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

Section 7-10-3(b) sets the annual fee for issuing or renewing a short-term rental hosting platform license according to the city's fee schedule, and lets the building inspector set a lower fee for a platform that lists no more than 150 dwelling units at a time; the fee has to be paid before the city issues or renews the license. Separately, section 10-4-2 imposes a lodging tax of 7 percent on the rent charged for any lodging under 30 days, effective for stays after January 1, 2014; the tax must be stated and collected separately from the rent, and the operator holds it in trust for the city until it's remitted.

Section 10-4-3 requires the operator to collect the tax at the time rent is paid and give the guest a receipt. Section 10-4-6 requires the operator to file a monthly return and pay the tax to the city no later than 25 days after the end of the month it was collected, listing total rent collected and tax due. Section 10-4-16 requires every operator to hold a separate permit for each place of business, displayed conspicuously at the property. Late or unpaid lodging tax draws real penalties: section 10-4-10 adds a 10 percent penalty for late payment, an escalating penalty of up to 25 percent for a late or missing return, a 50 percent penalty for willfully filing a false return or evading the tax, and 8 percent annual interest on unpaid tax.