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

Bloomington City Code Chapter 14 Article VIII (Rental Housing Code) treats rentals of fewer than 30 consecutive calendar days as transient lodging, defined in Section 14.568, and Section 14.577(b) prohibits leasing, licensing, or otherwise allowing the use of a dwelling unit, or a portion of one, for transient lodging. Because the underlying activity is unlawful, the city has not adopted a short-term rental registration fee, host occupancy tax, or platform-collected sales tax framework that some Minnesota cities use. On August 26, 2024, after a multi-year staff study and a Let's Talk Bloomington community engagement process, the City Council voted to keep the prohibition and to direct staff toward housing production and affordability priorities rather than legalizing STRs. Bloomington's separate 3 percent transient lodging tax, originally adopted under a 1970 city charter amendment and now operating within the cap set by Minnesota Statutes Section 469.190, applies to hotels, motels, rooming houses, tourist courts, and resorts that are themselves lawful land uses; Section 469.190 caps the local rate at 3 percent and requires that 95 percent of net proceeds be used to fund a local convention or tourism bureau, with the city retaining up to 5 percent for administration. Operators of conforming hotel and motel businesses also collect Minnesota sales tax and the Minnesota lodging-related sales tax under Department of Revenue guidance, but a homeowner cannot become tax-compliant simply by remitting these taxes; the dwelling-unit transient lodging activity itself remains prohibited under Section 14.577(b). Hennepin County does not impose a separate countywide lodging tax on rentals located in Bloomington, so the Section 469.190 city tax is the controlling local lodging levy for lawful establishments.