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

HF 150 clarifies Minnesota cities and towns' authority to impose and collect local lodging taxes of up to 3% on short-term hotel, motel, and similar lodging services, including fees from online booking platforms. The bill specifies that the tax applies to the full amount paid for lodging (not just room rates) and excludes long-term rentals of 30+ days. It streamlines collection by allowing cities to either partner with the state to collect the tax or require online platforms to file and pay it once annually, with deadlines matching state sales tax schedules. This affects local governments setting lodging taxes and businesses providing short-term lodging services across Minnesota.