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Sales Tax Revenues, FY 2011

The sales tax is an ad valorem tax imposed on the retail (final) sales of most goods and some services. Sales tax revenues in fiscal year 2011 were $5,284 million.

Note: Fiscal year 2001 amount is net of the 2001 sales tax rebate.

Sales Tax	Actual Dollars (millions)	Constant 2011 Dollars (millions)
2001	$3,584	$4,510
2002	4,420	5,443
2003	4,562	5,511
2004	4,713	5,556
2005	4,816	5,511
2006	5,024	5,565
2007	5,059	5,439
2008	5,105	5,310
2009	4,841	4,952
2010	4,884	4,962
2011	5,284	5,284

General Sales and Use Tax Rates for FY 2011

• General: 6.875 percent
• Motor vehicle sales: 6.5 percent
• Liquor, wine, and beer sales: 6.875 percent*
• Motor vehicle rentals: 12.7 percent

* A 2.5 percent gross receipts tax is also imposed on these sales.

Major Exemptions

• Clothing
• Most food products
• Prescription drugs and some other medicines
• Most business and personal services
• Gasoline (subject to the motor vehicle fuels tax)
• Farm and logging machinery repair parts
• Capital equipment for manufacturing industries*
• Industrial special tooling

* Businesses must pay the sales tax on capital equipment at the time of purchase and then apply for a refund from the state.

Income, Sales, and Property Taxes, FY 2011

 

	FY 2001 (millions)	FY 2006 (millions)	FY 2011 (millions)
Sales tax	$4,510	$5,565	$5,284
Individual income tax	7,499	7,665	7,294
Property tax	6,053	6,591	8,145
Total	$18,062	$19,821	$20,723

Originally published January 2011. Fiscal year 2011 data are from Minnesota Management and Budget, November 2010 forecast. Other data are from the Department of Revenue, unless otherwise noted.