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Last Updated: 3/18/2015

Starting a new tax

​These are general guidelines; please contact us if you have any questions.

Generally, local governments must obtain approval from the Legislature before starting any local sales and use tax. (See Minnesota Statutes 297A.99 and 477A.016)

Click the type of local tax to find out how to get authorization (approval) to start a new local tax:

  • General local sales and use tax- This tax can be used to fund any approved local area project. It applies to all retail sales within the local area.
  • Special local sales and use tax- These taxes can be used to fund any approved local area project. They apply to the specific product or service designated by the tax (food and beverage, lodging, entertainment, etc.).
  • Local transportation sales and use tax- This tax can be used to fund county transportation or transit projects. The tax applies to all retail sales within the local area.

What happens once you have received authorization (approval) for a new local tax?