How Sales Tax Applies to Minnesota Local Governments
- Jul 8, 2014 | Gail Cole
Local governments in Minnesota may purchase certain goods and services tax-free. Effective July 1, 2014, the list of goods eligible for the exemption has been expanded. In addition, as of July 1, the definition of "local governments" is expanded to include "statutory or home rule charter cities, counties, townships, and qualifying cooperative agreements."
Purchases made to provide the following types of services qualify for the local government sales tax exemption:
- Administration of housing programs;
- Ambulance and public safety services;
- Aquatic facilities;
- Chore and homemaking services for elderly or disabled residents;
- Correctional services;
- Farmers markets;
- Health and fitness centers;
- Housing facilities;
- Ice arenas;
- Licensing services;
- Local festivals and fairs;
- Public use / municipal airports;
- Public transit;
- Recreational and athletic facilities;
- Road and street maintenance and lighting;
- Sewer and water services; and
- Wastewater treatment services.
Additional information, including a list of taxable purchases, is available on Minnesota Department of Revenue Fact Sheet 176.
Sales tax laws change frequently. How does your business manage sales tax?