Local Option Sales and Use Tax
A local option sales tax is simply a sales tax that is collected within the geographic boundaries of a city. As of April 1, 2024, the City of Saint Paul has a 1.5 percent sales tax rate, in total. The uses of those funds are outlined below.
1/2 Percent Sales and Use Tax
On January 1, 2000, the 0.50% local option sales and use tax was implemented within the City of Saint Paul to fund the Sales Tax Revitalization (STAR) program. The STAR program funds the expansion and remodeling of the Saint Paul Civic Center Complex (RiverCentre) as well as capital projects to further residential, cultural, commercial and economic development in downtown and the neighborhoods of Saint Paul.
1 Percent Sales and Use Tax
In 2023, Saint Paul voters approved a 1.00% increase to the local option sales tax to be used for repairs and improvements to streets, bridges, parks and recreational facilities within the city. The tax will generate nearly $1 billion over 20 years, of which $738 million of funds must go to streets and $246 million for parks.
The 1.00% local option sales and use tax was implemented April 1, 2024.
More information about the local option sales taxes can be found on the Minnesota Department of Revenue's website. Specific questions regarding the tax should be directed to the Minnesota Department of Revenue. The State is administering and collecting the local option sales tax on behalf of the City.
Hotel/Motel Lodging Tax
Beginning in 2004, the City of Saint Paul implemented a lodging tax on hotels and motels within the city boundaries. The lodging tax on hotels and motels with 50 or fewer rooms is 3%. An additional 3% tax applies to all lodging facilities with more than 50 rooms.
As of October 1, 2019, the lodging tax on hotels and motels with more than 50 rooms was increased from 3% to 4%.
The City's lodging tax is administered by the Minnesota Department of Revenue. Additional information regarding the tax and its remittance can be found on the Minnesota Department of Revenue's website.
- Local Tax Information. Discusses local taxes administered by the Minnesota Department of Revenue and who is responsible for collecting and paying those taxes.
- Special Local Sales and Use Tax Fact Sheet 164S. Discusses the special local taxes (food and beverage, lodging, and entertainment) administered by the Revenue.
- Sales Tax Rate Calculator.
- Minnesota Sales and Use Tax Business Guide.