Food And Beverage Tax
Certain local jurisdictions have a food and beverage tax, including:
- Detroit Lakes: 1 percent
- Giants Ridge Recreation Area: 1 percent
- Mankato: 0.5 percent
Examples of businesses that must charge the food and beverage tax include:
- Drive-in, Drive-through, and delivery restaurants
- Pickup or carry-out restaurants
- Sidewalk vendors
Each business should double-check its local rules as the food and beverage tax may or may not apply to certain types of places serving food.
Find Out If You Or Your Business Owe Local Uses Taxes
You or your business may owe local use tax. If you buy goods or services for personal use for a total of more than $770 outside of the City of Minneapolis within one calendar year, those purchases are subject to the 0.5-percent local use tax. If your business buys, leases or rents taxable goods or services used in your business, they are subject to local use tax either with the purchase or by April 15 the next year. Local use tax may also be due when your business brings items into Minneapolis or takes items out of inventory into a taxable use.
To determine if you or your business owes local use taxes, please refer to the Minnesota Department of Revenue.
Fargo Sells Main Avenue Property Near Red River To Epic For $118 Million
A piece of property near the Red River is being sold to a developer after the Fargo City Commission unanimously approved the sale at its Monday, Oct. 31, meeting.
EPIC Companies purchased the property at 234 Main Ave. for $1.18 million, according to Director of Strategic Planning and Research Jim Gilmour.
The city doesnt get to keep the money, Gilmour said. Due to the existing Diversion agreement, all money made from this transaction, with the exception of administrative costs, will go to the Diversion Authority, he said.
EPIC plans to build a seven-story, mixed-use building at the southwest corner of the intersection of Main Avenue and Second Street, according to a memo Gilmour sent to commissioners. The project will continue the developer’s work on its downtown “Gateway development.”
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Minnesota Sales Tax Guide
Minnesota has a 6.875 percent state sales tax rate. It also has several local tax rates and specialty tax rates. The state also has a use tax rate that works in conjunction with the state sales tax rate. The use tax rate is also 6.875 percent.
This guide does not fully describe all of Minnesotas laws and regulations regarding taxes. Businesses should contact a business attorney or visit the Minnesota Department of Treasury website to learn more about the rules, regulations, tax laws, and tax information associated with their industries and the types of taxes due.
Wise Is The Cheaper Faster Way To Send Money Abroad
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Why Is The City Building A New Fire Station
The current building, which was built in the late 1920s, has a square footage of 8,100. Modern fire trucks wont fit in the building and there is no space for needed equipment, Firefighter training, and decontamination facilities that are needed to address firefighter health and safety needs. The proposed building is approximately 27,000 square feet.
What Is Exempt From Sales Taxes In Minnesota
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here’s how Minnesota taxes five types of commonly-exempted goods:
Clothing
OTC Drugs
For more details on what types of goods are specifically exempt from the Minnesota sales tax see Minnesota sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Minnesota? Taxation of vehicle purchases in particular are discussed in the page about Minnesota’s sales tax on cars.
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West Fargo Sales Tax Ballot Measure Faces Growing Citizen Scrutiny
Some West Fargoans are voicing concerns about how city officials have informed citizens about a half-cent sales tax measure and others are questioning if West Fargo taxpayers are being misled about the Nov. 8 ballot question.
West Fargoans are deciding whether to approve a half-cent sales tax to fund the city’s police and fire departments. City commissioners voted in September to add the measure to the ballot. Since then, the city has circulated information through its website, in the West Fargo Focus newspaper and via appearances by public employees.
Since last week, several residents have sent emails to commissioners, The Forum and other officials questioning the city’s information and its distribution methods.
At last week’s meeting, Police Chief Denis Otterness spoke in uniform alongside other uniformed police officers who stood among audience members. At the start of the meeting, West Fargo Commissioner Brad Olson said Fire Chief Dan Fuller was on call that evening and could be called out at any time.
North Dakota Century Code 44-08-19 states, “No public employee may engage in political activities while on duty or in uniform.” Section 39-01-04 broadly defines “political activities” to include distributing “political literature.”
