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Last Updated: 10/26/2017

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Sales and Use Tax

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Sales and Use Tax > Tax Information > Local tax information

  • Who administers local taxes?Back to top

    By law, the Department of Revenue must administer all general local Sales and Use taxes.
    However, each local taxing jurisdiction may choose whether to administer their own special local taxes, or to have the department do it. Lodging, entertainment, food and beverage are some examples of special local taxes.

  • Are local governments subject to sales tax?Back to top

    Most purchases by local governments in Minnesota are exempt from the state’s 6.875 percent general rate Sales and Use Tax.

    Local governments are exempt from general local sales or use taxes. However they must pay other special local taxes such as lodging, entertainment, and food and beverage.

    For detailed information on when local governments are exempt from Sales and Use Tax, see Fact Sheet 176, Local Governments – Cities, Counties, and Townships.

  • Why am I being charged a local sales tax that you don’t have listed on your website?Back to top

    By law, the Department of Revenue must administer all general local Sales and Use taxes. However, each local taxing jurisdiction may choose whether to administer their own special local taxes, or to have the department do it. Lodging, entertainment, food and beverage are some examples of special local taxes.

    For information about a local sales tax not listed on our website, contact the local government where the purchase was made.

  • What is an acceptable exemption certificate?Back to top

    If a purchaser is exempt from paying sales tax, they must provide the seller with a fully completed exemption certificate at the time of the purchase. Purchasers are responsible to know if they qualify for an exemption, and they will be held responsible for any tax, interest and penalties that apply if the purchase isn’t eligible for an exemption.

    The Minnesota Department of Revenue accepts the following forms as valid exemption certificates:

    • Form ST3, Certificate of Exemption (Minnesota Department of Revenue form)
    • Form F0003, Certificate of Exemption (Streamlined Sales Tax form)
    • Uniform Sales and Use Tax Certificate (Multistate Tax Commission form)
    • Exemption certificates from other states, if they meet the requirements below
    • Exemption certificates prepared by the purchaser, if they meet the requirements below

    An exemption certificate must contain the following information to be valid:

    • Purchaser’s name and address
    • Purchaser’s Minnesota tax ID number or if they don’t have one, any of the following:
      • Tax ID number from another state (and list the state of issue)
      • Federal employer ID number (FEIN)
      • Driver’s license (and list the state of issue) 
    • Purchaser’s type of business
    • Reason for the exemption
    • Purchaser’s signature