Paradise Valley begins to grapple SB 1350 neighborhood impacts

The Town of Paradise Valley is looking to improve the quality of life of its citizens regarding short-term vacation rentals while staying within the bounds of a recently-enacted state bill that prevents the regulation of said rentals.

In order to find that balance, the town is hosting a discussion during its Thursday, Sept. 22 town council meeting study session.

According to a letter by Town Manager Kevin Burke to town council members, the purpose of the discussion is to “provide information to mayor and council regarding work done on this topic.”

Vice Mayor David Sherf will lead the discussion, which will feature a three-prong approach to the topic while staying within the parameters of State Bill 1350.

Those three-prongs are: SB 1350 being slightly amended to allow the regulation of short-term rentals in the case of an event happening at the property; the licensing and taxing of these rentals because the use falls under business; and the mitigation of nuisance impacts by reminding owners of the challenges of renting.

The first position the town council will discuss will deal with the regulation of “party houses” and to show the guidelines that have been developed for police, code enforcement and prosecutors on how to work with short-term rental properties hosting an event, the letter states.

These regulations only deal with homes that are rented out for events such as weddings, golf outing, fraternity/sorority party or other events of a similar nature, according to the letter.

The second talking point will surround the business licensing and collection of sales taxes since the town defines short-term rentals as a business. According to the letter, the challenge the town faces is locating all these properties and notifying them by mail of their need to get licensed and taxed, the letter states.

Finally, the town council will conclude by discussing an approach of reminding property owners of the challenges of renting.

According to the letter, some of those reminders will include the contractual relationship between an owner and renter is no different than if it were a long-term relationship and the owner should be familiar with all insurance, fire protection and septic capabilities.

The points from the second and third talking points will be included into a letter and sent out to those who are practicing a short-term rental.

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