Sales and use taxes can be the most complicated tax obligations for many businesses. Generally, local sales tax should be charged to customers on all sales made in a local taxing area unless the customer provides an exemption certificate. The local tax applies to anyone outside the city or county who picks up items in the local area for business or personal use, even if the customer takes the items outside the local tax area. Smith Schafer is here to keep you updated on the latest sales and use tax changes effective in 2024. Below are the new taxes and increases you need to be aware of:
New Sales and Use Tax Changes for 2024
New Taxes
Effective April 1, 2024:
- Bloomington: A new 0.5% sales and use tax will be enacted.
- Golden Valley: A new 1.25% sales tax will be enacted.
Effective July 1, 2024:
- Beltrami County: A new 0.625% sales and use tax will be implemented.
Tax Increases
Effective April 1, 2024:
- Polk County: The local sales tax will increase by 0.25%, bringing the total local sales tax to 0.5%.
- Saint Paul: The local tax rate will increase by 1.0%, resulting in a total local rate of 1.5%.
Lodging Taxes
Effective April 1, 2024:
- Ortonville: A new lodging tax of 3.0% will be introduced.
Effective July 1, 2024:
- Plymouth County: A new lodging tax of 3.0% will be implemented.
Sales Tax Calculator
There is no better time than now to review your state sales tax filing requirements. The Minnesota Department of Revenue website has a sales tax calculator to determine the state and local sales and use tax rate to apply to taxable purchases. To find the appropriate sales tax rate for a particular jurisdiction, enter a valid address and city, or enter the full nine-digit zip code. The nine-digit zip code method is the most accurate. The sales tax calculator does not include any special local taxes, such as lodging taxes or liquor.
QUESTIONS?
These changes can impact your business operations, so it’s crucial to stay informed and adjust your accounting practices accordingly. For additional information, visit the Minnesota Department of Revenue website. Or, for more specific sales tax questions regarding your industry check out the Minnesota Department of Revenue’s Sales Tax Fact Sheets and Industry Guides.
If you have additional questions regarding changes or assistance with your sales tax needs, Smith Schafer can help!
