Hot SALT news roundup: Second quarter 2024

Wipfli’s state and local tax (SALT) team highlights the most recent hot topics in tax, including news about new delivery fees in Minnesota and tips on property tax assessments.

Minnesota retail delivery fee

In response to the growing trend of online shopping, some states have enacted legislation requiring businesses to collect retail delivery fees for products shipped within their borders. Beginning July 1, 2024, Minnesota will implement a 50 cent retail delivery fee for specific transactions involving deliveries within the state.

This fee applies to transactions where charges equal or exceed $100 for tangible personal property subject to sales tax or clothing items. Certain items such as drugs, medical devices, food and select baby products are excluded when determining whether a transaction meets the $100 threshold.

Retailers are responsible for reporting the retail delivery fee to the Minnesota Department of Revenue. They can either pass the fee on to their customers or pay for it themselves.

Retailers exempt from the retail delivery fee in Minnesota include:

• Retailers with Minnesota retail sales under $1,000,000 in the previous calendar year.
• Marketplace providers facilitating sales for retailers with Minnesota retail sales through the marketplace totaling less than $100,000 in the previous calendar year.

Businesses with sales that are shipped to Minnesota must assess whether their sales are subject to the retail delivery fee. If they find that they are, they must register for the fee with the Minnesota Department of Revenue.

Take control of your property tax destiny

When property tax notices of assessment are issued, don’t ignore them.

Notices of assessment alert you on how your property will be taxed later in the year unless you advocate for changes within the designated period of time.

Isn’t the assessor the best person to determine value?

The assessor is responsible for many accounts and does not always have all the facts about your particular property. Don’t leave your assessment to chance based on assumptions.

What if you miss reviewing this year?

Annual assessments can be based on a percentage of the prior year’s assessment, resulting in excessive value and tax well into the future if left unchecked.

What dollar level of assessment is “too much”?

Various factors come into play, including the market, changes in the property itself, comparable sales, across-the-board percentage increases and classification of property.

Be proactive — ask questions and advocate for changes before values are finalized.

Want to stay up to date on SALT issues?

Wipfli’s SALT team can help you better understand your state and local tax exposure and compliance issues. Reach out to learn more about how we can support your organization.

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