Local Sales & Use Tax

 Local Sales & Use Tax

Residents and businesses may owe a local use tax on purchases made outside of the North Mankato city limits.  Local use tax applies when you buy items or services for use, storage, distribution or consumption in the local area without paying local sales tax to the seller.  Use tax is similar to the sales tax and the rates are identical. It is based on your cost of taxable purchases.  Common examples of when use tax is due are when (1) you buy items outside the local area and the seller doesn’t charge local sales tax, and you use or store the item in the local area, or (2) you buy a taxable item from an out-of-state seller who does not charge local sales tax.  If you believe you may owe a local use tax, you may contact the Minnesota Department of Revenue, Sales and Use Tax Division at 651-296-6181 or 800-657-3777 or go to www.revenue.state.mn.us for information and forms necessary for calculating and paying the tax.  The Department of Revenue provides a link to Fact Sheets 146, Use Tax for Businesses, and 156, Use Tax for Individuals, for more information about use tax.