Uses of Minnesota Sales Tax
The Minnesota sales tax is imposed for the purpose of providing various public utility services in the state of Minnesota. In each city the Minnesota sales tax is used to upgrade the various services that need to be addressed. The sales tax in Minnesota has played a vital role in the development of the state.The following table shows the various uses of the sales tax in Minnesota:
| Cities | Uses |
|---|---|
| Austin | Financing flood mitigation projects |
| Brainerd | Construction of upgraded water and waste water treatment facilities, water infrastructure improvements and trail development |
| Owatonna | Financing transportation projects, improvements in the West Hill complex, library and fire hall |
| Hennepin | County Funding the Minnesota Twins Stadium |
Minnesota Sales Tax Rules
As per the laws governing the sales taxes in the state of Minnesota only the registered retailers are allowed to collect them. The sales taxes for individual cities are reported along with the state taxes. The statistics are reported separately.Minnesota Use Tax
The use taxes are applicable in individual cities of Minnesota when transactions are made without the payment of sales taxes in that city. The use taxes are pretty much like the sales taxes in that the rates are the same.Calculation of Minnesota Sales Tax
The standard sales tax rate in Minnesota is 6.5%. The sales tax rates in individual cities are calculated by adding the tax rate to the additional rate applicable to each city. For example in Austin the additional rate is 0.5%. Hence the sales tax rate in Austin is 7%.Sales Tax Exemptions in Minnesota
The local governmental bodies need not pay sales taxes at the local level. However the Minnesota sales tax do apply to them. The examples include the following:- Governmental Boards
- Cities
- Political subdivisions
- Towns
- Commissions
- Counties
- Special districts
- Instrumentalities
