City’s lodging tax ordinance approved
MARSHALL — The Minnesota Department of Revenue will be collecting Marshall’s local lodging sales taxes. On Monday, the Marshall City Council approved proposed updates to city ordinances, delegating administration of the taxes to the state.
Marshall currently has a 3% local lodging sales tax, plus an additional 1.5% voter-approved lodging tax.
Monday’s vote on the lodging tax ordinance was part of the council’s consent agenda, and wasn’t discussed at the council meeting. Council members did talk about the proposal in October, when it was introduced.
At its Oct. 28 meeting, the council acted to introduce the proposed updates to city ordinances, which would turn responsibility for collecting local lodging sales takes over to the Minnesota Department of Revenue. Having the state administer the taxes would make the collection process more consistent and transparent for short-term rentals like Airbnb, Marshall city staff said.
Agenda materials at the Oct. 28 city council meeting said the Minnesota Department of Revenue would charge an administrative fee of 1% of the amount collected in lodging tax. That amount would range from about $100 to $300 a month, the materials said.



