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

01. Subdivision A imposes a flat 3 percent tax on the gross receipts an accommodations provider, such as a hotel, motel, resort, campground or corporate lodging operator, collects for furnishing lodging for consideration within the city. Subdivision C layers on a coordinated local lodging tax, also set at 3 percent, on gross receipts from lodging sales sourced within Plymouth's city limits that are taxable under Minnesota's state sales and use tax laws; the state's collection, administration and enforcement rules apply to this local tax the same way they apply to the state sales tax, due whenever the state tax is due.

The Commissioner of Revenue, not the city finance department, collects the tax directly from accommodations providers and accommodations intermediaries (a term covering booking platforms that charge a 'room charge' to the guest). Subdivision D makes it unlawful for a hotel or intermediary to advertise, hold out, or tell a customer that the tax will be absorbed by the business or will not be added to the room rate. Under Subdivision E, two-thirds of the revenue must fund capital improvements to public recreational facilities and marketing and promotion of the community, while at least 95 percent of the gross proceeds collected under the Subdivision C coordination tax must fund a local convention and tourism bureau. The city may also enter a separate collection agreement with the Commissioner under Subdivision F.