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Cottage Grove to shift lodging-tax collections to Minnesota Department of Revenue; plans software to detect unpermitted short-term rentals
Summary
City staff told the Cottage Grove Convention and Visitors Bureau the city will transfer lodging-tax administration to the Minnesota Department of Revenue effective July 1, 2025, and will trial Rentalscape software to identify short-term rentals not remitting tax.
The Cottage Grove Convention and Visitors Bureau heard on June 3 that the city will hand over lodging-tax collections to the Minnesota Department of Revenue beginning July 1, 2025, and plans to use third-party software to identify unpermitted short-term rentals.
Phil, the CVB communications manager, told the board the city collected $17,449 in fourth quarter 2024 and $16,469 in first quarter 2025 lodging-tax revenue and that fourth-quarter collections were “13.5 over the 2024 total budgeted revenue,” boosted in…
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