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HF 150

Authority for political subdivisions to impose and collect local lodging taxes clarified.

2025-2026 Regular Session Introduced by Nathan Coulter

HF 150 clarifies local governments in Minnesota can impose, collect, and administer local lodging taxes, including bases, rates, collection, and allowable uses of revenue.

Introduction and first reading, referred to Taxes
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Bill Summary · HF 150

Summary of HF 150 (2025-2026) – Minnesota

Purpose and intent

HF 150 clarifies the authority of political subdivisions in Minnesota to impose and collect local lodging taxes. The bill aims to specify and potentially broaden the ability of cities, counties, and other local governments to establish lodging taxes within their jurisdictions, along with associated collection and administrative rules. The overarching goal is to provide clearer statutory guidance to local governments and taxpayers regarding when and how local lodging taxes may be imposed and administered.

Key provisions and changes (highlights)

  • Authority to impose local lodging taxes: The bill clarifies that political subdivisions have the statutory power to impose lodging taxes (often called hotel or motel taxes) within their boundaries. It may specify what types of jurisdictions are authorized (e.g., cities, counties, or other local government entities) and under what conditions.
  • Tax base and rates (clarifications): Provisions likely address what constitutes the taxable lodging charge (e.g., room rates charged by lodging establishments) and may delineate permissible tax rates or methods for calculating the tax. It could include guidance to prevent overlapping taxation or duplicative fees.
  • Collection and administration: The bill is expected to outline mechanisms for how local lodging taxes are collected (e.g., remittance schedules, reporting requirements) and which local or state agencies oversee administration. It may set standards for reporting, enforcement, and penalties for noncompliance.
  • Use of revenues: Many local lodging tax provisions specify allowable uses for proceeds (e.g., tourism promotion, convention centers, infrastructure related to lodging areas). HF 150 may reaffirm or clarify permissible uses of revenue or require local budgeting processes for the funds.
  • Intergovernmental and state preemption considerations: The bill could address whether local lodging tax authority is subject to state statewide regulations, exemptions, or preemption rules, ensuring consistency with existing state tax policy.
  • Effective date and transition: The measure typically includes effective dates for the enacted provisions, and may include transitional guidance for jurisdictions currently imposing or planning to impose lodging taxes.

Who is affected

  • Local governments (cities, counties, and possibly other political subdivisions): Those seeking to impose, adjust, or administer local lodging taxes would be directly affected by clarified authority and procedures.
  • Lodging establishments (hotels, motels, short-term rentals): Businesses responsible for collecting or remitting local lodging taxes would be subject to updated collection requirements and reporting.
  • Taxation and enforcement authorities: State and local tax agencies involved in administration, auditing, and enforcement would implement the clarified rules.
  • Taxpayers/visitors: Guests paying lodging taxes may experience changes in how taxes are assessed and remitted to localities.

Procedural and timeline aspects

  • Introduced and referred: HF 150 was introduced and referred to the House Taxes Committee on February 10, 2025.
  • Sponsors: Primary sponsor (listed) includes Co-sponsor Nathan Coulter.
  • Next steps (typical): If continued, the bill would proceed through committee hearings, potential amendments, and votes in the House, followed by possible passage to the Senate and enactment into law, subject to negotiations and potential revisions.

Note

The summary reflects the bill’s title and stated purpose as provided. For precise language, definitions, specific tax rates/thresholds, eligible uses of revenue, and any amendments adopted during the legislative process, consult the official bill text and the Senate/House fiscal notes and committee materials.

Compiled from official sources — confirm details with the bill’s official record.

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