Registering to Pay Special Taxes | Minnesota Business Attorney

Who must register

You must register to file and pay special taxes if you’re required to collect and pay one or more of the special tax types listed below. If you need additional information on who must pay a given tax type, call 651-297-1882. Once you’re registered for a special tax type, the department will send you a letter with your tax ID number and the information you need to file and pay the tax.

Types of special taxes

Auto theft surcharge

Property and casualty insurance companies pay a sur- charge on writing automobile insurance policies.

Cigarette tax

Distributors or wholesalers of cigarettes pay tax on the cigarettes sold or used in Minnesota.

Distilled spirits tax

Wholesalers, distributors or manufacturers of distilled spirits pay tax on the distilled spirits manufactured or received for sale in Min- nesota.

Dry cleaner registration fee

Owners or operators of dry cleaning facilities pay a registration fee based on the business’s full-time equivalence rating.

Dry cleaning solvents fee

Sellers of dry cleaning solvents collect and pay a fee on the solvents sold to dry cleaning facilities.

Fire safety surcharge

Insurance companies that sell fire, homeowners, or com- mercial multiperil insurance, or Mutual insurance companies that sell property casualty insurance that has fire peril are subject to this tax.

Firemen’s relief surcharge

Property and casualty insurance companies pay a sur- charge on writing fire insurance policies.

Hazardous waste generator tax

Any person or business generating hazardous waste and required to disclose such generation under the hazardous waste rules of the Min- nesota Pollution Control Agency pays tax on the volume and destination of hazardous waste generated.

HMO tax

Health maintenance organizations, nonprofit health service plan corporations, and community integrated service networks are subject to this tax.

Insurance premium tax

Insurance companies pay tax on their gross premiums, less return premiums received on all business in Minnesota.

Lawful gambling tax

Licensed organizations pay tax on their gross receipts from lawful gambling (bingo, raffles and paddlewheels), less prizes actually paid out. Licensed organization must be a fraternal, religious, veterans or other nonprofit organization.

Malt beverage tax

Beer wholesalers, distributors or manufacturers pay tax on the beer manufactured or received for sale in Minnesota.

Motor fuels excise taxes

Distributors of gasoline and sellers of special fuels collect and pay tax on the fuels used in highway vehicles, aircraft, boats, snowmobiles and all terrain vehicles. Bulk purchasers of special fuels may elect to pay the tax on fuel they purchase. Owners of vehicles using compressed natural gas, propane or other alternate fuel pay an annual fee.

Pulltab and tipboard distributors

Licensed distributors pay tax on the ideal gross of each pulltab or tipboard deal sold.

Surplus lines tax

Insurance agents licensed with Minnesota Department of Commerce to sell surplus lines insurance in Minnesota.

Tobacco products tax (other than cigarettes)

Distributors or wholesalers of tobacco products received for sale in Minnesota pay tax on the products sold or used in Minnesota, including cigars, smoking tobacco and chewing tobacco.

Unauthorized user

Persons, firms, or corporations licensed to procure insurance from unlicensed foreign companies pay this tax.

Wine tax

Wholesalers, distributors or manufacturers of wine or premixed alcoholic beverages pay tax on the wine or premixed alcoholic beverages manufactured or received for sale in Minnesota.

This post is part of a series of posts on the Minnesota business registration process. For more information on how to register a business in Minnesota, contact an experienced business attorney.

CREDITS: This is an excerpt from A Guide to Starting a Business in Minnesota, provided by the Minnesota Department of Employment and Economic Development, Small Business Assistance Office, Twenty-eighth Edition, January 2010, written by Charles A. Schaffer, Madeline Harris, and Mark Simmer. Copies are available without charge from the Minnesota Department of Employment and Economic Development, Small Business Assistance Office.