Overview: Are Short-Term Rentals Allowed in Surprise, AZ?

Yes, short-term rentals (STRs) are allowed in Surprise, Arizona, as of April 11, 2023. STRs are defined as residential properties rented for fewer than 30 days. However, they are subject to strict regulations at the city, county, and state levels to ensure community compliance. Investors must obtain a City of Surprise STR license, register with Maricopa County, and hold an Arizona Transaction Privilege Tax (TPT) license. Violations can result in fines, license suspension, or legal action.

How to Start a Short-Term Rental Business in Surprise, AZ

1. Property Acquisition: Identify a suitable property in Surprise, Arizona. STRs are permitted in most residential zones, but confirm zoning with the City of Surprise Community Development Department.
2. Register with Maricopa County: All residential rental properties must be registered with the County Assessor to avoid penalties. Registration remains valid for the STR license period.
3. Obtain State TPT License: Apply for a TPT license through the Arizona Department of Revenue (ADOR) via AZTaxes.gov. This is mandatory for collecting state and county taxes.
4. Apply for City STR License: Submit a complete application to the City of Surprise, including the Owner Acknowledgement Form (CD-08/2023), proof of county registration, and a $250 application fee per property.
5. Neighboring Notification: Complete neighbor notification within 14 days of receiving application notice from the city. Send certified mail notices to adjacent properties and email proof to ShortTermRentals@surpriseaz.gov.
6. Insurance and Emergency Contacts: Maintain a general liability insurance policy of at least $500,000 and designate 24-hour emergency points of contact.
7. Marketing Compliance: Include the valid City STR license number in all advertisements.
8. Ongoing Compliance: File TPT returns quarterly (even if $0) with ADOR, renew city licenses annually, and adhere to city ordinances (e.g., noise, waste disposal).

Required Documents, Permits, Licenses, and Guidelines

| Requirement | Description | Fee | Validity | |-------------|-------------|-----|----------| | City STR License | Issued by City of Surprise; includes the Owner Acknowledgement Form (CD-08/2023). | $250 per property | 1 year; renewal required | | County Residential Rental Registration | Mandatory for STRs not owner-occupied; obtained from Maricopa County Assessor. | Variable | Matches STR license period | | State TPT License | Required for collecting Arizona transaction privilege tax; apply via AZTaxes.gov. | $0 (no fee) | Active until canceled | | Business License Portal Application | Submit through Surprise’s online portal for license processing. | Included in STR fee | As per city requirements | | Insurance Proof | General liability policy of at least $500,000 aggregate. | Variable | Continuous coverage | | Owner Acknowledgement Form (CD-08/2023) | Confirms adherence to city ordinances, prohibited uses, and emergency contacts. | $0 | Submitted with license application | | Neighbor Notification Proof | Certified mail evidence sent to adjacent properties. | $0 (mailing costs apply) | Required within 14 days |

Specific Regulations for Short-Term Rentals in Surprise, AZ

• City-Level (Surprise):

  • STRs must comply with all city codes, including zoning, noise abatement, and building/fire codes.
  • Prohibited uses include nonresidential activities (e.g., events requiring permits, retail), housing sex offenders, sober living homes, selling drugs/alcohol, and adult-oriented businesses.
  • Physical posting of emergency contacts and STR license info is required on the property.
  • Licenses can be suspended for verified violations. Enhanced penalties apply per state law.

• County-Level (Maricopa):

  • All residential rental properties must be registered with the County Assessor. Failure to register may result in penalties.

• State-Level (Arizona):

  • STRs are taxed under the Transient Lodging classification (business code 025 for state/county, 044 for cities).
  • Online lodging marketplaces (OLMs) like Airbnb collect and remit TPT on behalf of hosts; hosts must report 100% of OLM income using deduction code 775.
  • Fees such as cleaning or cancellations are taxable when non-refundable.
  • Senate Bill 1168 outlines civil penalties for violations.

Contact Information for Local Authority in Charge of STRs

| Authority | Phone | Email | Website | |-----------|-------|-------|---------| | City of Surprise Community Development (STR Licensing) | 623-222-3000 | ShortTermRentals@surpriseaz.gov | City STR Resources | | Arizona Department of Revenue (TPT Licenses) | (602) 716-RENT (7368) | Not provided in content; use ADOR contact form | ADOR STR Guidelines | | Maricopa County Assessor (Rental Registration) | Not provided in content | Contact via county website | County Registration |

Links to Source Pages

1. City of Surprise Rental Properties Page
2. Lodge Compliance STR Overview for Surprise
3. Arizona Department of Revenue STR Guidelines
4. Surprise STR Owner Acknowledgement Form (CD-08/2023)
5. Surprise Business License Application Portal

Disclaimer: This guide is based on provided content and may not include all updates. Consult official sources for the latest changes.