Official Notice of Local Sales and Use Taxes with Lyon County
Effective October 1, 2015, Lyon County has a 0.5 percent transit sales and use tax. The Minnesota Department of Revenue administers these taxes. Revenues will fund the projects identified in Resolution #2015-13, as listed in the Lyon County 2015 – 2024 10-year Highway Construction Plan.
This 0.5 percent transit tax applies to retail sales made within Lyon County. The transit use tax applies to taxable items used in the County if the local sales tax was not paid. Please see the attached sheet for more information.
Lyon County sales and use tax does not apply to sales of motor vehicles registered for road use. Fact Sheet 164, Local Sales and Use Taxes, contains more information about local taxes and is available at www.revenue.state.mn.us or directly at http://www.revenue.state.mn.us/businesses/sut/factsheets/FS164.pdf.
For specific tax information and assistance contact the Minnesota Department of Revenue at:
Phone: (651) 296-6181 or toll free 1-800-657-3777
Fax: (651) 556-3102
Write: Minnesota Revenue
Sales and Use Tax Division
Mail Station 6330
St. Paul, MN 55146-6330
Or visit the Minnesota Department of Revenue website at www.revenue.state.mn.us.
If you buy a taxable item for your own use without paying sales tax, you probably owe use tax. The tax rate is the same for both sales and use tax, and the same exemptions apply. Use tax is due on taxable items and services used in Minnesota if no sales tax was paid at the time of purchase. The general use tax rate is the same as the state’s general sales tax rate, 6.875 percent. All general local sales taxes also have a corresponding use tax, which is at the same rate as the local sales tax.
While sales tax is collected by the seller and paid to the state by the seller, use tax is self-assessed and paid by the purchaser (end user). The purchaser pays the tax directly to the state.
Here are some cases when use tax is due:
- You buy taxable items by mail order, from a shopping channel, over the Internet, etc., and the seller doesn’t collect Minnesota tax from you.
- You buy something exempt intending to resell it in your business, but instead take it out of inventory for business or personal use.
- A seller in another state or country does not collect any sales tax from you on a sale of an item that is taxed by Minnesota’s law.
- A Minnesota seller fails to collect sales tax from you on a taxable item.
- An out-of-state seller properly collects another state’s sales tax at a rate lower than Minnesota’s. In this case, you owe the difference between the two rates.
Keep track of your purchases subject to use tax and report them when you report your sales tax. Also, keep a record of the purchases on which you paid use tax, noting the date reported and paid.
If you are located in an area that has local taxes, be sure to also report the local use tax due.
Individuals as well as businesses owe use tax on taxable purchases when they have not paid sales tax. An individual, however, can purchase up to $770 in taxable items for personal use without owing use tax. If the individual buys more than $770 in a calendar year, that person owes use tax on all taxable items purchased that year.
Individuals who owe use tax, but are not required to hold a sales tax permit, can file a use tax return annually, regardless of the total amount of purchases. These returns are due by April 15 of the following year. To file the return and pay tax electronically, go to our website at www.revenue.state.mn.us and login. Enter your Social Security number, select “Individual use tax” and follow the steps until you receive a confirmation number.
You may also download Form UT1, Individual Use Tax Return, from our website, or contact our office for a copy.
For more information, see Fact Sheets 146, Use Tax for Businesses; and 156, Use Tax for Individuals.