The Sedona City Council on Oct. 14 approved Ordinance No. 2025-10.10, making targeted amendments to Chapter 5.25 of the Sedona City Code regulating short-term rentals.

The changes approved by a unanimous vote add clearer permit attestation language for owners, create a suspension mechanism for permits when land development or building code violations are found, and establish a one-time late-fee structure for renewals. City staff described the late-fee proposal as a tool to increase timely compliance: “any permit renewed between 1 day and 90 days late would receive a single $50 late fee, and any permit renewed after 90 days would receive $100 late fee, single late fee, not cumulative,” staff member Theresa explained.

Theresa, the staff presenter, told council that the short-term rental database showed more than 1,200 permits and that “almost a third of all permit renewals were late by at least a week” during 2025; staff said adding a fee will capture more late renewals and provide a low-cost incentive for owners to timely renew. Staff also asked council to allow suspensions (a temporary pause) where code or building violations are discovered during follow-up inspections rather than immediately revoking permits.

Council members asked for clarifications on fee structure and process. Councilor Cathy asked why the fee was not graduated by month; Theresa said staff and finance reviewed other municipal practices and sought a proportionate, non-punitive approach that aligns with the citation structure (where progressive citation amounts apply). Council also asked staff to remove the word “monthly” in the ordinance’s reference to the consolidated fee schedule so the late fee could be interpreted as a single charge in the fee schedule and adjusted later if the council wished.

At the end of the public discussion, local resident Tim Perry spoke during public comment to oppose further short-term rental regulation, arguing the city’s data did not show a dramatic increase in rentals. Staff and council proceeded with the vote; the ordinance was adopted as amended.

Key provisions adopted:
- Clarified owner attestation on permit applications regarding compliance with development and building codes and neighbor notification requirements.
- Added explicit authority to suspend a short-term rental permit when preexisting or discovered land development/building code violations are identified; a suspension allows owners to correct violations before a full revocation is pursued.
- Instituted a one-time late fee tied to the consolidated fee schedule: $50 for renewals 1–90 days late and $100 for renewals more than 90 days late (policy language in the code was adjusted to remove the word “monthly”).

What’s next: City staff will implement the updated application/renewal forms and work with GovOS (the city’s permitting vendor) to ensure the fee is captured at renewal. Enforcement and citation processes remain available for more serious or repeated violations.