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Business & Rental Property Licensing
If you are looking for additional permits for the City please go to : Government / Permits, Licenses & Forms or call 763-784-2792 Monday ~ Friday 8am - 4:30pm.

City of Lexington Business License Requirements

We appreciate you choosing the City of Lexington for your business.

Obtaining a business license in Lexington is a simple process and City staff is ready to assist you. Business licenses will be issued once all completed forms are submitted to the City, City Council approvals are complete, and fees are paid.


Licenses are issued on an annual basis and must be renewed yearly on or before June 30th.  An incomplete application or any part thereof received on or after July 1st will incur a $50.00 fee for expedited processing.                                                                            

By City ordinance, your business license will NOT be approved until all related documents and fees are received and complete. Applications for business licenses must be submitted and approved by City Council before any business can be conducted.                             

You can view the city ordinance in its entirety here see Chapter 6: OTHER BUSINESS REGULATIONS AND LICENSING.

What do I need to submit to the City for a Business License?

In order to be approved for a Business License in the City of Lexington, you must return the following COMPLETED forms/items:

• Business License Application

• Appropriate license fee

• MN Business Tax Identification Number /Social Security Number form (must provide at least one of these)

• Certification of Compliance MN Workers Compensation Law

• Public liability insurance certificate listing the “City of Lexington” as loss payee with liability limits of $100,000.00 per persons, $300,000.00 per accident for bodily injury, and $100,000.00 for property damage

• 1st Response Building Information

• Annual fire sprinkler system inspection record (if applicable)

• General Authorization and Release form (if applicable)


Please note that any incomplete forms will be not be accepted and will be returned to you. You will not be allowed to conduct business in the City of Lexington without an approved business license.

Fees for a Business License


Adult Entertainment Business                  $500.00           Adult Entertainment Business                             Background Check/Investigation             $1,500.00

Assessment Search                                    $15.00

Amusement Devices                                  $15.00

Commercial Business - New/Renewal      $100.00

Commercial Background Check                $100.00

Annual Entertainment License                   $200.00

Single Use Special Event Permit                $300.00

General Contractors License                      $75.00

Temporary Business License                      $75.00                  Per Month (five (5) month maximum)

Kennel (4 or more dogs)                           $100.00

Motor Vehicle Sales                                  $500.00

Peddler License/Background Check         $100.00

       For Application plus $100.00 per person(s) for  

       background check

Refuse                                               $100.00 Flat fee

Plus $75.00 per Truck

Sauna/Dayspa/Massage License               $270.00

Massage Therapist Certification               $85.00             Application/Background Check               $80.00             Massage Therapist Renewal                                         Annual Certificate                                     $55.00

Tobacco                                                     $100.00

Vending Machines                                     $150.00


Application Procedures

Business license applications can be downloaded below, or you can obtain them at City Hall. Any questions regarding the applications or process can be directed to the City Clerk by calling 763-784-2792. Office hours are Monday ~ Friday 8am to 4:30pm.

Rental Property License Requirements

Our objectives are to maintain quality rental units within the city and protect the health, safety and welfare of renters. No person shall operate a rental dwelling without a Rental Dwelling license.

No person shall operate a rental dwelling unit without first having obtained a rental dwelling license from the city. The license shall be issued once every two (2) years, and will require a maintenance Inspection to be done before the license is issued. License renewals for the following years shall be filed 2 months (60 days) prior to the license expiration date.

Who Needs a License?

Licenses shall be issued for a single rental dwelling unit in the case of a free standing dwelling, a Manufactured home, a condominium, a townhouse, a duplex, triplex  and/or four-plex rental dwelling unit; or for an apartment building.


A rental license is not required for dwelling units occupied by an immediate relative. For the purpose of this exemption, relative shall be defined as parent, child, sibling, grandparent, grandchild, step-parent, step-child, step-grandparent, or step-grandchild. The city of Lexington requires sufficient written proof from the owner stipulating the relationship and living agreements including but not limited to a signed affidavit from the property owner. In the case where an immediate relative occupies one unit of a multi-unit dwelling, the additional unit(s) must still be licensed and inspected.

When more than one building containing rental dwelling units exists on one premise, a separate license shall be required for each building.

What Happens If I Don’t Get a Rental Dwelling License?

Any person that maintains a rental dwelling unit without having either a valid temporary permit or a valid operating license, or permits new occupancy in violation of this subdivision, is guilty of a misdemeanor. In addition to criminal sanctions, the City may impose an administrative fee in an amount set in the City Fee Schedule and may give notice of intent to cease providing city services to the dwelling unit. An administrative fee may be appealed pursuant to Section 15.180. Upon the failure to successfully appeal an administrative fee within the period established in Section 15.180 the City may post the dwelling unit as illegal for habitation, and cease providing city services to the dwelling unit. Thereafter, the dwelling unit may not be occupied by anyone other than the primary homestead owner and that person’s immediate family until (a) the administrative fee has been paid, (b) city services are restored, and (c) a rental license is obtained or the City is satisfied that the dwelling unit will not be used as a rental dwelling unit. Each day of each violation constitutes a separate offense. The full Rental Licensing ordinance can be viewed here chapter 15 section 15.107 Rental Dwelling Licensing Code.


Application Procedures

A rental license application packet can be obtained at City Hall or you can download one below. Included in the packet of information are the application, Certificate of Compliance from the Dept. of Revenue & the MN Workers Compensation agency the Crime-Free/Drug-Free Housing lease addendum, Affidavit of No Longer A Rental Property (if needed)  and the pre-inspection checklist. The lease addendum is for your use only and is not currently required to be returned to the city.


·         A rental dwelling license application is required to be submitted with the appropriate fees to the  City of Lexington.

·         The application must be completed with the owner’s name, mailing address, phone number and email address.

·         A local agent is required if the property owner lives outside the Twin Cities 7 county Metropolitan area.

·         A compliance inspection is scheduled for the property once a completed application and fee are received. The owner should contact the Permit Technician to schedule this inspection.


For questions on rental dwelling license applications or for more information on rental licensing, please call 763-784-2792, Monday through Friday, 8am to 4:30pm.


Rental Dwelling License Fees: New & Renewal

Application Fee  (Every New & Renewal)            $100.00

Inspection Fees

Single Family/Town-Home/Condominium $100.00

*Re-Inspection  $50.00

Twin Home $150.00

*Re-inspection    $50.00

Manufactured Home $50.00

*Re-inspection    $50.00

Multiple Family (Duplex/Triplex/4-Plex/Apartment)  $200.00+$35.00 per unit

*Re-inspection    $50.00 Building    $25.00 Unit



*Re-inspection fees are applied after 1st failed inspection


Application and Inspection fees must be paid when the application is submitted. A complete copy of the Lexington Rental Ordinance is available upon request or can be viewed online here please see section 15.107


What You Need to Know

Once your application has been submitted with accompanying fees, you must contact the city to schedule an inspection. (State statute requires the owner or agent to contact the tenant prior to the inspection.)

The owner/agent/owner’s representative is required to be at the rental inspection. If one fails to meet the inspector a no show for inspection fee will be charged.


Upon completion of the rental inspection, if there are items to be corrected, a copy of the compliance order is given to the owner, owner’s representative, or agent with a time limit to comply with the order and schedule a reinspection. Once the rental dwelling has passed inspection, and all fees have been collected, a Rental Dwelling License will be issued.

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