HomeMy WebLinkAbout33. 19-63 JANUARY 8, 2019 JANUARY 22, 2019 19-27 19-63 ORDINANCE
FIRST READING SECOND READING
(CARRIED LOST LAID OVER X WITHDRAWN )
UNTIL FEBRUARY 12, 2019
PURPOSE: CREATE SECTION 8-1.2 SHORT TERM RENTALS
INITIATED BY: CITY ADMINISTRATION
A GENERAL ORDINANCE OF THE CITY OF OSHKOSH CREATING SECTION 8-1.2 OF
THE OSHKOSH MUNICIPAL CODE PERTAINING TO SHORT TERM RENTALS
The Common Council of the City of Oshkosh do ordain as follows:
SECTION 1. That Section 8-1.2 of the Oshkosh Municipal Code pertaining to Short
Term Rentals is hereby created to read as shown on the attachment to this ordinance.
SECTION 2. This ordinance shall be in full force and effect from and after its
passage, and publication.
SECTION 3. Publication Notice
Please take notice that the City of Oshkosh enacted ordinance #19-63 CREATE SECTION
8-1.2 SHORT TERM RENTALS (A GENERAL ORDINANCE OF THE CITY OF OSHKOSH
CREATING SECTION 8-1.2 OF THE OSHKOSH MUNICIPAL CODE PERTAINING TO
SHORT TERM RENTALS) on January 22, 2019. The ordinance creates an ordinance
pertaining to short term rentals. The ordinance requires licensing of short term rentals used
for more than 10 days per year;requires the appointment of a resident agent with authority
to permit inspections and receive service of notices and process related to the property;
limits the number of days that a property may be rented within any consecutive 365-day
period to 180 days; contains provisions related to noise, fumes, vehicle traffic, parking
spaces and other potential nuisances created by rental activity; limits the number of
occupants for a short term rental property; limits the use of recreational vehicles to
expand a property's rental capacity; limits the hours for outdoor events associated with
a rental; requires smoke detectors and carbon monoxide detectors and limits the use of
fireplaces and grills associated with rentals.
JANUARY 8, 2019 JANUARY 22, 2019 19-27 19-63 ORDINANCE
FIRST READING SECOND READING CONT'D
The full text of the ordinance may be obtained at the Office of the City Clerk, 215 Church
Avenue and through the City's website at www.ci.oshkosh.wi.us. Clerk's phone:
920/236-5011.
8-1.2 SHORT TERM RENTALS
(A) Pun2ose.
The purpose of this Article is to ensure that the quality of short-term rentals
operating within the City is adequate for protecting public health, safety and
general welfare, including establishing minimum standards of space for human
occupancy and for an adequate level of maintenance; determining the
responsibilities of owners, operators and property managers offering these
properties for tourists or transient occupants, to protect the character and stability
of all areas, especially residential areas, within the City of Oshkosh; to provide
minimum standards necessary for the health and safety of persons occupying or
using buildings, structures or premises; and provisions for the administration and
enforcement thereof.
(S) Definitions.
(1) For the purpose of administering and enforcing this Article, the terms or words
used herein shall be interpreted as follows:
(a) Words used in the present tense include the future.
(b) Words in the singular number include the plural number.
(c) Words in the plural number include the singular number.
(2) The following definitions and conditions apply unless specifically modified:
Department of Community Development. The City Department of Community
Development of the City of Oshkosh or designee.
Corporate Entity: A corporation, partnership, limited liability company, or sole
proprietorship licensed to conduct business in this state.
Dwelling Unit: One (1) or more rooms with provisions for living, cooking, sanitary,
and sleeping facilities and a bathroom arranged for exclusive use by one (1)
person or one (1) family. Dwelling Units include residential, tourist rooming
house, seasonal employee housing and dormitory units.
License. The Short-Term Rental License issued under 8-1.2
Owner. The owner of a short-term rental.
Person. Shall include a corporation, firm, partnership, association, organization
and any other group acting as a unit as well as individuals, including a personal
representative, receiver or other representative appointed according to law.
Whenever the word person is used in any section of this Article prescribing a
penalty or fine, as to partnerships or associations, the word shall include the
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partners or members hereof, and as to corporations, shall include the officers,
agents or members thereof who are responsible for any violation of such section.
Resident Agent. Any person appointed by the owner of a short-term rental to act as
agent on behalf of the owner.
Short Term Rental. A residential dwelling unit that is offered for rent for a fee and
for fewer than 29 consecutive days, as defined in Wis. Stat. Sec. 66.0615 (1)(dk).
State. The State of Wisconsin Department of Health, or its designee.
(C) Operation of Short-Term Rentals.
(1) No person may maintain, manage, or operate a short-term rental more than 10
nights each year without a short-term rental license. Every short-term rental shall
be operated by a Property Owner or a Resident Agent
(2) Each short-term rental is required to have the following licenses and permits:
(a) A Winnebago County Tourist Rooming House License or Winnebago
County Sed and Breakfast License;
(b) A seller's permit issued by the Wisconsin Department of Revenue;
(c) A Room Tax Permit; and
(d) A permit or license issued pursuant to the provisions of this Article.
