Minnesota Sales and Use Tax Changes

The following changes are from the Minnesota Department of Revenue and went into effect January 1, 2014:

Local Government Exemption
Starting Jan. 1, 2014, cities and counties are exempt from sales and use tax on purchases used to provide certain government services. Please refer to Fact Sheet 176 for more information.
We have updated Form ST-3, Certificate of Exemption, to include “local government” as a reason for exemption under “B-specific government exemption.”

New Local Taxes
Starting Jan. 1, 2014, Olmsted County and Rice County will each have a transit sales and use tax. Please refer to the Olmsted County General Notice and Rice County General Notice for more information.

Rochester Lodging Tax Rate
Starting Jan. 1, 2014, Rochester Lodging Sales tax increases to 7%. (The previous rate was 4%.) Please refer to the Rochester Lodging General Notice for more information.

e911/TAM Fee
Starting Jan. 1, 2014, the Minnesota Department of Revenue will administer the e911/TAM fee collected by retailers who sell prepaid wireless phones, air time, or calling cards. Please refer to Fact Sheet 179 for more information.

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