8.3. SR 10-16-2017 - Laserfiche WebLink

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3 Minnesota Revenue, Local Sales and Use Taxes Vehicle leases Long-term leases. If you enter into a long term lease for a vehicle that is principally based or garaged in an area with local sales tax, local sales tax applies. The lo- cal tax applies even if the leasing company is located outside the city or county. If the lease is for a vehicle that requires an up-front payment of state sales tax, local tax is also due up- front, if the vehicle is principally garaged in the local area. Short-term rentals. Vehicles leased or rented under agreements for less than 29 days are subject to local tax if the lease agreement is entered into in the local taxing area, even if the lessee intends to use the vehicle out- side the city or county. Vehicle sales Local sales tax does not apply to sales of motor vehi- cles. However, $20 vehicle excise tax applies to sales of motor vehicles when the sale occurs in a county listed in the table below. County Effective Date Anoka* 10/1/2017 Beltrami 4/1/2014 Carver 10/1/2017 Carlton, St. Louis 4/1/2015 Dakota* 10/1/2017 Hennepin* 10/1/2017 Otter Tail 1/1/2016 Ramsey* 10/1/2017 Scott 10/1/2015 Transit Improvement Area* 7/1/2008 Washington* 10/1/2017 *The Transit Improvement Area Tax (includes the counties of Anoka, Dakota, Hennepin, Ramsey, and Washington) ends September 30, 2017. Starting Octo- ber 1, 2017, each county will have their own $20 vehi- cle excise tax. This excise tax must be collected by any person in the business of selling new or used motor vehicles at retail and must be submitted to the Minnesota Department of Revenue on your Minnesota Sales and Use Tax return. Motor vehicle means any self-propelled vehicle re- quired to be licensed for road use and any vehicle pro- pelled or drawn by a self-propelled vehicle required to be licensed for road use. It includes, but is not limited to, cars, vans, pickups, trucks, truck-tractors, tractors, trailers, motor homes, and motor cycles. Note: An excise tax of $20 also applies to sales of ve- hicles made by dealers located within Baxter, Brainerd, Clearwater, Hutchinson, Mankato, New Ulm, Roches- ter and Worthington. For more information, contact the city offices directly. The Department of Revenue does not administer the excise tax for these cities. Special local taxes The Minnesota Department of Revenue also adminis- ters special local taxes that are imposed in Detroit Lakes, Giants Ridge Recreation Area, Mankato, Min- neapolis, Proctor Rochester, St. Cloud, and St. Paul. The city of Detroit Lakes imposes a 1 percent Food and Beverage tax. Giants Ridge Recreation Area imposes a 2 percent Admissions and Recreation tax; a 1 percent Food and Beverage tax; and a 2 percent Lodging tax. The city of Mankato imposes a 0.5 percent Food and Beverage tax; and a 0.5 percent Entertainment tax. The city of Proctor imposes a 1 percent Food and Beverage tax. St. Cloud imposes a 1 percent tax on liquor and food sold at restaurants and “places of refreshment” lo- cated within the city limits. Minneapolis, Rochester, and St. Paul impose various lodging taxes administered by the Department of Revenue. Minneapolis imposes a city wide 3 percent entertainment tax. Special 3 percent restaurant and 3 percent liquor taxes apply in the Min- neapolis downtown taxing district. See Fact Sheets 164M, Minneapolis Special Taxes and 164S, Special Local Taxes, for more information about special local taxes administered by the Department of Revenue. Lodging taxes Many Minnesota cities, towns, and areas impose a lodging tax. Except for the ones listed in the chart, these taxes are not administered by the Minnesota De- partment of Revenue. All questions should be directed to the city or town imposing the tax.