HF 2908

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/15/2023 09:09am

A bill for an act
relating to taxation; imposing a gross receipts tax on short-term rental lodging;
proposing coding for new law in Minnesota Statutes, chapter 295.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [295.81] SHORT-TERM RENTAL GROSS RECEIPTS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Gross receipts" means the total amount received, in money or by barter or exchange,
for short-term rental lodging as measured by the sales price. Gross receipts do not include:
new text end

new text begin (1) any taxes imposed directly on a customer that are separately stated on the invoice,
bill of sale, or similar document given to the customer; or
new text end

new text begin (2) discounts, including cash, terms, or coupons, that are not reimbursed by a third party
and that are allowed by the short-term rental owner or operator and taken by a customer on
a sale.
new text end

new text begin (d) "Short-term rental" means the furnishing for consideration of lodging in which a
purchaser rents short-term rental property for less than 30 consecutive days.
new text end

new text begin (e) "Short-term rental operator" means a company that operates an online marketplace
for short-term rental property and acts as a broker and charges a commission on each booking.
new text end

new text begin (f) "Short-term rental property" means residential real estate property that is offered or
provided to a customer for more than 14 days in the preceding year. Short-term rental
property does not include:
new text end

new text begin (1) rooms in a hotel, motel, rooming house, tourist court, or resort; or
new text end

new text begin (2) individual rooms rented in a residential homestead.
new text end

new text begin Subd. 2. new text end

new text begin Gross receipts tax imposed. new text end

new text begin (a) A tax equal to six percent is imposed on the
gross receipts from the furnishing for consideration of short-term rental lodging. A short-term
rental owner or operator may but is not required to collect the tax imposed by this section
from the purchaser as long as the tax is separately stated on the receipt, invoice, bill of sale,
or similar document given to the purchaser.
new text end

new text begin (b) The tax imposed under this section is in addition to any other tax imposed on the
furnishing for consideration of lodging.
new text end

new text begin (c) The tax imposed under this section is not included in determining if the total tax on
lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, and Laws 2012, chapter 299, article 3, section 3, or in determining a tax that
may be imposed under any other limitations.
new text end

new text begin Subd. 3. new text end

new text begin Tax collection required. new text end

new text begin (a) If a short-term rental property is rented for a stay
through a short-term rental operator, then the short-term rental operator is required to collect
the tax imposed under subdivision 2 on behalf of the short-term rental owner.
new text end

new text begin (b) If a short-term rental property is not listed and rented for a stay through a short-term
rental operator, then the short-term rental owner must collect and remit the tax imposed
under subdivision 2 in the same manner as required under subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin Unless specifically provided otherwise, the audit, assessment,
refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
297A, apply to the tax imposed under this section.
new text end

new text begin Subd. 5. new text end

new text begin Returns; payment of tax. new text end

new text begin A short-term rental owner or operator must report
the tax on a return prescribed by the commissioner and must remit the tax in a form and
manner prescribed by the commissioner. The return and the tax must be filed and paid using
the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision
4, and chapter 297A.
new text end

new text begin Subd. 6. new text end

new text begin Interest on overpayments. new text end

new text begin Interest must be paid on an overpayment refunded
or credited to the taxpayer from the date of payment of the tax until the date the refund is
paid or credited. For purposes of this subdivision, the date of payment is the due date of the
return or the date of actual payment of the tax, whichever is later.
new text end

new text begin Subd. 7. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner must deposit all revenues, including
penalties and interest, derived from the tax imposed by this section in the housing
development fund established under section 462A.20, to be used for the workforce and
affordable homeownership development program under section 462A.38.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross receipts received after December
31, 2023.
new text end