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INFORMATION BRIEF Minnesota House of Representatives Research Department 600 State Office Building St. Paul, MN 55155 Pat Dalton; Le�islative Analvst 651-296-7434 Updated: October 20Q� Local Sales Taxes in Minnesota Local governments are generally prohibited by statute from imposing sales taxes. Nevertheless, the legislature has authorized, through special legislation, a number of local sales taxes. These local taxes have differed significantly in their characteristics and administration. In 1997, the legislature adopted model ' statutory language regarding imposition and administration of new and existing local sales taxes. This information brief is divided into two sections—the first k� summarizes the codified rules for local sales taxes, and the second provides tables � of authorized local sales taxes. This brief only covers the issue of generallocal sales taxes; liquor, restaurant, lodging, and entertainment taxes are not included. ..Codified Local Sales T��c Rules (Minn. Stat. � 297A.99) , . ��:: ... : History In 1997, tbe sales tax advisory council, a group made up of legislators, administration staff, and representatives of the business community, recommended that the legislature adopt model statutory language for the imposition and administration of local sales taxes. The goal was to create consistency in the application of new and existing local taxes which would (I) ease the compliance costs for businesses located outside the taxing jurisdiction who were required to collect the local tax, and (2) simplify the Department of Revenue's administration of these individual taxes. The legislature enacted the proposed local sales tax rules in the 1997 session. The legislature added additional language in 199$,and 1999 to incorporate some standards that the House and 5enate tax committees had started to use in evaluating proposaIs for new local sales tax authority and to clarify some additional administration issues. Further changes were made during the 2003 This publication can be made available in alternative formats upon request. Please call 651-296-6753 (voice): or the Minnesota State Relay Service at 1-800-627-3529 (TTI')for assistance. Many House Research Department publications are also available on the Internet at: www.hot�se.mnlhrdlhrd.htm.