Published on Wednesday, 30 November -0001 00:00
The Minnesota Department of Revenue is reminding taxpayers that the 0.375 percent general sales and use tax increase went into effect last week. The rate will increase from 6.5 to 6.875 percent.
Approved by voters in November 2008, the increase will be in effect for the state of Minnesota for the next 25 years.
The additional revenue raised by the increase will be used to:
Protect drinking water sources,
Protect, enhance and restore our wetlands, prairies, forests and fish, game and wildlife habitat,
Preserve arts and cultural heritage,
Support parks and trails, and
Protect, enhance and restore our lakes, rivers, streams and groundwater.
The new tax rate applies to the same items that are currently taxable under the Minnesota sales and use tax law. The 6.875 percent sales tax rate applies to motor vehicle leases entered into on or after July 1, 2009. However, the sales tax rate on motor vehicle purchases remains at 6.5 percent.
The updated sales tax rate charts are available on the department's Web site at www.taxes.state.mn.us.