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1 � <br />Y <br />I <br />1 <br />� <br />League of IVlinnesot� �iti�s <br />• o • <br />�- <br />. Number 13 <br />May g,1992 <br />The sal�s ta� o�. �iti��: ��at d�es it cover? <br />Tbe 1992 omnibus tax bfll <br />extended the sales tax to local govern- <br />ments. It will take effect Juae 1 and <br />will apply to the same types of <br />purchases as apply to individuals. <br />T�c Mianesota Dcpartmcnt of <br />Revenuc assisted the I.eague of <br />Minnesota Cities in �reparing the list <br />of what purchases thc tax covcrs• <br />Please direct specific questions to the <br />� departmen� <br />General <br />Local governments will generally . � <br />be subject to the saaic l.aws and niles <br />as businesses and individuals regarding <br />which purchases are taxable. 'The tax <br />is effcctive )une 1� 1992 at the 6.5 <br />percent rata. <br />For ans�wcrs to questions r+egarding <br />the taxing of specific purchases <br />contact the Minnesota Deparcment of <br />Revenue business taxpayer assista�ce <br />section, 612-296-6181. In unusual or <br />wgent cases, fax qucstions to Greg <br />Heck at 612-296-8229. <br />����s�����e- <br />sota statutes, Chapter 297A. Depart- <br />ment of itevenue rules and taxpayer <br />information is available from: <br />,� 0 i1SICi�: <br />D�f.innesots Department of Re�vraue <br />Taxp�ayer Inf'orma�ion <br />Mail Station 4450 <br />s�. �►w, c� ss�a�aaso <br />We expect to oonti�ue discuss�ons <br />w�t� the Revenu�c Depa�rtmr,nt. In so�ae <br />cases, new rules, �ttatutory �.aag�est or <br />L'dgation may be necessary. <br />Motor vehi�les <br />T'�u law does nox change thc <br />pr+evious sal�s tax status o� mwar <br />vehicles: Emcrgency vehicles (police, <br />-f"vc� ambulance) will continue to �c <br />exempt; oti�er city vehiclr�s will <br />coneinue to be t�x�bl�—city cars, <br />trucks, snowplows, road gr�ders, etc. <br />Other vehicles w�ch will ramain <br />taxable are those licenstd to tra�vel on <br />roacis. <br />The sales ssx will apply to so�e <br />equipment which pr�viousl�► was <br />excmpt, such as attac�b�ments far <br />vehicics such a�s plaw bl�des and <br />bn�shes, aad non-highway v+eh�cles <br />such as Bobcats and fro�t-end lo�ad�rs. <br />Services <br />Generally, professional services <br />are exempc, including lawy�rs� <br />19�2 Law Summaries <br />a,ccountauts, architects, engineers, aud <br />surveyor5. <br />A number of services which <br />individual consu�ners most often use <br />wi�ll be taxable when an autside <br />business performs the service for the <br />csty. <br />Cities will not pAy ssles tax on <br />tl�ese services when sity employees <br />pmvide the senrice. The services <br />wvvhich art� taxable wh�n outside <br />a ar <br />businesses perfQr� them are: <br />� Parlki.ng, exc�pt parking meters; <br />• Laundry �a dry cleaning, <br />including Ifnen services and the <br />cleaning of carpct, drapery, and <br />upholstery; <br />' Motor vehicle washing, clean- <br />ia�g, rusiFroo�"wg, �nd toroving; <br />d Build'u�g cleaning and mainte- <br />nance; <br />,See Sacles ta�, ��age 4 <br />���isl��ive wr�pup <br />sessions begin 1WIay 12 <br />Don't forget to join the League <br />of Minnesota Cities next week <br />at one of the 19921egislative <br />vvrapup sessions to review <br />19921cgisla,tion. The sessions <br />will be on May l2 in Mankato, <br />May 13 in Minnetonka, Iviay <br />15 in Bemidji, and May 16 in <br />St. Cloud. For more <br />inform�tion call the Le�gue at <br />(612) 227-56U0. <br />