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FAIRMONT -- In seven weeks, Fairmont's local optional sales tax will take effect.
A wide majority of voters approved the half-percent tax in November. The tax will be in effect through Dec. 31, 2024, or until $15 million is raised. Funds from the tax are earmarked for local recreation amenities such as parks and trails and a possible community center.
Fairmont is not the only government entity to initiate a special sales and use tax on Oct. 1. The cities of Moose Lake, New London, Proctor and Spicer will debut a new tax that day, as will the counties of Anoka, Carver, Clay, Dakota, Hennepin, Ramsey, Washington and Wright. The new taxes range from one-quarter to one-half percent.
Special use taxes already exist in counties and cities throughout the state. In our region, Mankato, Austin, Albert Lea, New Ulm and Worthington have existing special taxes. Rochester, with 8.125 percent, and Duluth, with 8.375 percent, rank the among the highest for special use taxes.
Fairmont's local option sales tax applies to purchases for business or personal use, even if a customer is from elsewhere or takes the items out of Fairmont. It's no different than a Fairmont resident shopping in Mankato and paying that city's additional tax to benefit its projects.
The tax shouldn't have a huge impact on the average consumer. In fact, few people will even notice a difference on Oct. 1 when the sales tax in Fairmont increases from 6.875 percent to 7.375 percent. The biggest change will be for Fairmont businesses that already collect sales tax.
According to the Minnesota Department of Revenue, these businesses include all retailers doing business in Fairmont; those that have an office or place of business in Fairmont; those that have a permanent or temporary representative in Fairmont; anyone who ships or delivers tangible personal property into Fairmont; and businesses performing taxable services in Fairmont.
Businesses that file sales and use tax returns online can register for the tax either before or when they file their October 2017 returns.
The city of Fairmont has posted an informational link to the Department of Revenue on its website, www.fairmont.org, under the "News and Announcements" tab, and the Fairmont Area Chamber of Commerce also has a link on its website, www.fairmontchamber.org
Businesses also can call (651) 296-6181 or toll-free (800) 657-3777 or email salesuse.tax@state.mn.us