Overview: Are Short-Term Rentals Allowed in Bayfield, WI?

YES, short-term rentals are explicitly allowed in Bayfield, Wisconsin. Short-term rentals operate under a multi-jurisdictional regulatory framework involving state, county, and municipal oversight. The regulatory environment recognizes short-term rentals as legitimate businesses while implementing standards to protect public health, safety, and community welfare.

How to Start a Short-Term Rental Business in Bayfield

Step 1: Determine Your Regulatory Jurisdiction

• City of Bayfield: Subject to city zoning permits and room tax
• City of Washburn: Requires conditional use permit for residential districts
• Town of Pilsen: Contact town clerk for local requirements
• All other Bayfield County locations: Governed by Bayfield County Planning and Zoning

Step 2: Property Requirements and Preparation

• Property must comply with Wisconsin State Lodging Code ATCP 72
• Obtain fire number for residential dwelling
• Ensure adequate parking and address visibility for emergency services
• Verify zoning compliance for short-term rental use
• Install required safety equipment (smoke detectors, carbon monoxide detectors, fire extinguishers)

Step 3: Licensing and Permit Applications

• Apply for Wisconsin Tourist Rooming House License through Bayfield County Health Department
• Obtain Bayfield County Short-Term Rental Permit (if outside incorporated areas)
• Secure municipality-specific permits if located in City of Bayfield or City of Washburn
• Register with Wisconsin Department of Revenue for tax collection
• Apply for room tax permits through appropriate municipality

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

1. Wisconsin Tourist Rooming House License

   • Issued under Wisconsin Administrative Code ATCP 72
   • Licensing agent: Bayfield County Health Department
   • Valid from July 1 to June 30 annually
   • Pre-inspection required ($300 fee)

2. Wisconsin Business Tax Registration Certificate

   • Issued by Wisconsin Department of Revenue
   • Required for tax collection and remittance

County-Level Requirements (Bayfield County)

1. Bayfield County Short-Term Rental Permit
   • Required for properties outside City of Bayfield, City of Washburn, and Town of Pilsen
   • Application through Bayfield County Planning and Zoning Department
   • Annual renewal required
   • Non-transferable except as per ATCP 72.04(3)

Municipality-Specific Requirements

City of Bayfield

• Zoning permit for nightly or short-term rentals
• Room tax registration and compliance
• Contact City Hall for current requirements and fees

City of Washburn

• Conditional use permit required for nightly rentals in residential districts
• Contact Zoning Administrator for application process
• Room tax compliance required

Town of Pilsen

• Contact town clerk for local permit and room tax requirements

Documentation Requirements

• Owner contact information with physical address for legal service
• Property manager designation with 24/7 availability
• Liability insurance (minimum $1,000,000 coverage)
• POWTS (Private Onsite Wastewater Treatment System) capacity verification
• Wisconsin business tax registration certificate
• Proof of current state lodging license

Specific Regulations for Short-Term Rentals

Bayfield County Zoning Ordinance (Title 13, Chapter 1, Article B)

Operational Limits

• Maximum 4 short-term rental units per lot
• Multiple unit developments require conditional use permits
• No recreational vehicles, campers, tents, or temporary lodging beyond licensed capacity

Occupancy and Capacity

• Total occupants cannot exceed POWTS design capacity or ATCP 72 limits (whichever is more restrictive)
• Occupant defined as person present more than 14 hours in 24-hour period or sleeping 6+ hours

Prohibited Activities

• Excessive noise or disturbance (3+ justified calls to law enforcement within 12 months constitutes public nuisance)
• Fireworks on premises
• Additional temporary accommodations beyond licensed capacity

Compliance Requirements

• Maintain proof of all required licenses and permits
• Compliance with all state, county, and local regulations
• Payment of all applicable sales and room taxes
• Fire number issued for residential dwelling

Permit Application and Renewal

• Applications filed with Bayfield County Planning and Zoning Department
• Complete applications processed within reasonable timeframe
• Permits non-transferable; new application required upon ownership change
• Annual renewal required
• Permit revocation possible for violations

Municipal Regulations

City of Bayfield

• Additional zoning permits required
• Room tax collection and remittance (8% of gross receipts)
• Fire department inspections may be required

City of Washburn

• Conditional use permit process for residential districts
• Zoning administrator approval required
• Room tax compliance mandatory

Town of Pilsen

• Contact town clerk for specific requirements and room tax rates

State Regulations (Wisconsin Administrative Code ATCP 72)

• Wisconsin State Lodging Code governing tourist rooming houses
• Health and safety standards for temporary lodging
• Inspection requirements and capacity limits
• Operational standards and guest safety requirements

Tax Obligations

• Wisconsin state sales tax (5% of gross receipts)
• Local room taxes (rates vary by municipality)
• Premier Resort Area Tax (0.5% where applicable)
• Quarterly or monthly filing requirements depending on volume

Contact Information for Local Authority

Bayfield County Health Department

• Address: 117 E 5th Street, P.O. Box 878, Washburn, WI 54891
• Phone: (715) 373-6109 (Tourist Rooming House Licenses)
• Phone: (715) 373-6100 (General)
• Website: www.bayfieldcounty.wi.gov
• Email: Contact through website

Bayfield County Planning and Zoning Department

• Address: 117 E 5th Street, P.O. Box 878, Washburn, WI 54891
• Phone: (715) 373-6100
• Website: www.bayfieldcounty.wi.gov
• Contact: Planning and Zoning Director

City of Bayfield

• Address: City Hall, Bayfield, WI
• Phone: (715) 779-5712
• Website: www.cityofbayfield.com/
• Contact: Zoning Administrator

City of Washburn

• Phone: Contact City Hall
• Website: www.cityofwashburnwi.gov
• Contact: Zoning Administrator

Town of Pilsen

• Phone: Contact Town Clerk
• Website: Contact through Bayfield County website
• Contact: Town Clerk

Wisconsin Department of Revenue

• Phone: (608) 266-2486 (Seller's Permits)
• Website: www.revenue.wi.gov
• Publication: Pub 219- Hotels, Motels, and Other Lodging Providers

Links to Source Pages

• Bayfield County Vacation Rentals
• Bayfield County Short-Term Rental Ordinance
• Town of Bayfield Short-Term Rental Information
• Town of Bayfield STR Application (Archived)
• Town of Bayfield STR FAQ
• Wisconsin State Lodging Code ATCP 72
• Wisconsin Department of Revenue Publication 219
• City of Bayfield Forms
• City of Washburn STR License
• Municipalities in Bayfield County
• Bayfield County Tourism Resources
• Bayfield County Short-Term Rental Guide

Important Compliance Notes

• As of March 10, 2025, the Town of Bayfield repealed its Short-Term Rental Ordinance, eliminating the requirement for town-issued STR licenses while maintaining room tax obligations
• All permits must be displayed at the property when in operation
• Regular inspections may be conducted by health and safety officials
• Violations can result in permit revocation, fines ($100-$500 per violation), and legal action
• Tax compliance is mandatory with potential penalties for non-payment
• Properties with multiple units may face additional commercial code requirements

This regulatory framework balances the economic benefits of short-term rentals with community concerns about neighborhood stability, housing availability, and public safety, creating a structured environment for legitimate vacation rental operations.