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

Under § 10-4-1, the tax reaches lodging furnished by a hotel, roominghouse, tourist court, motel or trailer camp, but excludes any rental or license to use real property for a continuous period of 30 days or more, so long-term extended-stay guests fall outside the tax. Operators must separately state and collect the seven percent tax at the time rent is paid, holding it in trust for the city under § 10-4-3, and § 10-4-5 makes it unlawful for an operator to advertise or represent that it will absorb the tax itself or refund it rather than charge it to the guest.

Section 10-4-6 requires operators to remit the tax and file a return with the finance director monthly, no later than 25 days after the end of the month in which it was collected, listing total rent collected, tax due, the filer's signature and the reporting period. Foreign-government officials exempt under federal law or treaty owe no tax, and anyone else claiming an exemption must file a written, signed claim at the time rent is collected under § 10-4-4. A guest or operator who overpays can seek a refund from the director within two years of payment or three years of filing the return, whichever is longer, plus four percent annual interest on any excess under § 10-4-8. 00 minimum penalty, a 50 percent penalty for willful evasion or a false return, and eight percent annual interest on the unpaid balance.