Minnesota Issues Sales Tax Guide for Hotels and Other Lodging Establishments

The Minnesota Department of Revenue released an industry guide with a number of links to descriptions of sales and use tax topics related to hotels and other lodging establishments. The Department highlights at the top of the guide that it has clarified who is responsible for collecting sales tax on residential short-term rentals like vacation home rentals. If a resident rents out their home directly, they will be required to register and collect the sales tax. However, if the rentals are handled through a lodging facilitator, then the facilitator is required to be registered to collect the tax if they process the payment. Topics the guide covers include:

• tax treatment of lodging and lodging-related services;
• tax responsibilities for residential short-term rentals;
• fees and other charges by lodging facilities (taxable sales);
• nontaxable sales of certain services and other sales;
• complimentary services and package deals;
• discounts and coupons;
• sales to the government;
• taxability of purchases; and
• filing returns and record-keeping

To access the Department’s guide, click here. (Sales and Use Tax Industry Guide–Hotels and Other Lodging Establishments, Minnesota Department of Revenue, August 2018)