Opening a Convenience Store in Minnesota: Licenses & Permits

Minnesota limits convenience stores to 3.2% beer. Strong beer, wine and spirits are sold only by exclusive liquor stores, which can't sell groceries or fuel. Tobacco and vapes must be kept behind the counter. Below is who issues what, and how each rule shapes the store you design.

Licenses and permits at a glance

Fuel tanks: MPCA

The Minnesota Pollution Control Agency regulates tanks under Minnesota Rules chapter 7150:

• Notice: notify MPCA at least 10 days before installing, replacing or repairing a tank system. Installers must be certified.
• Notification: submit a notice of the system within 30 days of putting it into use.
• Operators: Class A, B and C operators must be designated. One of them must be on site during business hours, and the Class B operator must visit at least monthly.
• Vapor recovery: retail gasoline tanks need Stage I vapor recovery, with the product delivery and vapor recovery connections on the same side of the delivery truck (§116.49).
• Petrofund: the Petroleum Tank Release Compensation Board's Petrofund reimburses 90% of eligible cleanup costs, up to $2 million per release. A 2026 law adds 50% reimbursement for replacing pressurized single-walled steel piping on projects starting after January 1, 2027, up to $100,000 per site.

Beer: 3.2% only

A convenience store sells beer under an off-sale 3.2% malt liquor license from its city or county (§340A.403), with the fee set locally. No 3.2% sales from 2 a.m. to 8 a.m. Monday to Saturday, or 2 a.m. to 10 a.m. Sunday.

No strong beer, wine or spirits. Anything over 3.2% alcohol by weight is "intoxicating liquor". Off-sale intoxicating licenses go only to exclusive liquor stores, plus some grandfathered drugstores and, in first-class cities, food stores licensed by August 1, 1989 (§340A.405). An exclusive liquor store may sell only a short list of items, which doesn't include groceries or fuel.

Municipal liquor stores: cities of 10,000 or fewer may run their own, and counties can't license off-sale stores within a mile of a city that had one before 1991.

Tobacco and vapes: behind the counter

Tobacco is licensed by the city or town, or the county in unorganized areas, with a locally set fee (§461.12). Licensees get at least one unannounced compliance check a year, and administrative penalties run $300, $600 and $1,000 plus suspension.

• No self-service displays: tobacco, vapes and nicotine products can't be on open self-service display (§461.18), so they go behind the counter. The exception is a store that's 90% tobacco, with an outside door, that admits no one under 21.
• No vending machines, and an age-21 sign is required.

Food service: the Department of Agriculture

The Minnesota Department of Agriculture issues the retail food handler license (§28A.04). Businesses whose main activity is licensed as a food and beverage establishment by the Department of Health fall under that department instead.

• Plan review: submit at least 30 days before construction. The fee is by square footage: $200 under 1,000 sq ft, $400 for 1,000 to 4,999, $800 for 5,000 to 24,999 and $1,000 for 25,000 or more. It can be waived for stores selling only prepackaged food (§28A.082).
• Licenses: a new fee schedule took effect August 1, 2025, and licenses are moving to a calendar year.

Sales tax, fuel pumps and lottery

• Sales tax: register with the Minnesota Department of Revenue through e-Services. The state rate is 6.875% before local taxes.
• Fuel pumps: the Department of Commerce's Weights and Measures Division inspects fuel dispensers annually, or as often as its budget allows, and the owner pays a per-device fee.
• Lottery: the Minnesota Lottery fingerprints the store's responsible lottery official and may require a bond or letter of credit.

What this means for your store design

• Size the cooler wall for 3.2% beer and nonalcoholic drinks. That's the only alcohol a convenience store can sell. See the cooler wall planner.
• Plan liquor as a separate exclusive store. If you want strong beer, wine and spirits, it has to be a separately licensed liquor store that doesn't sell groceries or fuel, which means its own space. See convenience store sizes.
• Design a back-bar for all tobacco and vapes. No self-service displays are allowed.
• Set the tanker approach. Product and vapor recovery fills must be on the same side of the truck, which affects the fill locations and the delivery path across the lot.
• Budget food plan review by floor area. Larger stores pay more. See food service build-outs.

Local approvals

Your city or county also controls zoning, building permits, fire inspections, signs, and the beer and tobacco licenses. Our construction checklist covers the local steps.

For Minnesota store design, see convenience store design in Minnesota and walk-in cooler services in Minnesota.

Sources

• Minnesota Rules 7150.0090 and 7150.0445 (underground storage tanks); Minnesota Statutes §116.49 (vapor recovery) and §115C.09 (Petrofund); Laws 2026 chapter 113.
• Minnesota Statutes §§340A.101, 340A.403, 340A.405, 340A.412, 340A.504 and 340A.601 (alcohol).
• Minnesota Statutes chapter 461 (tobacco).
• Minnesota Statutes §§28A.04, 28A.08 and 28A.082; Minnesota Department of Agriculture, retail food plan review.
• Minnesota Statutes §297A.62 and §297A.83 (sales tax) and §239.10 (weights and measures).
• Minnesota Lottery, become a retailer; Minnesota Statutes §349A.06.

This page summarizes official sources as of October 2026. It is not legal advice. Fees and rules change, so confirm each one with the agency before you apply.