Minnesota Sales Tax Penalties
If you fail to make a payment when one is due, you will be charged a penalty of 5% if you make the payment within 30 days of the due date. Payments received between 31 and 60 days after the original due date will be subject to a 10% penalty, and payments that are more than 60 days late will incur a 15% penalty.
An additional 5% penalty will be charged if you fail to file a return in addition to missing a payment, and there is a penalty of 25% if you continue to pay late. A failure to report local sales taxes appropriately also incurs a 5% penalty, and a failure to include accurate location information on a consolidated return from multiple locations will result in a fine of $500 for each problematic return.
In addition to the penalties, interest is charged on the combined total of tax due and penalty. The rate of interest charged depends on the year the taxes should have been paid. The current rate for 2021-22 is 3%, but it varies over the last 15 years. Carrying an unpaid tax balance or repeatedly paying late can ultimately lead to the revocation of your authorization to do business in the state.
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Discretionary Taxes For Sales Of Goods
The cities, towns, and counties in Minnesota can levy additional tax rates. The best way to determine how much tax a business must pay is to enter the business locations zip code into the local tax rate locator.
Alternatively, the state publishes a list of local taxes. However, if a business decides to use the list, it should ensure that it is using the most updated list published by the Minnesota Department of Revenue.
What Transactions Are Generally Subject To Sales Tax In Minnesota
In the state of Minnesota, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Several examples of exceptions to this tax are products intended for babies, clothes, and over the counter medications.This means that someone in the state of Michigan who sells books would be required to charge sales tax, but an individual who owns a store which sells clothing is required to charge sales tax.
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Minnesota Sales Tax Rates By City
The state sales tax rate in Minnesota is 6.875%. With local taxes, the total sales tax rate is between 6.875% and 8.875%.
Minnesota has recent rate changes .
Select the Minnesota city from the list of popular cities below to see its current sales tax rate.
Sales tax data for Minnesota was collected from here. Sale-Tax.com strives to have the most accurate tax percentages available but tax rates are subject to change at any time. Always consult your local government tax offices for the latest official city, county, and state tax rates. Help us make this site better by reporting errors.
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Car Sales Tax For Trade
You dont have to pay sales tax on trade-ins in Minnesota. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.
As an example, lets say you are purchasing a new SUV for $25,000 and your trade-in is worth $5,000. You will subtract the trade-in value by the purchase price and get $20,000. Therefore, your car sales tax will be based on the $20,000 amount.
However, if you are trading in an off-road vehicle , then you must pay sales tax on the trade-in. In other words, trading in an off-road vehicle does not reduce the taxable amount.
About The Minnesota Sales Tax
The state of Minnesota has a relatively simple sales tax rate, and utilizes a flat state tax rate. The tax rate is made up of two parts a large part is given to the state’s general funds, and the remainder is given to the arts and environmental projects. In addition to the state tax rate, there are county taxes or local city taxes, which will vary significantly depending on which jurisdiction you are in. These local tax rates would be in addition to the state rate.
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Sales Tax Rates In Minnesota
Minnesota has a statewide sales tax rate of 6.875%. This is the only sales tax levied in many areas. Certain counties and cities do charge additional local sales tax, however, so its important to know if youre shipping goods to one of those areas or if you have a physical location there so that you charge sales tax appropriately on applicable purchases.
To determine whether local taxes are due on items youre selling and the final rate to charge, you can refer to the local sales tax section on the Minnesota Department of Revenue website. They have resources that show the rates in each locality, as well as the specific items that additional rate applies to. For instance, Lanesboro charges local sales and use tax of 0.50%, which needs to be added to the state rate to determine the total sales tax due, and this applies to any item that is also covered by the state sales tax law.
Other municipalities are more specific. In Detroit Lakes, for example, an additional sales tax is charged on prepared food and beverages, while all other taxable items are only subject to the state rate. Minneapolis has several categories of additional sales tax, including a downtown liquor tax and a lodging tax. No matter where youre selling, though, or what the specific rates are charged, all you need to do to determine the total applicable sales tax is to add the state rate and all relevant local rates together, and then apply that combined rate to the cost of the purchase.
