Tax Increase Kicks In July 1
The Minnesota state general sales and use tax rate increases from 6.5 percent to 6.875 percent – an increase of 3/8ths of one percent — beginning July 1, 2009.
The additional revenue raised by the increased tax rate will be used to:
* protect our drinking water sources,
* protect, enhance, and restore our wetlands, prairies, forests, and fish, game and wildlife habitat,
* preserve our arts and cultural heritage,
* support our parks and trails, and
* protect, enhance, and restore our lakes, rivers, streams and groundwater.
The 6.875 percent sales tax rate applies to motor vehicle leases entered into on or after July 1, 2009. However, the sales tax rate on motor vehicle purchases remains at 6.5 percent.