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Council reviews state legislation and short‑term rental lobbying, adopts opposition/support positions

Sedona City Council · February 10, 2026
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Summary

Council received a legislative update and discussed short‑term rental bills; members signaled opposition to state preemption bills (including certain notice and tax preemption proposals), support for a rural housing tax credit, and asked staff to continue data work and outreach with Airbnb and neighboring towns.

City staff and the council’s lobbyist updated the council on the state legislative session and short‑term rental (STR) legislation. Council heard that many STR‑related bills that would affect zoning or caps are unlikely to move this session; Airbnb representatives indicated they would not support blanket caps but expressed openness to data‑driven, targeted approaches and are willing to meet with city staff and council members to review local data on owner‑occupied vs. investor STR listings.

Council took position to oppose several bills that would restrict municipal authority or change public notice requirements. Staff and the lobbyist recommended opposing bills that would preempt local taxation or planning controls (examples referenced in packet: HCR2052/HB4030 on TPT preemption, SB1027 and SB1167 on public notice changes) and to support HB2804, a proposed rural housing tax credit to incentivize low‑income housing projects. Councilors emphasized local control and expressed concern about the impact of notice‑posting changes on local media and public participation.

Council asked staff to continue outreach to other similarly affected communities and to prepare data and briefing materials for any meetings with Airbnb or state legislators. The council also agreed to support a local appropriation for a roundabout and to register formal positions on the identified bills as staff recommended.

Next steps: Staff and the lobbyist will continue monitoring committee deadlines, prepare data for discussions with Airbnb, and coordinate with nearby towns that face similar STR pressures.