The bill amends Minnesota Statutes 2022, specifically section 469.190, to clarify the authority of political subdivisions to impose and collect local lodging taxes. It allows statutory or home rule charter cities to impose a tax of up to three percent on gross receipts from lodging services, including camping site receipts at municipal campgrounds. Additionally, the bill specifies that the tax applies to the entire consideration paid for lodging, including ancillary services provided by accommodations intermediaries.

Furthermore, the bill outlines the collection process for the lodging tax, stating that it will be collected by the commissioner of revenue alongside state sales tax, with proceeds remitted to the city after deducting collection costs. If the tax is not collected by the commissioner, local governments can limit the filing and remittance requirements for accommodations intermediaries to once per calendar year, ensuring they provide necessary geographic information for proper tax collection. Both sections of the bill will take effect on July 1, 2024.

Statutes affected:
Introduction: 469.190