Sales – Lodging and Related Services

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 enforceable written lease agreement.
  • An enforceable written agreement must be entered into at the time of sale (day one or before) if the stay will be 30 days or more. The enforceable written agreement must include a termination clause, date, and signature.

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

• Local Sales and Use Taxes
• Special Local Taxes

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

• bed and breakfasts
• campgrounds
• hotels
• motels
• resorts
• rooming houses
• trailer camps
• vacation home rentals

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 mandatory tips and gratuities
• telephone access charges in guest rooms

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:

• Special Local Taxes
• Minneapolis Special Local Taxes
• Revenue Notice 05-11, Local Lodging, Restaurant and Liquor Taxes

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