Blaine, MN Short-Term Rentals: Taxes & Fees (2026)

Two tax-and-fee layers apply to a Blaine short-term rental. First, state and local taxes: under Minnesota Revenue Notice 17-06, residential short-term rentals are taxable lodging subject to the 6.875% state general sales tax for stays of less than 30 days (or 30+ days without an enforceable written lease requiring termination notice). Marketplaces such as Airbnb and VRBO are required to register and collect state taxes on bookings made through them, while hosts who rent directly must collect and remit themselves. Minnesota Statutes section 469.190 separately lets a city impose a local lodging tax of up to three percent on gross receipts from lodging of fewer than 30 days, with 95 percent of proceeds dedicated to tourism promotion; this is a local option, and a host should verify with Blaine's Finance Department whether any local lodging tax currently applies. Second, city licensing fees: per Blaine's fee schedule, the initial rental license is $180 per property plus $10 per unit, dropping to a reduced rate of $130 per property plus $10 per unit after three years with no inspection issues. The schedule also lists a $60 late fee per 30-day period, a $30 ownership-transfer fee, a $60 re-inspection fee, and a $30 reinstatement fee. The schedule contains no separate short-term rental or lodging fee.