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CVB updates board on Rentalscape audit and reports modest lodging-tax uptick
Summary
Communications manager Phil reported Rentalscape has identified 38 short-term rentals in Cottage Grove (11 licensed, 27 not initially licensed; 15 of those did not require licenses and 10 either obtained licenses or are in process). Phil also reported Q1 2026 lodging tax collections of $14,560.76, a 10.36% increase from Q1 2025.
Phil, the Convention and Visitors Bureau communications manager, briefed the board on the city’s use of Rentalscape software to identify short-term rental listings and on early lodging-tax trends.
"Rental Scape implementation began in 2025. To date it has found 38 short-term rentals that it has identified," Phil said. He told the board 11 of those properties were already licensed, 27 were not licensed at the time of identification, and of those 27, 15 did not require a license (for example, when the property is owner-occupied). Phil said 10 properties either now hold licenses or are in the process of seeking them after staff outreach.
Phil said the city and the CVB plan to send lists of Rentalscape-identified properties to the Minnesota Department of Revenue—likely quarterly—so the Department of Revenue can verify lodging-tax remittance and send enforcement letters when appropriate.
On lodging-tax collections Phil reported Q1 2026 collections of $14,560.76 compared with Q1 2025 collections of $13,194, an increase of about $1,366 or 10.36%. He attributed the uptick to a "multi-pronged approach"—CVB marketing, Rentalscape detection and Department of Revenue enforcement—supported by lodging partners and events that bring visitors to Cottage Grove.
Phil said the combined efforts have produced modest revenue movement and that staff will continue monitoring and coordinating with the Department of Revenue.
