Special Local Taxes – Industry Guide – Minnesota Department of Revenue

Off-sale liquor is not subject to the 1% tax.

Sales of food and beverages are subject to the following taxes:

• 1% Detroit Lakes Food and Beverage Tax
• 6.875% state general rate sales tax
• 0.5% Detroit Lakes Sales and Use Tax (ended 6/30/2023)
• 0.5% Becker County Transit Tax
• 2.5% liquor gross receipts tax, if applicable

Restaurant or Place of Refreshment

Restaurant or place of refreshment means a building, structure, enclosure, or any part of a building, structure, or enclosure used as, maintained as, advertised as, or held out to be an operation that prepares, serves, or otherwise provides food or beverages, or both, for human consumption.

Examples include (but are not limited to):

• Bars
• Cafes
• Clubs
• Coffee houses
• Concession stands
• Dance clubs
• Delis
• Delivery, drive-in, or drive-thru restaurants
• Fast food restaurants
• Pick-up or carry-out restaurants
• Pubs
• Sit down restaurants
• Saloons
• Sidewalk vendors
• Tea rooms
• Teen centers

Giants Ridge Recreation Area

The Giants Ridge Recreation Area (city of Biwabik) imposes the following special local taxes:

• 2% admissions and recreation tax
• 1% food and beverage tax
• 2% lodging tax (see pages 7-8)

Admissions and Recreation Tax

The 2% admissions and recreation tax applies to admissions to entertainment and recreational facilities and the rental of recreation equipment located within the Giant Ridge Recreation Area. The purchase of season tickets or passes are exempt from this tax

Admission and recreation sales are subject to the following taxes:

• 2% Giants Ridge Recreation Area Admissions and Recreation Tax
• 6.875% state general rate sales tax
• 0.5% St. Louis County Transit Tax

Admissions and entry fees to places of amusement, recreational areas, or athletic events are taxable unless an exemption applies.

Examples include (but are not limited to):

• Amusement parks
• Athletic fields
• Campgrounds
• Bowling alleys
• Fairgrounds
• Golf courses
• Hunting preserves
• Ice skating rinks
• Movie theatres
• Musical concerts
• Parks
• Swimming pools
• Ski areas
• Trails

For more examples, see the Admissions and Amusement Devices Guide.

Food and Beverage Tax

The 1% food and beverage tax applies to sales of food and beverages, by a restaurant or place of refreshment, located within the Giants Ridge Recreation Area. This includes including on-sale liquor and fermented malt beverages. It does not matter if the food or beverages are consumed on or off the premises.

Off-sale liquor is not subject to the 1% tax.

Sales of food and beverages are subject to the following taxes:

• 1% Giants Ridge Recreation Area Food and Beverage Tax
• 6.875% state general rate sales tax
• 0.5% St. Louis County Transit Tax
• 2.5% liquor gross receipts tax, if applicable

Restaurant or place of refreshment means a building, structure, enclosure, or any part of a building, structure, or enclosure used as, maintained as, advertised as, or held out to be an operation that prepares, serves, or otherwise provides food or beverages, or both, for human consumption.

Examples include (but are not limited to):

• Bars
• Cafes
• Clubs
• Coffee houses
• Concession stands
• Dance clubs
• Delis
• Delivery, drive-in, or drive-thru restaurants
• Fast food restaurants
• Pick-up or carry-out restaurants
• Pubs
• Sit down restaurants
• Saloons
• Sidewalk vendors
• Tea rooms
• Teen centers

Mankato

The city of Mankato imposes the following special local taxes:

• 0.5% food and beverage tax
• 0.5% entertainment tax
• 3.0% lodging tax (see pages 7-8)

Food and Beverage Tax

The 0.5% food and beverage tax applies to sales of food and beverages, by a restaurant or place of refreshment, that are located within the city of Mankato. It does not matter if the food or beverages are consumed on or off the premises.

Off-sale liquor is not subject to the 0.5% tax.

Sales of food and beverages are subject to the following taxes:

• 0.5% Mankato Food and Beverage Tax
• 6.875% state general rate sales tax
• 0.5% Mankato Sales and Use Tax
• 0.5% County Transit Tax (Blue Earth or Nicollet1)
• 2.5% liquor gross receipts tax, if applicable

Restaurant or Place of Refreshment

A restaurant or eating establishment is a business that sells food to a customer in a ready-to-consume state. The customer may consume the food on or off the premises or the food is delivered by employees of the restaurant and establishments.

