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

Woodbury's Article IX local lodging tax reaches any stay of less than 30 continuous days under an enforceable written agreement, and the definitions in Sec. " That means an Airbnb or VRBO-booked house in Woodbury is taxed the same way a hotel room is. Sec. 2-395 sets the rate at three percent of gross receipts from lodging sales sourced within city limits, layered on top of the separate state sales and use tax, and it must be collected and remitted by the "accommodations provider" (the host) or "accommodations intermediary" (a booking platform that facilitates the sale and charges the room fee) in the same manner as the state sales tax, to the Commissioner of Revenue rather than directly to city hall.

The tax was adopted by Ord. No. 2031 and took effect April 1, 2023 (Sec. 2-400). Under Sec. 2-397(b), after the state's collection charge, 95 percent of the proceeds are credited to the city treasury to fund a City of Woodbury Destination Marketing Organization, which the city council oversees with advisory input from the economic development commission. The city relies on Minn. Stat. Sec. 190 as its taxing authority, and Sec. 2-398 lets the city enter a direct administration agreement with the Commissioner covering imposition, collection, and enforcement of the tax on short-term lodging providers operating in Woodbury.