1997 Minnesota Statutes

     297A.48 Local sales tax rules. 

    Subdivision 1.    Authorization; scope.  (a) A political 
 subdivision of this state may impose a general sales tax if 
 permitted by special law or if the subdivision enacted and 
 imposed the tax before the effective date of section 477A.016 
 and its predecessor provision. 

    (b) This section governs the imposition of a general sales 
 tax by the political subdivision.  The provisions of this 
 section preempt the provisions of any special law: 

    (1) enacted before its effective date, or 

    (2) enacted after its effective date that does not 
 explicitly exempt the special law provision from this section's 
 rules by reference. 

    (c) This section does not apply to or preempt a sales tax 
 on motor vehicles or a special excise tax on motor vehicles. 

    Subd. 2.    Tax base.  (a) The tax applies to sales 
 taxable under this chapter that occur within the political 
 subdivision. 

    (b) Taxable services are subject to a political 
 subdivision's sales tax, if they are performed either: 

    (1) within the political subdivision, or 

    (2) partly within and partly without the political 
 subdivision and more of the service is performed within the 
 political subdivision, based on the cost of performance. 

    Subd. 3.    Tax rate.  (a) The tax rate is as specified 
 in the special law authorization and as imposed by the political 
 subdivision. 

    (b) The full political subdivision rate applies to any 
 sales that are taxed at a state rate less than or more than the 
 state general sales and use tax rate. 

    Subd. 4.    Use tax.  A compensating use tax applies, at 
 the same rate as the sales tax, on the use, storage, 
 distribution, or consumption of tangible personal property or 
 taxable services. 

    Subd. 5.    Exemptions.  (a) All goods or services that 
 are otherwise exempt from taxation under this chapter are exempt 
 from a political subdivision's tax. 

    (b) The gross receipts from the sale of tangible personal 
 property that meets the requirement of section 297A.25, 
 subdivision 5, are exempt, except the qualification test applies 
 based on the boundaries of the political subdivision instead of 
 the state of Minnesota. 

    (c) All mobile transportation equipment, and parts and 
 accessories attached to or to be attached to the equipment are 
 exempt, if purchased by a holder of a motor carrier direct pay 
 permit under section 297A.211.  

    Subd. 6.    Credit for other local taxes.  If a person 
 paid sales or use tax to another political subdivision on 
 tangible personal property or another item subject to tax under 
 this section, a credit applies against the tax imposed under 
 this section.  The credit equals the tax the person paid to the 
 other political subdivision for the item.  

    Subd. 7.    Enforcement; collection; and administration. 
  (a) The commissioner of revenue shall collect the taxes 
 subject to this section.  The commissioner may collect the tax 
 with the state sales and use tax.  All taxes under this section 
 are subject to the same penalties, interest, and enforcement 
 provisions as apply to the state sales and use tax. 

    (b) A request for a refund of state sales tax paid in 
 excess of the amount of tax legally due includes a request for a 
 refund of the political subdivision taxes paid on the goods or 
 services.  The commissioner must refund to the taxpayer the full 
 amount of the political subdivision taxes paid on exempt sales 
 or use. 

    (c) A political subdivision that is collecting and 
 administering its own sales and use tax before January 1, 1998, 
 may elect to be exempt from this subdivision and subdivision 8. 

    Subd. 8.    Revenues; cost of collection.  The 
 commissioner shall remit the proceeds of the tax, less refunds 
 and a proportionate share of the cost of collection, at least 
 quarterly, to the political subdivision.  The commissioner shall 
 deduct from the proceeds remitted an amount that equals 

    (1) the direct and indirect costs of the department to 
 administer, audit, and collect the political subdivision's tax, 
 plus 

    (2) the political subdivision's proportionate share of the 
 indirect cost of administering all taxes under this section. 

    Subd. 9.    Effective dates; notification.  (a) A 
 political subdivision may impose a tax under this section 
 starting only on the first day of a calendar quarter.  A 
 political subdivision may repeal a tax under this section 
 stopping only on the last day of a calendar quarter. 

    (b) The political subdivision must notify the commissioner 
 of revenue at least 90 days before imposing or repealing a tax 
 under this section. 

    Subd. 10.    Application.  This section applies to all 
 local sales taxes authorized on or after the day of enactment of 
 Laws 1997, chapter 231.  Starting January 1, 2000, this section 
 applies to all local sales taxes that were authorized before the 
 day of enactment of Laws 1997, chapter 231.  

    HIST: 1997 c 231 art 7 s 30