July 8, 2022
Update on Short Term Rentals and Resorts in PV
Short Term Rentals and Resort Revenues in PV
By Councilmember Julie Pace

Our Town has no primary property tax. The Town receives two types of taxes from resorts and short-term rentals consisting of: (1) bed tax or transient lodging tax; and (2) transaction privilege tax. 

Let's start with an update about resort revenues paid to the Town. In fiscal year 2021, the resort taxes paid to the Town were approximately $3.3 million. We are ten months into fiscal year 2022, and the year-to-date revenue paid to the Town is $5.3 million.

Regarding short-term rental (STR) revenues paid to the Town, for FY 2021, the Town received $778,000. The Town has received $825,000 so far in FY 2022. The Town does not yet have a cost for the increase in police and emergency services associated with STRs.

The short-term rental industry through an Association called Arizona for Responsible Tourism (ART) states it is a coalition of over 1800 Arizona residents, property owners and local businesses and claims STRs contribute tax revenue of over $500 million to Arizona and municipalities citing the Rounds Consulting Group as the source for this number. 

We are waiting to see if the Arizona Department of Revenue confirms receiving this amount of tax revenue or whether tax-evading STR properties exist. The goal of our Town was not to earn revenues, but to secure peace and quiet and continue with a focus on residential living in our unique community.
Number of STRs in PV

The Town currently has 62 registered STR properties. However, the service that tracks short-term rentals for Paradise Valley shows 112 listings for short-term rental properties in the past year. So there are a number of unregistered STRs that need to come into compliance. 

There are sources showing an even higher number of STRs in Paradise Valley, but those sources may be including some properties outside the Town's boundaries of zip code 85253, resort properties that rent to third-party platforms or the double counting properties listed on multiple platforms.
New SB 1168 Signed by Gov. Ducey

The new bill SB1168 that Governor Ducey signed this week allows cities and towns to issue STR licenses or permits and, within guidelines, they can suspend permits for up to one year and impose financial penalties for violations.

Our Town has to adopt a new resolution in the fall and this likely will go into effect in PV in approximately November. 

The bill does not return zoning regarding STRs to local control, which was the goal of many municipalities, including our Town.
Dealing with STR Complaints
Our Town is completing a new section on the Town website for STRs, licensing, and complaints along with Town rules. This will be up in the near future.

Regarding noise and other complaints about short-term rentals, the police department has not received complaints about STRs during the past three weeks. 

That is a first for our town as we generally have weekly complaints. This may be an aberration or may be because the Town's new regulations are working and that the education workshop that our town manager held with managers/owners of STRs was helpful in trying to get STRs take steps to avoid noise, avoid trash, not leave trash cans out and other nuisance activity in neighborhoods so that residents tranquil home environments are not disturbed. 

Stay tuned on these issues. Again, call the PVPD if there are issues in your neighborhood with STRs or party houses.

AIRBNB announced it has permanently banned event rentals, party houses and other large, noisy events from its platform. AIRBNB announced it suspended 6,000 accounts for violating the ban on party houses last year. So please consider also making complaints to the rental platform if there are violations by STRs.
Hait: Why Julie Pace is the right woman for Paradise Valley right now
Photo credit: Pam Hait
By Pam Hait | PV Independent | Guest Commentary

If the Town of Paradise Valley was a song, it would be a country-western tune titled “Don’t Make Me Change, But Don’t Leave Me Out.” That’s been the refrain for as long as I can remember.

And I have a long memory, having lived in PV for more than 45 years. In the interest of full disclosure, I recently moved to Scottsdale. But my life in PV gave me a front-row seat to the past four decades, during which the town was continually pressured to widen its roads, trade mountainsides for more houses, and increase its density to accommodate resorts and developments. Depending on the backbones and wishbones of the various mayors and councils, the town stood its ground or gave ground.
This push-me-pull-me dance continues today, except this time the stakes are higher than ever before. Six resorts are poised to submit redevelopment proposals which, depending upon how they are each received, can change the character of PV forever. I am convinced that Julie Pace is the right woman at the right time to lead the town through this challenge.