(3) Each short-term rental shall comply with all of the following:
(a) The total number of days within any consecutive 365-day period that
the dwelling may be rented shall not exceed 180 days.
(b) No vehicular traffic shall be generated that is greater than normally
expected in the residential neighborhood.
(c) There shall not be excessive noise, fumes, glare, vibrations generated
during the use.
(d) Name plates or other signage shall not exceed zoning code allowances
for Building Management Identification Sign. No other signage
advertising the short-term rental is permitted on site. Off-site
advertising in media channels relating to the availability of the rental
may take place only after all City, County and State permits and licenses
have been obtained.
(e) The number of occupants in any unit shall not exceed the limits set forth
in the State of Wisconsin Uniform Dwelling Code and other applicable
county and City housing regulations based upon the number of
bedrooms in each unit.
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(f) No recreational vehicles (RVs), camper, tent,or other temporary lodging
arrangement shall be permitted on site as a means of providing
additional accommodations for paying guests or other invitees.
(g) Any outdoor event held at the short-term rental shall last no longer than
one day occurring between the hours of 8:00 a.m. and 10:00 p.m. Any
activities shall be in compliance with other noise regulations of the City.
(h) All rentals of the short-term rental shall be subject to payment of the
City of Oshkosh room tax at the current applicable rate. Permit holders
are responsible for complying with all regulations of the room tax.
(i) Compliance with all state, county, and local regulations is required.
(j) A short-term rental license will not be issued until the following
contingencies have been met:
(1) County health department inspection completed and license
issued;
(k) Short-term rental licenses are issued for one year period and must be
renewed annually subject to City approval or denial.
(D) Short-Term Rental License.
(1) The Department of Community Development shall issue a short-term rental
license to all applicants following the approval of an application and the filing of
all documents and records required under this Article. The application shall also
contain the following information:
(a) Identify the Property Owner;
(b) Identify the Resident Agent with contact information;
(c) The maximum occupancy for the premises;
(d) The license term;
(e) State lodging license number, if any; and
(f) Contact information for the City.
(2) The Department of Community Development shall issue a property manager
license to all applicants following the approval of the application and the filing of
all documents and records required under this Article.
(3) The resident agent must be authorized to allow City employees, officers and their
designees, to enter the owner's property for purposes of inspection and
enforcement of this Article and the Municipal Code.
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(E) Short-Term Rental License Procedure.
(1) All applications for a short-term rental license shall be filed with the Department
of Community Development on forms provided. Applications must be filed by the
property owner or on the owner's behalf by the Resident Agent. No permit shall
be issued unless the completed application form is accompanied by payment of
the required fee.
(2) Each application shall include the following information and documentation for
each short-term rental unit:
(a) Winnebago County License for a Tourist Rooming House License or Sed
and Breakfast License issued under Wis. Stat. Sec. 254.64;
(b) A copy of a completed State Lodging Establishment Inspection form
dated within
(c) one (1) year of the date of issuance or renewal;
(d) Seller's Permit from the Department of Revenue, if any;
(e) Floor plan and requested maximum occupancy;
(f) Site plan including available onsite parking;
(g) Designation of the Resident Agent (if applicable);
(h) Certification from the owner or licensee that the property meets the
requirements of this Article;
(3) Terms and Filing date. Each permit and license shall run during a calendar year.
The filing fee shall be paid upon filing of the application. The Department of
Community Development may conditionally accept late applications, subject to
payment of the late filing fee. Any application which does not include all of the
information and documentation shall not be considered as complete.
(4) Application Review Procedure. When satisfied that the application is complete,
the Department of Community Development shall forward initial applications for
permits and licenses to the appropriate City Departments for review. If the
Department of Community Development in consultation with City staff
determines that the application meets the requirements of this Article, they may
approve the application. If the Department of Community Development in
consultation with City staff determines that the application does not meet the
requirements of this Article, they may deny the application.
(F) Renewal.
(1) Each application for a renewal of a permit or license shall include updated
information for the documentation on file with the Department of Community
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Development and payment of the applicable fee. The Department of Community
Development shall verify that the information provided on the renewal
application is complete and in accordance with the requirements of this Article.
The Department of Community Development shall request reports from the City
of Oshkosh Police regarding any complaints received, calls for service or actions
taken regarding the short-term rental properties. The Department of Community
Development shall issue renewal licenses within thirty(30) days of the filing of the
application unless the information provided is incomplete or otherwise not in
compliance with the requirements of this Article and/or the reports from the Police
Department and the Zoning Administrator indicate that there are complaints or
actions involving the property.
(2) If the Department of Community Development finds that the license or permit
should not be renewed, the Department of Community Development shall deny
the renewal.
(3) No permit or license shall be renewed if the applicant or property has outstanding
fees, taxes or forfeitures owed to the City, or is under an order issued by the
Building Inspector, or his designee, to bring the premises into compliance with
City ordinances, unless arrangements for payment have been approved by the
Department of Community Development.
(G) Resident Agent.
