Minnesota – Guidance and Changes to Local Taxes

SALT Report 1179 – The Minnesota Department of Revenue has released information regarding the 0.5% local sales and use tax adopted by the cities of Fergus Falls, Hutchinson, and Lanesboro, effective January 1, 2012. The notices issued by the department discuss who must register to pay tax; how to register; how to calculate the tax; the application of use tax; exemption certificates, local governments; and transitional sales.

The notice applies to all retailers who are registered to collect Minnesota sales tax and are doing business with any of the three cities listed above. This includes any outside sellers who:

  • Have an office, distribution, sales, warehouse location, or other place of business in any of the three cities, either directly or by a subsidiary
  • Have a representative, agent, salesperson, canvasser, or solicitor in any of the three cities, either on a permanent or temporary basis, who operates under the authority of the retailer or its subsidiary for any purpose, such as repairing, selling, installing, or soliciting orders for the retailer’s taxable goods or services, or leasing tangible personal property.
  • Ships or delivers tangible personal property into any of the three cities, or
  • Performs taxable services in any of the three cities