Local Option Sales Tax

On April 1, 2007, the City of Brainerd implemented a 0.5% sales and use tax and a $20 per vehicle excise tax on motor vehicles sold by licensed dealers in the city to fund the costs of constructing upgraded water and wastewater facilities, water infrastructure improvements and trail development.  The sales tax applies to retail sales made within the city limits of Brainerd and the use tax applies to taxable items used in Brainerd if the local sales tax was not paid.

In 2014, the City was given legislative and voter approval to extend the existing local option sales tax to raise and spend an additional $15 million above the $22.03 million in bonds for these purposes.  The tax was originally to expire at the earlier of 12 years or when the amount raised was sufficient to fund the $22.03 million in bonds authorized to fund the projects.  The extension will expire at the earlier of either when an additional $15 million over the amount needed to fund the existing bonds is raised or December 31, 2037.

More information can be found on the Minnesota Department of Revenue's website at MN Dept of Revenue Sales and Use Tax.  Questions regarding local option sales tax should be directed to the Minnesota Department of Revenue.  The State is administering and collecting the local option sales tax.

Minnesota Department of Revenue
Mail Station 6330
600 N Robert Street
St Paul MN  55146-6330

Questions regarding the motor vehicle excise tax should be directed to the City of Brainerd Finance Department at 218-828-2307.