Sales Tax Update

Local Government Exemption – Effective January 1, 2014, cities and counties are exempt from sales and use tax on purchases used to provide certain government services.  The Minnesota Department of Revenue has issued Fact Sheet 176  for additional information.  The Form ST-3 has been updated to add “Local Government” under B-specific government exemption.  All cities and counties should update their ST-3 form and provide a copy to their vendors prior to January 1, 2014 to ensure your entity is changed to tax exempt for purchases.