Local sales and use tax

A local use tax is similar to a sales tax and is collected on purchases that are taxable but were not taxed at the local sales tax rate (for example, out-of-state purchases). In Hennepin County, in addition to a local sales tax on certain purchases made within the county, a local use tax is applicable to taxable purchases made outside Hennepin County by county residents and businesses.

If within a calendar year you buy taxable goods or services outside Hennepin County for personal use that total more than $770, the purchases are subject to local use tax.

If your business buys, leases or rents taxable goods or services used in your business, they are subject to local use tax either with the purchase or by April 15 of the following year. Local use tax may also be due when your business brings items into the county or takes items out of inventory into a taxable use.

To determine if local use taxes are owed, refer to the following Minnesota Department of Revenue sales tax fact sheets:

• #146, Use Tax for Businesses
• #156, Use Tax for Individuals
• #164, Local Sales and Use Taxes
• #164S, Special Local Taxes

Local use tax is collected annually by the State of Minnesota. It is due April 15 for all taxable purchases made within the previous calendar year if the seller did not collect local tax at the time of sale.

Local use tax owed

From the Minnesota Department of Revenue:

• Use Tax for Individuals fact sheet (PDF)
• Use Tax for Business fact sheet (PDF)