CLOUD DREAM HOMESGarden City is the main town on the Utah side of Bear Lake and a favorite summer getaway. It also has clear, specific rules for anyone renting a home for less than 30 days. Whether you already rent your place or are thinking about it, here is a plain-language walk through what the town and the Utah State Tax Commission require as of October 2026.
A quick note before we start: this is a summary, not legal or tax advice. The town updates its short-term rental ordinance from time to time (it made several changes in 2026), so always check the current code on the Garden City short-term rentals page before you apply or renew.
1. Know the application window
Garden City only accepts new short-term rental license applications from January 1 through April 30 each year. If you miss that window, you wait until the next January. Existing licenses must be renewed by December 31. Renewal requires the annual fee, proof of insurance, a fire inspection, and proof that your short-term rental taxes are paid. A license that is not renewed by December 31 is considered revoked, and you would have to start over with a new application during the next window.
Applications and renewals are handled through the town's online portal, which is linked from the short-term rentals page. Application and renewal fees are set by town resolution, so confirm the current amount with the town office.
2. What goes in the application
Under section 8-603 of the town code, your application packet needs:
- Proof of ownership and a site plan for each unit, including the parking area
- A floor plan with every enclosed space, its dimensions, and all sleeping areas labeled
- Proof of insurance for each unit, plus proof of liability insurance for the owner, the property management company, and the contact person
- The zone designation and street address for each unit
- A recorded temporary access easement if the home does not have direct vehicle access to a public street
- Documentation that transient room tax and sales and use taxes are being paid
- Name and 24-hour phone number for the property manager, or for a contact person who lives within 15 minutes of the property if you self-manage
- An inspection by the town's building inspector or code enforcement officer
- Signed acknowledgments that you (and your manager, if you have one) have read the town's short-term rental rules
Short-term rentals are allowed in all zones except where a homeowners association prohibits them. To block rentals, an HOA has to give the town a letter and a copy of its CC&Rs showing they are clearly prohibited, so check your HOA documents before you buy or apply.
3. Occupancy and parking limits
Your licensed occupancy is based on sleeping area. The code allows two people per 100 square feet of sleeping area, and children under three do not count toward the total. A room has to be at least 100 square feet, with proper exits, ceiling height and windows, to count as a sleeping area. Advertising more guests than your license allows can bring a fine.
Parking is tied to occupancy too. You need one parking space on the property for every four licensed occupants. A standard space is 10 by 24 feet on asphalt or concrete (older condos and townhomes approved before July 13, 2023 can use 9 by 18 foot stalls). Every vehicle, including trailers, boats and RVs, has to park in the designated spots on your property, not on the street or a neighbor's lot. At multifamily properties, spaces must be marked and assigned to each unit.
4. What you have to post and share with guests
- Send the town's short-term rental rules to the person who books within 10 days of the reservation, and display them prominently in the home
- Post a notice on or next to the front door with the 24-hour contact name and phone number, maximum occupancy, maximum vehicles, where the parking spaces are, and the snow removal parking rules
- Share the trash pickup day and trash rules. Animal-proof containers are required, and cans cannot sit at the curb for more than 24 hours
- Collect the appropriate sales, resort and transient room taxes
The sign ordinance also says no signs advertising short-term rentals are allowed on the rental property.
5. The 30-minute response rule and the three-strike policy
This is the rule that catches people off guard. When a Garden City code enforcement officer contacts your designated emergency contact by phone, text or email, that person must respond within 30 minutes. A response can be answering or returning the contact, acknowledging it with a plan to fix the issue, or showing up on site if asked. Missing that window is a code violation on its own.
Penalties work on a rolling 12-month basis. The first violation brings a written warning. The second brings a citation and fine, plus written notice that a third violation means revocation. The third brings a citation and revocation of the license for 24 months. Operating without a license at all can lead to a fine and makes the owner ineligible for a license for 24 months.
6. Taxes: sales tax plus transient room tax
Utah charges both sales tax and transient room tax on lodging stays of less than 30 consecutive days, and stays of 30 days or longer are exempt from both, according to the Tax Commission's Publication 56. The Tax Commission's rate table effective October 1, 2026 lists Garden City at an 8.25% combined sales and use tax rate and 14.82% total for transient room rentals, which means about 6.57% of that is transient room tax. Rates can change quarterly, so check the current table each quarter.
Two details owners often miss: cleaning fees, pet fees and reservation fees are taxable for both sales and transient room tax, and the town asks for proof your taxes are paid when you apply and again at every renewal. Sales tax is reported on form TC-62M or TC-62S and transient room tax on form TC-62T. See the Tax Commission's transient room tax page for more.
7. Buying a Garden City home that is already licensed
A short-term rental license does not transfer with the sale. The new owner needs a new license. If the home has bookings on the calendar, the buyer can apply for a temporary operation permit that lasts through December 31 of that year. Within 15 business days of closing, the new owner has to submit a signed affidavit of the ownership change, a list of all scheduled bookings through year end, and an agreement to follow the current rules. To keep renting after that, the buyer applies for a full license during the January through April window. If you are buying in the fall, plan for this timeline.
8. Using a property manager
If you hire a manager, the town requires that company to hold its own Garden City business license (see the town's business licenses page). Your manager also signs the application with you and is usually the 24-hour contact who has to meet the 30-minute response rule.
A note about Fish Haven and St. Charles
Fish Haven and St. Charles sit on the Idaho side of Bear Lake, so Garden City's ordinance does not apply there. Idaho and Bear Lake County rules apply instead. We will cover the Idaho side in a separate guide.
Sources
- Garden City, Utah short-term rentals page
- Garden City municipal code, Chapter 8-600 Short Term Rental (PDF)
- Garden City business licenses
- Utah State Tax Commission, Publication 56: Sales Tax Information for Lodging Providers
- Utah State Tax Commission, sales and use tax rates effective October 1, 2026 (PDF)
Want help with your Bear Lake rental?
Cloud Dream Homes manages short-term rentals in Garden City, including Seasons at Bear Lake, Bear Lake Table and Bear Lake Haus, so we work with these rules every season. If you want a second set of eyes on your setup before renewal season, we would be glad to talk.