Local Option Sales Tax for Transportation

Koochiching County 0.5% Transit Sales and Use Tax

Local Tax General Notice Last Updated: 1/4/2022

Starting April 1, 2022, Department of Revenue will administer the Koochiching County 0.5% transit sales and use

tax. Revenues will fund the projects identified in the Koochiching County Resolution No. 2021/12-17.

The 0.5% transit sales tax applies to retail sales made into Koochiching County. The transit use tax applies to

taxable items used in Koochiching County if the local sales tax was not paid.

Who Must Register and Collect the Tax
All retailers who have a taxable presence (nexus) in Koochiching County, even if an out-of-state retailer or

marketplace, and are registered for Minnesota sales and use tax. This includes all sellers outside Koochiching

County if they have a taxable presence such as:

• Have an office, distribution, sales, sample or warehouse location, or other place of business in

Koochiching County, either directly or by a subsidiary.

• Perform taxable services in Koochiching County

• Ship taxable items into Koochiching County, including all sales made using the internet, mail order, or


• An out-of-state retailer that exceeds Minnesota sales tax thresholds and make sales into Koochiching


If you are already registered for this tax, you do not need to register again. For more information about taxable

presence, see Form ABR, Minnesota Application for Business Registration.

Registering for the Tax
If you file Sales and Use Tax returns online, you can register for this tax before the start date, or when you file

the tax collected beginning April 1, 2022.

To Register Before You File
1. Log in to e-Services and access your Sales and Use Tax account.

2. In the Sales & Use Tax section, select Manage Locations.

3. In the Existing Sales Locations list, select the Location Code number for the location you want to edit.

4. In the Available Actions section, select the Edit Location link.

5. If the General Information and the NAICS code are correct, select Next.
6. If you need to end a tax enter a date and select Next, if you do not need to end a tax, select Next.

7. Add any special local taxes, and select Next, if you do not need to add a special local tax, select Next.

8. Select the check box for Koochiching County Transit Sales and Use. Select the Next button.

9. Review the section titled Local Sales and Other Taxes – verify the Koochiching County Transit Sales and

Use Tax is listed. If the new tax is listed, select the Submit button.

10. Review the Confirmation Summary. You can then select Close.

To Register When You File in e-Services
You can add a local tax when filing a return:

Koochiching County 0.5% Transit Sales and Use Tax

Local Tax General Notice Last Updated: 1/4/2022

1. Select the link Add a Tax Line at the bottom of the return.

2. From the Tax Type Column, select the dropdown menu to select the local tax you need to add.

3. Enter the taxable dollar amount for the local tax.

The new tax will be on your return the next time you file.

Reporting the Tax
Report the Koochiching County Transit Sales or Use Tax when you report your Minnesota Sales and Use Tax.

Each tax is reported on a separate line of your return. Koochiching County Transit Sales Tax is line number 673;

Koochiching County Transit Use Tax is line number 674.

Calculating the Tax
To calculate the tax:

1. Add the Minnesota General State sales and use tax rate to the 0.5% Koochiching County transit tax.

2. Add any other local taxes that apply.

3. Apply the combined rate to the sales prices. For more information see Fact Sheet 164S, Special Local


4. Round the total to the nearest full cent.

Exemption Certificates
If a customer gives you a completed exemption certificate for state sales tax, also use that certificate as proof of

exemption from the Koochiching County Transit Sales or Use Tax.

Local Governments
Local governments do not pay the Koochiching County Transit Sales or Use Tax (or other local general sales

taxes). No exemption certificate is necessary. State sales tax may apply.

Local governments include cities, towns, counties, instrumentalities, political subdivisions, commissions, special

districts, and government boards.

Transitional Sales
Koochiching County Transit Sales and Use Tax applies to sales on or after April 1, 2022, but the tax does not

apply to the following:

• Lease payments for tangible personal property and motor vehicles that include periods before April 1,

2022. (The tax does apply to payments for periods that begin on or after that date.)

• The purchase of tangible personal property ordered before April 1, 2022, if the transfer of title or

possession is prior to that date.

Koochiching County 0.5% Transit Sales and Use Tax

Local Tax General Notice Last Updated: 1/4/2022

• The purchase of taxable services, including utility services, if the billing period includes charges for

services furnished before and after April 1, 2022, (But the tax does apply if the billing period begins with

services furnished on or after that date.)

• The purchase of admission tickets if they are paid for before April 1, 2022, even if the event occurs after

that date.

• The purchase of construction materials used to complete a lump sum or fixed price construction

contract that was signed and enforceable before April 1, 2022, but only if all the following are true:

o The contract does not provide for an allocation of future taxes.

o The materials are used exclusively in performing the contract.

o The materials are delivered before October 1, 2022.

Information and Assistance

651-296-6181 or 1-800-657-3777 (toll-free)

Email: salesuse.tax@state.mn.us
Write: Minnesota Department of Revenue

Sales and Use Tax

Division Mail Station 6350

St. Paul, MN 55146-6350

Visit our website at www.revenue.state.mn.us

Local Option Sales Tax - Presentation

Informational Links:

Association of Minnesota Counties - Local Option Sales Tax for Transportation - FAQs

Local Option Taxes for Transportation - Map (Note:  Roseau County recently passed a Local Option Sales Tax and are not currently included in this map)

MN Statute 297A.99