Overview and Core Answer

Short-term rentals are explicitly allowed in the City of Racine, Wisconsin, but only when operated as a Tourist Rooming House (TRH) in compliance with city and state requirements. Racine treats short-term rentals as TRHs under Wisconsin law and prohibits STRs from being located outside of the host’s primary residence. Stays must be fewer than 30 consecutive days, the operation must be permitted and inspected annually by the Public Health Department (with joint Building and Fire inspections), and operators must collect and remit the municipal room tax plus Wisconsin sales tax. The permitting year runs July 1–June 30. The city is actively encouraging compliance and has emphasized safety, registration, and inspections.

Key references: City of Racine Public Health “Getting Started,” the city TRH page, Wisconsin Administrative Code ATCP 72, and city ordinances.

How to Start a Short-Term Rental Business in Racine

The following steps reflect Racine’s standard process from concept to launch.

1. Confirm eligibility and compliance posture

• Confirm the property is your primary residence (owner-occupied). Non-primary or commercial STRs are not permitted in the city.
• Verify the intended use aligns with zoning, parking, and building/fire safety requirements.

2. Prepare licenses and permits

• Apply for the Short-Term Rental / Tourist Rooming House Permit through the City of Racine Public Health Department (Environmental Health Division).
• Apply for the Wisconsin Seller’s Permit if you will collect state sales tax (required unless your taxable sales are under $1,000 annually).
• Register for Room Tax with the City Clerk’s office.

3. Submit application and documentation

• Complete the city TRH application and pay the non-refundable application fee.
• Provide required documents (see Required Documents below).

4. Schedule and pass inspections

• The city conducts a joint inspection (Building, Fire, Public Health) before issuing the permit. Additional annual health and fire inspections occur during the license year.
• Use the city’s inspection checklists to prepare the property.

5. Open for business

• Begin renting only after the permit is approved and inspections pass.
• Collect the municipal room tax and Wisconsin sales tax on every booking.
• Maintain a guest register and required safety and sanitation documentation.

6. Operate and maintain compliance

• Enforce occupancy and parking rules, store refuse in closed containers, and maintain safe egress.
• Renew the permit annually and maintain insurance.

Permitting window and validity:

• Permitting year: July 1–June 30.
• If the initial permit is approved in April, May, or June, it remains valid through June 30 of the following year.
• At least one health and one fire inspection occur each permitting year.

Key references: City “Getting Started” guidance and TRH webpage.

Required Documents, Permits, Licenses, and Guidelines

Required at application:

• Short-Term Rental / Tourist Rooming House Permit Application (city).
• Wisconsin Seller’s Permit (WI DOR).
• Room Tax Registration (City Clerk).
• Liability insurance evidence (homeowner’s or business) per local requirements.
• Property diagrams and photos as needed for inspections.
• Contact information for a local responsible party (or property manager) if the owner does not reside within 35 miles (strongly advisable in practice; required in nearby jurisdictions like Wind Point).

Required during operations:

• Annual joint inspection (Public Health, Building, Fire) prior to issuance and at least once per permit year.
• Guest register maintained and available for inspection (per ATCP 72 requirements).
• Compliance with ATCP 72 (Hotels, Motels, and Tourist Rooming Houses) and ATCP 97 (Food, Lodging, and Recreation).
• Sanitization and cleanliness standards, including food-contact surface cleaning guidance (city fact sheets).
• Safety equipment and egress standards, carbon monoxide and smoke detector compliance, and hard-surface parking.

Key references: ATCP 72; ATCP 97; City of Racine TRH “Getting Started” and TRH page; city inspection checklists and sanitation resources.

Regulations Specific to City, County, and State

City of Racine

• STR/TRH allowed only in the host’s primary residence; stays must be fewer than 30 consecutive days.
• Annual joint inspection is required; the permitting year runs July 1–June 30.
• Parking must be on a hard surface (concrete, asphalt, or pavers) per city code.
• Litter, debris, and refuse must be stored in closed containers.
• Proper exiting is required for all guests.
• Municipal room tax applies per City Ordinance 90-55.
• Wisconsin sales tax applies at 5.1% in Racine (5% state + 0.1% stadium); exemption if taxable sales under $1,000 in a calendar year.
• 19 tourist rooming houses were permitted in the most recent licensing year; the city is actively encouraging compliance and safety.

