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Last Updated: 10/26/2017

Frequently Asked Questions

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Property Tax Administrators

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Property Tax Administrators > Data Reporting > Aggregate Materials

  • Who can impose the tax?Back to top

    State law provides that counties can impose the tax. In addition, certain towns located in St. Louis and Otter Tail Counties can impose the tax if the county does not impose the tax.

  • How does a county impose the tax?Back to top

    Any county may impose this tax if the county board has 1) voted after a public hearing to impose the tax, and 2) has notified the Commissioner of Revenue of the imposition of the tax.

  • How does a township impose the tax?Back to top

    A township authorized under statute to impose the tax may impose the tax after 1) voting at a town meeting to impose the tax, and 2) notifying the Commissioner of Revenue of the imposition of the tax.

  • What is the tax rate?Back to top

    The tax is 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated.

  • Who is subject to the tax?Back to top

    This tax applies to both “Operators” and “Importers.”

     
    ·          An “Operator” is any person engaged in the business of removing aggregate material from the surface or subsurface of the soil for the purpose of sale, either directly or indirectly, through the use of the aggregate material in a marketable product or service.
     
    ·          An “Importer” is any person who buys aggregate material excavated from a site on which the tax is not imposed and caused the aggregate material to be imported into a Minnesota county which imposes a tax on aggregate material.

  • When is the tax imposed?Back to top

    The tax is imposed on the material excavated in the county when it is transported from the extraction site, or sold, whichever occurs first.

  • How is the tax apportioned?Back to top

    Counties are allowed to retain 5% of the total aggregate tax collected to pay for administrative expenses.  The remaining tax must be distributed as follows:

     
    ·          42.5% - County Road and Bridge Fund
    ·          42.5% - Township or City Road and Bridge Fund (where the mine is located)
    ·          15% - Reserve Fund for mine pit restoration
     
    If aggregate material is transported outside the county via a waterway, railway, or any other means besides a public road, the tax is to be apportioned equally between the county where the material is extracted and the county the material is exported to; it is then subjected to the apportionment listed above.

  • Are aggregate producers and importers still subject to sales tax rules?Back to top

    Yes.  All aggregate producers, contractors, and retailers anywhere in Minnesota are subject to the sales and use tax.

  • Is sales tax charged on the aggregate tax amount?Back to top

    Yes. Sales tax must be charged on the total sales price, including the aggregate tax amount.

  • Who is responsible for auditing aggregate tax returns?Back to top

    The law states that the county auditor or its duly authorized agent may examine the records maintained by an importer or operator.

  • What are the reporting requirements for operators and importers?Back to top

    Operators or importers must file a quarterly report with the county auditor.  The reports and payment are due:

     
    ·          April 14th
    ·          July 14th
    ·          October 14th
    ·          January 14th

  • How long must an operator or importer maintain their records?Back to top

    The records must be maintained by the Importer or operator for no less than six years.

  • How does a county or township notify the commissioner of revenue that it will begin imposing the tax?Back to top

    The county or township must send an e-mail to PropTax.Admin@state.mn.us. The e-mail must include the date the county will begin to impose the tax as well as an attachment of the county board resolution authorizing the imposition of the tax.