Examples include (but are not limited to):

• Cafes
• Carry-out restaurants
• Delis
• Delivery restaurants
• Drive-in restaurants
• Fast food restaurants
• Sit down restaurants
• Tea rooms

A place of refreshment is any location where alcoholic beverages, non-alcoholic beverages, or food items are sold for consumption at or near the location.

Examples include (but are not limited to):

• Bars
• Clubs
• Coffee houses
• Concession stands
• Dance clubs
• Pubs
• Saloons
• Sidewalk vendors
• Teen centers

Entertainment Tax

The 0.5% entertainment tax applies to sales of admissions to entertainment events located within the city of Mankato.

Sales of admission to entertainment events are subject to the following taxes:

• 0.5% Mankato Entertainment Tax
• 6.875% state general rate sales tax
• 0.5% Mankato Sales and Use Tax
• 0.5% County Transit Tax (Blue Earth or Nicollet1)

Entertainment event means any event where attendees pay money to be admitted to the premises and to be entertained.
Examples include (but not limited to):

• Concerts
• Sporting events
• Theatres

The Mankato Entertainment Tax does not apply to admissions paid to the following types of events or entertainment:

• Amusement parks
• Carnivals and fairs
• Coin-operated amusement devices
• Cover charges at night clubs or dance halls
• Games of skill
• Golf club memberships, green fees, and driving ranges
• Health, athletic, or fitness club memberships
• Ice or roller skating facilities
• Miniature golf facilities
• Skate board parks
• Swimming pools
• Tennis, racquetball, or handball court fees

Marshall

The city of Marshall imposes a 1.5% food and beverage tax on the sale of food and beverages, by a restaurant or place of refreshment, located within the city Marshall. This includes on-sale liquor and fermented malt beverages. It does not matter if the food or beverages are consumed on or off the premises.

Off-sale liquor is not subject to the 1.5% tax.
Sales of food and beverages are subject to the following taxes:

• 1.5% Marshall Food and Beverage Tax
• 6.875% state general rate sales tax
• 0.5% Marshall Sales and Use Tax
• 2.5% liquor gross receipts tax, if applicable

Restaurant or Place of Refreshment

Restaurant or place of refreshment means a building, structure, enclosure, or any part of a building, structure, or enclosure used as, maintained as, advertised as, or held out to be an operation that prepares, serves, or otherwise provides food or beverages, or both, for human consumption.

Examples include (but are not limited to):

• Bars
• Cafes
• Clubs
• Coffee houses
• Concession stands
• Dance clubs
• Delis
• Delivery, drive-in, or drive-thru restaurants
• Fast food restaurants
• Pick-up or carry-out restaurants
• Pubs
• Sit down restaurants
• Saloons
• Sidewalk vendors
• Tea rooms
• Teen centers

North Mankato

The city of North Mankato imposes a 0.5% food and beverage tax on the sale of food and beverages, by a restaurant or place of refreshment, located within the city of North Mankato. This includes on-sale liquor and fermented malt beverages. It does not matter if the food or beverages are consumed on or off the premises.

Off-sale liquor is not subject to the 0.5% tax.
Sales or food and beverages are subject to the following taxes:

• 0.5% North Mankato Food and Beverage Tax
• 6.875% state general rate sales tax
• 0.5% North Mankato Sales and Use Tax
• 0.5% Nicollet County Transit Tax
• 2.5% liquor gross receipts tax, if applicable

Restaurant

A restaurant or eating establishment is a business that sells food to a customer in a ready-to-consume state. The customer may consume the food on or off the premises or the food is delivered by employees of the restaurant and establishments.

If liquor is served as defined in the North Mankato City Code, the kitchen facilities are required to be capable of servicing the permitted occupancy. (North Mankato City Code, Chapter 111: Alcoholic Beverages)

Examples include (but are not limited to):

• Cafes
• Carry-out restaurants
• Coffee houses
• Clubs
• Delis
• Delivery restaurants
• Drive-in restaurants
• Drive-thru restaurants
• Fast food restaurants
• Pick-up or carry-out restaurants
• Sidewalk vendors
• Sit down restaurants
• Tea rooms

Place of Refreshment

A place of refreshment is any location where alcoholic beverages, non-alcoholic beverages, or food items are sold for consumption at or near the location

Examples include (but are not limited to):

• Bars
• Clubs
• Coffee houses
• Concession stands
• Dance clubs
• Movie theaters
• Pubs
• Saloons
• Sidewalk vendors
• Taprooms
• Teen centers

Proctor

The city of Proctor imposes a 1% food and beverage tax on the sale of food and beverages, by a restaurant or place of refreshment, located within the city of Proctor. This includes on-sale liquor and fermented malt beverages. It does not matter if the food or beverages are consumed on or off the premises.

