If an item is subject to the 6½ percent state sales tax, it is also subject to the half-percent (.50 percent) local option sales tax.
Retailers report tax collections directly to the Minnesota Department of Revenue using form
ST1.
Exclusion:
Excluded from the half-percent sales tax are motorized vehicles. Motorized vehicles are subject to a tax of $20. Dealers
remit vehicle excise tax to the City of Mankato.
How Mankato’s half-percent sales tax revenues are used:
• To repay bond principal and interest used to construct the civic center
• Fund Riverfront 2000 initiative
• Fund capital fund projects at the Mankato Regional Airport
• Capital projects at the civic center
The half-percent sales tax is scheduled to sunset in 2022 (originally scheduled to sunset in 2019). The voters approved the use of a half-percent sales tax in 1991. In 1996, voters approved a referendum to broaden the use of the half-percent sales tax to fund capital improvement projects at the Mankato Regional Airport.
Local option sales tax approval process State approval is required prior to a local referendum vote.
State approval
↓
Voter approval
↓
City Council approval