Minnesota State Fair and Sales Tax

Minnesota state law has proven to be a challenge sometimes for purveyors using county fairgrounds, but Minnesota has its own set of instructions that must be followed to be in compliance collecting and remitting sales tax at the Minnesota State Fair.

First, any “…business or individual that meets any of the following must register for an ID number before participating at the Minnesota State Fair:

• Makes taxable sales at the fair
• Hires anyone, including family or friends, to work at the fair
• Pays nonresident entertainers to perform at the fair
• Has income in Minnesota meeting the income tax filing requirements….”

Second, all businesses, whether local or out-of-state as well as nonprofit groups must collect sales tax on taxable sales.

Third, “[m]ost sales made at the State Fair are subject to 7.125 percent sales tax, consisting of the 6.875 percent general state tax and the 0.25 percent Transit Improvement tax.” However, “[s]ales made on the fairgrounds are not subject to St. Paul local sales tax.”

Fourth, if tax is included in the sales price, “…you must display a sign indicating ‘tax included’.” If sales tax is not included, it should be stated separately on the customer’s receipt.

The Minnesota Department of Revenue “…will provide a collection site from 9 a.m. to 2 p.m. on Tuesday, September 4, 2012” for individuals and businesses desiring to pay the tax at the fair. If a vendor chooses to pay at the fair, the Department will collect the necessary information and file the return on their behalf.

Review the Minnesota State Fair- Sales Tax Fact Sheet for more details on how sales tax is applied, what is exempt and where to pay if you want to pay at the fair.