Short-Term Rental FAQs
What is a Short-Term Rental?
In general, a Short Term Rental is defined as any building or structure used as a home or sleeping place that is offered for rent or a fee and fewer than 30 days. This definition varies by community. Contact local officials for their classification of a Short-Term Rental.
In Brown County, a “tourist or transient” is defined as: tourists or other persons who occupy a dwelling unit for less than 60 days while traveling away from their permanent place of residence. Per ATCP 134.02(14)
What is a Tourist Rooming House?
A Tourist Rooming House (TRH) refers to any lodging place (homes, cabins, cottages, etc.) other than hotels and motels that include sleeping arrangements and are offered for pay to area visitors.
What is a Lodging Marketplace?
A Lodging Marketplace is a third-party business or organization that helps property owners list an advertise their property for short-term rentals. The lodging marketplace collects state and county taxes on behalf of the property owner and sends those funds to the appropriate tax authority.
Common examples of lodging marketplaces are airbnb.com, vrbo.com, and booking.com.
How does operating a Short-Term Rental affect my taxes?
Lodging marketplaces collect state and county taxes on behalf of the property owner and send those funds to the proper tax authority.
If you live in a municipality that collects room tax, additional room taxes are applied. Contact your municipality for more information on room taxes.
Does my insurance cover damages or injury to my guests?
In many cases (or most cases), no. You need to obtain special coverage to protect your home and financial security. It is extremely important to talk with your homeowner's insurance agent before listing your property as a short-term rental.