What Laws Do Minnesota Airbnb Hosts Need to Follow?
Minnesota real property owners must understand several layers of regulationBy Doug Mentes, Esq. | Last updated on January 27, 2023
Use these links to jump to different sections:federal fair housing law. Basing a decision of whether to rent to someone on that person’s status in a protected class will violate the law and could even potentially result in a federal law suit.
Minnesota Department of RevenueRegulation at the state level primarily involves the state revenue department. In Minnesota, a lodging retailer must collect, report and remit sales and use taxes on the full sales price of lodging. Sales tax is due on lodging in Minnesota if the rental period is for one of the following periods:
- Less than 30 days
- 30 days or more if there is no enforceable written lease agreement that requires the customer give notice of their intention to end the lease
- It uses an accommodations intermediary to facilitate all sales of lodging at the owner’s property
- Rental of its residential property by the owner is an isolated incident, not made in the normal course of business
Local LawsMany Minnesota cities and towns have short-term rental laws. Property owners are typically required to obtain a rental license to rent out their property. The requirements necessary to obtain the license vary greatly based on different city law. The licenses ensure owners comply with local building and fire code. Owners must also review local zoning code to ensure short-term rentals are not prohibited in the property location. The cities of St. Paul and Rochester appear to be the only Minnesota cities that impose a local sales tax on short-term lodging. Finally, don’t forget that if your property is subject to a homeowner’s association agreement, that will present another layer of regulation property owners must comply with before listing their property for AirBnB rental or other short-term rental.
Minneapolis & St. PaulProperty owners in the city of lakes who reside on the property they rent out are exempt from the Minneapolis code requirement for a short-term rental license. For owners that rent out their home and leave during a renter’s stay, Minneapolis requires a short-term rental property registration. For non-owner-occupied property that is rented out, Minneapolis requires owners obtain a full rental license. In St. Paul, the license structure is simple: Every owner needs a short term rental host license to rent out their property to short-term guests. If the property is not owner-occupied, the city also requires the owner obtain a fire certificate of occupancy. St. Paul owners also must pay a 3 percent local lodging tax on all sales—a tax administered through the state. The requirements for short-term rentals will vary greatly depending on the location of the property, for example:
- Duluth – non-owner occupied required to receive approval before the city council
- Rochester – non-owner-occupied required to obtain a rental license and pay lodging sales tax
- Bloomington – all owners must obtain rental license and city inspection
- Stillwater – requires some owners appear before the city planning commission to obtain a conditional use permit
- Roseville – all owners required to obtain a rental registration
- Grand Marais, Lutsen, and Cook County – no license required
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