(1) All short-term rentals are required to appoint a Resident Agent for the receipt of
service of notice of violation of this Article's provisions and for service of process
pursuant to this Article. Such a designation shall be made by the owner and shall
accompany each application form. Said applicant shall immediately notify the
Department of Community Development of any change in residence or
information regarding the Resident Agent.
(2) To qualify as a Resident Agent the person must meet the following requirements:
(a) The applicant is authorized by owner to accept service of process for all
City communications, citations and orders.
(3) Each Resident Agent shall be authorized by the property owner to act as the agent
for the owner for the receipt of service of notice of violation of this Article's
provisions and for service of process pursuant to this Article and shall be
authorized by the owner to allow City employees, officers and their designees, to
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enter the owner's property for purposes of inspection and enforcement of this
Article and/or the City Municipal Code.
(H) Standards for Short-term Rentals.
(1) Each short-term rental shall comply with this Article's requirements or any other
applicable City ordinance. Each short-term rental shall comply with the following
minimum requirements:
(a) Not less than one (1) bathroom for every six (6) occupants;
(b) Not less one hundred fifty (150) square feet of floor space for the first
occupant thereof and at least an additional one hundred (100) square
feet of floor space for every additional occupant thereof; the floor space
shall be calculated on the basis of total habitable room area. Floor space
is determined using interior measurements of each room. Floor space
does not include kitchens, bathrooms, closets, garages, or rooms not
meeting Uniform Dwelling Code requirements for occupancy. The
maximum occupancy for any premises without a separate enclosed
bedroom is two (2) people;
(c) Not less than one (1) onsite off-street parking spaces for every four (4)
occupants based upon maximum occupancy;
(d) A safe, unobstructed means of egress leading to safe, open space at
ground level;
(e) Shall have functional smoke detectors and carbon monoxide detectors
in accordance with the requirements of Chapter SPS 362 of the
Wisconsin Administrative Code;
(f) Shall not have an accessible wood burning fireplace unless the property
owner provides a certificate from a certified HVAC /Fireplace Installer
or technician, dated not more than thirty (30) days prior to submission,
certifying that the fireplace and chimney have been inspected and are in
compliance with National Fire Prevention Association Fire Code
Chapter 211 Standard for Chimneys, Fireplaces, Vents, and Solid Fuel-
Burning Appliances;
(g) Shall not have a hibachi, gas-fired grill, charcoal grill, or other similar
devices used for cooking, heating, or any other purpose on any balcony,
deck or under any overhanging structure or within ten (10) feet of any
structure;
(h) Certification of compliance. As a condition of issuance of a license under
this Article, the Owner / Resident Agent shall certify that property is in
compliance with the terms and conditions of the license and this Article.
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(I) Room Tax.
(1) Each short-term rental shall comply with the room tax reporting requirements of
the City Municipal Code Chapter 8-1.1
(2) All tax returns and supporting documentation filed with the Department of
Community Development are confidential and subject to the protections provided
under City Municipal Code 8-1.1and Wis. Stat. Sec. 66.0615 (3) and Wis. Stat. Sec.
77.61.
(J) Display of Permit.
Each license or permit shall be displayed on the inside of the main entrance door
of each short-term rental.
(K) Appeal and License Revocation.
(1) The denial of any license or permit application or renewal under this Article may
be appealed by filing a written appeal request with the Department of Community
Development within ten (10) days of the City's notice of denial. The appeal shall
be heard by the Board of Appeals.
(2) A license may be revoked for one or more of the following reasons:
(a) Failure to make payment on taxes or debt owed to the City;
(b) Failure to make payment on the City of Oshkosh room tax;
(c) Three (3) or more calls for police service, building inspection or the
health department for nuisance activities or other law violations in a
twelve (12) month period as defined in Sec. 17-38.1, Chronic Nuisance
Premises;
(d) Failure to obtain all necessary county and state permits and licenses
within twelve (12) months of obtaining the City license;
(e) Failure to maintain all required local, county, and state licensing
requirements;
(f) Failure to use the property as a short-term rental within twelve (12)
months of obtaining the City license;
(g) Any violation of local, county, or state laws that substantially harm or
adversely impact the predominantly residential uses and nature of the
surrounding neighborhood.
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(L) Penalties.
(1) Any person who shall violate any provision of this Article shall be subject to a
penalty as provided in Chapter 8-1.06
(2) Penalties set forth in this section shall be in addition to all other remedies of
injunction, abatement or costs whether existing under this Article or otherwise.
(M) Fees.
Fees for licenses required by this Article are due and payable before issuance of a
new license and renewal license annually before January 1 of each year. All frees
for these services will be listed on the Planning Services Division fee schedule and
will be established by resolution.
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Oshkosh
TO: Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorney
DATE: January 3, 2019
RE: Ordinances to Create Section 8-1.2 Short Term Rentals of the Municipal Code;
Amend Room Tax Ordinance; and Authorize the Director of Finance to Issue
Citations
BACKGROUND AND ANALYSIS
Council received a packet of information dated December 14, 2018 providing the background
and analysis along with supporting information related to the proposed ordinance revisions
pertaining to short term rentals, room tax and authorizing the Director of Finance to issue
citations. A copy of that December 14, 2018 informational packet is attached.
