The local use and sales tax The local use tax is similar to the sales tax. Use taxes are collected when sales tax is not charged on taxable items, whether you buy them in Minnesota or outside the state.
If you travel to another state or country and bring back items that are normally taxed in Minnesota, you would owe a use tax. The same applies to taxable items bought through mail order catalogs or the Internet if Minnesota sales tax is not charged.
Use tax does not apply to tax-exempt items like clothing, prescription drugs and most groceries.
Use and sales tax ratesIn addition to the State of Minnesota’s 6.875-percent tax on taxable purchases within the state (sales tax) and outside the state (use tax), Dakota County applies an additional 0.25-percent tax to taxable purchases within the County (sales tax) and outside of the County (use tax) for a total of 7.125 percent.
You may owe local use tax If you buy goods or services for personal use for a total of more than $770 outside of Metropolitan Transportation Area (Counties of Anoka, Dakota, Hennepin, Ramsey and Washington) within one calendar year, those purchases are subject to the 0.25-percent 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 the next year. Local use tax may also be due when your business brings items into Dakota County or takes items out of inventory into a taxable use.
To determine if you or your business owes local use taxes, please refer to the
Minnesota Department of Revenue Sales Tax Fact Sheets.
Paying the local use tax Local use tax is due April 15 for all taxable purchases made within the previous calendar year, if the seller did not collect use tax at the time of sale.
To calculate the amount of local use tax that you or your business owes, please:
- Complete Form UT-1, Individual Use Tax Return (for individuals).
- See the Minnesota Sales and Use Tax Instruction Booklet (for businesses).
- Or get a form by calling the Minnesota Department of Revenue at 651-296-6181 (TTY users, call 711 for Minnesota Relay).