How Racine Handles Short-Term Rentals: A Practical Guide

Racine maintains 26 local ordinances across all categories, and 4 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Racine falls on the strict-to-permissive spectrum compared to other cities.

Taxes & Fees

Wisconsin state room tax is 5% (WI Stat. §77.98). Racine levies additional local room tax. Platforms auto-collect in many jurisdictions. Total 10 to 14% typical.

Key details: State Room Tax: 5%. Local Tax: 6 to 8% typical. Platforms: Auto-collect in many areas. State Law: WI Stat. §77.98.

Non-remittance: penalties + interest per WI Dept. of Revenue. Tax evasion: misdemeanor charges.

Permit Requirements

Racine regulates but cannot ban STRs under WI Act 59 (2017). DATCP tourist rooming house license may be required. WI Stat. §66.1014.

Key details: Licensing: Check Racine rules. Bans: Prohibited by WI Act 59. DATCP: Tourist rooming house license. State Law: WI Stat. §66.1014.

Operating without license: $200 to $1,000/day varies by city. DATCP violations: separate enforcement. Safety violations: correction notice.

Parking Rules

Short-term rental guests in the City of Racine must follow the citywide alternate-side overnight parking ordinance in Chapter 94 of the Racine Municipal Code, which restricts on-street parking between 2:00 a.m. and 6:00 a.m. and switches sides by odd or even calendar date. Wisconsin Statute 66.1014 preserves Racine's authority to apply parking rules to STR operators and their guests.

Key details: Alternate-Side Code: Sec. 94-9. Hours: 2am-6am. Standard Fine: $30. Winter Schedule: Dec 1-Apr 1, 7 days. Penalty Code: Sec. 94-15.

Alternate-side overnight parking violations are issued by the Racine Police Department at $30 per ticket under Section 94-15 of the Racine Municipal Code, with late-fee escalation under Section 94-18. During declared snow emergencies, vehicles parked on arterial or collector streets are subject to immediate towing under Section 94-9. Repeated parking-related complaints against a Tourist Rooming House can be reviewed by the Public Health Department, Building Division and Fire Department at the annual joint inspection required for a Chapter 22 Article XVIII permit renewal.

Noise Rules

Short-term rentals operating in the City of Racine are licensed as Tourist Rooming Houses under Chapter 22, Article XVIII and Chapter 114 of the Racine Municipal Code, and must comply with the citywide noise rules in Chapter 42 (Environment). Wisconsin Statute 66.1014 prevents Racine from banning rentals of seven days or longer but expressly preserves the city's authority to enforce noise ordinances against STR hosts and guests.

Key details: STR Code Article: Ch. 22 Art. XVIII. Zoning Code: Ch. 114. Noise Code: Ch. 42. Primary Residence: Required. State Authority: Wis. Stat. 66.1014.

Racine noise complaints are handled by the Environmental Health Division at 262-636-9203 and by the Racine Police Department through its loud-music complaint process. Citations are issued under Chapter 42 of the Racine Municipal Code and are subject to the general forfeiture schedule in the city code. Repeated noise complaints against a licensed Tourist Rooming House can also be cited at the annual Chapter 22 Article XVIII license inspection by the Public Health Department, putting the STR permit at risk of non-renewal under the joint Public Health, Building and Fire inspection process.

The Bottom Line

Racine's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Racine is broadly strict or permissive.

Keep in mind that Racine can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.