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~ 1o~~se(`~Rt!etas(e~~Erc3hCUe(y~;~a~trp~y~}e~~~ti 5 I_C~C G3.e ~3C6PLJ 'Y `GE~i~~] 4FZ ~"~1[Et2~.3otii L.i ~~l.lf&tg4y C5. t.~`4.~t tk ~'..~ttd ~~.9~8~P ISEIge Generally the statute pro~~ides that tl~e local sales tax applies to the s~~tY~e tax base, ~~~ith the s~~me exemptions, as the state sales tax. A taxable serafice is subject to the local tax. if more than c:~ne- l~alf of the service, based o~~ tlae costs is performed ~~~ithin the local jurisdiction. °T'he follo~-Y~in~ sales made ~~~~"ithin the local taxing _lurisdiction are exempt from the local tax.: purchases shipped outside tl~e taxir~~; _~urisdiction ~~~r use in a trade or business outside caf'the ~urisdictiot~; purchases shipped out of tl~e taxitl~; ~~~risdi~tian by con~mo~~ carrier ~c~r use: outside o~4 tl~e _juriscliction, and purchases that are subject to tl~e direct pay provisio€~s for com~~~o~~ carriers rtl~~c~er ~~1i~~r~es~~tt~ .~tElEEItC's. tit_'~'tt4lti ~(~ /f~. ~ i ~ , ~r~~~r~n~€~~~t ~~~ a ~'opl~~~~n~n~~~~ .~s~ 'f'ax ~ co~~~ple7~lentary use taxi is required iz~ aI1 jurisdictions with a local sales tax. Four local taxes enacted before I ~~7 did not include a use taxg a local use tax was imposed in these political subdivisio€~s be~innin~ January 1, 2(~Qp. Affected _jurisdictions are ~~oted i~~ the chart on currently authorized local taxes ~"liable I ). The statute also allows a credit a~ai~~st the use tax owed for a local sales or use tax paid to another political subdivision. "I~his is si~~~tilar to the credit against state sales and use tax for tl~e amoutlt of taxes paid to another state. ~®~Ie~:tlrt~~, Adn~l~~lst~-a~i€~~~, and n~~~~r~:~~~~nt off' oca~ "'axon TI~e statute :-equines the Comn~lissioner- of I~evetltte to ad~l~tinister a~~d collect local sales a~~d use taxes. This merely codif es existing practice. All local sales taxes, except for the tax imposed in the city of Duluth, Dave been ad~~ninistered az~d collected by tl~e state. The city of Duluth, at its own request, is specifically exempted from the collection and adn-Iirtistratiot~ provisions of the statute; that city «rill contig~t.e to collect and administer the tax. locally. Tl~e local taxes are subject to the saz~~e pe~~alties, interest, a~xd enforcement provisions as the state sales tax. l~.efunds of excess state sales taxes paid must also include a refund of any excess local sales tax paid. The state deducts its collection ar~d administration costs from the tax. revenue retut-t~ted to the local taxia~~ jurisdiction. The net local tax revenue is paid to tl~e local taxing jurisdiction on a qua~-terlg~ basis. The use tax is imposed on tl~e co;~sui~~ption or "use"' of taxadle itet~ts for ~~,~hich no sales tax ~~~as laid. The tax is imposed mainly o=~ purchases ny resident buyers from sellers located outside of tl~e local taxing jurisdiction. The use tax renlobres tl~e disadvantage to local E~usinesses from competition with businesses located outside of the taxing area ~~~ho are not required to collect the (Deal sales tax.