New Ulm Sales & Use Tax

Pursuant to voter approval of City Question 1 which was on the ballot in the General Election held on November 7, 2000, there is hereby imposed an excise tax of one-half of one percent, up to a maximum of $20 per sale of motor vehicles at retail. Ordinance No. 01-059, Third Series, amends Section 290 of the City Code of the City of New Ulm relative to City Sales Tax.

The collection of tax imposed shall be a personal obligation of the dealer and the proceeds of such tax collected shall be hereafter paid to the City of New Ulm within 20 days following the close of the period for which the return is filed.

Inform Residents About Sales Tax

Under a provision contained in the 2005 omnibus tax bill, cities that impose a local sales tax must now inform city residents and businesses about their duty to pay the local use tax on purchases of goods and services made outside the city limits but used within the city limits.

Use Tax Liability

This use tax is a complement to the sales tax and is imposed at the same rate as the sales tax on purchasers when the vendor selling the taxable product does not collect the entire sales tax due.  Perhaps the most obvious example of use tax liability is when an individual purchases an item online from a retailer that does not collect the sales tax imposed by the state or local unit of government -- that individual would then be responsible to remit the proper use tax payment to the state of Minnesota.  Use tax forms are available from the Department of Revenue.

Contact

If you have any questions relating to the excise tax procedures, please contact the Finance Department at 507-359-8259.