Becker County, Minnesota, Transit Sales and Use Tax, July 2014
- May 6, 2014 | Gail Cole
The Minnesota Department of Revenue has announced that Becker County will impose a new 0.5% transit sales and use tax, effective July 1, 2014. This is in addition to the 6.875% Minnesota state sales tax rate, and any other applicable local taxes.
The new tax will apply to “all retailers who are doing business in Becker County and are registered for Minnesota sales tax.” Sellers located outside of Becker County must collect the tax if any of the following conditions are true:
- Seller has an office, distribution, sales, sample or warehouse locations, or other place of business in Becker County, either directly or by a subsidiary.
- Seller has a representative, agent, salesperson, canvasser, or solicitor in Becker County, either on a permanent or temporary basis. This includes anyone who operates under the authority of the retailer or its subsidiary.
- Seller ships or delivers tangible personal property into Becker County. OR
- Seller performs taxable services in Becker County.
The transit tax won't apply to sales of motor vehicles registered for road use.
Transitional sales are sales that straddle a tax change--typically services rather than a one-time sale. The new Becker County transit tax will not apply to any of the following transitional sales:
- Lease payments for tangible personal property and motor vehicles that include periods before July 1, 2014. The tax only applies to payments for periods beginning on or after July 1, 2014.
- The purchase of tangible personal property ordered before July 1, 2014, if the transfer of title or possession is prior to that date.
- The purchase of taxable services, including utility services, if the billing period includes charges for services furnished before and after July 1, 2014. The tax only applies to billing periods beginning with services furnished on or after July 1, 2014.
- The purchase of admission tickets if they are paid for before July 1, 2014, even if the event occurs after July 1, 2014.
In addition, the new tax will not apply to the “purchase of construction materials used to complete a lump sum or fixed price construction contract that was signed and enforceable before July 1, 2014,” when all of the following conditions are met:
- The contract does not provide for an allocation of future taxes;
- The materials are used exclusively in performing the contract; and
- The materials are delivered before December 30, 2014.
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