A. Short-term rental license required; invalid license; penalties.
1. Effective March 10, 2023, no person shall operate a short-term rental or vacation rental in the town without first having obtained a current short-term rental license from the town and paying the applicable fees. A separate current short-term rental license is required for each house or dwelling unit where a short-term rental or vacation rental is operated.
2. No person shall operate a short-term rental or vacation rental in the town with an expired, suspended or revoked short-term rental license.
3. Representations or advertisements including online listings that reference the property, house or dwelling unit location within the town is prima facie evidence that a short-term rental or vacation rental is operating in the town.
4. A violation of this section is a civil offense and shall be punished by a fine of not less than one thousand dollars ($1,000.00) per violation. The court shall not suspend anv part of anv fine required by this section.
B. License fees.
1. Every application, including any renewal application, for a short-term rental license under this article shall be accompanied bv a non-refundable two hundred fifty-dollar ($250.00) license fee and penalties incurred pursuant to this section.
2. If the applicant failed to apply for a short-term rental license upon receiving written notice from the town of the requirement to do so, the applicant shall pay an additional one thousand dollar ($1,000.00) penalty for every thirty (30) day period the applicant failed to apply. Any penalty shall be non-refundable. For purposes of this section, written notice includes, but is not limited, to a notice sent by electronic means, US mail or hand delivered to the physical location of the short-term rental or vacation rental or the address on file with the Maricopa County Assessors Office for the property. Written notice is deemed served on the date it is sent bv electronic means, hand delivered or, if mailed, on the date it is deposited in the United States mail.
3. The amount of any license fee and any penalty imposed by the provisions of this article shall be deemed a debt to the town. An action may be commenced in the name of the town in any court of competent jurisdiction for the amount of any delinquent license fee and penalties.
C. Term of license; transfer.
1. A short-term rental license issued under this article shall be valid for a period of one (1) year from the date of issuance unless suspended or revoked.
2. No license shall be transferable either as to location or as to person.
D. Application for license. An applicant for a short-term rental license, including for a renewal application, shall file an application on a form prescribed by the town administrator or designee and contain the following information:
1. The physical address of the house or dwelling unit to be used as a short-term rental or vacation rental.
2. The name and contact information (address, telephone number, and email) of the owner of the short-term rental or vacation rental.
3. The name and contact information (address, telephone number, and email address) of the owner, or of the owner’s designee who is responsible for responding to complaints, in person, by telephone, or by email as specified herein. An individual pursuant to this subsection must be a real person and cannot be a fictitious person. The owner shall certify that the owner’s designee is authorized to act upon the owner’s behalf.
4. The name, address, email and twenty-four (24) hour telephone number of the individual who will serve as the emergency point of contact for the short-term rental or vacation rental. An individual pursuant to this subsection must be a real person and cannot be a fictitious person.
5. Agreement by the owner and each designee to comply with all applicable laws, regulations, and ordinances.
6. The owner and each owner’s designee shall attest that they are not registered sex offenders, have not been convicted of any felony act that resulted in death or serious physical injury, and have not been convicted of any felony use of a deadly weapon within the past five years.
7. Proof of a valid transaction privilege tax license.
8. Proof that the short-term rental has been registered with the Maricopa County Assessor’s Office in accordance with Section 33-1902, Arizona Revised Statutes, where applicable.
9. If the applicant is an individual, proof of lawful presence in the United States in accordance with Sections 1-502 and 41-1080, Arizona Revised Statutes unless exempted by Section 41-1080(B), Arizona Revised Statutes.
E. License issuance; denial.
1. The town shall issue a short-term rental license within seven (7) business davs after receipt of a complete application unless grounds for denial exist as follows:
a. Failure to provide the information required by this article;
b. Failure to pay the required license fee(s), including any penalties;
c. At the time of application, the owner has a revoked or suspended license for the same short-term rental or vacation rental;
d. The applicant has provided false information;
e. The owner or designee of the owner: (i) is a registered sex offender; (ii) has been convicted of any felony act that resulted in death or serious physical injury; (iii) or has been convicted of any felony use of a deadly weapon within five (5) years of submitting the application; and
f. Any grounds for revocation or suspension of a short-term rental license exist for the specific license application.
