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Last Updated: 10/20/2016

Local Governments Exemption

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Sales and Use Tax

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Currently, purchases made by local governments (cities, counties, and towns) are generally exempt from sales and use tax.

Starting January 1, 2017, the exemption will be available to: 

  • special districts

  • instrumentalities of a statutory or home rule charter city, county, or township

  • joint powers boards or organizations

  • Metropolitan Council

For more information, refer to Fact Sheet 176, Local Governments - Cities, Counties, and Townships.