The city council adopted a new “Local Sales & Use Tax” ordinance in December, effective for sales and purchases made on or after January 1, 2025 (Sec. 4). However, local businesses will begin collecting the 0.5% tax on gross receipts starting April 1, 2025. The Minnesota Department of Revenue will assist businesses with implementation.
This tax will fund the renovation and expansion of a public safety building in Hibbing.
Key points of the ordinance include:
- A 0.5% local sales tax applies to retail sales sourced within city limits taxable under state laws.
- A 0.5% local use tax applies to the storage, use, distribution, or consumption of goods or services sourced within city limits taxable under state laws.
- State sales and use tax laws govern the collection and remittance of the local tax, which is additional to the state sales tax.
For the full ordinance, see https://hibbingmn.gov/DocumentCenter/View/2485/Draft-Ord-Local-Sales-and-Use-Tax-Nov2024