Starting a Local Sales Tax
Generally, local governments must obtain approval from the Minnesota Legislature before starting any local sales and use taxes.
Local taxes administered by the Minnesota Department of Revenue follow the same tax base as provided in Minnesota Statutes. They’re also subject to the same penalties, interest, and enforcement as the general rate sales tax.
General Guidelines and Steps
These are general guidelines and steps to help you start a local tax. There are three tax types, and each one has specific authorization and implementation information.
After your tax is approved, there are requirements you must follow.
General Local Tax
Special Local Tax
Local Transportation Tax
After Your Tax is Approved
You must notify the public of your new local tax, and if necessary, take our disclosure training.