Do I need a permit for short-term rentals in Tawas City?

**Yes**, you need a Zoning Compliance Permit to operate a short-term rental (Tourist Home) in Tawas City. This permit ensures your rental complies with zoning regulations, especially regarding location (R-2 or B-2 districts), occupancy limits, and off-street parking. Contact the City Planning Department for details on how to apply. *(53 words)*

What is the TOT tax rate in Tawas City?

**No**, Tawas City does not have a city-specific lodging tax. However, you are required to collect and remit both the Michigan State Use Tax (6%) and the Iosco County Convention tax (5%) on your rental income. Ensure you register with the state to handle these tax obligations. *(51 words)*

Are short-term rentals allowed in Tawas City?

**Yes**, short-term rentals, defined as 'Tourist Homes', are generally permitted in Tawas City, primarily within the R-2 and B-2 zoning districts. However, they are typically prohibited in the strictly residential R-1 district. Always verify your property's zoning with the City Planning Department before listing your property to ensure compliance. *(52 words)*

What happens if I operate an illegal STR in Tawas City?

**Penalties can include fines** and legal action if you operate a short-term rental without the required Zoning Compliance Permit or in violation of zoning regulations in Tawas City. Ensure you obtain the necessary permit, adhere to occupancy limits, and provide adequate off-street parking to avoid potential enforcement actions. *(51 words)*

How much does an STR permit cost in Tawas City?

**Permit fees vary**; it's best to contact the Tawas City Planning Department directly for the most up-to-date information regarding the Zoning Compliance Permit fees for Tourist Homes. Costs can depend on property type and other factors. Make sure to inquire about all associated fees and application requirements during your inquiry. *(53 words)*

Tawas City

Permissive

STRs Allowed

MichiganLast updated: February 10, 2026

Baseline Verification

80%

Basic verification complete

Verified: Jan 30, 2026

3 Official Sources

Summary

Tawas City regulates short-term rentals as 'Tourist Homes' under its zoning code, primarily allowing them in the R-2 and B-2 districts. A Zoning Compliance Permit is required to operate, and rentals must adhere to occupancy limits and off-street parking requirements. While there is no specific city-level lodging tax, hosts must collect and remit Michigan State Use Tax and Iosco County Convention tax.

Restriction Level

✅

Permissive

Score: 5 (restrictive)

Why this classification:

•Permit required
•No night cap
•No primary residence requirement
•No STR-specific fee

In Plain English

To host an Airbnb in Tawas City, you must first verify that your property is in the correct zone (usually R-2 or B-2), as rentals are generally prohibited in the strictly residential R-1 district. You need to obtain a Zoning Compliance Permit from the City Planning Department. You are required to provide enough off-street parking for all your guests and follow noise and occupancy rules. Additionally, you must register with the state of Michigan to pay the 6% Use Tax and 5% County Excise tax on your rental income.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Processing Time

10-14 business days

6 Things Hosts Often Miss

1.STRs (Tourist Homes) are NOT permitted in the R-1 (Single-Family Residential) district.
2.Off-street parking is mandatory for all guests; street parking is not counted toward requirements.
3.Occupancy is strictly limited to 2 adults per bedroom.
4.Tawas City defines short-term stays as anything under 30 days.
5.Verify your exact location; properties in neighboring East Tawas or Tawas Township have different rules.
6.You must register for Michigan State Use Tax as platforms do not always remit the local county portion (5%).

Regulation Details

Eligibility(4)

•Tawas City allows STRs in the following property types: Single-family dwelling, Multi-family dwelling units.
•Tawas City does NOT require the property to be a primary residence. Investment properties are allowed.
•Tawas City: You can have a co-host or property manager help manage your listing.

Requirements(16)

•Tawas City: You must have a local agent available 24/7 who is located within 45 minutes of the property.
•Tawas City STR warning: Max occupancy and the local agent's name must be part of the window-posted notice.
•Tawas City STR warning: You must have a local agent available 24/7 who is located within 45 minutes of the property.

