Short-term rentals in Excelsior, explained properly.

Sec. 10-1304(c) requires the license number and expiration date to be listed on any platform or website used for advertising purposes. The license application also lists the listing services where the rental is advertised (Sec. 10-1302(c)(5)).

Sec. 10-1306 requires every owner of a short-term rental to post the notice inside by the front door. It must show the property address; the name, address and 24-hour contact phone number of the short-term rental operator (the primary resident in R-1 and R-2, the property manager/owner in commercial districts); and the city license with a receipt showing that the license fee for the current year has been paid.

Sec. 10-1304(a) applies to all vehicular parking associated with a short-term rental. Appendix E, article 19 was not read for this page, so the number of spaces required is not shown here.

Sec. 10-1304(d) applies to a short-term rental located in a residential district.

Sec. 10-1304(b) makes the licensee responsible for assuring that every short-term rental is maintained in compliance with all city ordinances and state laws, and says a violation of any federal, state, or local laws constitutes a public nuisance that may be enforced as provided in the Code.

Sec. 10-1302(c)(4) requires the application to set out the maximum number of bedrooms, as defined, and occupants. Sec. 10-1301 defines a bedroom as a habitable room within a primary residence used or intended to be used primarily for sleeping, a minimum of 70 square feet with a minimum length in one direction of seven feet and a minimum ceiling height of seven feet, with a method of egress in addition to the primary entry door.

Sec. 10-1307 provides that a license may be revoked or suspended, after an opportunity for a hearing, if the licensee violates the article or the city Code; that a violation is subject to administrative enforcement under Chapter 3 of the Code, including fines in accordance with the city's approved fee schedule, and other remedies; that the city may seek injunctive relief to prevent, restrain, correct or abate a violation or threatened violation; and that a violation of the chapter is a misdemeanor, with each day a separate offense. The fee schedule was not read, so fine amounts are not shown here.

The Department of Revenue guide says residential short-term rentals (a home, a portion of a home, or any other property used as a temporary place to stay or live) are a form of lodging and related services, and that charges for them are subject to the general rate sales tax and any applicable local and lodging taxes. Revenue Notice 17-06 (published in the State Register on September 25, 2017) says state and local taxes are due on lodging if the lease or rental is for less than 30 days, or for 30 days or more if there is no enforceable written lease agreement that requires the customer to give prior notice of their intention to terminate the lease. The lodging guide's table for tips and service charges lists the state general rate sales tax as 6.875%. Sales of lodging that are isolated and occasional and not made in the normal course of business are exempt from sales tax under Minnesota Statutes section 297A.67, subdivision 23, as the notice states, and the guide adds that the income tax rule for renting out a home for 14 days or less does not carry over to sales tax. The guide says some cities administer their own lodging taxes and the state rate calculator leaves out special local taxes, so city taxes are shown on each place's page and this page does not total state and local taxes. The guide was last updated May 15, 2024.

Revenue Notice 17-06 says that if the residential property is in Minnesota, the owner must register as a retailer to collect, report and remit sales tax and applicable local taxes when both of these apply: the owner regularly furnishes lodging directly to a customer in the normal course of business (for the purpose of profit or producing income), and the customer makes the reservation with and pays the owner. The owner is not required to register or collect when the owner uses an accommodations intermediary to facilitate all sales of lodging at the property, or when the owner's rental is an isolated incident not made in the normal course of business. When an owner who regularly rents directly also uses an intermediary, both have liabilities: the owner collects on sales made without an intermediary, and the intermediary collects on the sales it facilitated. The guide says the owner must keep documentation of who facilitated each sale and was responsible for remitting the tax. It describes an isolated sale as one that happens once and an occasional sale as infrequent and not recurring with some degree of regularity.

Revenue Notice 17-06 says an accommodations intermediary that facilitates the sale of the short-term rental of residential property located in Minnesota must register as a retailer to collect, report and remit the taxes on the full sales price of lodging and related services, whether the intermediary or the renter is in Minnesota or not. Facilitating the sale includes collecting receipts from the customer and transmitting them to the owner, directly or through third parties, whether or not the intermediary deducts fees from those receipts. It does not include mere advertising that directs the customer to contact the owner to reserve and purchase. The full sales price includes all amounts the intermediary charges the customer. Statute section 297A.61, subdivision 47 defines the term accommodations intermediary, as the notice cites. The notice is dated September 2017 and the guide May 15, 2024.

Section 157.16, subdivision 1 says a license is required annually for every person, firm or corporation engaged in the business of conducting a food and beverage service establishment, youth camp, hotel, motel, lodging establishment, public pool or resort. Section 157.15 defines a hotel or motel as a building, structure, enclosure or any part of one used as, maintained as, advertised as or held out to be a place where sleeping accommodations are furnished to the public for periods of less than one week; a lodging establishment as sleeping accommodations furnished to the public as regular roomers for periods of one week or more with five or more beds to let to the public (or the health-care lodging described in the definition); and a resort as a place on or near a lake, stream, skiing or hunting area or other recreational area, held out to the public for recreation stays and having for rent five or more cottages, rooms or enclosures. The Department of Health's rules and guidance were not read, so whether a particular rental needs a state license should be confirmed with the Minnesota Department of Health. City licensing and registration are separate and are shown on each place's page.