Sales Tax

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Motor vehicle and drivers license information
 

Native Americans and Tribal Council/Agency

Reference: Minnesota Statutes 297B.01 subd.11​

Tribal councils or reservation agencies
Vehicles owned or leased by Minnesota tribal governments or any businesses owned by the tribal governments are exempt from sales tax. These vehicles may be used on or off the reservation and display tax exempt license plates.
Record "governmental unit" in the sales tax declaration area of the title or PS2000.
Tribal Residents
Transfers to residents of the following tribal reservations may be exempt from sales tax.
Boise Forte Lower Sioux Shakopee
Fon du Lac Mille Lacs Upper Sioux
Grand Portage Prairie Island White Earth
Leech Lake

Red Lake

 

The reservation resident must provide a signed statement that all three of the following criteria have been met. All buyers must meet the qualifications and sign the statement. If the buyer or one of the buyers cannot meet all three criteria, sales tax is due.
  • The buyer is a member of the reservation.
  • The buyer resides on the reservation.
  • The sale occurred on the reservation. - It occurred on the reservation if:
    • The papers were signed on the reservation, or
    • Payment was made on the reservation, or
    • The vehicle was delivered on the reservation
Record "Native American" in sales tax declaration area of the PS2000 or title.
 
If you have any questions on vehicles leased to tribal members, contact the Minnesota Department of Revenue.
 
 
Tribal Agencies/Councils
 
Tribal agencies or councils are exempt from sales tax on motor vehicle purchases if the vehicle is used solely for official business. In the sales tax declaration area of the application for title write "The purchaser is a government unit." These vehicles display tax-exempt plates.
 
Tribal Title and Registration Systems
 
Several reservations have established their own title and registration systems. Residents of the reservation may operate a motor vehicle on Minnesota streets and highways while displaying reservation-issued license plates. These residents have the option to obtain the reservation-issued plates or plates issued by the State of Minnesota.
Titles issued by tribal jurisdictions are subject to the same procedures as titles issued by foreign states
 
31-Day Non-Resident Permit
 
A 31-day Non-resident Permit may be issued to purchasers who are residents of reservations that have a registration and title system. The permit allows the purchaser to transport the vehicle to the reservation for registrat