by Squib Joe on Wed Nov 14, 2007 11:09 am
The state requires that you fill out a UT-1 Individual Use Tax form, and send a check for tax due, when you make a purchase from out of state.
Is it likely to be a problem if you forget to do this after buying a couple of DVDs on eBay? Not likely. Plasma screen TVs, guns, diamond rings, crates of wine? Maybe.
From the MN Dept of Revenoorers:
"What is use tax?
Use tax is the counterpart of sales tax. You owe use tax when Minnesota sales tax is not charged on taxable items you buy, whether you buy them in Minnesota or outside the state. In addition, if you live in an area with a local use tax, you owe local use tax on the items as well.
For example, if you travel to another state or country and bring back items that are normally taxed in Minnesota, you would owe use tax on them. The same applies if you buy taxable items through mail-order catalogs or the Internet if Minnesota sales tax is not charged on the purchase.
Minnesota’s use tax rate is 6.5 percent, the same as the sales tax rate. You can buy up to $770 worth of taxable items for your personal use during the calendar year without paying use tax. If, however, your purchases total more than $770, you must pay use tax on the entire amount.
Use tax does not apply to items currently tax-exempt in Minnesota, such as clothing, prescription drugs and most groceries."
"The weight is a sign of reliability. I always go for reliability." - Boris "The Blade" Yurinov