FISCAL IMPACT
We do not currently know the number of short term rentals operating in the City. Room tax
collections are expected to increase based upon the additional reporting and payment by the
short term rentals. Staff is also attempting to work with Airbnb to consolidate reporting and
remittance of room tax from those persons using that application. Existing staff will administer
the licensing and room tax collection and license fees are projected to cover administrative costs
so fiscal impact for administration is anticipated to be minimal.
RECOMMENDATION
Staff recommends that the Council adopt the proposed ordinances.
Res• ctfully Submitted, Approved:
1111 4
Lorens• Mark A. Rohloff
City Attorney City Manager
City Hall,215 Church Avenue P.O. Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
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Cite
Oshkosh
TO: Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorney
DATE: January 18, 2019
RE: Amend Ordinances pertaining to Room Tax and Short Term Rental of Residential
Homes or Rooms
BACKGROUND
A number of questions and concerns have arisen related to the proposals for the Short Term
Rental Ordinance and updates to the Room Tax Ordinance. While the two proposed
ordinances are related, they address different aspects of short term rentals.
The short term rental ordinance proposes changes to the zoning code and proposes a licensing
requirement for persons wishing to rent their dwelling units for short term rentals. The
ordinance is primarily directed at preserving neighborhoods from potential disruption, noise
and other potentially nuisance characteristics that could result from short term rentals. The
ordinance requires a person to get a permit if the person rents out a residential dwelling for
more than 10 days in a year.
The proposed revisions to the room tax ordinance, update the ordinance to comply with
current state statute and current practices, such as eliminating the requirement for an annual
report filing which is deemed not necessary given the monthly reporting requirement.
QUESTIONS
10 Day Threshold-or Licensing
At the January 8 Council meeting a citizen questioned the timing for permitting/licensing for
the proposed changes to the room tax and new short term rental ordinances suggesting that
the threshold for requiring a city short term rental license should be changed from more than
10 days to more than 16 days.
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
If someone is intending to offer property for rent to transient guests for more than 10 days in a
calendar year, they must obtain a state tourist rooming house license. One of the requirements
for obtaining the state tourist house license is an inspection by the local health department.
The proposed ordinance for a city short term rental license mirrors this 10 day threshold. State
law does not require the city to license these facilities, or to license them only after a certain
number of days,however,because of the trend toward private home rentals and the potential
disruption to neighborhoods of frequent or continual private rentals, staff proposed the short
term rental license to address potential issues with these types of activities occurring in
residential areas of the city. In evaluating when to require licensing, staff believed that it was
reasonable to propose the same more-than-10-day threshold requiring a state tourist rooming
house license.
The ordinance could be amended to make a short term rental license required only after 16
days,however staff felt this may actually be more confusing and offer little change for persons
choosing to rent their homes. A person renting their home would most probably be required
to obtain a room tax permit,Wisconsin seller's permit and obtain a state tourist rooming house
license and meet the health inspection requirements from day 10 of rentals, then would be
required at day 16 to obtain the city short term rental permit. The proposal to require city
licensing for more than 10 days of rentals appeared consistent with the goals of maintaining
neighborhoods and with the state requirements for licensing and provided consistency
between state, county and city listings of licensed rentals.
Exempting residential rentals of less than 10 days-from Room Tax Requirements
Under the room tax statute and the current and proposed ordinance, room tax is imposed for
any transient rental. As the statute and ordinance are written the rental of lodging is a taxable
event. For every rental the appropriate room tax should be collected. There is no minimum
rental period or exempt rental provided in the statute or the current or proposed ordinances.
The question was raised whether the City could exempt rentals of less than 10 days (or 16 days
as suggested in the question above) from the Room Tax requirements, similar to the exemption
from obtaining a license or permit from the City.
Unlike the sales tax statute that provides for a$2000 occasional sales threshold for non-
business sales such as rummage sales,or the occasional listing of an item for private sale, the
room tax statute does not specifically provide that cities may establish a minimum threshold.
It does not specifically prohibit it either.
However, there could be a challenge based upon the creation of an exemption from taxation
not authorized by statute or a challenge under the Wisconsin Constitution's tax uniformity
clause for failing to fairly and uniformly create and apply a tax. Related to uniformity an
additional concern is that unlike the $2000 threshold for sales tax, a 10 day exemption could
have a vastly different impact for different properties. One home may rent for$1000 a night
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
while another rental may be $100 per night making the 10 day exemption much more or less
valuable based on the rental fee for the property. This particular concern could be mitigated
by setting a dollar threshold similar to sales tax,however, as noted above sales tax statutes
contain a specific exemption not provided in the room tax statutes. Finally, this type of
exemption may be difficult to administer and could create issues with payments through
lodging marketplaces such as Air BnB or Home Away, etc.. Lodging marketplaces would
presumably either collect the tax or not collect the tax,but would not count the number of
days of rental for each home in the City of Oshkosh and make a determination whether they
are under or over the 10 day threshold, creating issues related to potential refunds for exempt
taxes paid through those platforms.
