Questions About Sales Tax

10-28-16   Questions About Sales Tax


Many residents have questioned the actual percentage of sales tax paid by non-residents/tourists after hearing a lot of different rumors in the community. 

Sales tax is paid directly to a merchant. I researched and learned that the only taxpayer identifiable information provided in a transaction (e.g. home zip code) stays with that merchant.   The merchant pays the total sales tax collected to the State.  The MN Dept. of Revenue sends Chisago County a check for a local portion of sales tax received.*


That process DOES NOT involve sharing of information about the people who paid the sales tax.  In addition, neither Chisago County nor its HRA/EDA staff have performed a factual analysis to date on local sales tax data.


In summary, ANY percentage given about tourists vs. residents – 20%, 30%, 40%, even 100% for folks trying to be excessively optimistic -- is profoundly misleading without ANY factual data to support it.


* (The New Local Sales Tax was approved by the County Board on a split 3-2 vote.  It became effective 4/1/16.)


Representing Chisago County District 1

North Branch C, Chisago City, Lent Township, and North Chisago Lakes Township

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