Olmsted County itself does not run a unified short-term rental permit program for unincorporated areas - STR rules are set by the underlying city or township. Within the City of Rochester (county seat), operators must obtain a short-term rental permit from the Community Development Department, and STRs with five or more sleeping rooms are treated as lodging requiring a state lodging license. All Minnesota STR hosts must collect and remit Minnesota's 6.875% sales tax under Minn. Stat. §297A.61 plus any applicable local lodging taxes adopted under Minn. Stat. Ch. 469.
Minnesota does not have a statewide STR permit law - regulation is handled locally. Olmsted County does not operate a county-wide STR licensing program; zoning compliance and any STR-specific permits are determined by the underlying jurisdiction (City of Rochester for incorporated parcels; the county or contracting township for unincorporated). In the City of Rochester, a short-term rental permit is required from the Community Development Department. Rochester treats STRs with 5 or more sleeping rooms as lodging/hotel use, which triggers a state-level lodging license under Minn. Stat. §157.16 and Minnesota Department of Health inspection. Statewide, all Minnesota lodging stays of less than 30 days are subject to the Minnesota sales tax of 6.875% under Minn. Stat. §297A.61 subdiv. 3(g)(2) (the lodging definition). Cities and counties may also impose a local lodging tax of up to 3% under Minn. Stat. §§469.190 and 469.191, and Rochester levies an additional local lodging tax (administered by the City). STR operators who fail to register with the Minnesota Department of Revenue for sales tax collection face assessments, penalties, and interest. Building, fire, and zoning codes still apply regardless of STR licensing status.
Operating an STR in Rochester without the required Community Development Department permit can result in citations, fines, and an order to cease operations. Failure to collect/remit the 6.875% Minnesota sales tax under Minn. Stat. §297A.61 or applicable local lodging tax exposes hosts to back taxes, penalties, and interest from the Minnesota Department of Revenue. STRs with 5+ sleeping rooms operating without a state lodging license violate Minn. Stat. §157.16.
See how Olmsted County's permit requirements rules stack up against other locations.
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