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1 <br />Cal Portner <br />From:MN_MDOR_Local Government Services <LocalGovernmentServices.mdor@state.mn.us> <br />Sent:Wednesday, November 20, 2024 10:07 AM <br />Cc:MDOR_SUT Local Government Services <br />Subject:New Local Sales Tax Agreement <br />GreeƟngs, <br /> <br />The updated local opƟon sales and use tax agreement will be ready for your local government to review by the end of <br />this week. The new agreement includes an updated rate for the administraƟve fee found in the Reimbursement of Costs <br />secƟon. This new administraƟve fee begins with payments made to local governments in January 2025, for the local <br />sales tax collected from the November 2024 revenue period. <br /> <br />The new language for the administraƟve fee states the Department will collect a flat rate of up to 1.0% of local sales <br />taxes collected. The language is updated to allow for adjustments to reflect the fluctuaƟon of sales tax revenues. By <br />doing this, updates to the agreements will only be required if the administra Ɵve costs exceed the flat rate. To which the <br />180-day noƟce is required. StarƟng in January 2025, the rate will be 0.90%. We will provide the actual administraƟve <br />rate with your monthly spreadsheet the Department emails with your payment. <br /> <br />We will upload the new agreements into the virtual room. You may already have access to the virtual room. If you do <br />not have access, the main contact for the local government will receive a separate email with instruc Ɵons to log in. If <br />you had access to the virtual room in the past, but you are unsure of your log in informaƟon, please let us know by <br />responding to this email. We can reset your account if necessary. <br /> <br />AŌer logging in to the virtual room you will be able to see the local opƟon sales and use tax agreement to download for <br />your local government to review and sign. <br /> <br />Once your local government signs the agreement, upload the signed agreement to the virtual room. We will forward the <br />agreement to the Commissioner of Revenue for his signature. AŌer all signatures are obtained, the agreement will be <br />uploaded to the virtual room for you to keep a copy and we will also retain a copy. <br /> <br />Please return the updated signed agreement before January 31, 2025. If you need addiƟonal Ɵme, please let us know. <br /> <br />If you have quesƟons or concerns, contact us by phone or email listed below. <br /> <br /> <br />Sincerely, <br /> <br />Sales & Use Tax Division <br />Local Government Services <br /> <br />Minnesota Department of Revenue <br />Phone: 651-556-6117 <br />Fax: 651-556-3102 <br />Email: LocalGovernmentServices.mdor@state.mn.us <br />www.revenue.state.mn.us <br />Page 148 of 211