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Changes to Mankato’s lodging tax expected to boost tourism, increase revenue

Published: Aug. 3, 2021 at 4:03 PM CDT|Updated: Aug. 3, 2021 at 7:14 PM CDT
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MANKATO, Minn. (KEYC) - A change is coming to the way local lodging taxes are collected.

Starting Oct. 1, the Minnesota Department of Revenue will oversee the three percent tax imposed on local travel services and facilities.

“We use that to promote this community to attract visitors and to support the convention facilities,” Visit Mankato President Anna Thill said.

These businesses have been taxed for decades, and the city of Mankato collects that revenue.

The switch will primarily impact third-party booking engines, which will become taxable.

“Typically, our third-party booking engines, so your Trip Advisors or Expedias, were paying tax on what they purchased the room for versus what the consumer purchased the room for. So, for Visit Mankato and the city of Mankato, who also gets a portion of that lodging tax, that was tens of thousands of dollars not being collected,” Thill explained.

Visit Mankato says 95% of collected revenue goes back to the city to promote local tourism.

Thill stated, “With the additional collections that we’ll see coming through here, we’re just able to do more and compete more with the communities that are larger with us.”

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