Most dry cleaning facilities in Minnesota must register with the Department of Revenue and pay this annual fee.
For purposes of this fee, the law defines “dry cleaning facility” as a business that:
- engages in commercial cleaning of apparel and household fabrics for the general public; and
- uses one or more dry cleaning solvents as a cleaning agent (including nonaqueous solvents).
Revenue from this fee goes to the state Dry Cleaner Fund, which helps pay for environmental cleanup at contaminated dry cleaning facilities.
How much is the fee?
The fee amount for each dry cleaning facility is determined by its “full-time equivalence rate” the number of full-time equivalent positions. The rate is calculated as follows:
Total hours worked by employees, owners, partners or others at the facility, divided by
2,000 (the number of work hours during a year for a full-time equivalent employee)
Note: If you were in business less than a year, multiply your FTE rating by 50 and divide that by the number of weeks you were in business.
Fee amounts are listed in the table below.
|less than 5
|5 to 10
more than 10
How do I register and pay the fee?
If you meet the definition above and were the facility owner on July 1, then each year you must:
- File your Form DC1, Annual Registration Fee for Dry Cleaning Facilities, by Oct. 1.
- Pay the full fee amount by Oct. 18 or select the quarterly payment option when filing Form DC1. (Quarterly payments must be made electronically as outlined on the form.)