I just found that Scottsdale is regulating timeshares and requiring a business license and insurance (plus taxes) just like they would for any AirBnb. Maybe FSS decided against individual owner rentals because they could get in trouble since it is unlikely timeshare owners will get a business license and insurance. It does not seem like taxes would be as much of a problem since that could be added to the bill based on some average weekly rate or Redweek could collect the taxes based on actual rental prices that they can see, assuming owners are not advertising on Redweek and then renting offline.
www.scottsdaleaz.gov
Vacation rental or short-term rental means any individually or collectively owned single-family or one-to-four-family house or dwelling unit or any unit or group of units in a condominium, cooperative or
timeshare, that is also a transient public lodging establishment or owner-occupied residential home offered for transient use (offered for rent for less than thirty days.) These types of rentals can be found in both single family and multi-family housing throughout Scottsdale.
Short-term/vacation rental owners must obtain and maintain an annual city license for each Scottsdale property. The annual license fee is $250 per property; funds received will go 100 percent to cover costs associated with licensing vacation and short-term rentals.
Scottsdale's licensing portal will open Nov. 28, 2022, and owners of existing short-term/vacation rental properties must obtain licenses by Jan. 8, 2023. New short-term/vacation rental properties must also comply with ordinance requirements and be licensed before being offered for rent in Scottsdale.
Scottsdale's ordinance requires that every short-term/vacation rental property be insured with liability coverage of at least $500,000 (either directly or through an online lodging marketplace).
All vacation and short-term rentals in Scottsdale are required to pay both Transaction Privilege Sales Tax and a Transient Tax (commonly referred to as a bed tax) – both of which are collected by the State of Arizona. In order to engage in, or continue a property rental business, a Transaction Privilege (Sales) Tax license with the State of Arizona Department of Revenue is required. It is the property owner's responsibility to make an application and obtain a license with the Arizona Department of Revenue.
Neighborhoods may be able to regulate short-term rentals through voluntary private agreements made between neighbors. These agreements, commonly referred to as private deed restrictions, are regulations that the City is not a party to nor can it enforce them or provide advice on how to implement them.