Richfield council approves lodging‑tax ordinance, authorizes state collection beginning Jan. 1, 2026

The Richfield City Council on Oct. 28 approved the second reading of an ordinance that repeals and replaces chapter 14 of the Richfield City Code governing the lodging tax, and later approved summary publication of the ordinance. The ordinance maintains the city’s existing 3% lodging tax rate and aligns local definitions and administrative provisions with state sales and use tax law.

City staff told the council the ordinance authorizes the Minnesota Department of Revenue to administer and collect the local lodging tax on Richfield’s behalf beginning Jan. 1, 2026. Staff said the change will streamline administration, improve compliance and reduce the burden on lodging operators and city staff. The council also noted the ordinance complements the short‑term rental licensing ordinance adopted Sept. 23, 2025, and that current short‑term rental owners will be notified about licensing and the transition to state collection.

Council members voiced support for using the Department of Revenue to improve compliance, specifically noting past frustrations with some short‑term rental platforms not remitting tax. The second reading was approved by motion and the council then approved a separate motion for summary publication; both motions carried unanimously.

The council referenced Minnesota Statutes in discussing the city's authority to impose a lodging tax; staff cited Minnesota Statutes section 469.190 during the presentation. Revenues will continue to be used to support tourism and marketing through the city’s designated tourism bureau, the Richfield Tourism and Promotion Board.