Overview: Are Short-Term Rentals Allowed in Stoughton?

Short-term rentals (STRs) are allowed in Stoughton, Wisconsin. As of July 2025, Stoughton does not have city-specific STR ordinances in place. The City Council has discussed the topic and acknowledged limits under state statutes, particularly for stays of 7–30 nights, and the possibility of future committee exploration. Therefore, STRs operate under Wisconsin state law and Dane County public health requirements. Nearby, the Town of Dunn (in Dane County) has adopted its own STR ordinance with stricter conditions (e.g., $450 operator fee, 30-day cap for non‑owner‑occupied rentals when not on site, occupancy and parking limits). Stoughton operators should be aware of county-level rules, zoning, HOA/lease restrictions, and any municipal room tax rules.

Key takeaway: STRs are permitted in Stoughton at the state level. For the foreseeable future, operations must comply with state health and safety rules, any Dane County requirements, and local zoning or taxation rules as applicable.

How to Start a Short-Term Rental Business in Stoughton (Step-by-Step)

1. Confirm zoning and property-use eligibility

   • Verify your property’s zoning permits short-term lodging (contact Stoughton City Hall and the Stoughton Planning & Zoning Department).
   • Review HOA, condo, lease, or co-op rules; many organizations restrict STRs.

2. Decide your business model

   • Whole-unit rental vs. room rental.
   • Hosted vs. non-hosted; determine on-site presence and guest management approach.

3. Register for taxation

   • Wisconsin Seller’s Permit: Register for sales tax unless you rent exclusively through Airbnb/VRBO (they collect and remit).
   • Room tax: Register with the municipal clerk if your municipality imposes room tax. For Stoughton, confirm current room tax status with the city (Rates and contact details below).

4. Obtain health licensing (required in Dane County)

   • Tourist Rooming House (TRH) license from Public Health Madison & Dane County (PHMDC).
   • Schedule a pre-inspection and ensure compliance with health and safety standards.

5. Comply with state health and safety codes

   • Meet Wisconsin Administrative Code ATCP 72 requirements for hotels/motels and tourist rooming houses (see link below).

6. Insurance

   • Carry liability and property damage insurance appropriate for lodging operations.

7. Operations setup

   • Guest registration, safety equipment (smoke and CO detectors, fire extinguisher), occupancy limits, off-street parking per local code.
   • Establish cleaning and sanitization protocols.

8. Compliance tracking and renewals

   • Track license expiration dates (licensing year runs July 1–June 30).
   • Maintain guest registries and records for inspection.

Required Documents, Permits, Licenses, and Guidelines

• Wisconsin Seller’s Permit (unless listing exclusively on Airbnb/VRBO)
  • Registration with Wisconsin Department of Revenue.
  • URL: www.revenue.wi.gov/Pages/FAQS/pcs-seller.aspx
• Dane County Tourist Rooming House (TRH) License
  • License application and annual licensing year (July 1–June 30).
  • Inspection required; maintain compliance with ATCP 72.
  • Application forms and checklists provided by PHMDC.
  • URL: publichealthmdc.com/businesses-licensing/places-to-stay
  • Health inspection checklist: publichealthmdc.com/documents/short_term_rentals_inspection_checklist.pdf
• Zoning confirmation
  • Coordinate with Stoughton Planning & Zoning for land-use and occupancy standards.
• Room tax registration
  • Confirm with the Stoughton clerk whether room tax applies and obtain a certificate if required.
• Safety and sanitation documentation
  • Evidence of smoke/CO detectors, fire extinguisher, sanitization procedures, maximum occupancy signage, guest registry.
• ATCP 72 reference (state lodging standards)
  • URL: docs.legis.wisconsin.gov/code/admin_code/atcp/055/72.pdf

Note on Dane County licensing (PHMDC)

• All Dane County short-term rentals must be licensed and inspected each year.
• Licensing year: July 1–June 30; pre-approval inspection required before hosting guests.
• URL: publichealthmdc.com/businesses-licensing/places-to-stay

State, County, and Municipal Regulations for Stoughton

• State of Wisconsin
  • No statewide ban on STRs; short-term lodging falls under ATCP 72.
  • Local limits cannot restrict rentals to fewer than 180 days per 365-day period.
  • Reference: ATCP 72 (Wisconsin Administrative Code) for tourist rooming houses.
• Dane County (PHMDC)
  • Annual TRH licensing and inspection required for STRs in Dane County (including Stoughton).
  • Health and safety compliance; submission of application and inspection scheduling.
• City of Stoughton
  • No specific STR ordinance as of July 2025; city has discussed exploring regulation in the future.
  • Zoning and building occupancy limits apply; confirm with City Planning & Zoning.
  • Room tax: Confirm applicability and registration with the city.
• Town of Dunn (for reference if you operate in Dunn instead of Stoughton)
  • Annual operator fee: $450.
  • Permit revocation reinstatement: $1,800.
  • Fines: $300–$1,000 per day for violations.
  • 12-month wait to reapply after permit revocation.
  • Non-owner-occupied primary residence limit: up to 30 days per year when not on site; other occupancy/parking rules apply.
  • Source: Stoughton News article on Town of Dunn STR ordinance.

