Join      Renew    Calendar    Donate    Login
Hospitality Minnesota
  • Membership
    • What Members Say
    • Join Forms >
      • Operator Form
      • Allied Business Form
      • Tourism Partner Form
    • Login to Renew
  • Engagement
    • Programs and Events
    • Education and Training >
      • ServSafe
      • Sex Trafficking Prevention
    • Volunteer
    • Member Directory
    • Allied Members >
      • Allied Network
      • Become a Partner
      • Advertise with Us
    • Calendar
  • Advocacy
    • At the Legislature >
      • 2022 Legislative Agenda
      • Capitol Updates
      • 2022 Days at the Capitol
    • Advocacy Action Center >
      • Contact Your Elected Officals
      • Advocacy Group
    • Issue Briefs
    • HOPAC
  • Resources
    • Hospitality Law Review
    • Reports and Guidance >
      • Economic Snapshots
      • Monthly STR Summaries
      • Jobs Reports
    • Vendor Directory
    • BusinessCenter
  • HMEF
    • About the Foundation
    • Our High School Programs >
      • Pro Start
      • HTMP
    • HMEF Resources >
      • For Educators >
        • DEED Grants Through HMEF
        • ProStart Educators
        • HTMP Educators
      • For Students >
        • Next Generation Leader
        • Scholarships
      • For Industry Professionals
    • HMEF Events >
      • ProStart Invitational
      • Stars of the Future
    • Support HMEF
  • About
    • About the Association >
      • 20-21 Accomplishments Report >
        • Key Accomplishments
        • Key Actions Timeline
      • Awards >
        • Hall of Fame Inductees
        • Of The Year Awards
    • NewsCenter
    • Contact Us

Protect the Use of Local Option Lodging Taxes

POSITION: Hospitality Minnesota supports the protection and appropriate use of the local option lodging tax.  It is important to protect the integrity of the current local option lodging tax law by ensuring that its revenue is dedicated and limited to the marketing of Minnesota’s destinations.  Given that the industry is currently engaged in a multi-year economic recovery from the pandemic, it is more important than ever to protect the statutory purpose of the local option lodging tax.
 
BACKGROUND: A city or town may vote to impose a tax of up to three percent on the gross receipts of lodging at a hotel, motel, rooming house, tourist court or resort.  The tax does not apply to the renting or leasing for a continuous period of 30 days or more.

  • Specifically, the statute states that 95% of the proceeds shall be used to fund a local convention or tourism bureau for the purpose of marketing and promoting the city or town as a tourist destination.

  • Examples of items for which the money is not to be used include, but are not limited to:
    • Athletic facility or community center construction or maintenance
    • Cross country ski or other trails
    • High school band uniforms
    • Seasonal decorations
    • Welcome signs

  • Minnesota law requires the state sales tax on lodging sold by online travel agencies, such as Orbitz, Expedia or Travelocity, should be paid on the entire amount charged to a guest rather than on the wholesale amount paid to a property. We support clarifying the local option lodging tax should be collected in the same manner.

  • Based on a substantial record of Minnesota Attorneys General opinions, it’s clear this money is not to be used to finance other city projects.

hospitality_minnesota_2022_issue_brief_protect_the_use_of_local_option_lodging_tax.pdf
File Size: 69 kb
File Type: pdf
Download File


Do you have a question?

Send
Picture
Picture
2520 University Av SE 
Suite #201 
Minneapolis  MN  55414
Phone: (651) 778-2400 | info@hospitalitymn.com

2022© Hospitality Minnesota.  All Rights Reserved.
Security, Refund and Privacy Policy
Picture
  • Membership
    • What Members Say
    • Join Forms >
      • Operator Form
      • Allied Business Form
      • Tourism Partner Form
    • Login to Renew
  • Engagement
    • Programs and Events
    • Education and Training >
      • ServSafe
      • Sex Trafficking Prevention
    • Volunteer
    • Member Directory
    • Allied Members >
      • Allied Network
      • Become a Partner
      • Advertise with Us
    • Calendar
  • Advocacy
    • At the Legislature >
      • 2022 Legislative Agenda
      • Capitol Updates
      • 2022 Days at the Capitol
    • Advocacy Action Center >
      • Contact Your Elected Officals
      • Advocacy Group
    • Issue Briefs
    • HOPAC
  • Resources
    • Hospitality Law Review
    • Reports and Guidance >
      • Economic Snapshots
      • Monthly STR Summaries
      • Jobs Reports
    • Vendor Directory
    • BusinessCenter
  • HMEF
    • About the Foundation
    • Our High School Programs >
      • Pro Start
      • HTMP
    • HMEF Resources >
      • For Educators >
        • DEED Grants Through HMEF
        • ProStart Educators
        • HTMP Educators
      • For Students >
        • Next Generation Leader
        • Scholarships
      • For Industry Professionals
    • HMEF Events >
      • ProStart Invitational
      • Stars of the Future
    • Support HMEF
  • About
    • About the Association >
      • 20-21 Accomplishments Report >
        • Key Accomplishments
        • Key Actions Timeline
      • Awards >
        • Hall of Fame Inductees
        • Of The Year Awards
    • NewsCenter
    • Contact Us