Saint Paul's Hotels & Lodging: The Rules That Matter

Every city handles hotels & lodging a little differently. In Saint Paul, Minnesota, there are 3 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.

Transient Occupancy Tax

Saint Paul charges a 3% local lodging tax on transient stays under 30 days, stacked atop Minnesota's 6.875% sales tax for an effective rate near 10% paid by hotel and short-term rental guests.

Key details: City lodging rate: 3%. MN sales tax: 6.875%. Combined rate: Roughly 9.875%. Stay threshold: Under 30 days. Statute: Minn. Stat. 469.190.

Failure to register, collect, or remit lodging tax results in penalties, interest, license revocation, and personal liability for owners under state and city tax-collection rules.

Hotel Worker Retention

Hotel and hospitality workers in Saint Paul accrue paid sick and safe time at one hour per 30 worked, capped at 48 hours annually, under the city's 2017 ordinance now reinforced by Minnesota's 2024 statewide law.

Key details: Accrual rate: 1 hour per 30 worked. Annual cap: 48 hours. Local effective: July 2017. MN statewide: January 2024. Code chapter: Title VIII Ch. 233.

Violations carry back pay, civil penalties up to $1,500 per violation, posting requirements, and HREEO investigation. Retaliation against workers using sick time triggers double damages.

Compared to other cities, Saint Paul takes a harder line on hotel worker retention. The enforcement and penalty structure reflects that.

Hotel Living Wage

Saint Paul's citywide $15 minimum wage ordinance phased in fully by 2024 covers hotel housekeepers, front desk staff, and food-service employees at downtown convention hotels, with annual inflation indexing thereafter.

Key details: Floor wage: $15 plus inflation. Macro phase-in: July 2022. Small phase-in: July 2024. Tip credit: Not allowed. Code chapter: Title VIII Ch. 224.

Wage theft enforcement includes back wages, liquidated damages, civil penalties up to $1,000 per violation, license review, and Department of Human Rights investigation referrals.

Compared to other cities, Saint Paul takes a harder line on hotel living wage. The enforcement and penalty structure reflects that.

The Bottom Line

Saint Paul is tougher than many cities when it comes to hotels & lodging. Out of the 3 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Saint Paul, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Saint Paul's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.