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’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.
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.