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Minnesota sales tax rate changes, April 2018


 A local sales and use tax rate change will take effect in Minnesota on April 1, 2018.

The sales and use tax rate in Kandiyohi County, Minnesota, will increase on April 1, 2018. The county is imposing a 0.5 percent transit sales and use tax to generate revenue for transportation projects. This will be in addition to the 6.875 percent state sales tax rate, for a combined rate of 7.375 percent.

The new local transit sales and use tax does not apply to the following:

  • Lease payments that include periods before April 1, 2018 (it does apply to payments for periods that begin on or after that date)
  • Taxable purchases ordered before April 1, so long as the transfer of title or possession takes place prior to April 1 (the tax applies if transfer of title or possession takes place after April 1)
  • The purchase of taxable services, including utility services, if the billing period includes charges for services furnished before and after April 1 (the tax does apply if the billing period starts on or after April 1)
  • The purchase of admission tickets if they’re paid for prior to April 1, even if the event is held on or after April 1
  • The purchase of construction materials used to complete a lump sum or fixed price construction contract that was signed and is enforceable before April 1, so long as 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 Oct. 1, 2018

In addition to the local transit sales and use tax, Kandiyohi County is imposing a $20 vehicle excise tax. The excise tax must be collected by vehicle retailers upon the sale of a new or used motor vehicle that will be registered for road use. Additional information is available from the Minnesota Department of Revenue.

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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.