The Local Sales and Use Tax applies to the same items that are subject to the State Sales and Use Tax. Basic necessities like food and clothing, prescription drugs, and motor vehicles are excluded.
On July 23, 2013, with resolution 13-58, the Olmsted County Board imposed a ¼% transit sales tax pursuant to Minnesota Statute Section 469.46 in order to raise money needed for the county’s contribution toward public infrastructure costs related to the Destination Medical Center (DMC) initiative.
On March 21, 2017, with resolution 17-18, the Olmsted County Board imposed another ¼% transit sales tax, pursuant to Minnesota Statute 297A, to help fund road, bridge, and transportation related projects within the county. This ¼% transit sales tax will be used for projects identified in the 2017-2041 Transportation Capital Improvement Plan and subsequent amendments, as well as bonded debt issued in the past for transportation projects.
The Minnesota Department of Revenue is responsible for the administration of the local sales and use tax.
Please note that certain cities within Olmsted County (Rochester, for example) also have local sales taxes either administered by the Minnesota Department of Revenue or by the city itself. If you have questions about city's local sales taxes, please contact the respective city.
To learn more, please review the links below.
Frequently asked questions
Why raise money through a sales tax versus property tax?
If the transportation infrastructure cost was funded entirely through property taxes, it would force Olmsted County property owners to foot 100% of the costs even though many non-residents travel on our road network. To collect the money through a sales tax means that a percentage of the cost will be paid by people who drive in our county to work, visit, and shop.
The transportation sales tax collected in Olmsted County will stay in the county.
I’m a business owner. What do I need to know to collect this tax?
The Minnesota Department of Revenue will send an informational letter to all businesses in the county.
For additional assistance in determining the state and local general sales and use tax rate, you may use the Minnesota Revenue Sales Tax Rate Calculator.
Where will the Transportation Sales & Excise Tax be applied?
The county’s transportation sales tax applies to the same items that are subject to the State Sales and Use Tax. For more information on the use tax, visit the State of Minnesota Sales and Use Tax Information webpage.