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Last Updated: 7/16/2018

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Sales and Use Tax > Tax Information > Streamlined sales tax information

  • Date of publication for FAQs: June 21, 2018 Back to top

    As we analyze the U.S. Supreme Court's decision in South Dakota v. Wayfair, please read the following Frequently Asked Questions to help you understand how Minnesota laws and filing requirements apply to you today.

  • How do I know if I need to collect sales tax in Minnesota?Back to top

    You must register and collect sales tax in Minnesota if you have a taxable presence (nexus) in Minnesota, even if you’re an out-of-state retailer.
    Currently, the following are examples of nexus for sales and use tax in Minnesota.
    • Your business does any of the following:
      • Maintains a physical location in Minnesota (office, warehouse, or distribution, sales, or sample room).
      • Has an employee, representative, agent, or independent contractor in Minnesota.
      • Has affiliate nexus or solicitor nexus as described below.
      • Delivers items into Minnesota in your own vehicles.
      • Provides taxable services in Minnesota.
      • Owns or leases real or personal property in Minnesota, including inventory in a fulfillment center in Minnesota.
    • You have an affiliate and both of the following are true:
      • Your business uses an affiliate to promote sales into Minnesota, or to provide services to your customers in Minnesota.
      • Your business and the affiliate are related parties.
    • You have a solicitor in Minnesota and both of the following are true:

      • Your business enters into an agreement with a Minnesota resident for a commission or similar consideration.
      • That Minnesota resident directly or indirectly refers potential customers to your business through website links or otherwise.

    Note: You are required to collect Minnesota sales tax if your gross receipts in Minnesota are at least $10,000 in the year.  

    For more information, see:

  • I use a Marketplace provider; do I need to collect sales tax?Back to top

    If you use a Marketplace provider and store your goods in a warehouse in Minnesota, you must collect tax on all sales to Minnesota customers.

    For more information, see Marketplace Providers and Remote Sellers.

  • I make sales through my own website; do I need to collect tax?Back to top

    Currently, you must collect sales tax if you have a physical presence in Minnesota. The South Dakota v. Wayfair court case may change this requirement. We are following the court case and will update our information if needed.

  • I sell through a Marketplace and my own website; what are my sales tax responsibilities?Back to top

    It depends.

    • If you are registered to collect sales tax, you are responsible for filing your sales and use tax returns. The Marketplace provider is not required to collect and file on your behalf.
    • If your Marketplace provider currently collects and remits sales tax on your behalf, you must collect tax only on the sales through your website.

  • Which of my sales are taxable in Minnesota?Back to top

    Minnesota taxes most sales of tangible personal property (goods) and some services. For a listing of taxable items and services, download the Minnesota taxability matrix.

    For more information on specific topics, see:

  • Are items taxable in Minnesota taxable in every state?Back to top

    No. Sales tax laws vary from state to state.

    Streamlined Sales Tax states have the same product definitions, but may tax those products differently. For more information, see Taxability Matrices on the Streamlined Sales Tax website.

  • What are the benefits of Streamlined Sales Tax for my business?Back to top

    Streamlined Sales Tax benefits to your business include:

    • You can use a Certified Service Provider (CSP) to calculate, collect, remit, and file sales tax returns in all member states. For more information, see “What is a Certified Service Provider?“ (below).
    • You can register at one time for all full member and associate states through the Streamlined Sales Tax Registration System (SSTRS)
    • Member states have the same product definitions for consistency for businesses that sell in multiple states.
    The following states are Streamlined Sales Tax members:
     
    Arkansas
    Michigan
    North Dakota
    Utah
    Georgia
    Minnesota
    Ohio
    Vermont
    Indiana
    Nebraska
    Oklahoma
    Washington
    Iowa
    Nevada
    Rhode Island
    West Virginia
    Kansas
    New Jersey
    South Dakota
    Wisconsin
    Kentucky
    North Carolina
    Tennessee (associate)
    Wyoming

  • What does it mean to register through the Streamlined Sales Tax Registration System (SSTRS)?Back to top

    The SSTRS is a quick and easy way to register for a sales and use tax account in all Streamlined Sales Tax member states.
     
    When you register through the SSTRS, you receive sales tax accounts to collect and remit sales and use tax in all Streamlined Sales Tax full member states. You may also choose to register in any associate member states. Once you are registered, you must collect and remit sales and use taxes in those states.

  • How do I register for states that are not Streamlined Sales Tax members?Back to top

    You need to register for each non-member individually.

    If you use a Certified Service Provider (CSP), they may register you for non-member states. For more information, see “What is a Certified Service Provider?” (below).

  • How do I file and pay my sales and use tax?Back to top

    You must file returns and make payments directly to the state where taxes are due. You will not file returns or make payments directly to Streamlined Sales Tax.

    Each state will send you registration information and filing instructions.

    Note: If you use a Certified Service Provider (CSP), they will file returns and remit taxes to each state for you. If you have questions on filing or paying the taxes, contact your CSP.

  • What is a Certified Service Provider (CSP)?Back to top

    A CSP can file sales and use tax returns and remit sales taxes for you. Your business is responsible to pay use tax on its own purchases. Any business may contract with a CSP.

    CSP benefits
    • The CSP software works with your accounting system to identify which products and services are taxable, apply the appropriate tax rate, and record the transaction.
    • The CSP sets up their software with your system, prepares and files returns, remits tax to each member state, and resolves any notices or audits by member states.
    • Streamlined Sales Tax member states certify the accuracy of the CSP software and provide liability relief for incorrect tax calculation based on the certification.
    • Free monthly return processing in states where you are a remote seller. If you have nexus in member states, a small fee may apply to file those returns.
    Certified CSPs
    Note: Some CSPs also provide services in non-Streamlined states. Check their websites for more information.

  • How do I know what sales tax rate to charge?Back to top

    Minnesota’s general sales tax rate is 6.875%. Local taxes may also apply.
     
    What local taxes do I need to collect?
     
    Local taxes depend on where your customer receives your product or service.
     
    How can I determine if local taxes apply to a sale?
     
    We offer the following options to help you determine the tax rate:
    CSPs use state data to calculate the tax rate on your sales, including most local taxes. However, you're required to collect and remit special local taxes. Examples include:
    • Car rental
    • Entertainment
    • Food and beverage
    • Liquor
    • Lodging
    • Solid waste management

  • How do I register to collect Minnesota sales tax?Back to top

    You have several options to register depending on where you make sales.

    Minnesota Only
     
    You can register:
    Multiple States
     
    The easiest way to register for multiple states is through the Streamlined Sales Tax Registration System.
     
    For more information, see the “What are the benefits of the Streamlined Sales Tax for my business?” (above).