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<br /> <br /> 4 Minnesota Revenue, Local Sales and Use Taxes <br />Examples of when to charge local tax <br />In the examples below, Minnesota state tax always applies. Local tax applies as indicated. <br /> <br /> A Duluth company sells items to a Hermantown <br />company. The Duluth company delivers the <br />items to Hermantown in their own truck. The <br />Duluth company is required to collect the Her- <br />mantown and the St. Louis County Transit Sales <br />and Use Tax. <br /> <br /> A contractor buys and picks up materials in a <br />city with a local tax for use in an area without a <br />local tax. Since the materials are picked up in the <br />city with a local tax, that city’s local sales tax <br />applies. If the materials are delivered by the <br />seller to the construction site, no local tax is due. <br /> <br /> A North Dakota contractor buys there and pays <br />the North Dakota tax. The materials are brought <br />into Minnesota to be used at a construction site <br />in Bemidji. Bemidji local use tax is due. (Also, <br />since North Dakota’s tax rate is lower than Min- <br />nesota’s rate, the difference is due as Minnesota <br />state use tax.) <br /> <br /> A person sells at a craft show located in a city <br />with a local tax and customers take possession of <br />the items in that city. Since the sales are being <br />made in a city with a local tax, the seller must <br />collect the local tax. This is true even if the seller <br />is from outside the city. <br /> <br /> A photographer takes pictures at a site where <br />there is no local tax. The customer picks up the <br />photos at the photographer’s studio in a city with <br />a local tax. Local tax is due because the cus- <br />tomer takes possession of the photos in a city <br />with a local tax. If the photographer mails the <br />photos to an area with no local tax, no local tax <br />is due. <br /> <br />ZIP Codes <br />You can use the Sales Tax Rate Calculator to help you <br />determine the sales tax rate. You can find the calculator <br />on our website. Go to www.revenue.state.mn.us and type <br />sales tax calculator into the Search box. <br />Note: the rate calculator does not include special local <br />taxes (lodging, entertainment, liquor, admissions, and <br />restaurant taxes). <br /> <br />For information, see: <br /> Fact Sheet 164S, Special Local Taxes <br />Fact Sheet 164M, Minneapolis Special Local Taxes <br /> <br />The general ZIP Code area for each local tax is listed in <br />the Local Tax Guide – ZIP Codes, Cities, and Towns <br />on our website. Unfortunately, ZIP Codes do not corre- <br />spond exactly with city/county limits. To be sure you are <br />getting the correct results for the specific address you are <br />looking up, use the sales tax rate calculator on our web- <br />site. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Legal References <br />Minnesota Statutes 297A.63, Use Taxes Imposed; Rates <br />Minnesota Statutes 297A.95, Coordination of state and local <br />sales tax rates <br />Minnesota Statutes 297A.98, Local governments exempt <br />from local sales taxes <br />Minnesota Statutes 297A.99, Local sales taxes <br /> <br />Other Fact Sheets <br />142, Sales to Government <br />146, Use Tax for Businesses <br />156, Use Tax for Individuals <br />164M, Minneapolis Special Local Taxes <br />164S, Special Local Taxes