Todd County staff propose stiffer enforcement and higher fees for short‑term rentals after three years of ordinance enforcement

County staff told commissioners in a work session Aug. 19 that enforcement of the county’s short‑term vacation rental ordinance — adopted in February 2022 — has grown more difficult as property owners increasingly list units through multiple booking platforms, operate through LLCs or do not maintain local contact information.

Environmental‑health staff said they currently license about 30 short‑term rentals and had collected about $7,300 in fees year‑to‑date, while audit of online listings showed at least 46 properties operating without licenses. Inspectors described practical hurdles: owners unavailable for inspections, properties advertised under different management platforms, and many units being occupied only seasonally, which limits inspection windows.

Staff proposed several changes to improve compliance and cover inspection costs: a reworked fee schedule that charges short‑term rentals by capacity rather than per-bedroom lodging fees; a late‑payment penalty to be applied to operators who have been operating without a license during the previous year; and a noncompliance fee when a licensed operator denies required on‑site inspection access during hours of operation. The proposal also recommends clarifying the county’s definition of a “resort” (staff proposed treating four or more rental units under common ownership as a resort) so rules for resorts and short‑term rentals align with state definitions and neighboring counties’ practice.

Staff compared local proposals with neighboring counties: Morrison County is planning higher fees and Douglas County’s “Horizon” structure charges by capacity; the proposed Todd County fee schedule would place short‑term rental fees in a similar range to those peers. Staff said the county must give advance notice and implement any fee changes for 2026 budget-year billing; they recommended finalizing a fee schedule this fall.

Commissioners raised enforcement and fairness issues: some said a large fee would discourage hobby operators while others said stronger penalties are needed so operators do not undercut licensed resorts and local businesses. Commissioners asked staff to identify unlicensed properties and to coordinate enforcement with the assessor, planning and zoning and county attorney so administrative fines and special assessments can be placed on tax statements for repeat or egregious violators. Environmental health staff said many properties also lack up‑to‑date septic or water tests; staff suggested requiring annual water tests for properties served by private wells.

Staff said next steps are to finalize a fee schedule for presentation with the county’s 2026 fee notices and then implement a compliance program that includes notices, certified mailings to owners, targeted inspections and potential special assessments for noncompliance that is not corrected.

No ordinance changes were proposed at this meeting; staff said the changes can be implemented through the county’s fee schedule and policy updates but noted county and state definitions should be harmonized to reduce confusion.