Accounting Services is responsible for certain portions of the process of reporting sales tax to the State of Minnesota and filing the University's sales tax returns.
Please be aware that the University also has a Tax Management Office that has overall responsibility for system-wide tax compliance, related policies, procedures, and reporting systems.
Centralized MN Sales Tax Filing Option
Eligible University departments have the option of filing a centralized Minnesota Sales Tax Return on an annual reporting basis (calendar year) to the State of Minnesota through Accounting Services. Departments must average less than $100 in monthly sales tax collections to qualify for the annual filing. Departments that file quarterly or monthly sales tax returns must continue to file their own sales tax returns and are not eligible for the centralized filing option.
To have Accounting Services file a Minnesota Sales Tax Return for your department’s taxable activity, you must complete a Centralized Annual Sales Tax Reporting Form. The information you provide on this form will be used to file an annual centralized University Sales Tax Return. Centralized reporting forms are due to Accounting Services in January each year. Accounting Services will send out notification in December regarding the filing deadlines for the tax year. To view the calendar year 2010 centralized form, click here (xls).
The rate of tax that applies to a sale depends on the taxes imposed at the location of the sale. Generally, this means where a customer picks up a purchased item or where the item is shipped. If an item is shipped to a Minnesota destination, you must determine what the sales tax rate is for that address, and collect and remit the appropriate tax. If the item is shipped out of Minnesota, no tax should be collected since it is not considered a Minnesota sale. Follow this link to download a copy of the Local Sales and Use Tax Rates.
Although Accounting Services prepares the Centralized Annual Filing for Minnesota Sales Tax and prepares the tax payment for this annual filing, University departments are responsible for retaining supporting documentation. The supporting documentation should include information on the items sold and where and when the sales took place. The information should be retained for four years. This applies whether departments use the centralized filing option or they file their own sales tax return.
For more information on centralized sales tax filing, contact Rita Texidor in Accounting Services.