Prohibit rental of residential dwellings for less than 7 days except if the total days rented in a 12 month
period is verified to be 10 days or less
An option was suggested to have the municipality prohibit residential dwelling rentals of less
than 7 days except if the total days rented in a 12 month period is verified to be 10 days or less.
This option was proposed as a means to allow homeowners to rent during EAA Airventure
but not at any other time during the year as a means to control short term rentals in the
community.
This proposal would require additional thought and review and would require changes to the
proposed zoning ordinance. While it was suggested that the burden would be on the property
owner to show they are renting less than 10 days total under this proposed option, the reality
is that the burden is always on the City to show that the person is not in compliance with a
municipal ordinance. In addition, the proposed option creates concerns with accurate
counting of days as well as concerns with lodging marketplace tracking similar to the above
option. If this is an option that Council would like to consider, then the zoning ordinance
should be laid over.
OPTIONS
Understanding the issues and potential legal challenges with doing so as noted above, if the
Council wants to exempt those renting for 10 days (or 16 days) an amendment to the room tax
ordinance could be made to direct staff to add appropriate language to the ordinance to apply
the room tax to only those persons furnishing rooms or lodging more than 10 days in a
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calendar year.
Another option may be to link the room tax obligation to the Wisconsin Seller's permit: This
option would appear to be a fairer across the board application than the 10 days which would
I trigger reporting at different thresholds depending upon the nightly room charge. While this
option does not address all potential issues or concerns it may be a potentially more defensible
position for the City if challenged. If Council wants to link the room tax reporting to the
requirement to obtain a Wisconsin Seller's permit an amendment to the room tax ordinance
could be made to direct staff to add appropriate language to the ordinance to apply the room
City Hall, 215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
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tax to only those persons furnishing rooms or lodging who are required to obtain a Wisconsin
Seller's permit. .
The proposed changes to the room tax ordinance update the language and are consistent with
state statute. They do not impose any "new" tax although they do include the addition of
short term rental language as included in the updated statute. There are changes in the
proposed amendments that are not specifically related to the addition of the short term rental
language and which bring the city's ordinance into compliance with current state statute
provisions. Staff recommends adoption of the updated language to bring the City's ordinance
into compliance with State Statute and to address inconsistencies in current practices with the
requirements of the current ordinance.
It appears that the concern and confusion relate primarily to the educational materials and
information which were prepared indicating that persons should obtain a room tax permit and
pay the required room tax with every rental which were put forward in an effort to increase
compliance with the room tax obligation.
The faq's and education information addressing payment of room tax separately from short
term rental licensing requirements could simply be pulled back at this point. The room tax
ordinance could proceed forward to bring us into compliance with state law and our current
processes. Staff does not intend to proactively enforce the room tax except as to those who
obtain permits for short term rentals, those renting 10 days or more. For those properties the
licensing requirement in the proposed short term rental ordinance requires them to obtain a
room tax permit and so those renting for 10 days or more would obtain the room tax permit
and begin room tax payments at that time. As a practical matter, this would likely address
most rentals. This option avoids the potential legal challenges of exempting someone from
paying room tax and would not require refunding of taxes if paid through a lodging
marketplace. This option also recognizes that as a practical matter the City does not have the
ability to track down every individual who may be renting for a very short period of time or
once a year and will focus on those properties that are rented on a more frequent basis both as
the rental may affect their neighborhoods and from a room tax standpoint. This option would
address some of the same concerns as the option proposed above to address Airventure
rentals. If someone is renting on a very short term basis for Airventure or any other single
event, where the 10 day threshold is not met, they are not exempt from taxes however,
recognizing that absent other factors, pursuing these smaller rentals does not justify the
additional the time, effort and expense associated with active enforcement at this time.
RECOMMENDATION
Staff recommends adoption of the short term rental and room tax ordinance amendments.
Unless directed otherwise, staff would then focus administration of the room tax as it relates to
licensed short term rentals (those operating for more than 10 days within a year).
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
City
of
Oshkosh
TO: Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorne `
DATE: December 14, 2018
RE: Amend Ordinances pertaining to Room Tax and Short Term Rental of Residential
Homes or Rooms
BACKGROUND
The popularity of home rental through online applications such as Air BNB, Home Away and
others, has grown significantly in the past several years. While these rentals were subject to tax
under the current law,in most cases taxes including sales and room tax were likely not reported.
The state legislature within the past year has passed amendments to the Room Tax Law
specifically addressing payment of sales and room tax by short term rental owners and allowing
municipalities to collect room taxes from lodging marketplaces (the various online platforms
which allow owners to offer short term rental of residential dwellings or rooms). The changes
in the room tax law are designed to level the playing field for those who pay room tax and
contribute to tourism promotion and development in the community, by requiring those who
operate short term rentals and/or rent through lodging marketplaces to pay the same room tax
that hotels, motels,bed and breakfasts and other typical lodging businesses pay.
To adopt these changes at the local level, staff is proposing changes to the City's zoning code to
define short term rentals and to the room tax ordinance to address the changes in the state law.
