Overview: Are short‑term rentals allowed in Lake Mills, WI?

Yes—short‑term rentals are permitted in Lake Mills, Wisconsin. However, Lake Mills (Town) does not have a city‑specific STR ordinance. STRs must operate under the Town’s general ordinances (e.g., nuisance and noise) and applicable state requirements. Wisconsin Statutes limit the degree to which municipalities can regulate STRs; town rules must be “reasonable and not so restrictive as to amount to an illegal prohibition” on short‑term rentals. If a property meets the state definition of a tourist rooming house (i.e., you rent lodging to the public for more than 10 nights per year), you must obtain state licensing and pass inspection. Compliance with state sales tax and room tax rules is mandatory.

How to start a short‑term rental business in this market

• Confirm zoning and use permissions: STRs are subject to the Town’s zoning and nuisance rules. Ensure your property’s current use is allowed under local zoning and that any HOA covenants (if applicable) permit rentals.
• Determine licensing requirements: If you will rent the property for more than 10 nights per year to the public, you must obtain a Wisconsin Tourist Rooming House license from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). This triggers a state inspection and annual license renewal.
• Prepare for state inspection: DATCP assigns an inspector after you submit your license application. Address health, safety, fire, sanitation, and related standards as defined by DATCP for tourist rooming houses.
• Set up tax compliance: Collect and remit Wisconsin sales tax (5.5%) and any applicable room taxes. You will need to register for tax accounts and file returns per Wisconsin Department of Revenue requirements.
• Implement good‑neighbor practices: Adopt occupancy caps, quiet hours, parking controls, trash and recycling procedures, and a clear guest code of conduct to mitigate neighbor complaints and remain compliant with nuisance ordinances.
• Build an operations playbook: Use dynamic pricing, professional photography, and reliable cleaning and maintenance partners to maintain a strong guest experience. Maintain documentation for licensing, tax remittance, and guest communications.
• Monitor local policy: STRs have been discussed publicly by the Town Board and residents. Stay informed of any future changes to town ordinances.

Required documents, permits, licenses, and guidelines

• Tourist Rooming House License (DATCP)
  • Required if you rent lodging to the public for more than 10 nights per year.
  • Fees: $110 annual license fee plus a $300 one‑time pre‑inspection fee.
  • Licensing triggers a state inspection; the state assigns an inspector upon application.
  • Annual renewal and ongoing compliance with state health and safety requirements.
• State tax registrations (Wisconsin Department of Revenue)
  • Register to collect sales tax and any applicable room taxes on transient lodging.
  • Collect and remit 5.5% sales tax on rentals; additional local room taxes may apply.
  • File periodic returns per Department of Revenue guidance.
• Documentation and internal policies
  • Safety and occupancy records; inspection reports; incident logs.
  • Guest rules and code of conduct (quiet hours, occupancy limits, parking, waste management).
  • Operational contracts (cleaning, maintenance, pest control, noise monitoring).
  • Insurance appropriate for STR operations.
• Local ordinances
  • Town of Lake Mills nuisance ordinance and related local codes remain applicable (noise, disorderly conduct, sanitation, etc.).

Specific regulations for short‑term rentals (Town, County, State)

Town of Lake Mills

• No dedicated STR ordinance. STRs must comply with the Town’s general ordinances, including nuisance provisions that address issues such as excessive noise, public drunkenness, and improper sanitation.
• Wisconsin towns have limited authority over STRs; any local rules must be reasonable and not effectively ban STRs.

Jefferson County (context)

• Sales tax includes a 0.5% county tax component within the 5.5% state sales tax rate; STR operators must collect and remit all applicable taxes.
• Property‑level zoning oversight is primarily local; confirm any county zoning overlays if your site is near shorelines, wetlands, or environmental zones.

Wisconsin State

• DATCP licenses and inspects tourist rooming houses (short‑term rentals offering lodging to the public for more than 10 nights per year).
• STRs must meet health, safety, fire, sanitation, and related standards under Wisconsin law and administrative code for tourist rooming houses.
• Sales and room taxes apply to transient lodging. Operators must register with the Wisconsin Department of Revenue, collect the appropriate taxes, and file returns.

Contact information (local/state authority in charge of STRs)

• Town of Lake Mills (Town Board/Administrator)
  • Municipal Office (mailing/public body contact via news and public records)
  • Website: Not specified in sources
  • Phone/Email: Not specified in sources
  • Role: Receives nuisance and zoning complaints; considers any future STR policy updates.
• Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP)
  • Tourist Rooming House Program
  • Phone: 608‑224‑4923 (program line)
  • Email: [email protected] (general inquiries)
  • Website: datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx
  • Role: Licenses and inspects tourist rooming houses; enforces state standards for health, safety, fire, sanitation.
• Wisconsin Department of Revenue (DOR)
  • Website: www.revenue.wi.gov/Pages/TaxPro/2021/Homeowners-and-Individuals-Selling-Short-Term-Lodging.aspx
  • Role: Administers sales tax and room tax requirements for STRs; provides registration and filing guidance.

Links to source pages

• Town of Lake Mills residents raise concerns about vacation rentals: www.hngnews.com/lake_mills_leader/town-of-lake-mills-residents-raise-concerns-about-vacation-rentals/article_c240dcea-24c7-11ed-941c-339883362931.html
• Wisconsin DATCP Tourist Rooming Houses: datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx
• Wisconsin Department of Revenue — Short‑Term Lodging: www.revenue.wi.gov/Pages/TaxPro/2021/Homeowners-and-Individuals-Selling-Short-Term-Lodging.aspx

Notes

• This guide reflects the absence of city‑specific STR regulations in Lake Mills and consolidates the requirements publicly discussed in local media and state agency resources. Always verify the most current statutory and administrative code provisions before operating an STR.