Bottled Water Tax in Minnesota: What You Need to Know

Is bottled water taxable in MN?
Unsweetened bottled water sold in any size container is exempt because it is a food product. This includes carbonated or non-carbonated water or flavored water if no sweetener is added. Delivery charges for non-taxable water are also exempt.
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One of the few states in the US that charges sales tax on bottled water is Minnesota. The state’s Department of Revenue reports that a 6.875% sales tax is applied to all sales of bottled water in Minnesota. All varieties of bottled water are included in this, including distilled, mineral, and spring water.

Although some could contend that those without access to safe drinking water must buy bottled water, the state of Minnesota does not exempt it from sales tax. This choice was taken to raise money for the government and deter people from using single-use plastic bottles.

Minnesota charges not only bottled water but also other drinks like soda and sports drinks. However, some alcoholic beverages are exempt from sales tax, including milk and 100% fruit juice.

Minnesota’s sales tax rate is relatively high when compared to those of other US states. Minnesota’s state sales tax is 6.875% as of 2021. However, additional municipal sales taxes may also be levied by some counties and cities in the state, which could raise the overall percentage. On the other side, some states don’t have any kind of statewide sales tax at all, including Oregon, Montana, and New Hampshire. These states rely on additional taxation, including income tax and property tax, to raise money.

Luxury goods, including Louis Vuitton products, are subject to the same Minnesota sales tax rate as other taxable goods. There is no exclusive tax rate in the state for expensive items.

The city of Minneapolis does provide a tax-free shopping option for visitors, to wrap up this discussion about tax-free shopping. The Minnesota Sales Tax Refund Program enables out-of-country tourists to get back the sales tax they paid on specific Minnesota purchases. However, state residents are not eligible for this program.

In conclusion, bottled water and other drinks like soda and sports drinks are taxed in Minnesota. Luxury goods are subject to the same tax rate as any other taxable item since the state has a comparatively high sales tax rate in comparison to other US states. Although Minneapolis provides a tax-free shopping option for visitors, this program is ineligible for state residents.