Laserfiche WebLink
11812018 <br />�3©`EPARTMENT <br />OFREVENUE <br />Sales --Residential Short- Ter mRentals- <br />sales and LkO Tax Las t.Updated: 11iNQO17 ' <br />Sales.— Residential Short-Terrn Rentals <br />Residential short term rentals include homes, a:portion of a., home .or any other pro p erly Used for a;temporary place to stay. or five. <br />Residential short term rentals a.re:. a place to stay or five. Residential short-term rentals are a form of lod ing and related services. Charges <br />for the rentals are subject to. the general rate sales tax. and any applicable ]aca1.and loxe dging tas. See gales — Lodging and Ref to <br />ervice& <br />Pacilitating the..sale <br />Facilitating the sale of.lodging includes "brokering, coordinating, or inany way arranging for purchase of or the right:to use <br />accommodations.bya customer." Facilitating the sale of lodging includes both: <br />Collecting receipts from the customer of the lodging <br />Transmitting the receipts to the owner of the. residential property, whether the .accgmmodations. intermediary deducts or causes to be. <br />deducted any fees or other amounts from those receipts, either: <br />Directly by the accommodations intermediary or <br />Indireckthrough agreements or arrangements with third parties <br />Facilitating the sal e.does not include. only advertising the: availability of the residential property for short-term rental, which directs the <br />customer of the lodging to contact the.owner of the property to reserve and purchase the lodging. <br />For'aIt residential short=term rentals, who. fa ci I i tates. the sal es:transaction determines who is responsible for the tax: See the chart below <br />for details. <br />Residetltiai ShOrt-tertn rental siWatians <br />The residential propertyis.located i.n Minnesota a.nd bothccnd'itions <br />apply: <br />The owner regularly finishes.lodging directly to a customer in the. <br />normal course of busine..s8 [done for the purpose.ofprofit.or <br />producing income] <br />The customer makes the reservation with and pays the owner for <br />the lodging and related services <br />who's re. spohsible [ar the tax` <br />The prope rty.owner must register as a. retailer to collect, report, <br />and remit.taxes.on the full sales price .of lodging.and. related <br />services. <br />The residential propertyis located :in M i nnes ota ;a hd the owner uses The accommodations intermediary must registeras... retailer <br />the services of an accommodations intermediary to facilitate all safes to collect;. report, and remittaxes:.on the full sales price..of <br />of lodging at the owner's property. lodging and related services. <br />The residential property is located in Minnesota anti the rental of the The property owner is not fe.quired. to register or collect taxes <br />business.: property by the owner is an isolated incident,. not.made in on the sale. <br />the norma[course of business. See Isolated or occasional sales. <br />The residential short -temp rental is faci 11 tated.by Both: <br />The property owner in the normal course of business <br />An accommodations intermediary to facilitate short-term lodging <br />Both the owner and the. intermediary are responsible for sales <br />tax_ Thesales tax is handled :as.follows: <br />The property owner is re.qured..to collect, report, and. <br />remit taxes on the lodging and related services where they <br />did not use the services of an accommodations: <br />intermediary. <br />Th.e accommodations'intermediary is required to <br />collect, report, and remit taxes on the lodging and related <br />services.. they facilitated. <br />hftr.1 ww,creimnue.statenln,uslbusihesses/sul]Pages/Hotels-t.odginglSales-Residential-Short-Terrt}Rentals.aspx 112 <br />