Kanab Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental Business License

This permit type does not require primary residence.

Application Process

In-person application at Kanab City office (26 N 100 East); requires a valid Utah State Sales Tax Number and State Registration Number; final license is issued only after all required city department inspections (including an Annual Fire Inspection, and Site Plan/Planning Commission review for Bed and Breakfasts) are completed and signed off by the Business License Office.

Tax Obligations

Combined rate: 15.02% of gross rental income.

Rental Limits

Kanab does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Short-term/vacation rentals are a permitted use in residential zones subject to conditions: no more than two (2) rentals per property in Single-Family Zones; new or converted structures used for the rental must meet the underlying residential setback for their zone plus a 10-foot setback from other structures on the property; living space cannot be shared by more than one private renter; and a Guesthouse may not be rented at the same time an Internal Accessory Dwelling Unit (IADU) on the same property is rented.

Insurance & Safety

Insurance

Kanab does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Must pass Annual Kanab City Fire Inspection
• Full fire suppression system (sprinklers) and fire alarm system required for any Vacation Rental or Bed and Breakfast allowing or advertising more than 10 occupants
• Interconnected smoke detectors required in each sleeping area and hallway outside each sleeping area
• CO2 detectors required if there is an attached garage, fuel-fired appliance, or wood burning fireplace
• Additional off-street parking space required for every increment of four guests allowed to book
• Owners must post a list of rules provided by the City at the rental

Penalties for Non-Compliance

• Operating a short-term rental without final business license approval is a Class B Misdemeanor
• $10 late renewal fee (30 days past due)
• $25 late renewal fee (60 days past due)
• Business license revocation for failure to comply with short-term rental regulations

Compliance Checklist

Follow these steps to legally operate a short-term rental in Kanab:

1. Meet safety requirements. Must pass Annual Kanab City Fire Inspection. Full fire suppression system (sprinklers) and fire alarm system required for any Vacation Rental or Bed and Breakfast allowing or advertising more than 10 occupants. Interconnected smoke detectors required in each sleeping area and hallway outside each sleeping area. CO2 detectors required if there is an attached garage, fuel-fired appliance, or wood burning fireplace. Additional off-street parking space required for every increment of four guests allowed to book. Owners must post a list of rules provided by the City at the rental.
2. Apply for Short-Term Rental Business License. Submit application + $50 fee.
3. Register for tax accounts. Set up lodging tax accounts with Utah State Tax Commission.
4. Collect and remit taxes. 15.02% on all bookings.
5. Renew annually. $50 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Kanab?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Kanab requires a Short-Term Rental Business License.

How much does a short-term rental permit cost in Kanab?

A Short-Term Rental Business License in Kanab costs $50 per year.

Does Kanab require a short-term rental to be your primary residence?

No. Kanab allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Kanab?

Kanab does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Kanab?

Short-term rental stays in Kanab are subject to a combined 15.02% in lodging taxes. This combines 4.85% State Sales & Use Tax + 1.00% Local Sales & Use Tax + 0.25% County Option Sales Tax + 1.25% County Transit & Transportation Taxes + 1.00% Resort Community Tax + 0.10% Botanical, Cultural & Zoo Tax + 4.50% County-wide Transient Room Tax + 1.07% State Transient Room Tax (incl. secondary state TRT) + 1.00% Kanab Municipal Transient Room Tax. The host is responsible for collecting and remitting them.