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Minnesota Consumer Tax Laws

In order to make necessary upgrades to infrastructure (such as roads and bridges), property fund public schools, hire police officers, and generally keep things humming along, states must collect taxes. Most, but not all, states levy a sales tax on retail purchases, in addition to "sin" taxes on cigarettes and items considered non-essential or detrimental to society. Similarly, gasoline is heavily taxed to help discourage energy use and to raise funds for highway improvements.

What Are Minnesota's Consumer Tax Laws?

Minnesota levies a general sales tax of 6.875 percent, to which a local surtax not exceeding $1.00 is added. Minnesota also has one of the highest cigarette taxes in the country, which is slightly lower for those cigarette companies that were involved in a statewide tobacco settlement. The gasoline, alcohol, and gambling taxes are similar to those of other states.

The following chart provides additional details of Minnesota's consumer tax rates. See FindLaw's Tax Law section for a wide array of tax-related articles and resources.

Sales Tax General tax 6.875% (up to 7.875 with local surtax) 297A.62
Cigarette Tax $3.342 per pack of 20 for cigarette brands that entered into a settlement with the state; $3.842 per pack for those who have not §297F.05
Gasoline Tax per Gallon 28.5¢ §296A.07
Use Tax 6.875% 297A.63
Liquor Tax Beer (and cider less than 7% alcohol): 15¢ per gallon; 7.7¢ per gallon for beer under 3.2% alcohol; wine: 30¢ per gallon (or 95¢ per gallon for more than 14% alcohol); sparkling wine: $1.82 per gallon; distilled spirits: $5.03 per gallon.
Gambling Tax Horseracing 6% of net receipts plus 1% of gross bets §240.15; Gambling 8.5% other than pull tabs and tip boards §297E.02

Note: Keep in mind that state laws are always subject to change, usually through legislation, ballot initiative, or case law. We strive to ensure the accuracy of these pages, but it also may be a good idea to contact a Minnesota tax attorney or conduct your own legal research to verify the state law(s) you are researching. 

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