In addition to adopting the changes in state law, staff is proposing to reorganize and update the
room tax provisions to better organize this section, clarify some of the existing provisions and
match the ordinance to existing practices. The updates will also require creation of or updating
of permit forms and tax reporting forms. Finally, because this is essentially a new program in
relation to those who may be renting their homes for short stays either directly or through a
lodging marketplace, staff also prepared educational information to explain the permitting
process and room tax requirements.
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
PROPOSED ORDINANCE CHANGES -ROOM TAX
The room tax provisions have been reorganized to lay out the chapter in a sequential form. The
proposed revision first establishes the room tax, then sets forth the permit requirements, the
reporting requirements, record and auditing requirements, then remedies for non-compliance
and confidentiality provisions.
Definitions have been updated to eliminate the repeating of definitions already adopted by
reference to the room tax statute.
No changes are proposed to the room tax amount or distribution of the room tax.
The provisions pertaining to the Room Tax Permit have been updated to clarify language and
to incorporate recent changes for short term rentals. Any rental less than 29 consecutive days
will be required to obtain a room tax permit and to remit room taxes. As will be discussed
below, a short term rental license is required only if the residential dwelling is to be rented for
more than 10 days during the calendar year, however, a room tax permit must be obtained and
payment of room tax must be made for every rental. Currently room tax is administered
through monthly reporting. Businesses simply file their information and begin reporting upon
opening or transfer of the property. The revision would not alter this basic practice although
the application would be updated and new updated permits would be issued. The provisions
were modified to clearly establish that the room tax permit is valid for the period of time the
person owns the property and is in compliance with the ordinance and is not transferable on
sale. The revision also allows the Council to establish the fee for the permit through resolution
similar to other city fees.
The provisions related to the room tax return were simplified and clarified and provisions in the
current code pertaining to annual return filing were eliminated as unnecessary in light of the
monthly return requirements. Language was also added to provide for payment of amounts
due through a lodging marketplace. In connection with these changes staff also prepared a draft
room tax report form with instructions for reporting which includes new language related to
short term rentals and lodging marketplaces.
Provisions related to records and audits were clarified and language was added making it clear
that failure to comply with audit requirements may be grounds for revocation of the room tax
permit in addition to other penalties.
A new section was created to consolidate all remedy provisions into one section of the
ordinance. Penalty sections were reviewed and updated to comply with current statutory
limitations. Remedies include forfeitures, penalties for late filings, suspension or revocation of
permits and security deposits. Separately, a change will also be proposed to Chapter 1 of the
City's municipal code to allow the Finance Director to issue citations for violation of the room
tax requirements should she/he determine that citation is appropriate.
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
Finally, the confidentiality provisions in the ordinance were reviewed and updated to meet
current statutory requirements.
PROPOSED ORDINANCE CHANGES —SHORT TERM RENTALS
The proposed ordinance changes related to short term rentals include a zoning change defining
short term rentals (a residential dwelling unit offered for rent for a fee for fewer than 29
consecutive days) and including short term rentals as a permitted use in all residential zoning
districts.
In addition to the zoning changes, a new provision in chapter 8 will include licensing of short
term rentals. Anyone renting out a residential dwelling for more than 10 nights per year will be
required to obtain a short term rental license. As noted above,persons renting out a residential
unit will also be required to obtain a room tax permit and pay room tax for any rentals.
To obtain a license, the owner/operator of the short term rental will need to obtain a Winnebago
County Tourist Room House License or Winnebago County Bed and Breakfast License through
the Winnebago County Department of Health. Each of these licenses requires a health and
safety inspection of the property. Persons will also need to obtain a seller's permit from the
Wisconsin Department of Revenue and a Room Tax Permit from the City of Oshkosh. The
Department of Community Development will issue the short term rental licenses and monitor
properties for compliance with the ordinance provisions. Short term rental licenses will be
required to be renewed annually and may be revoked for failure to comply with the ordinance
requirements as well as for other nuisance type activity.
While the changes to the room tax ordinance are focused on leveling the playing field for rentals
and making sure that everyone pays their fair share in support of tourism bringing rentals to
the community; the changes to the short term rental ordinance are focused on the safety of
occupants and protecting the integrity of residential neighborhoods while allowing persons to
make reasonable use of their property for short term rental purposes. To that end,the ordinance:
• Requires appointment of a Resident Agent with authority to permit inspections and
receive service of notices and process related to the property
• Limits the number of days that a property may be rented within any consecutive 365-day
period to 180 days
• Contains provisions related to noise, fumes, vehicle traffic, parking spaces and other
potential nuisances created by rental activity
• Limits the number of occupants for a short term rental property
• Limits the use of recreational vehicles to expand a property's rental capacity
• Limits the hours for outdoor events associated with a rental
• Requires smoke detectors and carbon monoxide detectors
• Limits the use of fireplaces and grills
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
TIMELINE AND ATTACHMENTS
The ordinances will require council approval and staff anticipates bringing those before council
for first reading in January 2019. The zoning ordinance will go to plan commission prior to
Council action for review and recommendation and is scheduled for action at the December 18f
plan commission meeting.
In order to give the Council a little more time to review all of the information related to these
various changes, staff is providing this information prior to placing the items on the Council
agenda. Attached to this memorandum are copies of the current ordinance, proposed draft
ordinances, draft applications, reports and information pertaining to room tax and short term
rentals.
