What sales tax rate applies to taxable items?
Minnesota laws impose a sales tax rate based on the destination of the sale. If a buyer picks up an item at the seller’s location, the rate of the seller’s location applies. If the goods are shipped to another location in Minnesota, the rate at the “shipped to” aJanuary 13, 2009 9:21 AMles tax does not apply. For example, if a student buys a backpack in the University of Minnesota Bookstore in Coffman Union, the sales tax rate will be 7.40%. This consists of the 6.5% state rate, the .5% Minneapolis rate, the .15% Hennepin County rate, and the .25% transit improvement tax rate. If the student buys a backpack in the St. Paul Store on St. Paul campus, the sales tax rate will be 6.75%. Only the state rate of 6.5% and the .25% transit improvement tax rates apply because the bookstore is actually in Falcon Heights which does not have a local tax. If, per a phone order, the backpack is shipped from the Coffman Union Store to Golden Valley, Minnesota, the tax rate will be 6.90%, made up of the
