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Minnesota sales tax rate changes, October 2017

 Local tax rate changes took effect in Vermont on Oct. 1, 2017.

Updated 11.28.2017

Many local sales and use tax rate changes took effect in Minnesota on Oct. 1, 2017.

City changes

The following cities imposed a new 0.5% sales and use tax:

  • Fairmont
  • Moose Lake
  • New London
  • Spicer

Proctor increased the local sales and use tax from 0.5 to 1%.

County changes

The following counties imposed a new transit sales and use tax:

  • Anoka County: 0.25%
  • Carver County: 0.5%
  • Dakota County: 0.25%
  • Hennepin County: 0.5%
  • Ramsey County: 0.5%
  • Washington County: 0.25%
  • Wright County: 0.5%

Clay County imposed a new general sales and use tax of 0.5%.

Other changes

The Minneapolis lodging tax rate dropped from 2.625% to 2.125% on Oct. 1, 2017.

Also on that date, the Transit Improvement Area Tax is discontinued and Anoka, Dakota, Hennepin, Ramsey, and Washington Counties each have their own $20 vehicle excise tax. The vehicle excise tax is collected by “any person in the business of selling new or used motor vehicles at retail.” The Minnesota Department of Revenue administers this tax for these cities.

Baxter, Brainerd, Clearwater, Hutchinson, Mankato, New Ulm, Rochester, and Worthington also impose a vehicle excise tax of $20. The cities administer the tax themselves.

Local sales tax doesn’t apply to the sale of motor vehicles in Minnesota. Additional information is available from the Minnesota Department of Revenue.

Local sales and use taxes complicate sales and use tax compliance in many states. Learn how tax automation software can simplify it.

Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.