Executive Overview: Are Short-Term Rentals Allowed in Koosharem?

YES — Short-term rentals are explicitly allowed in Koosharem, UT. The town has several active STR businesses operating, including Grass Valley Rentals, Shelkor Developments, Koosharem Collectibles, and Koosh Cabins. The Koosharem Town Council is actively developing the regulatory framework for STRs, evidenced by Ordinance No. 2025-01 presented in June 2025, which establishes a 1% municipal transient room tax on short-term rentals. This tax ordinance indicates that STRs are not only permitted but also recognized as an established business category subject to local taxation.

How to Start a Short-Term Rental Business in Koosharem

Starting an STR business in Koosharem follows a straightforward process aligned with Utah state requirements and emerging local regulations:

Phase 1: Pre-Application Planning

1. Property Assessment: Verify your property is suitable for STR use and meets local zoning requirements
2. Market Analysis: Study the local tourism patterns and existing competition (note Koosharem's proximity to recreational areas)
3. Financial Planning: Budget for the 1% municipal transient room tax in addition to other fees

Phase 2: Legal Compliance

1. Business License: Obtain a general business license through Koosharem Town Hall
2. STR Registration: Register as a short-term rental operator (specific requirements pending ordinance implementation)
3. Tax Registration: Register for state and local tax collection, including the 1% municipal transient room tax

Phase 3: Operational Setup

1. Property Preparation: Ensure your property meets safety and occupancy standards
2. Marketing Setup: Establish your STR listing on appropriate platforms
3. Local Integration: Connect with Koosharem's business community and tourism infrastructure

Required Documents, Permits, Licenses, and Guidelines

Local Requirements (Koosharem)

• Business License: Required through Koosharem Town Hall (forms available at koosharem.us/businesslicense)
• STR Registration: Pending formal implementation of Ordinance No. 2025-01
• Property Address: Must be a legitimate Koosharem address for business registration
• Transient Room Tax Registration: Required once Ordinance No. 2025-01 is fully implemented

State Requirements (Utah)

• Sales Tax License: Required through Utah State Tax Commission
• Tourism Marketing Fee Registration: If applicable
• Business Registration: With Utah Division of Corporations and Commercial Code

Recommended Documentation

• Property Insurance: Liability coverage appropriate for STR operations
• Safety Certifications: Local fire safety and occupancy compliance
• Emergency Contact Information: Required guest notification protocols

Specific Regulations: Koosharem, Sevier County, and State Level

Koosharem Municipal Regulations

• Transient Room Tax: 1% tax rate on STR revenue (Ordinance No. 2025-01 pending final approval)
• Business License: Standard municipal business licensing requirements apply
• Zoning Compliance: STRs must comply with local zoning ordinances (specific residential/commercial designations to be verified)

Sevier County Level

• County Business Licensing: Working toward creation of county-wide business license program for data collection purposes
• Zoning Enforcement: County zoning policies apply to unincorporated areas
• Fire Safety: County fire marshal oversight for safety compliance

Utah State Regulations

• Tourism Marketing Fee: 0.55% fee on STR transactions
• Sales Tax: 6.85% combined state and local sales tax (varies by location)
• Business Registration: State requirements for business operation
• Health and Safety: State building and fire safety codes apply

Contact Information for Local STR Authority

Koosharem Town Hall (Primary Local Authority)

• Phone: (435) 638-7598
• Email: [email protected]
• Address: 5 North Main, Koosharem, UT 84744
• Website: koosharem.us/contact-us
• Office Hours: Tuesday and Thursday, 10am-2pm
• Council Meetings: Second Wednesday of every month

Additional Resources

• Sevier County: Contact for county-level zoning and business licensing information
• Utah State Tax Commission: For state tax registration and compliance
• Koosharem Building Department: For property compliance questions

Source References

1. Koosharem Town Council Meeting Minutes (June 11, 2025): https://www.utah.gov/pmn/files/1311225.pdf

   • Contains Ordinance No. 2025-01 establishing 1% transient room tax for STRs

2. Koosharem Town Website - Businesses Directory: https://koosharem.us/businesses

   • Lists current STR businesses and town contact information

3. Koosharem Town Website - Business Licenses: https://koosharem.us/businesslicense

   • Provides business license application forms and requirements

4. Koosharem Town Website - Contact Information: https://koosharem.us/contact-us

   • Official contact details for town administration

5. San Juan County General Plan (2022): https://sanjuancountyut.gov/sites/default/files/fileattachments/planning/page/3441/sjc_general_plan_2022.pdf

   • Contains regional planning context including business regulation goals

Investment Considerations

Koosharem presents a developing STR market with emerging regulatory clarity. The town's proactive approach to establishing STR taxation indicates institutional support for the industry. The presence of multiple existing STR operators demonstrates market viability, while the relatively simple regulatory framework makes entry barriers manageable for new investors. However, investors should monitor the full implementation of Ordinance No. 2025-01 and any additional regulatory developments as the town continues to formalize its STR policy framework.