Metro Area Sales Tax Increased October 1st

In case you missed it — Metro Area Sales Tax Increased October 1st

Minnesota announced an increase in sales tax for seven county metro area retailers effective beginning October 1, 2023, and forward. They describe it as follows:

Metro Region Sales Tax – Housing
Starting October 1, 2023, there is a 0.25% sales tax on sales and purchases in the seven-county metro area. The counties include Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. The revenues from this tax will support housing projects in the metro area.

Metro Region Sales Tax – Transportation
Starting October 1, 2023, there is a 0.75% sales tax on sales and purchases in the seven-county metro area. The counties include Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. The revenues from this tax will support transportation projects in the metro area.

This is a 1% increase is sales tax with fancy names for sales within the metro area. Please adjust your POS systems if you have not done so already. Also, you should also see these new categories in your Minnesota E-Services account when it comes time to file your sales tax returns.

You may check your sales tax rates according to your nine-digit zip code at:
https://www.revenue.state.mn.us/sales-tax-rate-calculator

Then you would need to add liquor (2.5%) or Cannabis (10%) to that.

BTW, anyone who sells cannabis should register with the MN Dept of Health and add the 10% tax rate to their MN – E services tax account.