Racine County

• The city’s rules above govern operations inside the City of Racine.
• Municipal codes (e.g., parking surfaces, nuisances) are enforced through city departments.
• For context: The Village of Wind Point (Racine County) separately adopted a local STR ordinance in 2025 with explicit requirements (e.g., minimum insurance, guest register, local contact within 35 miles, and no rentals of six or fewer consecutive days without a local STR license). Investors considering properties in Wind Point should review the full ordinance.

State of Wisconsin

• Wisconsin Statutes Chapter 97 and Wisconsin Administrative Code Chapter ATCP 72 govern lodging establishments, including tourist rooming houses; ATCP 97 covers food, lodging, and recreation.
• Wisconsin Statutes §66.0615 authorizes municipalities to impose a room tax on transient lodging.
• Sellers of tangible goods or taxable services (including many STRs) must obtain a Wisconsin Seller’s Permit.
• Sales tax obligations and marketplace collection rules apply to STRs per the WI Department of Revenue.

Key references: City ordinances; ATCP 72; ATCP 97; Wisconsin Department of Revenue guidance; Wind Point STR ordinance (for county context).

Fees and Costs to Operate

Start-up/initial fees (typical):

• One-time Pre-Inspection Fee: $340.00
• Annual Permit Fee (state-mandated): $210.00
• Room Tax Registration Fee: $3.00
• Fire Inspection Fee: $50.00
• Wisconsin Seller’s Permit (WI DOR): $20.00 Total initial cost: $623.00

Annual fees (renewal):

• Annual Permit Fee (state-mandated): $210.00
• Fire Inspection Fee: $50.00 Total annual renewal cost: $260.00

Notes:

• Additional costs may apply if building or fire code corrections are required.
• Room tax and sales tax remittances are periodic obligations; they are not permit fees.

Key references: City “Getting Started” page and TRH webpage.

Taxes and Remittance

• Municipal Room Tax: Collect and remit per City Ordinance 90-55 (contact the City Clerk’s office for registration and local rates).
• Wisconsin Sales Tax: 5.1% combined rate in Racine (5% state + 0.1% stadium) applies to most STRs. If taxable sales are under $1,000 in a calendar year, an exemption may apply.
• Filings and payment schedules are governed by the Wisconsin Department of Revenue (WI DOR). Use the state seller permit account for filings.

Key references: City “Getting Started” and TRH page; WI DOR STR guidance.

Operational Requirements and Best Practices

• Owner-occupied primary residence only; no whole-home non-owner STRs in Racine.
• Maximum occupancy: follow ATCP 72 limits for hotels/motels/TRHs.
• Parking: guests must park on hard surfaces (concrete/asphalt/pavers).
• Safety: ensure functioning smoke and CO detectors, emergency egress, and safe electrical/gas systems; prepare for fire safety inspections.
• Sanitation: follow the city’s sanitation and food-contact surface guidance; maintain cleaning logs as appropriate.
• Guest management: post house rules (quiet hours, occupancy, parking); maintain a local contact capable of responding promptly to complaints or emergencies.
• Documentation: keep inspection reports, permits, insurance, and guest register; make them available upon request.

Enforcement and Complaints

• Inspections occur at least annually (more often if issues arise).
• Complaints may be filed with the Environmental Health Division via phone or the online complaint form.
• Non-compliance risks penalties, permit denial, non-renewal, or revocation.

Key references: City TRH page and complaint resources.

Contact Information

• City of Racine Public Health Department (Environmental Health Division)

  • Phone: 262-636-9201
  • Email: publichealth@cityofracine.org
  • Address: City Hall, 730 Washington Avenue, Racine, WI 53403
  • Hours: Administration & Community Health Mon–Fri 8:00 a.m.–5:00 p.m.; Environmental Health Mon–Fri 8:00 a.m.–12:00 p.m., 1:00 p.m.–4:30 p.m.
  • After-hours public health emergencies: 262-886-2300

• City Clerk’s Office (Room Tax Registration and general city services)

  • Phone: 262-636-9171
  • Address: City Hall, 730 Washington Avenue, Racine, WI 53403

• Wisconsin Department of Revenue (Sales tax/Seller’s Permit questions)

  • Phone: 608-266-2776

Key references: City TRH page and “Getting Started.”