City Of Excelsior Local Option Sales And Use Tax Information
Starting October 1, 2019, Excelsior will have a 0.5 percent sales and use tax. The Minnesota Department of Revenue will administer this tax. Revenues will fund capital and administrative costs of improvements to The Commons as indicated in the Commons Master Plan adopted by the City Council on November 20, 2017 and outlined in Resolution 2019-33 and Ordinance No. 599.
The 0.5 percent sales tax applies to retail sales made within Excelsior. The use tax applies to taxable items used in the City if the local sales tax was not paid. More information about the local tax can be found on the Minnesota Department of Revenue’s website. Specific questions regarding the local sales and use tax should be directed to the Minnesota Department of Revenue. The State is administering and collecting the local sales and use tax on behalf of the City.
Businesses should have received a notice from the Department of Revenue about the upcoming local sales and use tax. The notices were sent out the end of July.
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Calculating Minnesota’s Sales And Use Tax
To figure out Minnesotas tax rate, add the state tax of 6.875 percent to the local tax rates for the businesss zip code. Add the special taxes. Multiply the total rate by the sales price. For example, Widget A sold for $100. You live in a county that has a 1 percent sales tax and a special tax for Widget A items of 5 percent. Add 6.875, 1 and 5, for a total of 12.875. Multiply 100 by 0.12875 for a total tax of $12.88 in taxes. The total sale is $112.88.
Local Use Tax Applies To Purchases Not Charged At The Local Sales Tax Rate
The local use tax is similar to a sales tax. The rates are identical, but the use tax is applied to taxable purchases that were not taxed at the local sales tax rate .
The State of Minnesota applies a 6.875-percent tax on taxable purchases within the state and also on taxable purchases made by its residents and businesses outside of the state . Hennepin County applies an additional 0.15-percent tax to taxable purchases within the County and also to taxable purchases made by its residents and businesses outside of the County . The City of Minneapolis applies an additional 0.5-percent tax to taxable purchases within its city limits and also to taxable purchases made by its residents and businesses outside of city limits .
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Rochester Minnesota Sales Tax Rate
rochester Tax jurisdiction breakdown for 2022
What does this sales tax rate breakdown mean?
Sales tax rates are determined by exact street address. The jurisdiction-specific rates shown add up to your minimum combined sales tax rate. The total rate for your specific address could be more.
Need the exact sales tax rate for your address?
What is the sales tax rate in Rochester, Minnesota?
The minimum combined 2022 sales tax rate for Rochester, Minnesota is . This is the total of state, county and city sales tax rates. The Minnesota sales tax rate is currently %. The County sales tax rate is %. The Rochester sales tax rate is %.
Did South Dakota v. Wayfair, Inc affect Minnesota?
The 2018 United States Supreme Court decision in South Dakota v. Wayfair, Inc. has impacted many state nexus laws and sales tax collection requirements. To review the rules in Minnesota, visit our state-by-state guide.
Did COVID-19 impact sales tax filing due dates in Rochester?
The outbreak of COVID-19 may have impacted sales tax filing due dates in Rochester. Please consult your local tax authority for specific details. For more information, visit our ongoing coverage of the virus and its impact on sales tax compliance.
Tax On Rebates & Dealer Incentives
You do not have to pay tax on dealer rebates and incentives in Minnesota. In other words, be sure to subtract the incentive/rebate amount from the car price before calculating sales tax.
As an example, if you are purchasing a new car for $30,000 with a $5,000 rebate, you will pay sales tax on the $25,000 final cost of the car.
However, rebates for off-road vehicles do not reduce the taxable amount.
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How Often Should You File
How often you need to file depends upon the total amount of sales tax your business collects.
- Annual filing: If your business collects less than $100 in sales tax per month then your business should elect to file returns on an annual basis.
- Quarterly filing: If your business collects between $100 and $500 in sales tax per month then your business should elect to file returns on a quarterly basis.
- Monthly filing: If your business collects more than $500 in sales tax per month then your business should file returns on a monthly basis.
Note: Minnesota requires you to file a sales tax return even if you have no sales tax to report.