If anyone has any questions or concerns related to this issue, please feel free to contact
Community Development Director Davis, Finance Director Larson or me.
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.cl.oshkosh.wi.us
Home Rentals - Getting Started
If you are offering your home for rent to visitors for a weekend, special event or as a
vacation rental your property must be permitted and room tax collected ... even if you
are only renting a few times a year. If you are offering your property for rent to a single
person or entity for a longer period, more than 29 consecutive days, you need to sign up
for the City's rental registry.
Before advertising, commencing business or renting your property,on a short term rental
basis you must be permitted. If you begin rentals before being permitted you could be
subject to penalties.
❑ You will need to fill out a Room Tax Permit Application and obtain a Room Tax
Permit.
❑ You are required to set up an account with the WISCONSIN DEPARTMENT OF
REVENUE to collect Wisconsin State Sales Tax. The WI DOR will inform you how
and when to remit your sales tax.
(Insert Contact Information for WI DOR here)
❑ If you intend to offer your property for rental more than 10 days in the calendar year,
you will also need to fill out a Short Term Rental Application with the City of Oshkosh
Department of Community Development.
❑ If you need a Short Term Rental license you are required to have your property
inspected by the Winnebago County Health Department.
(Insert Contact Information for Winnebago County Health here)
❑ Once you have your Room Tax Permit and Short Term Rental License if required,you
can begin advertising your property for short term rentals. Remember ygu are
responsible for collecting-and remitting room tax. It is important that you set up
your advertising correctly so that you take the tax amount into account (if your
desired nightly rate is$100 you then should be collecting$110 in order to collect room
tax, you will also need to collect and remit sales tax to the State of Wisconsin).
❑ Track your revenue and submit monthly room tax reports.
Please see the MONTHLY ROOM TAX REPORT (Insert link to report).
It is your responsibility to submit each monthly room tax report and payment. Room
Tax Reporting is required for every month whether you rent that month or not. Even
if you have no rental revenue you still need to report. Why?We don't have any way of knowing
that you didn't have rentals or if you forgot to report.
The report and payment are due by the last day of the following month. For example,
your report for June is due on or before July 31St.
The City,of Oshkosh may audit records to determine if the proper amount of tax has
been calculated and paid. It is important to keep accurate records including any
exempt rentals and revenue not subject to the room tax as it will be your responsibility
to show that any revenue you claim is not subject to room tax is actually exempt..
Advise the City of Oshkosh Finance Department and Department of Community
Development of any changes regarding your permits including changes to your contact
information and sales of the property as a new license may be required.
If you have any questions regarding Room Tax Permits, please contact:
(Insert Contact Information for Finance here)
If you have any questions regarding Short Term Rentals, please contact:
(Insert Contact Information for Dept. of Community Development here)
FAQ's for Home Rentals
What types of rentals do I need to obtain a permit for from the City of Oshkosh?
You need to obtain a Room Tax permit and may need a Short Term Rental Permit if you
are offering your home or rooms for rent to transient guests for periods shorter than 29
consecutive days. If you are renting your property for 29 consecutive days or longer for
lodging, you should contact the City of Oshkosh Inspection Division and sign up on the
City's Rental Registry.
What permits do I need from the City of Oshkosh to rent my home to transient guests?
You will need a Room Tax Permit from the Finance Department. In order to obtain this
permit you will need a Wisconsin Seller's permit from the State of Wisconsin.
If you are intending to offer you home for rent more than 10 days in the calendar year,
you will also need a Short Term Rental Permit from the Department of Community
Development. In order to obtain this permit you will need to have an inspection of your
home completed by the Winnebago County Health Department.
Are the Room Tax Permit and Short Term Rental License transferable if I sell my
property?
No,you should notify the City of Oshkosh when you no longer own the property to avoid
any confusion with continued rental of the property and if the new owner wishes to
continue to offer the property for rentals they should obtain new permits.
What is Room Tax?
Wisconsin Statutes allow the City of Oshkosh to impose a tax on the privilege and service
of furnishing,at retail,of rooms or lodging to transients by hotelkeepers,motel operators,
lodging marketplaces, owners of short-term rentals and other persons furnishing
accommodations that are available to the public. All funds collected are used to support
and grow tourism in the City of Oshkosh. The City of Oshkosh imposes a 10% tax which
is used to support the functions of the Oshkosh Convention and Visitors Bureau and
directly by the City in support the City of Oshkosh Convention Center.
How do I collect a room tax from guests who are renting my home?
Room tax is a pass through tax. That means that you will collect this tax from your guest
as part of the rental fee and then report and submit the tax to the City of Oshkosh. There
are different options to collect room tax. It is up to you to decide what works best for
your rental. You may include the amount in your nightly advertised rate. For example,
if you want to receive $100 for a rental, you would advertise the total nightly rate as
$110.00 to include the 10% room tax. You will also need to consider sales tax in your
rates.
