Minneapolis's Hotels & Lodging: The Rules That Matter

Every city handles hotels & lodging a little differently. In Minneapolis, Minnesota, there are 2 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Hotel Worker Retention

Minneapolis has not enacted a citywide hotel worker retention ordinance. Successor employers follow Minnesota's general labor law, the WARN Act, and any collective bargaining agreement with unions like UNITE HERE Local 17.

Key details: Citywide retention rule: None enacted. Federal WARN Act: 60-day notice for mass layoffs. Active union: UNITE HERE Local 17. Continuing rules: Sick and Safe Time and minimum wage.

There is no city-specific worker retention violation. Disputes over layoffs at acquisition typically run through the National Labor Relations Board, state labor agencies, or grievance procedures under collective bargaining agreements.

The rules around hotel worker retention in Minneapolis lean permissive, but that does not mean anything goes.

Transient Occupancy Tax

Hotel and short-term lodging stays in Minneapolis carry a combined tax burden of about 13 percent: 6.875 percent Minnesota sales tax, 3 percent Minneapolis lodging tax, and 2.625 percent Minneapolis Convention Center tax.

Key details: State sales tax: 6.875 percent. Minneapolis lodging tax: 3 percent. Convention Center tax: 2.625 percent. Combined effective rate: About 13 percent. Statute: Minn. Stat. Chapter 297A.

Failure to collect or remit lodging taxes triggers state and city audits, back taxes, interest, and penalties. Persistent noncompliance can affect a property's short-term rental license under Title 8 Chapter 277.

The Bottom Line

Minneapolis's hotels & lodging rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Minneapolis is broadly strict or permissive.

Keep in mind that Minneapolis can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.