Local Sales Tax Requirements for Sellers

On June 21, 2018, the U.S. Supreme Court ruled in South Dakota v. Wayfair that physical presence is not required for sellers to be responsible for sales tax collection. All Minnesota sellers—regardless of their location—must collect state and local sales taxes based on the location of their customer.

You must collect local tax when you ship taxable items into a local area, including all sales made using the internet, mail order, or telephone. Continue collecting local tax when customer’s pickup items in a local area and when you perform taxable services in a local area.

We made improvements to the e-Services Sales and Use Tax account to simplify the process of registering for local taxes.

With these updates, you will be able to quickly add all local tax and other taxes at once.

You can also add individual local taxes while filing your Sales and Use Tax return.

We offer resources to help you determine the total tax rate (state and local).

• Use our Sales Tax Rate Calculator. If you have a street address, it will identify the nine-digit ZIP code for you. Best for use when you have one or two addresses at a time.
• Download our Sales Tax Rate Spreadsheet to use at your desk. You must know the nine-digit ZIP code. Best for use when you have multiple nine-digit ZIP Codes to look up at one time.

Report local taxes when you file your Minnesota Sales and Use Tax return. Local tax amounts are reported separately from the state sales tax.

For more information about local taxes in Minnesota, see the following:

• Local Sales Tax Information
• Local Tax Rate Guide

If you have questions, email localgovernementservices.mdor@state.mn.us or call 651-556-6117.