If you go through an online application such as AirBNB,there may be an opportunity for
that provider to collect the room tax for you. However,you are responsible to make sure
that the room tax is collected and paid. Even if you use an online application and have
arranged for them to collect and remit the room tax, you must file a Monthly Room Tax
Report. That report should include the rentals through the online platform and you
should note that the tax was collected by the online provider. If the tax is not paid by the
online provider to the City,you remain responsible for the tax and may be subject to late
fees and penalties, so it is important to make certain that the online provider is collecting
and paying the amounts due.
Whichever method you use to collect room tax, you should clearly communicate how it
is done in your listing and communications with potential guests.
What do I pay Room Tax on?
Room tax is paid on gross lodging sales. If you collect additional money for services or
other items, those charges would not be subject to room tax. These items may include:
a. Exempt room sales - those persons staying for 30 or more
consecutive days or sales exempt from room tax such as those for
governmental purposes. For those exempt from room tax,you must obtain
and keep for at least three (3)years a tax exempt letter or other certificate of
exemption from the guest.
b. Room and Sales tax. If you have included the tax in your advertised
total room rate as in the example above,you will need to back the room and
sales tax out so that you are only paying room tax on the actual rental
portion of the total nightly rate.
C. Food or Vending sales
d. Laundry or other services sales
e. Miscellaneous sales or services not related to the provision of
lodging (ex. tour sales)
If you are deducting costs for any of the above, you will need to keep clear records of
those costs to support their deduction. If an audit is conducted, you will be asked to
provide those records for review and verification.
What records do I need to keep and how long do I need to keep them?
You should maintain your books and records of all rental transactions whether you are
renting to a guest directly or running through an online platform. You should include
the days/nights rented, all revenue associated with the rental, and documentation of any
deductions taken from the gross revenue prior to calculation of the room tax due. For
the City of Oshkosh, you will need to keep records at least three (3) years, however you
may be required or choose to keep records for a longer period to time for your own
purposes.
Room Tax Permit Application
Ci Qf
C��h kosh Check applicable box:
❑ New Application
❑ Change Information on Current Permit
Permit number
—_______::::.:::::_:_ Lod ental Loafzoa =_. _ -_
Owner Inforatxon —
Name: Name of Business D/B/A:
Mailing Address: Address of Rental Location:
City, State,Zip: Type of Lodging
---._......_..._.........- - --- --—
Telephone: ❑ Hotel/Motel
❑ B&B
Email Address: ❑ Condominium
❑ Resort
Cotac� Pesvn/iYlnager/Agent._ ❑ Cottage/Home
Owner ❑ (if other, fill in below)
Name: Online Listing Service/Agent(s):
Mailing Address:
City, State,Zip: Number of Units:
(a home=1 unit unless rooms are rented separately)
Telephone: Operating Period:
❑year round
❑ summer seasonal
❑ other,please explain:
Email Address:
I hereby certify that I am authorized to submit this application on behalf of the above
identified person/entity and that the information supplied hereon is accurate.
Signature of preparer Date
For City Use Only
Permit Number: Date Issued:
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Room Tax Return
^Acity f
dshkosh Month/Year:
Preparef's Information I odgirig/Rerital LCcatlon
Name: Name of Business D/B/A:
Mailing Address: Address of Rental Location:
City, State, Zip: Calculation of Tax Due
Telephone: 1)Total Room Receipts
Email Address: less
2)Total Exempt Sales
3)T axable Room Receipts
(x 10%)
4)Total Tax Due $
e 5) Tax paid to b p d from 3rd $
party
6) Payme included
nt in ed 1 d
- _. _. .. _ ....__ with this Return $
Make Check payable to: City of Oshkosh
Return completed form and payment to: City of Oshkosh—Collection Department
215 Church Avenue
P. O. Box 1128
Oshkosh, WI 54903-1128
I hereby certify that I am authorized to submit this return on behalf of the above identified
person/entity and that the information supplied hereon is accurate.
Signature of preparer Date
Short-Term Rental Application
city
I of Check applicable box:
Oshkosh ❑ New Application
❑ Renewal Application
_Owner lnforrnation _:_ _.. = _ ontalct Person/ Res�den .A enfi ___
--- -
Name: Owner ❑ (if other, fill in below)
Mailing Address: Name:
City, State, Zip: Mailing Address:
Telephone: City, State, Zip:
Email Address: Telephone: -
Email Address:
Checklist for Application: -
1. Winnebago County Tourist Rooming House License or Winnebago County Bed and
Breakfast License issued under Wis. Stat. Sec. 254.64;
2. Copy of a completed State Lodging Establishment Inspection form dated within one (1)
year of the date of issuance or renewal;
3. Seller's permit issued but the Wisconsin Department of Revenue, if any;
4. Floor plan and requested maximum occupancy;
5. Site plan including available onsite parking;
6. Designation of the Resident Agent (if applicable)
7. Room Tax permit; and
8. Permit or license issued pursuant to the provision of this Article
I hereby certify that to the best of my knowledge all required application materials are included with this
application. I am aware that failure to submit the required completed application materials may result in
denial or delay of the application request.
Signature of preparer Date
For City Use Only
Permit Number:
Date Issued:
City Hall;215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 http://www.ci.oshkosh.vii.us