2. The town administrator or designee shall give notice of any denial of an application, and the right of appeal from the denial, as provided for in this article.
F. License revocation. The town administrator or designee shall initiate revocation proceedings if any grounds for denial exist for a short-term rental license that already has been issued.
G. Reapplication after denial or revocation. No person who has had a short-term rental license denied or revoked pursuant to this article may apply for another short-term rental license for one (1) year at that same property after the decision affecting the applicant's license has become final. At the time of sustaining a denial, the town council may reduce in whole or in part the one (1) year period described above in this section, if the denial was based on a good faith failure to provide complete information pursuant to Section 6-8-3, E.1.a. or failure to pay the required license fee(s) and any penalties provided that the applicant has paid all required fees and penalties by the time of the denial hearing.
H. License suspension; term of suspension.
1. The town administrator or designee shall initiate suspension proceedings against a short-term rental license for any of the following:
a. Three (3) verified violations within a twelve (12) month period, not including any such violation based on an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety.
b. One (1) verified violation that results in or constitutes any of the following:
a. A felony offense committed at or in the vicinity of a short-term rental or vacation rental by the owner of the short-term rental or by the owner’s designee;
b. A serious physical injury or wrongful death at or related to a short-term rental or vacation rental resulting from the knowing, intentional or reckless conduct of the owner of the short-term rental or vacation rental or the owner’s designee:
c. An owner of the short-term rental or vacation rental or the owner's designee knowingly or intentionally housing a sex offender, allowing offenses related to adult-oriented businesses, sexual offenses, or prostitution, or operating or maintaining a sober living home; or
d. An owner of the short-term rental or vacation rental or the owner’s designee knowingly or intentionally allowing the use of a short-term rental for a special event that would otherwise require a permit or license pursuant to this code or a state law or rule or for a retail, restaurant, banquet space or other similar use.
2. The town administrator or designee shall give notice of any suspension, and the right of appeal from the suspension, as provided for in this article.
3. Any final suspension shall be for a period of one (1) year except that town council may reduce the suspension period to a period of six (6) months upon a finding that the owner of the short-term rental or vacation rental has taken substantial and significant steps to prevent the reoccurrence of the actions that led to the suspension.
I. Judicial relief for certain grounds of suspension.
1. Notwithstanding Section 6-8-3, subsection H herein, any attempted or completed felony act, arising from the occupancy or use of a short-term rental or vacation rental, that results in a death, or actual or attempted serious physical injury, shall be grounds for judicial relief in the form of a suspension of the property's use as a short-term rental or vacation rental for a period that shall not exceed twelve (12) months.
2. The town attorney may initiate proceedings in the Carefree-Cave Creek Consolidated Court or other court of competent jurisdiction to enforce this section.
J. Information updates. All applicants and persons holding licenses issued pursuant to this article shall give written notice to the town administrator or designee of any material changes in information submitted in connection with an application or application for renewal of a license. Any information required for an application pursuant to Section 6-8-3, subsection D is deemed to be material for purposes of this section. This information shall be provided to the town administrator or designee by the licensee or the affected person, as applicable, within ten (10) business days of any such chance.
K. Appeals.
1. Any person aggrieved by any decision with respect to the denial of or a refusal to issue a short-term rental license, the revocation of a short-term rental license, the suspension of a short-term rental license or a verified violation penalty imposed pursuant to Section 6-8-4, subsection H, shall be entitled to the review and appeal procedures provided in Chapter 8, Section 8-1-8.
2. This section is not applicable for judicial actions brought pursuant to Section 6-8-3, subsection K herein or penalties including fines imposed by a court.
L. Town use of license information. Unless otherwise provided for by law, the town may use any information obtained from licensing applications, including contact information pursuant to this article, for any lawful purpose including, but not limited, to communicating or providing information regarding compliance with laws, public health and safety regulations, general town updates and reminders to keep required information updated with the town.
M. Reserved.