Application Process(7)

•Step-by-step guide to get an STR permit in Tawas City: Step 1: Review Ordinance - Read Section 7.39 of the Tawas City Zoning Ordinance to ensure compliance with agent, safety, and occupancy rules. Estimated time: 1 hour. More info: https://tawascity.org/wp-content/uploads/2022/10/Zoning-Ordinance-2022-Updated.pdf Step 2: Prepare Documentation - Create a site plan for parking, a scaled floor plan, and a fire escape plan. Documents needed: Site Plan, Floor Plan, Fire Escape Plan. Estimated time: 2-4 hours. Step 3: Submit Application - Complete the Short Term Rental Zoning Permit Application and pay the $300 fee. Documents needed: Permit Application, Self Inspection Form. Estimated time: 1-2 weeks for processing. Cost: 300. More info: https://tawascity.org/wp-content/uploads/2019/02/Short-Term-Rental-Zoning-Permit-Application.pdf

Fees & Costs(2)

•Tawas City: You must notify all neighbors within 100 feet of the local agent's phone number.
•Tawas City charges a registration fee of $300 (one_time).

Taxes(1)

•Michigan has a state sales tax of 6% that applies to STR rentals.

Limits & Restrictions(3)

•Tawas City enforces quiet hours: Subject to general city noise ordinances.
•Tawas City occupancy calculation: Occupancy limited by Ordinance standards (checked during inspection). Count your bedrooms to determine your max guest limit.
•Tawas City limits stays to a maximum of 45 nights.

Safety Requirements(1)

•Tawas City requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Fire escape plan displayed prominently, Local agent must be within 45 minutes travel time, Notice in first-floor window (16pt type) with agent contact and max occupancy, Street address posted in two prominent locations (near kitchen and telephone/pool).

Penalties(3)

•Tawas City: Transient occupancy is defined as 45 days or less in Tawas City, rather than the standard 30 days.
•Tawas City: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Tawas City enforces the following penalties for STR violations: First offense: Civil Infraction / Fines. Permit may be revoked for violations.

Exemptions(2)

•Tawas City: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Tawas City exempts the following from STR regulations: long-term rentals (30+ days).

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other Michigan Markets

Ann Arbor

Michigan

Moderate

Ann Arbor requires all short-term rentals to be licensed annually and prohibits non-principal residence rentals in residential zoning districts.

Permit required

0.1% total tax

Alger County

Michigan

Permissive

Alger County does not have a county-wide short-term rental ordinance or registration requirement for unincorporated areas. Regulation in this jurisdiction is primarily handled at the township level (e.g., Au Train Township or Burt Township), where specific permits and zoning rules may apply.

0.1% total tax

Cheboygan County

Michigan

Permissive

Unincorporated Cheboygan County does not currently have a dedicated short-term rental licensing ordinance, though the county has held discussions regarding future regulations. Currently, STRs are generally treated as 'Tourist Homes' under the zoning code and must comply with standard residential use requirements and health department septic limits.

0.1% total tax

Newberry

Michigan

Permissive

The Village of Newberry has no dedicated short-term rental ordinance or permit system. STRs are currently unregulated at the municipal level, though Michigan state-level taxes still apply.

Tawas City

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

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Regulation Details

Eligibility(4)

Requirements(16)

Application Process(7)

Fees & Costs(2)

Taxes(1)

Limits & Restrictions(3)

Safety Requirements(1)

Penalties(3)

Exemptions(2)

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Step-by-Step Application Guide

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Tawas City

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

Step-by-Step Application Guide

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Frequently Asked Questions

1Do I need a permit for short-term rentals in Tawas City?

2What is the TOT tax rate in Tawas City?

3Are short-term rentals allowed in Tawas City?

4What happens if I operate an illegal STR in Tawas City?

5How much does an STR permit cost in Tawas City?

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