Appendix A – Statutory History

Prior to 1972 – No statutory provision allowing or prohibiting local governments from imposing local lodging taxes.

1971 – New or increased local taxes on sales or income are prohibited. (Extra Session Laws 1971, ch.31, art. XXI, §1, subd. 18, originally codified as Minn. Stat. § 477A.01, subd. 18, and recodified in Laws 1981, 1st spec. sess. ch. 1, art. 6, § 5 as Minn. Stat. § 477A.013.)

1983 – Cities may impose a local lodging tax of up to 3 percent on transient lodging of 30 days or less. A city that imposed a lodging tax by a special law or charter provision is prohibited from using the statutory authority to increase the combined lodging tax rate to more than 3 percent. (Laws 1983, ch. 342, art. 13, § 1, adding Minn. Stat. § 477A.018.)

1985 – The law was amended to (1) allow towns and counties in unorganized territories in the county, and any combination of cities, towns, and counties acting under a joint powers agreement, to also impose a local lodging tax of up to 3 percent on transient lodging; and (2) allow cities to extend the lodging tax to camping site receipts in a municipal campground. (Laws 1985, 1st spec. sess., ch. 14, art. 2, § 15, amending Minn. Stat. § 477A.018, subd. 1, and adding subds. 4-6.)

1987 – Local lodging tax law is recodified and moved from the local government aid chapter to a new economic development chapter of statute. A provision allowing cities to enter into an agreement with the commissioner of
revenue to have the state collect the lodging tax on the city’s behalf is added. (Laws 1987, ch. 291, §§ 191 and 244, adding Minn. Stat. § 469.190, and repealing Minn. Stat. § 477A.018.)

1989 – Towns are allowed to approve imposition of the lodging tax at a special town meeting as well as the regular town meeting. (Laws 1989, ch. 277, art. 1, § 30, amending Minn. Stat. 469.190, subd. 1.)  The maximum allowed lodging tax rate from the combination of general authority and special law or charter is increased from 3 to 6 percent with only 95 percent of the revenue from the first 3 percent dedicated to tourism. (Laws 1989, 1st spec. sess. ch. 1, art. 8, §§ 1-3, amending Minn. Stat. § 469.190, subd. 1-3.)

1990 – The allowed maximum rate of 6 percent for the lodging tax is repealed and the maximum of 3 percent is reinstated. (Laws 1990, ch.604, art 6, §§ 6-8, amending Minn. Stat. § 469.190, subds. 1-3.)

2010 – A new provision requires that any special local taxes, such as lodging taxes, that are collected by the state on behalf of a local government must use the definition of terms included in chapter 297A, the state
sales tax law. The definition of lodging for state sales tax purposes is broader than the definition in the general lodging tax statute. (Laws 2010, ch. 389, art. 4, § 14, adding Minn. Stat. § 270C.171.)

2012 – All cities of the first class are granted additional flexibility in the use of revenue derived from any local sales tax, including lodging taxes.  A city may divert any revenue not needed to fund the projects listed in the authorizing law for the local tax to fund construction, expansion, or renovation projects for a sports
facility or convention center, if the project cost is at least $40 million. (Laws 2012, ch. 299, art. 5, sec. 6, adding Minn. Stat. § 297A.9905.)