Local Option Sales Tax

  1. What is it?
  2. How much is it?
  3. Why is it needed?
  4. How much will it generate?
  5. What will it be used for?

The tax is generally referred to as the Local Option Sales Tax. This taxing authority is granted to counties in State Statute (297A.993). According to law, counties may implement a sales and use tax of up to 0.5% and include a vehicle excise tax of up to $20 per vehicle

To do so requires a public hearing at which the public may submit input and comments. After the public hearing is closed, the County Board may implement the tax by enacting a resolution.

Fifty-one (51) other counties in Minnesota have implemented a local option sales tax. A summary of how many Minnesota counties impose 0.25% and 0.5% can be found here.

Washington County now imposes the tax at a rate of:

  • 0.25% sales and use tax
  • $20 vehicle excise tax

Public Hearing

The Washington County Board of Commissioners set a public hearing for June 1 to receive public comment on an update to the county’s Transportation Sales, Use & Excise Tax. The hearing will be during the County Board’s regular meeting in the Board Room of the Government Center, 14949 N. 62nd St. N. in Stillwater. The ability to attend virtually by those residents who wish to do so will be made available before the meeting.

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