Julie, a fourth-generation Arizonan, is a passionate volunteer advocate. She is serving her second term as a member of the Town Council and previously served as vice-mayor. She chaired the Paradise Valley Advisory Committee on Public Safety (ACOPS) and facilitated the reinvigoration of the Paradise Valley Mountain Preserve Trust. She led efforts to improve the town’s hillside ordinance to ensure that safety and responsible planning are integral to hillside building plans.

She is also an accomplished professional who is comfortable in the business world. She brings 30 years of experience as an employment, construction, and OSHA lawyer representing myriad companies to Paradise Valley. She is also a dedicated civic benefactor. Julie and her husband David Selden, residents of PV for more than 20 years, are avid supporters of Valley cultural institutions that enhance all our lives, contributing time, leadership, and funding.

If we had the luxury of designing a candidate to run for the office of mayor at this critical juncture for the town, Julie would be that person. She brings extensive knowledge of business and development. She is skilled at building and leading teams. And she has a successful record of working with city governments. But most important, Julie is a person who cares.

Julie helped to spearhead the book I wrote with my granddaughter, “The Story of Camelback Mountain,” all proceeds of which benefit the Paradise Valley Mountain Preserve Trust. Julie found our extraordinary illustrator, Sebastien Millon. In our book, Camelback Mountain is saved by the “People Who Care.”

Julie personifies these people.

Julie’s experience on the PV Council proves she can find that balance between those who sing “Don’t Make Me Change” and those who cry “Don’t Leave Me Out.” She puts residents first while keeping developers at the table. She is a fierce protector of the town’s residential persona and our resorts. She doesn’t see this as contradictory because she knows that the best solutions are best for everyone.

I’ve worked with Julie on our neighborhood issues. I know how she operates. She brings her considerable energy to focus on the problem. She challenges all parties involved to find a creative solution. She works tirelessly to find the answer that works for everyone, in the short and long term, one that doesn’t compromise the character of the town or create more problems down the road. It’s not the easy way to work but it is the right way.

Julie will elevate this community by her ability, integrity, and work ethic. She will inspire it by her caring. I encourage you to support Julie Pace for Mayor.

She is the right woman for this very important moment in time.

My background includes being an award-winning journalist who has written for national, regional, and local magazines. I am the author of more than a dozen non-fiction books including “Day Trips from Phoenix, Tucson and Flagstaff” (Globe Pequot) and co-author with my granddaughter of “The Story of Camelback Mountain.” I served as deputy director of the Arizona Office of Tourism and am a partner in Strategies, a strategic communications firm. An avid conservationist, I serve on the board of the Grand Canyon Trust.

Early Ballot Drop Off at Town Hall
Early ballots for the August 2 election can be mailed or dropped off in the ballot box in the Town Hall lobby. The ballot box is chained in the cabinet near the entry doors under the watchful eye of cameras and the post office. 

Do not offer to take a voter's ballot and deposit it in the ballot box for them. It is a class six felony to handle someone else's ballot (ARS 16–1005 (H).) So, remind everyone to drop off their ballot themselves into the ballot box or mail it. Thanks for participating in the election process.

Plese vote for the PV preservationist candidates of Julie Pace, Ellen Andeen and Christine Labelle to Preserve Paradise Valley!
Residents Voting for Pace, Andeen & Labelle
Vote Julie Pace for Paradise Valley Town Mayor!
Paradise Valley Town Councilmember Julie Pace proactively engages to preserve the mountains and open space and focuses on substance, action, and doing good work for the best interests of the Town, while building a sense of community.
Julie Pace for Paradise Valley Mayor | 5501 E Solano Drive
Paradise Valley AZ 85253 | paceforpv@gmail.com
Paid for by Julie Pace for Paradise Valley Mayor.
Authorized by Julie Pace.