The newest state budget (which had a large surplus) included many tax credits, rebate checks and other headline grabbing law changes (THC anyone)....included in that same budget but not as widely discussed was the addtion of two new Metro Area Sales Taxes:
Starting October 1st, sales tax increases by an extra 1% for all taxable sales in the 7 County Metro Area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott & Washington). This applies to any taxable goods, products, restaurants, services, art sales, etc...
DO YOU CHARGE SALES TAX TO CUSTOMERS?
If you charge sales tax on products or services in the 7 Metro Area Counties, make sure you update and increase the rate you charge to customers on all sales starting October 1, 2023 by a full 1%. When you go to file your sales tax report on the MN Revenue website, you'll need to add lines for the two new taxes and enter sales for each (just like other local City, Transit, and misc taxes).
ANNUAL SALES TAX FILERS
If you only file sales tax once per year by Feb 5th, you'll need to list only Q4 sales in the new boxes for Metro Area Transportation and Metro Area Housing (and annual totals for all the other tax types). Normally, you just put the full year sales in all the applicable boxes, but for 2023, you'll need to know your Oct-Dec sales total and annual total. Please contact us in January if you want help filing your sales tax returns.
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