Dry Cleaning Fees

Dry cleaning facilities or businesses must register with us each year and pay an annual fee. (See Minnesota Statutes, Chapter 115B.47-115B.51.)

Report and Pay the Fee 
You must file Form DC1, Annual Registration Fee for Dry Cleaning Facilities by October 1.  You have the option to pay the fee in full by October 18 or pay the fee in four equal quarterly payments.

Determine Your Fee Amount
It is the total hours worked by employees, owners, and others in the dry cleaning facility during the 12-month period beginning July 1 of the preceding year and running through June 30 of the year in which the annual registration fee is due.

1. Add the total hours worked (employees, owners, partners or others at the facility) from July 1 of the previous year through June 30 of the current year.
2. Divide the number by 2,000 (the full-time equivalence or number of hours a full-time employee works in a year).  

Use the full-time equivalence (FTE) value to determine your annual registration fee:

Fee Exemptions 
If you meet these Dry Cleaning Fee Exemptions, you do not have to report or pay the fee. 

Payment Options 
To pay the full amount by October 18, you may pay electronically from your bank account or with a credit card.  Visit the Make a Payment page for payment options. 

To pay equal quarterly payments, you must notify us on your return by checking the quarterly payment box and providing your bank information by October 1 if you would like to participate in a quarterly plan.

We will electronically deduct from your bank account on October 18, January 18, April 18, and June 18. If this date falls on a Saturday, Sunday or legal holiday, the deduction from your account will be made on the next business day. Interest is added to your balance due.

There is a fee charged on dry cleaning solvents used in any Minnesota dry cleaning facility. The suppliers who sell the solvents must charge and collect the fee from the dry cleaning facility.
 
The rates for the dry cleaning solvents fee is based on the volume of perchloroethylene, hydrocarbon-based solvents, and other nonaqueous solvents sold.

You must file the Dry Cleaning Solvents Fee electronically on your Sales and Use Tax return in e-Services.

Suppliers of dry cleaning solvents must collect and remit a fee on particular solvents sold to dry cleaning facilities for use in Minnesota. 

If the fee is not collected from a dry cleaning facility at the time of the sale, the dry cleaning facility is responsible for paying the use fee directly to Revenue.

If this is the case, the dry cleaning facility must report and pay this fee electronically on their Sale and Use Tax return in e-Services.  If this fee is collected by the supplier, you do not need to report or pay the fee.

Important Notice: File and pay your solvents use fee electronically 
For tax periods beginning in 2015, you must file the Dry Cleaning Solvents Use Fee electronically on your Sales and Use Tax return using our e-Services system.