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

Section 9-10-6(B) of the Lakeville City Code ties every short-term rental permit to the city's tax compliance rules. Before the zoning administrator approves a short-term rental permit application under Chapter 9-10, the property owner must certify that no delinquent property taxes, special assessments, interest or city utility fees are outstanding on the parcel. That certification is not a one-time formality: the same subsection requires the owner to keep paying all federal, state and local taxes, including the local lodging tax required by Title 3, Chapter 17 of the code, for the entire term of the permit.

Chapter 17 imposes that lodging tax at three percent of gross receipts under section 3-17-2, collected by the operator when rent is paid and held in trust for the city under section 3-17-3, so a Lakeville short-term rental host is taxed the same way as a hotel or motel operator once the permit issues. Under section 9-10-5(E), a permit issued between January 1 and October 31 expires December 31 of that same year, while one issued between November 1 and December 31 runs through December 31 of the following year, so the tax certification effectively renews with each cycle.

No owner may hold more than two short-term rental permits citywide, with no more than one as a principal-use rental, under section 9-10-5(G). Falling behind on the required taxes exposes the owner to the escalating enforcement track in section 9-10-8: a first-offense correction order, a second-offense correction order within 365 days, suspension after a third offense within 180 days, and revocation by the zoning administrator, which bars reapplication for 365 days.