences whether they are long- or short term rentals, or owner occupied.
Report an Unregistered Property
Click here to report a rental property that does not have contact information or has not properly registered with the county or state so that the Town can work with the property owner or agent to ensure compliance with all state, county, and Town Code requirements.
PROPERTY OWNER REQUIREMENTS
The requirements for property owners are listed below by State, County and Town Requirements. Click here for our Short-Term Rental Licensing Process Guide(PDF, 172KB), which details the steps a property owner must take to be in compliance.
State
All short term rentals must have a Transaction Privilege Sales Tax (TPT) and a Transient Tax liability. A Transaction Privilege Sales Tax license with the State of Arizona Department of Revenue is required. Be sure to list Oro Valley as a region code on your license.
County
All rental units, including vacation and short term rentals, shall file with Pima County, prior to being occupied, the information required by ARS 33-1902.
It is illegal to rent a property before it is registered with the Pima County Assessor.
Town
- The physical address of the residential property proposed to be used as a vacation rental.
- The name, address, and telephone number of the owner for which the vacation rental registration certificate is to be issued. If the property owner is an entity, the legal name of the entity and its statutory agent.
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The name, address, and telephone number of each designee of the owner, if any.
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The full name, address, and twenty-four (24) hour telephone number of the individual who will serve as the emergency point of contact.
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Proof of a valid transaction privilege tax license.
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Acknowledgment by the owner of an agreement 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, been convicted of any felony act that resulted in death or serious physical injury, or been convicted of any felony use of a deadly weapon within the past five years.
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Attestation of compliance with the notification required in this article.
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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.
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Evidence the vacation rental is registered with pima county assessor’s office in accordance with A.R.S § 33-1902.
- If the applicant is an individual, proof of lawful presence in the united states in accordance with A.R.S §§ 1-502 and 41-1080.
Short Term Rental Properties
Use this map to see what properties are currently registered with the Town of Oro Valley.
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Frequently Asked Questions
Are vacation or short term rentals allowed in Oro Valley?
In 2017, Arizona State Legislature enacted A.R.S. §9-500.39 which eliminates the ability for local cities and towns including Oro Valley to regulate these types of rentals based solely on their classification or use. Consequently, these rentals are allowed, by state law, in Oro Valley. However, A.R.S. §9-500.39 does not preclude the ability for Homeowner Associations to regulate or restrict these types of uses.
How does the Town use the fees that are collected?
The Town established a $80 fee based on the specific costs related to the technology, staffing, materials, and overhead costs necessary to process short term rental applications and issue rental licenses. The fee charged cannot exceed the actual cost of providing the service. The short term rental license fee is the same cost as a Town business license.
Are vacation or short term rentals allowed in every neighborhood?
Except in neighborhoods where Homeowner Associations restrict or regulate these types of rentals, vacation or short term rentals are allowed by-right in all residential neighborhoods in Oro Valley, subject to the following:
- Non-residential uses, including retail, restaurant, banquet space, event center, or other similar uses are prohibited.
- The owner or designee of a vacation rental shall provide neighbor notification.
- All rental units, including vacation and short term rentals, must be registered with Pima County, in accordance with A.R.S. §33-1902.
- The owner of a vacation rental must provide to the Town of Oro Valley the name and contact information of a person designated as an emergency contact, as well as contact information for owner or owners designed for responding to complaints.
Do vacation or short term rentals pay tax to the Town?
Yes. All vacation and short term rentals in Oro Valley are required to pay both Transaction Privilege Sales Tax and a Transient Tax (commonly referred to as a bed tax) – both of which are collected by the State of Arizona. To engage in, or continue a property rental business, a Transaction Privilege (Sales) Tax license with the State of Arizona Department of Revenue is required. It is the property owner's responsibility to make an application and obtain a license with the Arizona Department of Revenue. For more information on this requirement, Keyword “Business License Information” on OrovalleyAZ.gov or call 520-229-4800.
Where does this tax go? The Town of Oro Valley imposes a 2.5% Transaction Privilege "sales" tax. Privilege tax revenues are used to finance the cost of various Town services including but not limited to police, fire, parks, libraries, and streets.
How do I know if a property in my neighborhood is used as a vacation or short term rental?
Upon passage of this Ordinance, Oro Valley requires that all owners of vacation or short term rentals register with the Town. Also, Arizona state law requires that an owner of any type of residential rental property register with the Pima County Assessor’s Office. Please recognize that this rental property registry is for all types of rentals and does not distinguish between long term and short term or vacation rentals.
What are the Town’s responsibilities with vacation or short term rentals?
The Town’s ability to regulate vacation or short term rentals is limited to protecting the public health and safety in accordance with Arizona law as well as to ensure that property owners register their rentals and the appropriate tax is collected for this type of commerce. However, the Oro Valley Police Department will respond promptly to noise complaints or other disturbances.
If the Town can’t regulate short term rentals, can my neighborhood prohibit them privately?
Neighborhoods may be able to regulate short term rentals through voluntary private agreements made between neighbors. These agreements, commonly referred to as private deed restrictions, are regulations that the Town is not a party to nor can it enforce them or provide advice on how to implement them.