City Code: 410:0

Section 410 - Lodging Tax

Section 410:00. Lodging Tax Imposed. The City of Owatonna herewith imposes a tax of three percent (3%) on the gross receipts from the furnishing for consideration of lodging at a motel, hotel, rooming house, tourist court or other use of space by a transient within the City of Owatonna other than the renting or leasing of such space for a continuous period of thirty (30) days or more. The tax authorized herewith shall be the obligation of the operator of any such motel, hotel, rooming house, tourist court or other space used by a transient and shall constitute a debt owed to the City by the operator extinguishable only by payment to the City.

Section 410:05. Collection and Remittance. The tax shall be collected by such operator at the time the payment for such lodging is made and shall be remitted to the City within twenty (20) days after the end of the month within which such tax is collected.

Section 410:10. Exceptions and Exemptions.

Subd. 1. Exceptions. No tax shall be imposed on rent for lodging paid by any officer or employee of a foreign government who is exempt by reason of express provisions of federal law or international treaty.

Subd. 2. Exemptions. An exemption shall be granted to any person as to whom or whose occupancy it is beyond the power of the City to tax. No exemption shall be granted except upon a claim therefor made at the time the rent is collected and such a claim shall be made in writing and under penalty of perjury. All such claims shall be forwarded to the City when the returns and collections are submitted as required by this chapter.

Section 410:15. The City Clerk-Treasurer of the City of Owatonna is herewith authorized to establish administrative regulations to effect the collection of such tax, and any interest and penalties thereon.

Section 410:20. Any operator failing to remit to the City by the due date shall be required to pay a penalty of five percent (5%) of the tax amount remaining unpaid, and thereafter an additional penalty of two percent (2%) per calendar month, or part thereof, if the tax is not paid within thirty (30) days after the due date. Failure to collect and remit this tax shall be a misdemeanor and the City Attorney is authorized to commence such legal action as is necessary to collect all taxes, interest and penalties due hereunder and prosecute violators.

Section 410:25. No less than ninety-five percent (95%) of the gross proceeds derived from the tax imposed by this ordinance shall be used by the City of Owatonna to fund a convention and tourism bureau for the purposes of marketing and promoting the City as a tourist and convention center, with the balance of the gross proceeds to be used to provide reimbursement for administrative costs of collection and administration of the tax by the City.

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