Minneapolis vs Scottsdale

Minnesota Legal with Permit | Arizona Legal with Permit

Disclaimer: General information only — not legal advice. Verify with your local government.

Minneapolis, Minnesota
Status Legal with Permit
Permit Fee $64 short-term rental registration fee
Tax Rate 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $2,000 per violation; license revocation for repeated offenses
Scottsdale, Arizona
Status Legal with Permit
Permit Fee $250/year
Tax Rate ~14.27% combined transient occupancy tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months

Both cities have comparable STR regulatory environments.

Permits & Licensing

Minneapolis charges $64 short-term rental registration fee for STR licensing, while Scottsdale charges $250/year. Minneapolis renewal is annual, and Scottsdale renewal is annual. Both cities share a similar regulatory stance, classified as "Legal with Permit."

Tax Obligations

In Minneapolis, hosts pay 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). In Scottsdale, hosts pay ~14.27% combined transient occupancy tax (state + county + city). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Minneapolis face penalties including Up to $2,000 per violation; license revocation for repeated offenses. In Scottsdale, violations can result in $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Minneapolis Overview

Owners limited to one STR property plus their homesteaded residence; buildings with 20+ units capped at 10% STR units. $300,000 liability insurance and neighbor notification required.

Contact: Inspections Services Division — (612) 673-3000

Full Minneapolis guide →

Scottsdale Overview

Ordinance 4566 caps occupancy at 6 adults plus dependent children, requires 1 off-street parking space per bedroom, $500K liability insurance, and neighbor notification within 30 days. Special events and commercial uses prohibited.

Contact: Scottsdale Code Enforcement — (480) 312-2546

Full Scottsdale guide →

Frequently Asked Questions

Is it easier to Airbnb in Minneapolis or Scottsdale?
Minneapolis is classified as "Legal with Permit" while Scottsdale is "Legal with Permit." Minneapolis's permit fee is $64 short-term rental registration fee compared to $250/year in Scottsdale. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Minneapolis or Scottsdale?
Minneapolis charges 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined), while Scottsdale charges ~14.27% combined transient occupancy tax (state + county + city).
Which city has stricter fines for illegal short-term rentals?
Minneapolis: Up to $2,000 per violation; license revocation for repeated offenses. Scottsdale: $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Minneapolis and Scottsdale have day limits for Airbnb?
Minneapolis has no annual day limit. Scottsdale has no annual day limit.
Which city is better for first-time Airbnb hosts — Minneapolis or Scottsdale?
For new hosts, consider the total cost of entry: Minneapolis charges $64 short-term rental registration fee for permits with 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined) in taxes. Scottsdale charges $250/year with ~14.27% combined transient occupancy tax (state + county + city). Automatic tax collection in Minneapolis and Scottsdale makes compliance easier for beginners.