Marathon council reviews large hike in vacation-rental fees

At its Jan. 13 meeting, the Marathon City Council examined a draft resolution that would substantially raise vacation-rental license fees, in some cases more than doubling current rates, as a way to have short-term rentals pay a larger share of the costs for city services they use. The proposal would set new and renewal license fees at roughly $2,000 to $3,000 per unit depending on size and would, under the draft plan, produce about $1.23 million a year in revenue.

City staff and council members walked through the formula used to reach those figures, explaining that the calculation apportions portions of the legal department, code enforcement, parks, and fire/EMS budgets to vacation-rental units. Officials framed the change as an effort to align fee revenue with the expenses the city incurs in regulating and responding to incidents at short-term rentals.

The proposal drew a sizable turnout of vacation-rental owners and property managers who urged caution. Attendees warned that the fee increases could be economically burdensome for small operators and said the council’s analysis did not capture the benefits that rentals bring to local businesses through visitor spending. Concern about timing and transparency also surfaced after supporting documents were distributed late; council members asked for more time to review the data before taking final action.

Council members responded by delaying final consideration to a subsequent meeting to allow additional review and follow-up analysis. The postponement gives the council time to reconcile the revenue estimate with community input and to consider adjustments to the fee schedule or exemptions that could mitigate impacts on long-standing local operators.

For Marathon and Monroe County residents, the proposed fee hike carries several implications. If adopted as drafted, higher licensing costs could be passed along to guests or reduce profit margins for small-scale hosts, potentially shifting the local short-term rental market. The additional revenue would provide the city with a new funding stream for public safety and code enforcement, but the balance between revenue generation and economic impacts on the tourism ecosystem remains unresolved.

The council’s next steps will determine whether the draft becomes ordinance and how quickly any new fees take effect. Residents and owners who want to influence the outcome should track future council agendas and public comment opportunities as the city refines the proposal.