City of Glenwood Local Sales & Use Tax
FAQ: frequently asked questions
FAQ: frequently asked questions
Q: What is the amount of the local sales & use tax the City of Glenwood is proposing?
A: The City of Glenwood is proposing adding a ½ % (one-half of one percent) local sales tax.
Q: What is the sales tax rate now?
A: The current sales tax rate in the City of Glenwood is the same as everywhere in the State of Minnesota, 6.875%.
Q: How much would the proposed sales & use tax add to purchases?
A: One-half of one percent results in an additional tax of ½ of one cent per every dollar spent, amounting to an extra .50 (fifty) cents on a $100 purchase, or $5.00 on a $1,000 purchase.
Q: How would this additional sales tax impact local services:
A: Money raised by the half-cent sales tax helps protect and maintain local services, including:
Q: How much revenue would be realized from a ½ % local sales and tax?
A: Based upon sales tax revenue generated in the City of Glenwood, the Minnesota Department of Revenue estimates the City of Glenwood would realize approximately $140,000 annually from a ½ % local sales and use tax.
Q: To what purchases will the local sales tax be applied?
A: A local sales tax applies to retail sales made and taxable services provided within the local taxing area. ½ of one percent sales & use tax will be shared by every individual that spends money on goods and services within the City of Glenwood. The tax applies to the same items that are taxed by Minnesota Sales and Use Tax Law.
Q: Who is required to collect local tax?
A: All retailers who are registered to collect Minnesota sales tax and are doing business in an area with a local tax must be registered to collect that local tax. This includes any sellers from outside the locality who:
Local sales tax applies to sales made or services performed within the City of Glenwood city limits.
Q: Are motor vehicles subject to the local sales tax?
A: No, Local sales taxes are required to have the same sales tax base as the state sales tax. Motor vehicles are not subject to the 6.875% state sales tax, instead they are subject to the 6.5% motor vehicle sales tax.
Q: Who will vote on this issue and when will that take place?
A: City of Glenwood voters will vote on whether or not they want a local sales tax implemented in the City of Glenwood. This issue will be placed on the ballot at the State General Election to be held on Tuesday, November 6, 2018.
A: The City of Glenwood is proposing adding a ½ % (one-half of one percent) local sales tax.
Q: What is the sales tax rate now?
A: The current sales tax rate in the City of Glenwood is the same as everywhere in the State of Minnesota, 6.875%.
Q: How much would the proposed sales & use tax add to purchases?
A: One-half of one percent results in an additional tax of ½ of one cent per every dollar spent, amounting to an extra .50 (fifty) cents on a $100 purchase, or $5.00 on a $1,000 purchase.
Q: How would this additional sales tax impact local services:
A: Money raised by the half-cent sales tax helps protect and maintain local services, including:
- Phase II and III Improvements to 2nd Street Southeast.
- Development, expansion, and improvements to City parks, trails and recreational activities.
- Upgrades to resolve space and security needs of City buildings.
Q: How much revenue would be realized from a ½ % local sales and tax?
A: Based upon sales tax revenue generated in the City of Glenwood, the Minnesota Department of Revenue estimates the City of Glenwood would realize approximately $140,000 annually from a ½ % local sales and use tax.
Q: To what purchases will the local sales tax be applied?
A: A local sales tax applies to retail sales made and taxable services provided within the local taxing area. ½ of one percent sales & use tax will be shared by every individual that spends money on goods and services within the City of Glenwood. The tax applies to the same items that are taxed by Minnesota Sales and Use Tax Law.
Q: Who is required to collect local tax?
A: All retailers who are registered to collect Minnesota sales tax and are doing business in an area with a local tax must be registered to collect that local tax. This includes any sellers from outside the locality who:
- Have an office, distribution, sales, sample, or warehouse location, or other place of business in the local area either directly or by a subsidiary.
- Have a representative, agent, salesperson, canvasser, or solicitor in the local area, on either a permanent or temporary basis, who operates under the authority of the retailer or its subsidiary for any purpose, such as repairing, selling, installing, or soliciting orders for the retailer’s goods or services, or leasing tangible personal property in the local area.
- Ship or deliver tangible personal property in your own vehicle to the local area.
- Perform taxable services in the local area.
Local sales tax applies to sales made or services performed within the City of Glenwood city limits.
Q: Are motor vehicles subject to the local sales tax?
A: No, Local sales taxes are required to have the same sales tax base as the state sales tax. Motor vehicles are not subject to the 6.875% state sales tax, instead they are subject to the 6.5% motor vehicle sales tax.
Q: Who will vote on this issue and when will that take place?
A: City of Glenwood voters will vote on whether or not they want a local sales tax implemented in the City of Glenwood. This issue will be placed on the ballot at the State General Election to be held on Tuesday, November 6, 2018.
