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Short-Term Rentals
Tourist Rooming House Permitting and Inspecting
Rental of a whole or partial residence to visitors for less than 29 days is commonly known as a Short-Term Rental. The legal term for this act, according to Wisconsin State Statute ATCP 72, is a Tourist Rooming House. These rentals are typically found online through websites that connect homeowners with people who need a place to stay when they’re traveling. Some examples include Airbnb, VRBO, and HomeAway.
Wisconsin allows for the rental of sleeping accommodations, which can either be rooms in a home or an entire home or cabin, for less than 29 consecutive days. A Short-Term Rental / Tourist Rooming House operating within the City of Racine must be located in the primary residence of the proprietor, per Racine Municipal Code.
All City of Racine Short Term Rentals / Tourist Rooming Houses must be permitted through City of Racine Public Health Department and inspected annually to verify the operation meets all requirementsA thing that is needed or wanted. of Wisconsin Statutes related to public health and safety.
Short Term Rental Permit Process
Tourist Rooming House Permits
- Obtain a State of Wisconsin Seller’s Permit (if required).
- Apply for a Short Term Rental / Tourist Rooming House Permit and Room Tax Permit.
- Submit a completed Short Term Rental / Tourist Rooming House Permit Application with proper payment to the City of Racine Department of Customer Service.
- Room Tax Permit: Contact the Department of Customer Service for questions regarding room tax. They may be reached at 262-636-9171.
- Review the appropriate sections of the Administrative Code and/or Racine Municipal Code for the facility type you will be operating.
- Contact the Environmental Health DivisionThe act or process of dividing; state of being divided. at 262-636-9203 to schedule a property inspection. Inspection and permit approval must be completed prior to renting out sleeping accommodations.
- Note: The permit year runs from July 1 through June 30, and the permit fee must be paid annually before July 1 to avoid penaltiesThe suffering in person, rights, or property that is annexed by law or judicial decision to the commission of a…. An except are roominghouses, for which the permitting year runs from August 1 through July 31; permits must be renewed annually before August 1.
Tax Laws
- Municipal Room Tax
Room tax must be collected from visitors as required by City of Racine Ordinance 90-55. Check with the Department of Customer Service at 262-636-9171 for questions regarding room tax. - Wisconsin Sales Tax
Short-term rentals must report and pay Wisconsin sales tax. City of Racine is subject to 5% sales tax. Exception: If a host’s taxable sales are less than $1,000 in a calendar year, a sales tax exemption may apply to the sales. For more information, see Exceptions for Taxes Collected by Residential Short-Term Lodging Marketplaces from the Wisconsin Department of Revenue (WI DOR). If you have any questions, contact the WI DOR at 608-266-2776.
