Minnesota short-term rentals no longer need to cool their jets on hot tub offerings

Minnesota short-term rentals (STRs) can now offer hot tubs as an amenity for guests under a new statewide law that went into effect July 1, 2025. 

Under the “free the hot tub” measure, hot tubs offered by STRs are no longer considered “public pools” by the Minnesota Department of Health. Previously, STR operators with hot tubs at their properties were required to test chemicals daily and follow rules for entrapment protection, fencing, signage, operator training, and recordkeeping. Operators who didn’t get licenses and meet the requirements could receive a cease-and-desist order.

With the change, hosts no longer  have to abide by public pool regulations, although they are required to:

• Maintain hot tubs at a maximum temperature of 106 degrees Fahrenheit
• Test water before check-in to ensure it meets standards for concentration of chlorine or bromine, pH, and alkalinity
• Post a written notice stating that the spa is exempt from state and local anti-entrapment and sanitary requirements that prevent disease and transmission of waterborne diseases and is not subject to inspection.

State Representative Isaac Schultz sponsored the bill to help small hospitality business owners and ensure consistent enforcement across the state.

“Every corner of the state will see this, and it should be about helping make Minnesota just the most attractive state to vacation and to enjoy the outdoors at all times of the year,” he said.

In general, Minnesota leaves STR operation rules up to local governments. However, some statewide laws impact STRs. For example, the Minnesota Legislature passed a junk fee law in 2024 that prohibits all businesses from advertising, displaying, or offering a price for goods or services that does not include all mandatory fees or surcharges.

State tax authorities in Minnesota levy statewide lodging taxes on STRs, including sales tax and special local taxes. 

STR operators are required to register for a sales tax account with the Minnesota Department of Revenue if they rent directly to guests without using an STR marketplace such as Airbnb or Vrbo.

State lodging taxes are applied to reservations of less than 30 days, or reservations lasting 30 days or more with no written lease agreement that requires the guest to give notice before ending the rental. Operators who only rent their properties out for short terms on an occasional basis or as an isolated incident are not required to collect lodging taxes on those stays. 

In Minnesota, all lodging-related services provided within a guest room are taxable. This includes items such as food and drink, cleaning fees, pet fees, rollaway bed fees, extra person fees, charges for providing services such as laundry, etc. Cancellation fees are not subject to tax. However, no-show fees charged when a room is reserved for a guest who neither arrives nor cancels are taxable.

Local governments may also administer sales, use, or lodging taxes on STR stays with their own rules and definitions. STR marketplaces may not collect locally administered taxes. Operators need to be aware of local lodging tax compliance requirements to avoid breaking local laws.

Avalara MyLodgeTax can help automate and simplify tax compliance for STR operators. For more on lodging taxes in Minnesota, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.