Short-Term Rental Laws in Stillwater, Minnesota

Stillwater operates a 3-type license system with citywide caps: Type A (Owner-Occupied / Primary Residence) — uncapped, available citywide; Type B (Non-Owner-Occupied) — capped at a fixed number of citywide licenses; Type C (Bed & Breakfast) — separate framework. The Type B cap was hit shortly after the 2017 ordinance and remains at-cap — new investor STR licenses are issued only via attrition/wait-list. Existing Type B licenses are tied to the parcel and transfer with sale of the property to a new owner.

Stillwater City Code Ch 41 governs Short-Term Home Rentals. Type A (Owner-Occupied) allowed in all residential zones (RA, RB, TR, CTR, CR) provided primary-residence test is met. Type B (Non-Owner-Occupied) allowed in the same zones BUT only via the citywide cap allocation. The historic district overlay (Downtown Stillwater, St. Croix riverfront) adds heritage-preservation review for any exterior modifications. Confirm parcel zoning + cap availability via Stillwater Community Development before any offer.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Stillwater Community Development + Police jointly enforce. Annual license renewal with primary-residence re-verification (Type A) or cap-allocation re-verification (Type B). Operating without a license: administrative fines + stop-rental orders. The cap dynamic creates a secondary market — investor buyers frequently pay a premium for properties that hold a continuously-renewed Type B license, as the license effectively conveys with the parcel.

Combined short-term lodging tax in Stillwater is approximately 13.375% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Minnesota State sales 6.875% + Washington County 0.25% + Stillwater city sales + Stillwater Lodging Tax 3% — combined ~13.4% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.