Off-sale liquor is not subject to the 1% tax.
Sales of food and beverages are subject to the following taxes:

• 1% Proctor Food and Beverage Tax
• 6.875% state general rate sales tax
• 1% Proctor Sales and Use Tax
• 0.5% St. Louis County Transit Tax
• 2.5% liquor gross receipts tax, if applicable

Restaurant or place of refreshment means a building, structure, enclosure, or any part of a building, structure, or enclosure used as, maintained as, advertised as, or held out to be an operation that prepares, serves, or otherwise provides food or beverages, or both, for human consumption.

Examples include (but are not limited to):

• Bars
• Cafes
• Clubs
• Coffee houses
• Concession stands
• Dance clubs
• Delis
• Delivery, drive-in, or drive-thru restaurants
• Fast food restaurants
• Pick-up or carry-out restaurants
• Pubs
• Sit down restaurants
• Saloons
• Sidewalk vendors
• Tea rooms
• Teen centers

St. Cloud

St. Cloud imposes the following special local taxes:

•  1% liquor tax
•  1% food tax

Liquor Tax

The 1% St. Cloud Liquor Tax applies to retail sales of alcoholic beverages, including intoxication liquor, wine, and 3.2 beer, sold at licensed liquor establishments in St. Cloud.

Examples include (but are not limited to):

• Bars
• Clubs
• Hotels
• Motels
• Restaurants

These sales are subject to the following taxes:

• 1% St. Cloud Liquor Tax
• 6.875% state general rate sales tax
• 0.5% St. Cloud Area Sales Tax
• Applicable local county tax (Benton 0.5%, Sherburne 0.25%, or Stearns 0.5%)
• 2.5% liquor gross receipts tax

The 1% St. Cloud Liquor Tax does not apply to:

• Establishments with 3.2% malt liquor or a set-up license
• Off-sale liquor sales

Food Tax

The St. Cloud Food Tax applies to food and beverages (not subject to liquor tax) sold by restaurants, coffee shops, snack bars, or any other place of refreshment in St. Cloud.

A place of refreshment means any building, structure, vehicle, sidewalk cart, or any part thereof, used, maintained, or advertised as a place where food or drinks are made, sold, or served at retail.

These sales are subject to the following taxes:

• 1% St. Cloud Food Tax
• 6.875% state general rate sales tax
• 0.5% St. Cloud Area Sales Tax
• Applicable local county tax (Benton 0.5%, Sherburne 0.25%, or Stearns 0.5%)

The St. Cloud Food Tax does not apply to food purchased in:

• Confectioneries
• Drugstores
• Gas stations
• General merchandise stores
• Grocery stores
• Other places not providing meals, lunches, lodging, or fountain, bar, booth, or table service

Lodging Taxes

The Minnesota Department of Revenue administers the following lodging taxes:

• Giants Ridge Recreation Area (city of Biwabik)
• Lake County
• Lake of the Woods County
• Mankato
• Ortonville
• Rochester
• St. Paul
• Two Harbors
• Woodbury

Note: We also administer the Minneapolis Lodging Tax. For more information, see Fact Sheet 164M, Minneapolis Special Local Taxes.

Lodging facilities must charge sales tax on short-term lodging and certain related services if the room rental is:

• less than 30 days
• 30 days or more, with no enforceable written lease agreement

Examples

• A guest stays at a hotel for five weeks. The stay is taxable because there is no enforceable written lease agreement.
• A hotel rents suites under monthly enforceable written lease agreements that require a 30-day notice to terminate. The rental is not taxable.
• An apartment is rented on a weekly basis. The rental is taxable since the rental period is less than 30 days
• A company rents a room in a hotel on a monthly basis for occasional use by its employees. The enforceable written lease agreement requires a 10-day notice to terminate. The rental is not taxable.

Lodging Tax

Lodging tax is imposed on lodging accommodations within city or county limits. Examples include (but are not limited to):

• Hotels
• Motels
• Rooming houses
• Tourist courts
• Trailer camps
• Similar establishments

Lodging tax also applies to taxable lodging related services. Examples include but are not limited to:

• Pay-per-view movies and video games
• Purchases from minibars
• Room service
• Other services provided within a guest room