Executive Overview

Short-term rentals ARE explicitly allowed in Sheboygan, Wisconsin. However, operating such rentals requires strict compliance with state, county, and local regulations. Sheboygan follows Wisconsin's 2017 Right to Rent Law, which prevents municipalities from prohibiting rentals of 7 or more consecutive days. While the state-level framework is permissive, investors must navigate multiple licensing requirements across state, county, and municipal jurisdictions.

Key Requirements Summary:

• State Tourist Rooming House (TRH) license mandatory
• Sheboygan County health and safety permits required
• City Room Tax Permit for local taxation
• Municipal licenses may apply (varies by jurisdiction)
• Annual renewals with inspection requirements

How to Start a Short-Term Rental Business in Sheboygan

Phase 1: Initial Setup and Licensing

Step 1: State-Level Licensing Begin with the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) Tourist Rooming House license:

• Annual fee: $110
• Pre-inspection fee: $300
• Contact Sheboygan County Health & Human Services at (920) 459-3037 (DATCP contracts with county for licensing)

Step 2: County Health Permits Obtain Sheboygan County lodging licenses through Environmental Health:

• Complete county application
• Pay pre-inspection fee ($250) and license fee ($172)
• Schedule and pass health/safety inspection
• Contact: (920) 459-3207 or environmental.health@sheboygancounty.com

Step 3: City Registration Secure City Room Tax Permit through Sheboygan Finance Department:

• Register for local room tax collection
• Required for all STR operations within city limits

Step 4: Municipal Compliance (Location-Specific) Check local municipal requirements:

• Town of Holland: Additional $350 annual STR license required
• Other municipalities may have similar requirements

Phase 2: Operational Setup

Insurance Requirements

• Maintain comprehensive liability insurance
• Property damage coverage recommended
• Some municipalities require minimum coverage levels

Tax Registration

• State Sales Tax: 5%
• County Sales Tax: 5.5%
• Local Room Tax: 8% (Sheboygan City)

Property Preparation

• Ensure compliance with building codes
• Install required safety equipment (smoke detectors, CO detectors)
• Prepare guest amenities and safety information

Required Documents and Permits

State Level (Mandatory)

• Wisconsin DATCP Tourist Rooming House License application
• State Pre-inspection report ($300 fee)
• Annual TRH license renewal ($110)

County Level (Mandatory)

• Sheboygan County lodging establishment application
• Pre-inspection application and fee ($250)
• Annual license fee ($172)
• Health inspection compliance report
• Site plan and floor plan documentation
• Owner/operator identification documents

Municipal Level (Location-Specific)

• City Room Tax Permit (Sheboygan City)
• Municipal STR license (Town of Holland: $350 annually)
• Local business registration where applicable

Documentation Requirements

• Federal EIN for tax purposes
• Owner's driver's license
• Property ownership documentation or lease agreement
• Insurance policy proof
• Guest registry system (maintained on-site)

Specific Regulations: City, County, and State

State of Wisconsin Regulations

2017 Right to Rent Law (Wisconsin Statute §66.1014):

• Municipalities cannot prohibit STR rentals for 7+ consecutive days
• Political subdivisions may limit total rental days to minimum 180 days per 365-day period
• Local authorities retain power to regulate other aspects (noise, parking, safety)
• Rentals of 6 days or fewer remain subject to local prohibition

DATCP Requirements:

• Tourist Rooming House license mandatory for properties with 1-4 rooms
• Hotel/motel license required for 5+ rooms
• Annual licensing period: July 1 - June 30
• Non-transferable licenses (new owner requires new license)

Sheboygan County Regulations

Health and Safety Standards:

• Post license visibly within establishment
• Comply with statewide commercial building codes
• Screen windows and doors appropriately
• Maintain handrails and safety guards
• Ensure proper water and sewage systems
• Install carbon monoxide and smoke detectors
• Maintain guest register with guest names/addresses
• Provide proper waste containers with tight-fitting covers
• Kitchen and bathroom safety compliance
• Sleeping room hygiene standards

Inspection Requirements:

• Annual routine inspection for all licensed establishments
• Pre-licensing inspection mandatory
• Reinspection fees apply for failed inspections ($300 in Milwaukee, varies locally)

Sheboygan City Regulations

Room Tax Requirements:

• Mandatory registration for all STR operators
• 8% room tax collection and remittance
• Quarterly or monthly filing requirements

General Compliance:

• Must comply with city zoning ordinances
• Adherence to local noise ordinances
• Parking requirements as specified by municipal code
• Property maintenance standards

Town of Holland Regulations (Within Sheboygan County)

Local Licensing Requirements:

• $350 annual STR license (July 1 - June 30)
• State TRH license required as prerequisite
• Detailed application process with municipal review

Operational Restrictions:

• Property manager required if owner lives >35 miles away
• Insurance requirements for liability coverage
• On-site parking minimums (1 space per 4 occupants)
• Compliance with local noise and activity ordinances
• Regular monitoring and compliance verification

Tax Obligations

State Taxes:

• Wisconsin Sales Tax: 5%
• Applied to all STR rentals

County Taxes:

• Sheboygan County Sales Tax: 5.5%
• Combined state-county rate: 10.5%

Local Taxes:

• Sheboygan City Room Tax: 8%
• Additional municipal taxes where applicable

Reporting Requirements:

• Monthly or quarterly room tax filing
• Sales tax reporting to Wisconsin DOR
• Annual income tax reporting (federal and state)

Contact Information

State Level

Wisconsin DATCP

• Contact: Sheboygan County Health & Human Services (920) 459-3037
• Website: datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx

County Level

Sheboygan County Environmental Health

• Phone: (920) 459-3207
• Email: environmental.health@sheboygancounty.com
• Inspection Lookup: healthspace.com/Clients/WI/Sheboygan/Web.nsf/home.xsp

Municipal Level

City of Sheboygan Finance Department

• Website: www.sheboyganwi.gov/departments/finance/
• Room Tax Permit inquiries through finance department

Town of Holland

• Phone: (920) 668-6625
• Email: clerk-treasurer@hollandwi.gov
• Address: W3005 County Road G, Cedar Grove, WI 53013
• Office Hours: Mon-Wed 9:00am-12:00pm
• STR License Application: townofholland.com/short-term-rental-licenses/

Source References

1. Sheboygan County Health and Human Services - Lodging Regulations: www.sheboygancounty.com/departments/departments-f-q/health-and-human-services/public-health/environmental-health/lodging

2. Sheboygan Press - Wisconsin STR Legal Analysis: www.sheboyganpress.com/story/opinion/2022/06/10/airbnb-vrbo-rental-laws-wisconsin-advice-sheboygan-attorney/7557986001/

3. Summer Vacation Rental Guide - Wisconsin STR Laws: www.gosummer.com/post/wisconsin-short-term-rental-laws

4. Town of Holland STR Licensing: townofholland.com/short-term-rental-licenses/

5. Wisconsin Legal Framework Analysis: www.lwm-info.org/DocumentCenter/View/3990/Licensing-and-Regulations-403-Short-Term-Rentals

Important Note: Regulations change frequently. Always verify current requirements with local authorities before operating a short-term rental. Consider consulting with local legal counsel specializing in vacation rental law for complex situations or when facing enforcement actions.