A Minnesota Department of Revenue news release reminded taxpayers that the 0.25 percent transit sales and use tax was to go into effect on Tuesday, July 1, 2008.The taxes will be used to fund the transit system including light rail, commuter rail and bus rapid transit.
The five metropolitan counties affected are Anoka, Dakota, Hennepin, Ramsey and Washington. The tax is separate from and in addition to the Hennepin County, St. Paul and Minneapolis sales and use taxes already in existence. It does not replace these taxes.
The sales tax applies to retail sales made within the transit area. The use tax applies to taxable items used in the transit tax area if the transit sales tax was not paid. The tax applies to the same items that are taxable under the Minnesota sales and use tax law.
In addition, a vehicle excise tax of $20 applies to sales of motor

vehicles registered for road use. The vehicle excise tax must be collected by any person in the business of selling new or used motor vehicles at retail when the sale occurs in the transit tax area.
For more information and a list of cities and towns included in the transit tax area, visit www.taxes.state.mn.us.