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Short-term rental rules · Northfield, Minnesota

Short-term rentals in Northfield, explained properly.

The City of Northfield, Minnesota requires a City license for any short-term rental. Sec. 14-95 of the City Code, amended by Ordinance No. 1078 on May 20, 2025, restricts licensure to the zoning districts listed in Table 2.7-1 of Chapter 34, which we haven't reviewed yet. One applicant may hold at most ten licenses, with a separate license for each unit on a parcel. Listings must show the license number, maximum occupancy and maximum overnight vehicles. Overnight guests and parking are limited to the numbers on the license from 10:00 p.m. to 7:00 a.m., a contact must be reachable around the clock and able to respond in person within three hours, and operators must stay current on the City lodging tax. Rentals in recreational vehicles are not allowed, and accessory structures are allowed only for a qualifying accessory dwelling unit. We haven't reviewed the zoning table, the license application section, fees or penalties yet.

17 rule fields5 cited sources

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At a glance

What you need to know before you buy or list

QuestionAnswer
Are short-term rentals allowed?Conditional: Sec. 14-95 licenses short-term rentals only in the zoning districts listed in Table 2.7-1 (Permitted Principal Uses) of Chapter 34 of the Northfield Code; that table hasn't been reviewed yet, so the districts are not shown here [1] ClauseConfirming
Is a City short-term rental license required?Yes: no property may be used as a short-term rental without a license issued by the city; application is made under Sec. 14-91 and a separate license is required for each short-term rental unit on a parcel [1] Clause
Is there a limit on how many licenses one person can hold?Yes: a maximum of ten licenses per applicant within city limits, and the total number issued to any person or related entities may not exceed ten across all permitted zoning districts [1] Clause

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Detailed rules

The full picture, section by section

Eligibility & limits

Are short-term rentals allowed in recreational vehicles?No: short-term rentals are not allowed in recreational vehicles [1] Clause

Sec. 14-95(4)a.

Are short-term rentals allowed in accessory structures?Generally no: not allowed in any accessory structure, except an accessory dwelling unit meeting the requirements of the city code [1] Clause

Sec. 14-95(4)b. The accessory dwelling unit requirements are in other parts of the code and haven't been reviewed yet.

Can the city deny renewal if the rental was not rented in each quarter?Yes: the city reserves the right to deny a renewal application if the short-term rental was not rented for at least one day in each quarter during the one-year period before the renewal application was submitted [1] Clause

Sec. 14-95(4)c.

Operating rules

Listing requirementsEvery listing must state the license number, the maximum occupancy permitted by the license and the maximum number of vehicles that may be parked overnight on the property [1] Clause

Sec. 14-95(3)a applies to listings advertising the property's availability for rent.

Overnight guest limitBetween 10:00 p.m. and 7:00 a.m., no more than the maximum number of overnight guests stipulated in the license may be present on the property [1] Clause

Sec. 14-95(3)c sets the limit by reference to the license. The number of guests the license allows is set in each license, and how it is calculated is not shown in Sec. 14-95.

ParkingBetween 10:00 p.m. and 7:00 a.m., parking is limited to the maximum number of vehicles stipulated in the license; vehicles may never be parked on grass or so as to obstruct neighbouring residences, the public right-of-way or emergency vehicle access [1] Clause

Sec. 14-95(3)d. Sec. 14-95(1)b adds that rentals must also conform to existing Minnesota and city code standards on noise, occupancy, sanitation and parking.

24/7 point of contactThe owner, agent, representative or manager must designate a contact available 24 hours a day, seven days a week, give the contact information to the city and to each renter, and be able to respond physically to a complaint within three hours of being notified [1] Clause

Sec. 14-95(3)e.

Placard in the unitEach unit must have a conspicuously placed placard naming the license holder and management entity, the license number, the physical address and emergency contact phone numbers, plus posted information on water, sewer, septic systems and waste disposal [1] Clause

Sec. 14-95(3)f.

Waste containersAn appropriate number of waste containers must be present; waste may not be stored outside approved containers, and containers must be kept out of public view except on collection day [1] Clause

Sec. 14-95(3)b.

Lodging tax complianceThe operator must stay in compliance with Chapter 74, Article II of the city code (lodging taxes), including reporting and payment; failure is grounds for non-renewal, suspension or revocation of the license [1] Clause

Sec. 14-95(3)g. Chapter 74, Article II and the city lodging tax rate haven't been reviewed yet, so this page does not state the rate.

State law that also applies

Minnesota state sales tax on short-term rentalsCharges for a residential short-term rental are subject to Minnesota's general-rate sales tax, which the Department of Revenue lists as 6.875%, plus any local sales and lodging taxes. The tax applies when the rental is for less than 30 days, or for 30 days or more with no enforceable written lease that requires the guest to give prior notice before ending it [2] [3] [4] Clause 1 Clause 2 Clause 3

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.

Who must register and collect Minnesota sales tax on a short-term rental?It depends on who takes the booking: an owner who regularly rents in the normal course of business and takes the reservation and payment directly must register as a retailer and collect the tax; an accommodations intermediary that facilitates the sale must register and collect, and the owner then does not have to for those sales; an isolated rental outside the normal course of business is not required to register or collect [3] [2] Clause 1 Clause 2

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.

Do booking platforms collect Minnesota sales tax on short-term rentals?Yes where the platform facilitates the sale, meaning it collects the guest's payment and passes it to the owner: that accommodations intermediary must register as a retailer and collect, report and remit the tax on the full sales price of lodging and related services, wherever the platform or the guest is located. A site that only advertises the property and sends the guest to the owner to book does not facilitate the sale [3] Clause

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.

Does Minnesota require a state lodging license for a short-term rental?Not settled by the statute text read: Minnesota Statutes section 157.16 requires an annual state license for anyone in the business of operating a hotel, motel, lodging establishment or resort, and the statute defines those terms by how long guests stay and how many beds or units are let. The statute text read leaves open whether a home rented for short stays is one of them, so this is marked for review [5] ClauseConfirming

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.

Changes

Recent and pending changes

We read Sec. 14-95 (Short-term rental) of the City of Northfield, Minnesota Code of Ordinances as published on Municode and fetched on October 16, 2026, and the code's title page. We haven't reviewed the Chapter 34 zoning table, Sec. 14-91 (license application), the City fee schedule, Chapter 74 Article II (lodging tax), penalties, the City's short-term rental pages or council agendas yet, so we will watch the Code and the City's pages for changes.

May 20, 2025
Ordinance No. 1078 — short-term rental standardsEnacted [1] Clause

Northfield adopted Ordinance No. 1078 on May 20, 2025, which is the history note on Sec. 14-95 (Short-term rental). A separate effective date is not shown in the fetched text.

Sources

Every rule above links to one of these

  1. Northfield Code Sec. 14-95 Short-term rental
    City of Northfield (via Municode)
  2. Sales - Residential Short-Term Rentals (sales tax guide)
    Minnesota Department of Revenue · page updated May 15, 2024
  3. Revenue Notice 17-06: Lodging and Related Services - Residential Short-Term Rentals
    Minnesota Department of Revenue · page updated September 25, 2017
  4. Hotels and Other Lodging Establishments (sales tax guide)
    Minnesota Department of Revenue · page updated May 15, 2024

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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.