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10-28 Bill No 2025-17City of Richfield October 28,2025 County of Hennepin State of Minnesota BILL NO. 2025-17 1 of 3 RC160\9\1051734.v3 Motion by: Christensen Seconded by: Coleman-Woods AN ORDINANCE IMPOSING A TAX ON LODGING AND REPEALING AND REPLACING IN ITS ENTIRETY CHAPTER XIV OF THE RICHFIELD CODE OF ORDINANCES THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Chapter XIV of the Richfield Code of Ordinances is repealed in its entirety. Section 2. A new Chapter XIV is adopted as follows: CHAPTER XIV - LODGING SECTION 1400. – TAX IMPOSED UPON LODGING 1400.01 – Authority. In accordance with Minnesota Statutes, section 469.190 the City of Richfield, Minnesota is authorized to impose a tax of up to three percent (3%) on gross receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of 30 days or more. 1400.02 – Definitions. Subdivision 1. The following words, terms, and phrases have the meanings given to them in this chapter unless the language or context clearly indicates a different meaning is intended. Minnesota Statutes, section 270C.171, is incorporated for definitions in this chapter. In any potential conflict between the statute and this chapter, the statute shall take precedence. Subd. 2. Commissioner. “Commissioner” means the commissioner of revenue of the state of Minnesota or a person to whom the commissioner has delegated functions. Subd. 3. City. “City” means the City of Richfield, Minnesota. Subd. 4. Lodging and related services. “Lodging and related services” means lodging and related services by a hotel, rooming house, resort, campground, vacation rental, motel, or trailer camp, including furnishing the guest of the facility with access to telecommunication services, and the granting of any similar license to use real property in a specific facility, other than the renting or leasing of it for a continuous period of 30 days or more under an enforceable written agreement that may not be terminated without prior notice. Subd. 4a. Accommodations intermediary. “Accommodations intermediary” means any person or entity, other than an accommodation’s provider, that facilitates the sale of lodging as City of Richfield October 28,2025 County of Hennepin State of Minnesota BILL NO. 2025-17 2 of 3 defined in subdivision 4, and that charges a room charge to a customer. The term “facilitates the sale” includes brokering, coordinating, or in any way arranging for the purchase of or the right to use accommodations by a customer. Subd. 4b. Accommodations provider. “Accommodations provider” means any person or entity that furnishes lodging and related services, as defined in subdivision 4, to the general public for compensation. The term “furnishes” includes the sale of use or possession, or the sale of the right to use or possess. Subd. 5. State sales and use tax laws and rules. “State sales and use tax laws and rules” means those provisions of the state revenue laws applicable to state sales and use tax imposition, administration, collection, and enforcement, including Minnesota Statutes, chapters 270C, 289A, 297A, 469A, and Minnesota Rules, chapter 8130, as amended from time to time. 1400.03 - Local Lodging Tax Imposed; Amount of Tax; Coordination with State Sales and Use Tax Laws and Rules. A local lodging tax is imposed in the amount of three percent (3%) on the gross receipts from sales of lodging and related services, as defined in subsection 1400.02, subdivision 4, sourced within City limits which are taxable under the state sales and use tax laws and rules. All of the provisions of the state sales and use tax laws and rules apply to the local sales and use tax imposed by this chapter. The local lodging tax imposed by this chapter shall be collected and remitted to the Commissioner by the accommodation’s provider on any sale when the state sales tax must be collected and remitted to the Commissioner under the state sales and use tax laws and rules and is in addition to the state sales and use tax. 1400.04 - Advertising no tax. It shall be unlawful for any accommodations intermediary or accommodations provider to advertise or hold out or state to the public or any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the accommodations intermediary or accommodations provider, or that it will not be added to the rent or that, if added, it or any part thereof will be refunded. 