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Grand Marais

Minnesota · United States
Active
Last updated: 2026-07-29  ·  Last verified: 2026-07-29  ·  Region: US

At a Glance — Grand Marais Airbnb & STR Rules

RuleDetails
Regulatory StatusPermitted with registration
Permit / License RequiredYes
Tax RateMinnesota state sales tax 6.875% on stays under 30 days. Cook County lodging tax: 4% or 1% of gross rental income depending on property location (per
Permit Fee$600 per year per rental unit (Cook County Vacation Rental License, fee schedule updated by Cook County Board of Commissioners, last confirmed March 2
PenaltiesFailure to obtain proper permitting initiates a compliance process that may include late fees, penalties, and fines per Cook County enforcement provis
Occupancy LimitUp to 2 rental dwelling units per parcel permitted in residential zone districts under Cook County ordinance.
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Grand Marais Airbnb & Vacation Rental Regulation Overview

Grand Marais Short-Term Rental Regulations Overview

Short-term rental operations in Grand Marais, Minnesota are permitted under an active regulatory framework as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes. The associated permit fees are $600 per year per rental unit (Cook County Vacation Rental License, fee schedule updated by Cook Cou.

Tax Requirements for Airbnb Hosts in Grand Marais

Short-term rental operators in Grand Marais should be aware of these tax obligations: Minnesota state sales tax 6.875% on stays under 30 days. Cook County lodging tax: 4% or 1% of gross rental income depending on property location (per MN Statute 469.190). Note: VRBO and Airbnb do NOT remit this lodging tax to Cook County — hosts must.

Hosting Rules and Restrictions in Grand Marais

Key operational rules for vacation rental hosts in Grand Marais include: Occupancy limit: Up to 2 rental dwelling units per parcel permitted in residential zone districts under Cook County ordinance..

Zoning and Location Requirements in Grand Marais

Zoning considerations for short-term rentals in Grand Marais: Grand Marais is located within Cook County, MN. Cook County's Vacation Rental Ordinance (adopted 2019, amended through 2022) governs unincorporated areas and municipalities within Cook County. City of. Density rules: Cook County ordinance allows up to 2 rental units per parcel in residential zones (e.g., a house and a guest cabin). Each unit requires a separate lic. Insurance: Yes.

Penalties for Non-Compliance in Grand Marais

Hosts who fail to comply with Grand Marais's short-term rental regulations may face enforcement action. Failure to obtain proper permitting initiates a compliance process that may include late fees, penalties, and fines per Cook County enforcement provisions..

Platform Obligations in Grand Marais

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Grand Marais: Airbnb and VRBO do NOT remit Cook County lodging tax on behalf of hosts — operators must self-remit to Cook County..

Full Regulatory Details

Regulatory Status
Active
License / Registration
Yes
Tax Registration
Yes
Permit Fee
$600 per year per rental unit (Cook County Vacation Rental License, fee schedule updated by Cook County Board of Commissioners, last confirmed March 2025). Minnesota Department of Health (MDH) license also required separately.
Occupancy Limit
Up to 2 rental dwelling units per parcel permitted in residential zone districts under Cook County ordinance.
Tax Rate
Minnesota state sales tax 6.875% on stays under 30 days. Cook County lodging tax: 4% or 1% of gross rental income depending on property location (per MN Statute 469.190). Note: VRBO and Airbnb do NOT remit this lodging tax to Cook County — hosts must remit directly.
Zoning Restrictions
Grand Marais is located within Cook County, MN. Cook County's Vacation Rental Ordinance (adopted 2019, amended through 2022) governs unincorporated areas and municipalities within Cook County. City of Grand Marais itself had no separate standalone STR zoning ordinance confirmed as of 2021; host zoning compliance required.
Density Rules
Cook County ordinance allows up to 2 rental units per parcel in residential zones (e.g., a house and a guest cabin). Each unit requires a separate license. 3+ units under common management may require a conditional use permit.
Insurance Required
Yes
Platform Obligations
Airbnb and VRBO do NOT remit Cook County lodging tax on behalf of hosts — operators must self-remit to Cook County.
Compliance Notes
Grand Marais is in Cook County, Minnesota. The Cook County Vacation Rental License Ordinance requires all vacation rentals (home, cabin, condo, or similar structure providing sleeping quarters to the public for less than 30 days) to be licensed annually. The fee was confirmed at $600/year as of March 2025. Hosts must also self-certify liability insurance and maintain MDH licensing. The City of Grand Marais does not appear to have layered an additional city-specific STR ordinance on top of Cook County's framework as of last confirmed public records.
Effective Date
Cook County Vacation Rental Ordinance originally adopted 2019; amended 2020, 2021, 2022. FAQ last updated March 21, 2025.
Key Notes
Hosts must obtain both a Cook County Vacation Rental License ($600/year) AND a Minnesota Department of Health lodging license. Lodging tax must be self-remitted to Cook County (platforms do not remit on host's behalf). A 24/7 vacation rental complaint hotline exists at 218-264-9799.
Penalties
Failure to obtain proper permitting initiates a compliance process that may include late fees, penalties, and fines per Cook County enforcement provisions.
Additional Context
Cook County, MN has an active e-permitting portal for both vacation rental licenses and lodging tax payments. Properties rented short-term for more than 250 days may be reclassified as commercial for property tax purposes. Those rented 30–250 days are classified as residential non-homestead.
Sources
Cook County MN Vacation Rental License FAQ (last updated March 21, 2025): https://cms7files1.revize.com/cookcountymn/Vacation%20Rental%20FAQ%201-30-2023.pdf
Cook County e-Permitting Portal: https://permits.co.cook.mn.us/
Cook County Vacation Rental news page: https://co.cook.mn.us/index.php/cook-county-mn-news/879-ccvacationrental
City of Grand Marais Housing Plan: https://www.ci.grand-marais.mn.us/housingplan
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Frequently Asked Questions

Is Airbnb legal in Grand Marais?

Yes, Airbnb and short-term rentals are legal in Grand Marais with proper registration and permits. Grand Marais is in Cook County, Minnesota. The Cook County Vacation Rental License Ordinance requires all vacation rentals (home, cabin, condo, or similar structure providing sleeping quarters to the

Do you need a permit for Airbnb in Grand Marais?

Yes. Grand Marais requires the following for short-term rental operation: Yes.

What taxes apply to short-term rentals in Grand Marais?

Short-term rental hosts in Grand Marais are subject to the following tax obligations: Minnesota state sales tax 6.875% on stays under 30 days. Cook County lodging tax: 4% or 1% of gross rental income depending on property location (per MN Statute 469.190). Note: VRBO and Airbnb do NOT remit this lodging tax to Cook County — hosts must remit directly..

What are the penalties for illegal Airbnb hosting in Grand Marais?

Hosts who operate without proper permits in Grand Marais may face enforcement. Failure to obtain proper permitting initiates a compliance process that may include late fees, penalties, and fines per Cook County enforcement provisions..

What are the key STR compliance requirements in Grand Marais?

Hosts must obtain both a Cook County Vacation Rental License ($600/year) AND a Minnesota Department of Health lodging license. Lodging tax must be self-remitted to Cook County (platforms do not remit on host's behalf). A 24/7 vacation rental complaint hotline exists at 218-264-9799.

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