Audit Threshold for a Municipal Liquor Store

The Minnesota Legislature recently changed the audit threshold for municipal liquor stores. Minnesota Statutes, section 471.6985, subdivision 2, was amended by 2025 Minnesota Laws, Chapter 39, Article 2, Section 63, to increase the audit threshold to $750,000. This threshold will be adjusted annually for inflation.

• Cities operating municipal liquor stores with total annual sales exceeding $750,000 are required to submit an audited financial statement prepared in accordance with Generally Accepted Accounting Principles (GAAP). This statement must be submitted to the Office of the State Auditor within 180 days following the end of the fiscal year.