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

YES, short-term rentals are explicitly allowed in Waupaca, WI and throughout Waupaca County. The municipalities of Farmington, Dayton, and the City of Waupaca have established frameworks to regulate and collect taxes from short-term rental operations. All three municipalities participate in a Room Tax Commission to ensure equitable distribution of room tax revenues, with 70% going to tourism promotion and 30% staying within the originating municipality for local priorities.

How to Start a Short-Term Rental Business in This Market

Starting a short-term rental business in Waupaca requires a multi-step compliance process across state, county, and municipal levels:

Step 1: State Registration and Licensing

• Register for a tourist rooming house license from the Wisconsin Department of Agriculture, Trade and Consumer Protection
• Anyone hosting short-term stays for 10+ days per year must complete this registration
• Complete pre-inspection before license approval
• Display the license prominently in your listing

Step 2: County-Level Licensing

• Obtain a Food and Recreation Establishment License from Waupaca County Public Health
• Submit annual permit application to Waupaca County Courthouse
• The county considers each private rental unit as one room, regardless of bedroom count
• For example, a 5-bedroom home is considered "one room" under the "Tourist Rooming House" category

Step 3: Municipal Permits

• Obtain a Hotel/Motel/Short Term Rental Permit from your local municipality (Farmington, Dayton, or City of Waupaca)
• This permit ensures municipalities have records of all STRs within their boundaries
• If operating multiple properties across municipalities, complete separate applications for each property

Step 4: Tax Registration and Compliance

• Register for room tax collection with your municipality
• Register for Wisconsin state sales tax
• If using major platforms like Airbnb or VRBO, verify automatic tax collection in your platform agreements

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements:

1. Tourist Rooming House License (Wisconsin Department of Agriculture, Trade and Consumer Protection)
   • Cost: $110 annual fee plus $300 one-time pre-inspection fee
   • Renewal deadline: Annually by June 30
   • License period: July 1 through June 30 of following year
   • Application form available through state website

County-Level Requirements:

1. Food and Recreation Establishment License (Waupaca County Public Health)
   • Annual permit
   • Application submitted to Waupaca County Courthouse
   • Checks payable to "Waupaca County DHHS"
   • Application available at county health department website

Municipal Requirements:

1. Hotel/Motel/Short Term Rental Permit
   • Annual permit with $25 fee
   • Required for each property in each municipality
   • Applications available on each municipality's website
   • Provides municipal record-keeping for STR oversight

Tax Registration:

1. Room Tax Registration (Municipal)

   • Town of Farmington: 8% room tax effective January 1, 2021
   • Separate registration for each municipality where you operate

2. Sales Tax Registration (State)

   • Wisconsin state sales tax: 5% of listing price including cleaning and guest fees
   • Waupaca County tax: 0.5% of listing price including fees
   • For reservations 29 nights or shorter

Specific Regulations for Short-Term Rentals

State Regulations (Wisconsin):

• Licensing Threshold: Hosts renting for 10+ days per year must register
• Inspection Requirement: Pre-inspection mandatory before license approval
• Display Requirements: License must be visibly displayed in listing
• Tax Obligations: State sales tax applies to rentals 29 nights or shorter

County Regulations (Waupaca County):

• Licensing Authority: Waupaca County Public Health handles food and recreation licensing
• Classification System: Each rental unit considered single "room" regardless of bedroom count
• Category: Properties fall under "Tourist Rooming House" classification
• Annual Renewal: All permits require annual renewal

Municipal Regulations:

Town of Farmington:

• Room Tax Rate: 8% (effective January 1, 2021)
• Separate Tourist Rooming House Permit required from Waupaca County DHHS
• Town Room Tax Permit required in addition to county permit
• Room Tax Reporting Form required quarterly

Town of Dayton:

• Participates in regional Room Tax Commission
• Requires Hotel/Motel/Short Term Rental Permit ($25 annual fee)
• Room tax collection managed through commission structure

City of Waupaca:

• Participates in regional Room Tax Commission
• Requires Hotel/Motel/Short Term Rental Permit ($25 annual fee)
• Room tax distribution through established commission framework

Tax Distribution Requirements:

• 70% of room tax revenues directed to tourism promotion through Convention and Visitor's Bureau
• 30% retained by originating municipality for local priorities
• Room Tax Commission ensures equitable distribution across participating municipalities

Contact Information for Local STR Authorities

Waupaca County Public Health

• Phone: (715) 258-6323
• Email: publichealth@co.waupaca.wi.us
• Address: 811 Harding St, Waupaca, WI 54981
• Website: www.waupacacounty-wi.gov/departments/health_and_human_services/food_safety.php

Town of Farmington

• Phone: (715) 258-2779
• Email: clerk@farmingtonwaup.gov
• Address: E913 Prairie View Lane, Waupaca, WI 54981
• Website: farmingtonwaup.gov/
• Office Hours: Monday-Friday, 8:00 AM - 12:00 PM

Wisconsin Department of Agriculture, Trade and Consumer Protection

• Phone: (608) 224-5012
• Purpose: Tourist rooming house license inquiries

Waupaca Area Room Tax Commission

• Contact through: Convention and Visitor's Bureau
• Purpose: Room tax collection and distribution inquiries

Source Links

• Waupaca County Room Tax Letter to Residents: town-dayton.com/wp-content/uploads/2021/11/2021-Room-Tax-Letter-to-Residents.pdf
• Waupaca County Public Health Licensing: www.waupacacounty-wi.gov/departments/health_and_human_services/food_safety.php
• Wisconsin Admin Code - Hotels, Motels, Tourist Rooming Houses: docs.legis.wisconsin.gov/code/admin_code/atcp/055/72
• Airbnb Wisconsin STR Guide: www.airbnb.com/help/article/3624
• Town of Farmington Taxes Page: farmingtonwaup.gov/taxes/
• Farmington Room Tax Permit Application: farmingtonwaup.gov/wp-content/uploads/2022/08/Application-for-Room-Tax-Permit-T-of-Farmington.pdf
• Farmington Room Tax Reporting Form: farmingtonwaup.gov/wp-content/uploads/2022/08/Farmington-Room-Tax-Reporting-FormFILLABLE.pdf
• Wisconsin Department of Revenue STR Information: www.revenue.wi.gov/Pages/TaxPro/2021/Homeowners-and-Individuals-Selling-Short-Term-Lodging.aspx
• Waupaca County Code of Ordinances: www.waupacacounty-wi.gov/departments/government_departments/county_clerk/waupaca_county_code_of_ordinances.php

Important Notes for Investors:

• Operating without proper licensing can result in penalties and legal action
• Multiple municipalities may require separate permits if you operate in more than one jurisdiction
• Tax obligations vary by platform - always verify your specific platform's tax collection practices
• Room tax and sales tax must be paid quarterly if not automatically collected through online platforms
• All permits are annual and require timely renewal to maintain legal operation