Form 102c - Soft Drinks And Other Beverages Fact Sheet printable pdf download

Soft Drinks and Other Beverages

102C

Taxable Subcategory of Food—See Fact Sheet 102A

Sales Tax

Fact Sheet

Minnesota sales tax applies to the sale of soft drinks. The food product exemption does not apply to soft drinks.

Soft drinks

Soft drinks are nonalcoholic beverages that contain natu-

For sales tax purposes, beverage powders and concen-

ral or artificial sweeteners.

trates are not considered soft drinks.

“Natural and artificial sweeteners” means an ingredient

To determine if a beverage is a taxable soft drink, you

of a food product that adds a sugary sweetness to the

must review the product label. The following table pro-

taste of the food product.

vides more information.

If the product label includes *

The drink is

Examples

 Agave

 Bottled or canned water that contains sweeten-

Taxable

 Aspartame

ers

 Coffee and tea drinks that contain sweeteners

 Barley malt

 Fruit ades, drinks, or nectars that contain

 Corn syrup

 Dextrose

sweeteners and have 50 percent or less fruit

juice or no fruit juice percent shown on label

 Evaporated cane juice

 Nonalcoholic beer or near beer, such as

 Fructose

O’Doul’s and Sharps (contains barley malt)

 Fruit juice concentrate

 Pedialyte

 Honey

 Sports drinks (Gatorade, Powerade, etc.)

 Invert sugar

 Soda pop

 Maltitol

 Sparkling Catawba grape juice containing

 Molasses

sweeteners and 50 percent or less fruit juice

 Rice syrup

 Stevia

 Saccharin

 Sucralose

 Sucrose

 Other artificial or natural sweeteners

 Milk or milk products

 Apple cider

Not taxable

 Soy, rice, or similar milk substitutes

 Beverage powders or concentrates

(for exceptions,

see “Additional

 More than 50 percent vegetable or fruit

 Bottled or canned water with no sweeteners

Information on

 Coffee beans or grounds and tea leaves

juice by volume, even if they contain

the next page)

sweeteners

 Nutritional drinks that contain milk or milk

 No specific sweetener listed but lists

substitutes

“natural flavor”, “essence,” or “spice”

 Frappuccino ® (contains milk)

 Milk and drinks that contain milk

* Note: This list is for reference only. It does not include all natural and artificial sweeteners or beverages.

Sales and Use Tax Division – Mail Station 6330 – St. Paul, MN 55146-6330

This fact sheet is intended to help you become more familiar with Minnesota tax

Phone: 651-296-6181 or toll-free 1-800-657-3777

laws and your rights and responsibilities under the laws. Nothing in this fact sheet

Minnesota Relay (TTY) 711

supersedes, alters, or otherwise changes any provisions of the tax law, administrative

Email: salesuse.tax@state.mn.us

rules, court decisions, or revenue notices. Alternative formats available upon request.

Stock No. 2800102C, Revised August 2014

Minnesota Revenue, Soft Drinks and Other Beverages

Form 102c - Soft Drinks And Other Beverages Fact Sheet

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