COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. For more information, updates, and resources, see Our Response to COVID-19.
For off-road vehicles, the purchase price is determined by subtracting any trade-in allowance from the sales price as shown below.
Off-road vehicle sales price
- Trade-in allowance
= Sales price of the vehicle
x 6.875% Minnesota general sales tax rate and any local sales tax rate that applies
Total sales tax due
Note: Rebates can reducethe purchase price, be used as a down payment, or be refunded to the customer. A rebate must have a fixed value. If a third party entered into an agreement with a vehicle manufacturer to offer rebates, the rebate can reduce the vehicle’s sales price.
A trade-in allowance reduces the purchase price when an off-road vehicle is taken in trade by the seller.
A trade-in allowance does not reduce the purchase price when an off-road vehicle is taken in trade by a third party. (For example, a dealer sells an off-road vehicle to a customer, but the customer sells their off-road vehicle to a third party. The proceeds received from the third party do not reduce the purchase price of the vehicle.)
Some cities and counties have local sales and use taxes. If you make sales into or are located in an area with a local tax, you may owe local sales or use tax. For more information, see Local Sales or Use Taxes.
To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use the Sales Tax Rate Map or Sales Tax Rate Calculator to help you determine the sales tax rate.
Note: The map and rate calculator do not include special local taxes.