Taxes for Stoughton Area STRs

• Wisconsin Sales Tax
  • 5% state sales tax applies (Airbnb and VRBO collect and remit if you list exclusively on those platforms).
• Dane County Sales Tax
  • 5.5% combined sales tax applies in Dane County (5% state, 0.5% county).
• Room Tax
  • Registration required with the municipality if room tax applies.
  • Madison collects room tax; if you list only on Airbnb/VRBO in Madison, they collect and remit, and registration is still required (with an exception noted by PHMDC for certain registrations).
  • In Stoughton, confirm with the city clerk whether a room tax is imposed, the rate, and how to register.
  • Note: Room tax regimes vary across municipalities in Dane County; operators must confirm specifics for Stoughton.

Contact Information (Local Authority in Charge of STRs in Stoughton)

• Public Health Madison & Dane County (Licensing & Inspections for STRs/TRHs)
  • Phone: 608-266-4821 (main)
  • Environmental Health (inspections): 608-242-6515
  • Email (STR unit): str@publichealthmdc.com
  • Email (licensing admin): LEadmin@publichealthmdc.com
  • URL: publichealthmdc.com/businesses-licensing/places-to-stay
• City of Stoughton (Zoning, Room Tax, General Municipal)
  • Phone: 608-873-7791 (City Hall)
  • Address: 381 E Main St, Stoughton, WI 53589
  • Website: www.stoughtonwi.us/
  • Room Tax and Zoning: Confirm with city offices; details not included in the provided content.
• Wisconsin Department of Revenue (Seller’s Permit)
  • URL: www.revenue.wi.gov/Pages/FAQS/pcs-seller.aspx

Links to Source Pages

• Stoughton City Council discusses STR regulations (July 2025)
  • citizenportal.ai/articles/5344142/Stoughton/Dane-County/Wisconsin/Stoughton-City-Council-discusses-short-term-rental-regulations-and-Riverfront-redevelopment-plan
• Town of Dunn adopts STR ordinance
  • www.stoughtonnews.com/news/town-of-dunn-board-adopts-short-term-rental-ordinance/article_bfa200eb-a680-571e-82d0-df9c2a8bedd1.html
• Public Health Madison & Dane County: Places to Stay (STR/TRH licensing)
  • publichealthmdc.com/businesses-licensing/places-to-stay
• PHMDC STR Inspection Checklist
  • publichealthmdc.com/documents/short_term_rentals_inspection_checklist.pdf
• Wisconsin DATCP: Tourist Rooming Houses (state-level definition and program)
  • datcp.wi.gov/Pages/Programs_Services/TouristRoomingHouses.aspx
• Wisconsin Administrative Code ATCP 72 (Hotels, Motels, and Tourist Rooming Houses)
  • docs.legis.wisconsin.gov/code/admin_code/atcp/055/72.pdf
• Wisconsin Seller’s Permit FAQ (Department of Revenue)
  • www.revenue.wi.gov/Pages/FAQS/pcs-seller.aspx
• GoSummer: Wisconsin Short-Term Rental Laws (overview, taxes, regulations)
  • www.gosummer.com/post/wisconsin-short-term-rental-laws
• City of Stoughton official website
  • www.stoughtonwi.us/
• Town of Pleasant Springs (nearby Dane County municipal ordinances reference; not directly governing Stoughton)
  • tn.pleasantsprings.wi.gov/resident-services/town-ordinances.asp

Notes and Practical Reminders

• Since Stoughton lacks a dedicated STR ordinance as of July 2025, confirm zoning and building occupancy rules directly with city planning staff.
• If your property is within the Town of Dunn’s jurisdiction, you must follow Dunn’s specific STR ordinance (fees, caps, and enforcement rules).
• Keep detailed records (guest registries, inspection compliance, fee payments) and renew licenses before June 30 annually to avoid interruptions in operations.
• For taxation, ensure you understand whether your municipality imposes room tax and how to register; rates and collection practices vary and should be verified with the city clerk.