We know you’re working on your income tax returns now. But the Minnesota Department of Revenue this weekend turned our attention to the complicated – and often overlooked – world of sales and use taxes in Minnesota.
DOR highlighted a package of seven of its YouTube videos about those year-round taxes for both businesses and individual taxpayers. Together, sales and use taxes produce more than $10 billion per year, or about one-sixth of Minnesota’s annual revenues.
In the big picture, if you or your business buy something that’s taxable in Minnesota, you probably owe state sales or use tax on it under current laws. But there also are numerous details and exemptions inside the big picture. DOR delves into some of them in the videos and points you to the right places on its Web site for deeper explanation.
The most recent video, which was released last week, discusses a new exemption from sales and use taxes for local governments. You probably won’t be interested in it, unless you’re an elected official or local government employee.
Others are useful. Individual taxpayers/consumers will find the “What is Sales Tax?” and “What is Use Tax?” particularly worthwhile. They also note local sales taxes, which do apply in our hometown of Rochester, Minn.
For small businesses, “Sales and Use Tax: How It Affects Your Business” is a good wrap-up. It’s recent, having been released just last fall, and it runs about 6 ½ minutes.
The videos are available through YouTube. Use this URL: Sales and Use Tax – Inside Scoop: Local Government Sales Tax.
We at EricJohn Ltd. can steer you and your businesses through the ins and outs of Minnesota’s sales and use taxes.
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