Mankato's Half-Percent Sales Tax

About Mankato’s Half-Percent Sales Tax

Welcome To Mankato

If an item is subject to the 6.875 percent state sales tax, it is also subject to the half-percent (.50 percent) local option sales tax.

Retailers report tax collections directly to the Minnesota Department of Revenue using form ST1.

Exclusion:
Excluded from the half-percent sales tax are motorized vehicles. Motorized vehicles are subject to a tax of $20. Dealers remit vehicle excise tax to the City of Mankato.

How Mankato’s half-percent sales tax revenues are used:

  • To repay bond principal and interest used to construct the civic center
  • Fund Riverfront 2000 initiative
  • Fund capital fund projects at the Mankato Regional Airport
  • Capital projects at the civic center
Mankato Regional Airport

History
The half-percent sales tax is scheduled to sunset in 2022 (originally scheduled to sunset in 2019). The voters approved the use of a half-percent sales tax in 1991. In 1996, voters approved a referendum to broaden the use of the half-percent sales tax to fund capital improvement projects at the Mankato Regional Airport.

Local option sales tax approval process State approval is required prior to a local referendum vote.

State approval

Voter approval

City Council approval