Section 8-6-3 Permit Required – Penalties
A. Permit Required. Prior to use of a property as a vacation rental, the owner shall obtain an annual vacation rental permit from the Town. Renting, or offering for rent, a vacation rental without complying with the permit requirement in this section is prohibited.
B. Permit Applications. The owner of a proposed vacation rental shall submit to the Town a permit application on a form furnished by the Town. The permit application shall be signed by the applicant and shall contain the following minimum information, which shall be made publicly available:
1. The physical address of the residential property proposed to be used as a vacation rental.
2. 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.
3. The name, address, and telephone number of each designee of the owner, if any.
4. The full name, address, and twenty-four (24) hour telephone number of the individual who will serve as the emergency point of contact.
5. Proof of a valid transaction privilege tax license.
6. 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.
7. Attestation of compliance with the notification required in this article.
8. Evidence of liability insurance appropriate to cover the vacation rental in the aggregate of at least $500,000.00 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.
9. Evidence the vacation rental is registered with Maricopa County Assessor’s Office in accordance with A.R.S. § 33-1902.
C. Permit Fee. Every application, including any renewal application, for a vacation rental permit under this article shall be accompanied by a nonrefundable fee established by resolution.
D. Issuance – Reasons for Denial. The Town shall issue or deny the permit within seven business days after receipt of a complete application, except that the Town may deny issuance of a permit for any of the following reasons:
1. The applicant failed to provide the information required under subsection B of this section;
2. The applicant failed to pay the permit fee required under subsection C of this section;
3. The applicant provided false information;
4. 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; or (iii) has been convicted of any felony use of a deadly weapon within five years of submitting the application; or
5. At the time of application, the owner has a suspended permit for the same vacation rental or any of the following applies: (a) one violation at the vacation rental that resulted in or constituted any of the offenses described in Section 8-6-12; or (b) three violations of this article at the vacation rental within a twelve (12) month period, not including an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety.
E. Notice of Denial – Appeal. The Town Manager or designee shall give notice of the denial of an application to the applicant by emailing the notice to applicant at the address listed on the application. The notice of the denial shall inform the applicant of the right to appeal the denial as provided for in Section 8-6-13.
F. Maintaining Accurate Information – Violations. All applicants and persons holding permits issued pursuant to this article shall give written notice to the Town Manager or designee of any change in information submitted in connection with an application for a permit or renewal of a permit. The notice shall be provided to the Town Manager not less than ten (10) days prior to the effective date of the change. A violation of this subsection is a civil offense.
G. Term of Fountain Hills Permit – Renewal Application. All permits issued under this article shall be valid for a period of one year from the date of their issuance or unless suspended or revoked. Except where the Town has received a new application along with the requisite fees, it shall be unlawful for any person to operate a vacation rental after the expiration date recorded upon the face of the vacation rental permit.
H. Operating Without a Permit – Penalties. An owner or operator of a vacation rental that fails to apply for a permit or license within thirty (30) days of the permit application being made available by the Town shall immediately cease operations. In addition to any other penalty pursuant to the Town Code, the Town may impose a civil penalty of up to $1,000.00 per month against the owner if the owner or owner’s designee fails to apply for permit within thirty (30) days of receiving the written notice of violation from the Town. Representations or advertisements including online listings that reference the property, house or dwelling unit location within the Town is prima facie evidence that a vacation rental is operating in the Town.
I. Nontransferable. No permit shall be transferable either as to location or as to person.
J. Implementation. The Town Manager or designee shall develop the forms and/or database necessary to implement this section. (22-09, Amended, 11/15/2022)