No, it's not an April Fools joke. Saint Paul has increased their sales tax rate by a full 1%, making it the highest rate in the state at 9.875% on normal purchases (and even higher on alcohol, hotels and entertainment). And yes, this is on top of the 1% metro-wide sales tax increase that just happened in 2023.
DO YOU CHARGE SALES TAX TO CUSTOMERS?
If you charge sales tax on products or services in the city of St Paul, make sure you update and increase the rate you charge to customers on all sales starting April 1, 2024 by a full 1%. To verify the accurate rate at your business location, you can use the state Rate Calculator here. When you go to file your sales tax report on the MN Revenue website, you'll see that for Q2, the St Paul Rate will be 1.5% rather than the previous .5%.
There are also new rates in Bloomington and Golden Valley if you provide taxable services or sales in either of those cities. For details on all rate changes, see the full list of updates here.
ANNUAL SALES TAX FILERS
If you only file sales tax once per year by Feb 5th, you'll need to know your Q1 sales separately from your Q2-Q4 sales and report on separate lines. Normally, you just put the full year sales in all the applicable boxes, but for 2024, you'll need to know your Jan-March sales separate from April-December. Please contact us in January 2025 if you want help filing your sales tax returns.
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