Mobridge council approves first reading of short-term rental licensing ordinance with neighbor-notification change

The Mobridge City Council passed the first reading of Ordinance 24-02, a licensing framework for short-term rentals that defines vacation home rentals and bed-and-breakfast facilities and would require operators to hold lodging and sales-tax licenses and insurance.

The ordinance, introduced by the mayor, defines a short-term rental as a unit rented for periods not exceeding 30 consecutive days and excludes owner-occupied rooms from the licensing requirement. Council members discussed a proposed cap of 25 licensed short-term rentals citywide; the ordinance would allow existing facilities to apply for licensure within 60 days of passage and count toward that cap.

Under the draft, applicants must provide owner contact information, a legal description of the property, proof of a lodging license and a sales-tax license from the South Dakota Department of Revenue, and insurance coverage endorsements for short-term rentals. The clerk read that “no short term rental may be operated in the city without the appropriate valid license.” State inspections (fire and safety) were noted as part of the lodging-license process.

Council debated neighbor notification procedures and amended the ordinance at first reading to require first-class mail to adjacent property owners rather than certified mail, citing concerns about cost and timeliness. A council member asked about a narrow exemption for rentals totaling 14 days or fewer per calendar year; the council was told those short exceptions would not require licensure under the ordinance’s definitions.

The first reading passed by roll call, and the ordinance will return for a second reading where council members encouraged further review of definitions and enforcement details before final passage.