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Last Updated: 8/28/2018

Sales – Lodging and Related Services

Lodging rental

Lodging is the rental of a room or rooms for a temporary place to stay or live. Lodging facilities must charge sales tax on short-term lodging and certain related services if the room rental is:

  • less than 30 days
  • 30 days or more, with no written lease agreement that requires the customer to give notice before ending the rental

Lodging fees may also subject to local sales taxes and city lodging taxes. For more information, see:

Examples of lodging facilities include (but are not limited to):

  • bed and breakfasts

  • campgrounds

  • hotels

  • motels

  • resorts

  • residential short-term rentals (vacation home rentals)

  • rooming houses

  • trailer camps

Lodging-related services

Lodging-related services provided within a guest room are taxable.

Examples include (but are not limited to):

  • cots, cribs, refrigerators, roll-away beds, and exercise equipment
  • food or liquor from mini-bars and refrigerators
  • in-room safes
  • laundry and dry cleaning services
  • pay-per-view movies and video games
  • room service or room delivery, including tips and service charges added by the seller 
  • telephone access charges in guest rooms

Local sales tax

Some cities and counties have local sales and use taxes. If you make sales into or are located in an area with a local tax, you may owe local sales or use tax. For more information, see Fact Sheet 164, Local Sales and Use Taxes.

To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use our Sales Tax Rate Calculator to help you determine the sales tax rate.

Note: The rate calculator does not include special local taxes.

For more information, see:

Special local taxes

Several cities have special local taxes on sales of specific items such as food, liquor, lodging, and entertainment. The Minnesota Department of Revenue administers most of these taxes.

For more information, see:

Note: Some cities and localities administer their own lodging taxes. For more information, contact each city directly.

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