As the Minnesota sales tax rates get more complicated, it is very important that a business software accommodate the changes. In July 2009, the MN state general rate changed due to the approval of the constitution amendment by the voters in Nov 2008 for an additional .375% for environmental causes as well as the arts. This made the MN general rate 6.875%. However, there are additional sales taxes to be aware of. Various cities in MN have a city sales tax. But you also have to take into consideration other specifically imposed sales taxes:
1. Transit tax - imposed to fund primarily light-rail projects. The rate is .25% and is assessed in various counties of the state.
2. Stadium tax - imposed to fund the construction and maintenance of the new Twins Stadium. This tax is assessed in Hennepin County and is .15%.
In order to accommodate all of these taxes, QuickBooks has an item called a Group. This allows you to combine items, such as different tax rates, into one. Therefore, you can apply a sales tax group to a transaction for any circumstance. For example, if have a business has an establishment in Hennepin County, they can include the transit tax, the stadium tax, and the Minneapolis city tax, and the state general tax to their sales items by using a sales tax group.
The QuickBooks Group feature is the ideal way to handle complicated issues like sale taxes. Contact LFC if you have questions on QuickBooks Groups.