1400.05 - Use of proceeds. All of the revenues, interest, and penalties derived from the lodging tax imposed by this chapter collected by the Commissioner and remitted to the City shall be deposited by the City Finance Director in the City treasury and shall be credited to the fund established to pay the costs of collecting the lodging tax imposed by this chapter and to fund a local convention or tourism bureau. Section - 1400.06 - Agreement with the Commissioner. City of Richfield October 28,2025 County of Hennepin State of Minnesota BILL NO. 2025-17 3 of 3 The City may enter into an agreement with the Commissioner regarding each party’s respective roles and responsibilities related to the imposition, administration, collection, enforcement, and termination of the lodging tax imposed by this chapter. Any such agreement shall not abrogate, alter, or otherwise conflict with the state sales and use tax laws and rules, this chapter, or Minnesota Statutes Section 469.190. Section 3. Severability. Every section, provision and part of this ordinance is declared severable from every other section, provision and part thereof. If any section, provision or part of this ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall not invalidate any other section, provision or part of this ordinance. Section 4. Effective Date. This ordinance will be effective in accordance with Section 3.09 of the City Charter , and the tax imposed hereunder shall commence on 1st day of January, 2026. Adopted by the City of Richfield, Minnesota, this 28th day of October, 2025. VOTING AYE VOTING NAY Supple, Mary Supple, Mary Burk, Walter Burk, Walter Christensen, Sharon Christensen, Sharon Coleman-Woods, Rori Coleman-Woods, Rori Hayford Oleary, Sean Hayford Oleary, Sean ________________________________ Sean Hayford Oleary, Mayor Pro Tempore ATTEST: __________________________ Michelle Friedrich, City Clerk 10-28 Bill No 2025-17 Final Audit Report 2025-10-30 Created:2025-10-30 By:Michelle Friedrich (mfriedrich@richfieldmn.gov) Status:Signed Transaction ID:CBJCHBCAABAA_JOda3dCqYWvaFonWf2ciLBFemPa3tnh "10-28 Bill No 2025-17" History Document created by Michelle Friedrich (mfriedrich@richfieldmn.gov) 2025-10-30 - 6:03:20 PM GMT Document emailed to Sean Hayford Oleary (shayfordoleary@richfieldmn.gov) for signature 2025-10-30 - 6:03:24 PM GMT Email viewed by Sean Hayford Oleary (shayfordoleary@richfieldmn.gov) 2025-10-30 - 11:14:59 PM GMT Document e-signed by Sean Hayford Oleary (shayfordoleary@richfieldmn.gov) Signature Date: 2025-10-30 - 11:19:41 PM GMT - Time Source: server Agreement completed. 2025-10-30 - 11:19:41 PM GMT City of Richfield October 28,2025 County of Hennepin State of Minnesota RESOLUTION NO. 12361 Motion by: Christensen Seconded by: Coleman-Woods RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE IMPOSING A TAX ON LODGING AND REPEALING AND REPLACING IN ITS ENTIRETY CHAPTER XIV OFTHE RICHFIELD CODE OF ORDINANCES WHEREAS, the City has adopted the above-referenced amendment of the Richfield City Code; and WHEREAS, the verbatim text of the amendment is cumbersome, and the expense of publication of the complete text is not justified. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that the following summary is hereby approved for official publication: SUMMARY PUBLICATION BILL NO. 2025-17 AN ORDINANCE IMPOSING A TAX ON LODGING AND REPEALING AND REPLACING IN ITS ENTIRETY CHAPTER XIV OF THE RICHFIELD CODE OF ORDINANCES This summary of the ordinance is published pursuant to Section 3.12 of the Richfield City Charter. This ordinance repeals and replaces City Code Chapter XIV to include a new section 1400 relating to imposing a tax on lodging. Copies of the ordinance are available for public inspection in the City Clerk’s office during normal business hours or upon request by calling the City Clerk’s office at 612-861-9739. Adopted by the City Council of the City of Richfield, Minnesota this 28th day of October, 2025. VOTING AYE VOTING NAY Supple, Mary Supple, Mary Burk, Walter Burk, Walter Christensen, Sharon Christensen, Sharon Coleman-Woods, Rori Coleman-Woods, Rori Hayford Oleary, Sean Hayford Oleary, Sean Sean Hayford Oleary, Mayor Pro Tempore ATTEST: Michelle Friedrich, City Clerk