Lakeville, MN Hotels & Lodging: Transient Occupancy Tax (2026)

Chapter 3-17 of the Lakeville City Code defines lodging as furnishing consideration for a room at a hotel, motel, rooming house, tourist court or resort, other than a continuous rental of thirty days or more, and section 3-17-2 imposes a three percent tax on the gross receipts from that lodging. Under section 3-17-3, the operator collects the tax when rent is paid, holds it in trust for the city, and states it separately from the room charge on the bill. Section 3-17-4 requires the operator to remit the tax to the city no later than twenty-five days after the end of the month in which it was collected, along with a return listing gross receipts, exempt rentals and uncollectible charges.

A return filed late or fraudulently triggers a five-day cure notice under section 3-17-7, after which the city can assess the tax itself; unpaid tax draws a ten percent penalty plus eight percent annual interest under section 3-17-8, and willfully failing to file, pay or remit collected tax, or refusing the city access to books and records, is a misdemeanor under section 3-17-9. Ninety-five percent of what the tax raises must fund a local convention or tourism bureau that markets Lakeville, as required by Minnesota Statutes section 469.190 under section 3-17-10, and any operator who disputes a city notice or assessment can petition the City Clerk for a hearing before the City Administrator, with a further appeal to the City Council, under section 3-17-11.

The same lodging tax reaches short-term rentals: section 9-10-6(B) requires every short-term rental permittee to keep paying the local lodging tax required by this chapter for as long as the rental permit is in effect, so a Lakeville short-term rental host owes the identical three percent tax a hotel operator owes.