Legislators to hold hearing about short-term rental taxation in Minnesota

Joe Friedrichs | March 6, 2020

Both the Minnesota House and Senate have introduced legislation regarding the proper tax classification for short-term rentals across the state.

A committee within the Minnesota House will hold a hearing this month about taxation for short-term rentals in Minnesota. District 3A Rep. Rob Ecklund, the chief House sponsor of the bill, along with multiple representatives from Cook County are scheduled to talk about the tax issue regarding short-term rentals.

Representatives of Hospitality Minnesota, the Congress of Minnesota Resorts, and a group is known as the Minnesota Lakes and Rivers Advocates are also scheduled to speak.

The topic of short-term rental tax classification in Cook County and across Minnesota found its way to the Capitol in St. Paul last month. After many hours of discussion on the topic of short-term rental tax classification earlier in the year in Cook County, the county board passed a resolution Feb. 11 that is now in the hands of the state legislature. A bill modeled, at least in part, off of the county’s resolution will form the framework for the discussion taking place in St. Paul, according to Ecklund. If passed as they were assembled, short-term rentals will be placed in a new sub-classification (4b5) at a rate of 1.25 percent.

Judy Erickson, the government relations specialist for the Cook County Chamber of Commerce, spoke with WTIP’s Joe Friedrichs about the bills and the upcoming hearing. That audio is posted below.