For example, if your state sales tax rate is 4%, you would multiply your net purchase price by 0.04. The County sales tax rate is %. For more information on how to file: Go to our website, www.revenue.state.mn.us; Click “Sales and Use Tax” days or the dealer owes sales tax on the vehicle purchase price (Minnesota Statute 297B.035, subd, 3). 297B). In addition to taxes, car purchases in Minnesota may be subject to other fees like registration, title, and plate fees. There are five states without sales taxes: Montana, Alaska, Delaware, Oregon and New Hampshire. 938 0 obj <>/Filter/FlateDecode/ID[<12CA5AB180AF95489920F7AC713FBFA3>]/Index[911 47]/Info 910 0 R/Length 124/Prev 278831/Root 912 0 R/Size 958/Type/XRef/W[1 3 1]>>stream %PDF-1.6 %���� You can find these fees further down on the page. This means that, depending on your location within Minnesota, the total tax you pay can be significantly higher than the 6.875% state sales tax. Required city action to impose the tax The tax was approved by the majority of the city voters at the November 2, 2004, general election, prior to the authorizing legislation. Minn. Stat. %%EOF The purchase price is determined by subtracting any rebates and trade-in allowance from the vehicle sales price. Multiply the net price of your vehicle by the sales tax percentage. A transfer between agencies at different levels of government may be exempt if the transfer falls within . What’s New in 2013 Starting July 1, 2013, motor vehicle repair shops can buy paint and repair materials without paying sales or use tax. Sales Tax applies to most retail sales of goods and some services in Minnesota. §§ 297B.02, 297B.13. Research estimates of how state House and Senate bills could affect revenues and the Minnesota tax system. Policy statements that provide added interpretation, details, or information about Minnesota tax laws or rules. A sales tax table is a printable sheet that you can use as a reference to easily calculate the sales tax due on an item of any price - simply round to the nearest $0.20, and find the row in the sales tax chart that shows the applicable tax for that amount. Driver and Vehicle Services - Central Office Town Square Building 445 Minnesota Street, Suite 187 Saint Paul, MN 55101-5187 Per the Minnesota Department of Public Safety, when purchasing a new or used vehicle, owners must pay a 6.5 percent tax, otherwise known as a Motor Vehicle Sales Tax, or MSVT. 911 0 obj <> endobj HY)��>�p���e�yP�30������`��[%�@��� =p@K Minnesota taxes motor vehicle purchases and rentals differently Sales of motor vehicles are exempt from the general sales tax and are instead subject to the motor vehicles sales tax (Minn. • Operate as a salvage pool; you must be also licensed as a used vehicle parts dealer to acquire a junked vehicle from a salvage pool, insurance company, or its agent. Vehicle History Report. Share This Page. Municipal governments in Minnesota are also allowed to collect a local-option sales tax that ranges from 0% to 2% across the state, with an average local tax of 0.41% (for a total of 7.285% … If you do not have Internet access, you can file by phone at 1-800-570-3329. By: Josh Tyson May 30, 2012. Motor Vehicle Sales Tax 6.5% . When Do Local Vehicle Excise Taxes Apply? The motor vehicle sales tax applies to the fair market value of the vehicle at the time of the gift or donation. Dealer sales to MN residents, in-state and out, are subject to 6.875% Minnesota sales or use tax and any applicable local tax. That’s why the preliminary numbers for 2020 fire deaths in Minnesota are so disturbing: They’re up 13 percent over 2019 fire deaths, which in turn were up 14 percent over 2018. For full details on titling and registering your car with the Minnesota DVS, please see our sections on Title Transfers and Car Registration. The motor vehicle sales tax, or MVST, is a 6.5 percent tax applied to the sale of new and used motor vehicles registered in Minnesota. Some states provide official vehicle registration fee calculators, while others provide lists of their tax, tag, and title fees. Annual summaries of Minnesota tax law changes enacted during each legislative session. Stat., ch. The Minnesota state sales tax rate is 6.88%, and the average MN sales tax after local surtaxes is 7.2%. The tax rate is 6.5% of the vehicle purchase price. 2020 rates included for use while preparing your income tax deduction. The Tax-Rates.org Minnesota Sales Tax Calculator is a powerful tool you can use to quickly calculate local and state sales tax for any location in Minnesota. of Natural Resources is not exempt and sales tax is due. This tax is paid to a deputy registrar or Driver and Vehicle Services of the Department of Public Safety when the title is transferred. The 2018 United States Supreme Court decision in South Dakota v. Wayfair, Inc. has impacted many state nexus laws and sales tax collection requirements. Minnesota (MN) Sales Tax Rates by City The state sales tax rate in Minnesota is 6.875%. and Minnesota Dept. Motor Vehicle, Trailer, ATV and Watercraft Tax Calculator The Department collects taxes when an applicant applies for title on a motor vehicle, trailer, all-terrain vehicle, boat, or outboard motor (unit), regardless of the purchase date. The Minnesota Tax Manual has a tax due calculator that can help. Groceries, clothing and prescription drugs are exempt from the Minnesota sales tax Counties and cities can charge an additional local sales tax of up to 1%, for a … Dept. The easiest way to do so is to buy a car in a state with no sales taxes and register the car there. We also administer a number of local sales taxes. Note: A business cannot use their direct pay authorization to buy motor vehicles exempt from tax. No applicable statute, case law, or regulation governing recovery of sales tax. h�b```f``����� ��A��X��,�3\�`X�bɒ �:u�LUG��CI%I�v�S> ��}�X�y���{YF�@܇ɚ���ttt00X�a a�li �QH�� ��9� ��b9�H(� ��Fn&���lwYV�1�`��ZĒ�z�e���KˣJ��\��2 A lower sales tax rate applies to sales of older passenger vehicles, collector vehicles, and collector fire trucks. Signs of Potential Tax Evasion or Tax Fraud, Back to Sales Tax Fact Sheets and Industry Guides, Charges Not Subject to the Motor Vehicle Sales Tax, Vehicle Disability Accessible Modifications. You may owe Use Tax on taxable goods and services used in Minnesota when no sales tax was paid at the time of purchase. • Broker leases without having a separate broker license. The Minnesota sales tax rate is currently %. Dealerships may also charge a documentation fee or "doc fee", which covers the costs incurred by the dealership preparing and filing the sales contract, sales tax documents, etc. Minnesota has a statewide sales tax rate of 6.875%, which has been in place since 1967. endstream endobj startxref This rate includes any state, county, city, and local sales taxes. Motor Vehicles Not Registered in Minnesota, Vehicles Owned By a Non-Minnesota Business Entity, Towing, Cleaning, and Rustproofing Services, Warranties, Recalls, and Service Contracts. For example, a 9% sales tax on a $30,000 car is $2,700. COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. Administrative rules adopted by the Department of Revenue to administer Minnesota tax laws. 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