Links to Source Pages and Key Documents

Note: Some URLs below reference city-hosted PDFs and pages. If a link is unavailable, request forms and checklists directly from Public Health or the City Clerk’s office.

• Short-Term Rental / Tourist Rooming House – Getting Started (PDF)
  • cityofracine.org/Documents/Documents/Health/TouristRoomingHouse/Tourist-Rooming-House-Getting-Started.pdf
• City of Racine Tourist Rooming Houses – Program page
  • cityofracine.org/health/touristroominghouse/
• Tourist Rooming House – Permit Application (PDF)
  • cityofracine.org/Documents/Documents/Health/TouristRoomingHouse/Tourist-Rooming-House-Application.pdf
• Public Health Inspection Checklist (PDF)
  • cityofracine.org/Documents/Documents/Health/TouristRoomingHouse/Tourist-Rooming-House-Inspection-Checklist.pdf
• Building Division Inspection Checklist for STRs (PDF)
  • cityofracine.org/Documents/Documents/Health/TouristRoomingHouse/Short-Term-Rental-Building-Division-Inspection-Checklist.pdf
• ATCP 72: Hotels, Motels, and Tourist Rooming Houses (PDF)
  • docs.legis.wisconsin.gov/code/admin_code/atcp/055/72.pdf
• ATCP 97: Food, Lodging, and Recreation (PDF)
  • docs.legis.wisconsin.gov/code/admin_code/atcp/055/97.pdf
• Wisconsin Short-Term Rental Handout (PDF)
  • cityofracine.org/Documents/Documents/Health/TouristRoomingHouse/short_term_rentals_for_web.pdf
• Room Tax Applicability Explanation (PDF)
  • cityofracine.org/Documents/Documents/Health/TouristRoomingHouse/Touris-Rooming-House-Room-Tax-Applicability-Explanation.pdf
• Lodging Operation and Inspection Preparation Fact Sheet (PDF)
  • cityofracine.org/wp-content/uploads/2025/03/Lodging-Operation-and-Inspection-Preparation-Fact-Sheet.pdf
• Room Sanitization Tent/Protocols (PDF)
  • cityofracine.org/wp-content/uploads/2025/01/Rooming-House-Sanitization-tent.pdf
• Wisconsin DOR: Homeowners and Individuals Selling Short-Term Lodging (Guidance)
  • www.revenue.wi.gov/Pages/TaxPro/2021/Homeowners-and-Individuals-Selling-Short-Term-Lodging.aspx
• Wisconsin Seller’s Permit – FAQ (WI DOR)
  • www.revenue.wi.gov/Pages/FAQS/pcs-seller.aspx
• City of Racine Code of Ordinances
  • library.municode.com/wi/racine/codes/code_of_ordinances
• Short-Term Rental Complaint Form (City)
  • cityofracine.org/Departments/Health/Environmental-Health/Tourist-Rooming-House-Complaint/
• Village of Wind Point Short-Term Rental Ordinance (2025) (PDF)
  • cms3.revize.com/revize/windpoint/Documents/Government/Resolution,%20Ord,%20Proc,%20Polic%20Adopted/Wind%20Point%20Short%20Term%20Rental%20Ord%205.8.25.pdf
• Racine County Eye News Article on STR Safety Measures and Permitting (July 8, 2024)
  • racinecountyeye.com/2024/07/08/short-term-rentals-safety-measures/
• Jaken Finance Group “Complete Guide” (General investor context; not a regulatory source)
  • www.jakenfinancegroup.com/racine-short-term-rental-laws-2026-a-complete-guide

If any PDF or page fails to load, request the current documents from the Public Health Department (Environmental Health) at 262-636-9201 or publichealth@cityofracine.org.