Minneapolis Special Local Taxes 164M

1 Minneapolis Special Local Taxes 164M. Sales Tax Fact Sheet 164M Fact Sheet What's new in 2017. Starting October 1, 2017: The Minneapolis Lodging Tax rate decreased from percent to percent. Hennepin County has their own Transit Sales and Use Tax of percent. The five county Transit Im- provement Tax ended September 30, 2017. This fact sheet describes the Special Local Taxes that are imposed in Minneapolis . These Taxes are administered by the Minnesota Department of Revenue. Minneapolis Entertainment Tax (applies city wide). The 3 percent entertainment tax applies to: An online ticket seller adds separate charges for delivery and a convenience fee to the admission fees price of an admission ticket for a play in Min- the use of amusement devices and games neapolis.

2 The Minneapolis Entertainment Tax food, drinks, and merchandise sold in public applies to the admission and delivery charges, places during live performances but does not apply to the convenience fee. short-term lodging within the city limits The entire charge, including the convenience This tax is in addition to the: fee, is subject to the rest of the applicable state general rate sales tax Taxes . Hennepin County Sales Tax Hennepin County Transit Sales Tax* Note: The entertainment tax does not apply to reser- Minneapolis Sales Tax vations made or tickets purchased in Minneapolis for events outside the city limits. Note: The Minneapolis lodging, restaurant, and liquor Cover or minimum charges Taxes may also apply. A cover or minimum charge (collected at the door or *The Transit Improvement Sales Tax ended on later) give the customer access to dancing, entertain- September 30, 2017.

3 Ment, or the option to buy meals, drinks, or other items. Cover and minimum charges are admissions Admission fees and are subject to the entertainment tax. Admission fees to athletic events or other places in Minneapolis where entertainment is provided, such as Use of amusement devices and games theaters, concert halls, circuses, and fairs, are subject Entertainment tax applies to the charge to use amuse- to the 3 percent Entertainment Tax. The entertainment ment devices or games in Minneapolis . They may be tax applies regardless of where tickets are purchased located indoors or outdoors and include items such as or reservations are made. jukeboxes, video games, pool tables, or carnival rides. The entertainment tax applies to admission and deliv- Examples of items subject to the entertainment tax: ery fees but does not apply to convenience fees that Athletic event admissions (except regular sea- are separate charges from the admission.)

4 Son school games for grades 1 12). Example Bowling fees Carnival or fair admissions Sales and Use Tax Division Mail Station 6330 St. Paul, MN 55146-6330 This fact sheet is intended to help you become more familiar with Minnesota tax Phone: 651-296-6181 or 1-800-657-3777 laws and your rights and responsibilities under the laws. Nothing in this fact sheet supersedes, alters, or otherwise changes any provisions of the tax law, administrative rules, court decisions, or revenue notices. Alternative formats available upon request. Stock No. 2800164M, October 2017 Minnesota Revenue, Minneapolis Special Local Taxes Carnival rides (merry go-rounds, bumper Minneapolis Entertainment Tax applies to all short- cars, etc.) term lodging accommodations.

5 The Minneapolis Dance ballrooms or pavilion admissions Lodging Tax only applies to lodging establishments Jukeboxes with more than 50 rooms. Motorbike, bicycle, skate, trampoline, canoe, Purchases during live performances and other boat fees and rentals at amusement The entertainment tax applies to the following sales parks and similar places during live performances: Movie theater, stage show, and play admis- food and drinks sions catering services Musical concert admissions (unless exempt as merchandise sold in public places during live an artistic performance sponsored by a non- performances, including intermissions profit arts organization Poll or billiard table fees Food, drinks, and merchandise include: Video or pinball machines, shuffle board, or catering services dart board fees sales of beer and other alcoholic beverages other items subject to sales tax Items not subject to the entertainment tax Certain sales and services are not subject to the Min- Public places neapolis Entertainment Tax, these include: Public places can be operated for profit or not and in- Coat, hat, and luggage checking services clude.)

6 Membership dues to country clubs, golf bars clubs, curling clubs, even if the membership restaurants entitles the member to use the club's athletic halls facilities hotels Charges to ride aircrafts, buses, trains, boats, limousines, or taxies coffeehouses Charges for sightseeing rides and tours The entertainment tax does not apply at private clubs Fees for use of athletic facilities, for example or other places where membership is required for ad- health clubs, swimming pools, golf facilities, mission and service. skate or ski facilities Live entertainment Lodging Live entertainment includes but is not limited to: Entertainment tax applies to all lodging accommoda- music (with or without dancing). tions and related services within Minneapolis .

7 However, the entertainment tax does not apply to comedians lodging when: magicians the room rental is more than 30 days, and there is a written rental agreement requiring Live entertainment does not include: the customer or owner to give notice before sporting events ending the rental karaoke jukeboxes Taxable elated services subject to the entertainment disc jockeys playing recorded music tax include: pay per view in-room movies and video An admission or cover charge that entitles the cus- games tomer to entertainment, dancing, or the option to buy room service meals, drinks, or other items is always subject to the purchases from in room minibars and entertainment tax. other items related to using the room for lodg- All meals, drinks, and other items sold during the time ing there is an admission or cover charge are subject to the entertainment tax if live entertainment is provided, Note: These items are also subject to the other appli- even during intermission.

8 Cable sales Taxes imposed within Minneapolis . See the Minneapolis tax combinations chart on page 7. Minnesota Revenue, Minneapolis Special Local Taxes 2. If there is not an admission or cover charge and the cover or minimum charge, entertainment tax facility provides live entertainment, the entertainment applies to that charge, but not to the drinks. tax is imposed on food, refreshments, services and A bar hires musicians for live performances merchandise ordered during the period of live enter- three nights a week from 7 to 11 All tainment, including intermissions. food and drinks sold from 7 to 11 during The entertainment tax applies to these items only the nights of live performance are subject to when they are sold at public places during live enter- entertainment tax.

9 Sales before 7 and af- tainment. ter 11 are not subject to entertainment tax. All admission charges, including those The state and Local sales Taxes apply to these items at for nights when there is no live entertainment, all times. are subject to entertainment tax. Entertainment and refreshments in separate A hotel maintains three separate refreshment rooms rooms: Food, drinks, or merchandise sold in a different room from one in which live entertainment is provided are In the Hotel Cafe, customers are served food not subject to the entertainment tax if the two rooms and beverages. Entertainment here is ordinar- are separate business operations. ily jukebox music, but on some occasions, customers are treated to live music during the Examples evening meal.

10 Entertainment tax applies to The examples below are subject to state general rate, meals and drinks served during the live per- Hennepin County Sales Tax, Hennepin County formances. Sales at all other times are not Transit Sales Tax ( )*, and Minneapolis Sales subject to entertainment tax. Tax. The entertainment tax applies as indicated. In the Hotel Bar, customers are served alco- holic beverages. Entertainment is jukebox Note: The downtown liquor and restaurant Taxes ex- music. The bar is operated as a separate entity plained previously also apply if the establishment is from the Hotel Cafe, although customers may located in the downtown taxing area. pass freely from one room to the other. Enter- tainment tax does not apply to drinks sold in *The Transit Improvement Sales Tax ended on the bar, even when live music is played for September 30, 2017.