Flagstaff, AZ Short-Term Rentals: Taxes & Fees (2026)

The Flagstaff City Council sets short-term rental fees in the User Fees chapter and requires payment under the STR licensing chapter administered by the Management Services Division and City Code Compliance Manager. Flagstaff City Code Section 3-10-001-0008 lists "Short-term rental license - annual (see Chapter 3-12)" at $250 and a separate line, "Short-term rental license - failure to apply within 30 days (see Chapter 3-12)," at $1,000. Section 3-12-001-0004(A)(9) confirms the license fee is set in Chapter 3-10, is nonrefundable, is not prorated, and covers a full year regardless of how much of the year the STR actually operates.

The same application section requires the owner to list the transaction privilege tax ("TPT") license number issued for the STR by the State of Arizona, including the location code, since Flagstaff defines a TPT license as the license the State of Arizona issues under A.R.S. Title 42. Failing to pay the license fee is itself grounds for the City to deny the application under Section 3-12-001-0004(C)(2). Separately, Section 3-12-001-0004(E) authorizes a civil penalty of $1,000 per month against an owner who fails to apply for a license within 30 days of written notice of noncompliance, layered on top of any penalty under the chapter's general violations section.

An STR license runs one year from issuance under Section 3-12-001-0005 and must be renewed, with the owner paying the renewal fee through the STR license account; the license is nontransferable and nonassignable.