On Tuesday, August 5th, at 6PM the City Council will consider approving a 12-month moratorium on short term rental housing in Wabasha. This will mean that there will be no new AirBnBs or VRBOs allowed in the City of Wabasha while the City seeks additional time to study and evaluate the impact of short term rental through the City of Wabasha. Public comments on the proposed moratorium can be sent to clerk@wabasha.org or public comments can be made during the public hearing at the meeting.
The moratorium is being considered after discussion at the July meeting on a growing concentration of Air BnBs and VRBOs in a residential neighborhoods. The draft moratorium can be viewed here.
More Information on Current Regulations for Short Term Rentals In Wabasha
All existing AirBnBs, VRBOS, and other short term rentals must be registered in Wabasha. That means anyone renting a home or apartment or any dwelling unit for less than 30 days must register their short term rental! There is a one-time fee of $200 to register.
Registration form here.
Lodging Taxes must also be paid for short-term rentals. A Short-Term Rental is a dwelling unit that is rented for a period of less than 30 consecutive days, for tourist or transient use. Per the Ordinance in Chapter 32, Lodging Tax is a separate local tax. Property owners must report and submit 3% of the lodging charges to the City of Wabasha. Once registered, property owners can choose to submit monthly or quarterly.
What does the city do with the Lodging Tax that gets collected? The Wabasha/Kellogg Convention and Visitors Bureau receives 95% which is used for marketing and promoting the Wabasha/Kellogg area as a tourist destination and the City of Wabasha retains 5% for administration as allowed by Minnesota Statues 469.190
How does Wabasha County tax short term rentals? Wabasha County assigns a higher tax rate of 1.25% compared to 1% for a residential homestead property.
If you have additional questions, City Hall staff can be reached at 651-565-4568.
