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House Research Department Local Sales Taxes in Minnesota Updated: �Ctqber 2003 Page 4 catalog sales only a$er the commissioner has given these sellers 120 days notice. The practical effect is that local taxing j�ristlictrons will have to give the commissioner inpre �han 90 days notice. The statute was amended in 1999 to require a break bctwcen the repeal of an existing sales tax and the reimposition of a sales tax for another purpose. A new local sales tax must now expire after completion of the specified project and the local government must wait one year a$er the expiration before imposing a new tax for a different project. A number a:� loca�, governments in the past have had their sales taxes extended, and the allowed uses of the tax proceeds expanded, before the tax expired. Determining the Site of a Delivery Sales for Local Tax Purposes The 1999 Legislature added a provision dealing with the use of zip codes to determine whether a delivery sale is subj ect to a local sales and use tax. This was amended in 2003 to follow Streamlined Sales Tax requirements. Under the change, the lowest combined tax rate applies if an area includes more than one tax rate. For example, if a zip code includes both a portion of Edina (with no local sales tax) and a portion of Minneapolis (with a half-cent local sales tax) the Minneapolis tax may not be collected. Nine-digit zip codes should be used, if available, to determine the tax rate. Local Sales Taxes Authorized by Special Law The following four tables show all the general local sales taxes that have been authorized by the legislature. With the exception of Cook County, only cities have been allowed to impose general sales taxes. Table 1 contains the local sales taxes that are curt'�nt�y imposed. Table 2 lists the political subdivisions that currently have a�thnrity to impose a local tax but have not yet enacted it. Table 3.lists the local sales taxes which were imposed but have expired; Table 4lists the E local �,ti�n��a sales taxes which were �uk�ozR�ed` but were never impased: ��' ,` For more detail on the local sales tax in each jurisdiction, please look at the expanded version of this information brief on our web site at ��5��5 55 � II }� ;4L� ��.I I� �� i c��ct i � �1:�;�- x�71.:�.]:1i77. �