So you're playing Minnesota

If you don't live in Minnesota and you get paid to perform here, the state takes a cut before you see the money. Most bands learn this from a settlement sheet. Here's the short version.

The 2% withholding

Minnesota requires promoters and venues to withhold 2% of the gross amount they pay a nonresident entertainer or entertainment entity for a Minnesota performance. That 2% takes the place of regular Minnesota income tax on the gig.

• Who pays it in: the promoter or venue, on Form ETD, by the last day of the month after the performance.
• What you file: the entertainer files Form ETR. Form ETA explains the whole system.
• No SSN or TIN on file? The withholding rate jumps to 9.85%. Get your paperwork to the promoter early.

Who's exempt

Residents of Michigan and North Dakota, through reciprocity agreements (Form MWR). Wisconsin isn't on the list, so a Wisconsin band crossing the St. Croix to play the Turf Club is in scope.

Official sources

• Minnesota Department of Revenue: Nonresident Entertainer Tax
• Form ETA overview (PDF)