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MEMORANDUM <br /> <br />Councilmembers <br /> <br />PROM: <br /> <br />Sandra Ashley, Finance Officer <br /> <br />DATE: <br /> <br />June 28, 1990 <br /> <br />SUBJF_L-T: Minnesota Sales Tax <br /> <br />At the last council meeting the question was raised as to why we are <br />being billed sales tax by T & R Sanitation; the city is ordinarily <br />exempt from Minnesota sales tax. <br /> <br />The State of Minnesota now collects sales tax on garbage collection <br />services. All customers, except the Federal government, are required <br />to pay this tax. State and local government agencies are specifically <br />included in this requirement. I think of it as a "refuse" tax, but it is <br />officially classified as sales tax. <br /> <br />The State of Minnesota does provide an exemption for recyclable <br />materials that are separated by the waste generator (customer) from <br />mixed municipal solid waste. "Recyclable" is further defined as <br />materials such as paper, glass, metals, automobile oil and batteries. <br />As you are aware, City Hall does have an active recycling program. <br /> <br />For information purposes, the City is now also subject to sales tax <br />when purchasing city vehicles. The only exemption from this <br />requirement is for our squad cars that are marked. Therefore, all <br />other vehicles purchased - including an unmarked squad - are <br />subject to Minnesota's current 6% sales tax on the purchase price. <br /> <br /> <br />