Sales Tax Fact Sheet - Sales To Governments - Minnesota Department Of Revenue Page 2


the services listed in M. S. Section 297A.61, Subd.
Tree, bush, and shrub removal services—Minnesota
state agencies and local governments can purchase tree,
These services include:
bush, and shrub removal for construction or maintenance
of roads, trails, and firebreaks exempt.
- laundry, linen, and
- exterminating and pest
dry cleaning
Contracts with out-of-state vendors – State agen-
- motor vehicle towing,
- parking
cies and the legislature can purchase taxable tangible
washing, waxing, and
- pet grooming and kennel
personal property and services only from vendors who
- memberships to sports and
are registered to collect and remit Minnesota sales and
- massages
athletic facilities
use tax. This does not apply to contracts with the judicial
- detective and security
- installation charges for
branch or Minnesota state colleges and universities.
- lawn care
taxable goods billed by a
Each vendor who sells to a state agency or to the legisla-
- building cleaning and
third party
ture must provide its Minnesota sales and use tax busi-
ness identification number to show that the vendor is reg-
istered to collect Minnesota sales or use tax.
Delivery of aggregate and concrete block--- Beginning
Other states and their local governments - Sales
July 1, 2008, charges for delivery of aggregate material
made to other states and their local governments are ex-
by third parties is exempt if the aggregate will be used in
empt if the item would not be taxed when purchased in
road construction. Prior to July 1, 2008, charges for de-
their home state. This exemption does not apply to sales
livery of aggregate and concrete block by a third party
of prepared food, drinks and lodging. To claim exemp-
were taxable if the delivery would be taxable if provided
tion, the government must give the seller a fully complet-
by the seller of the aggregate materials or concrete block.
ed Form ST3, Certificate of Exemption, Exemption Code
See Revenue Notice 02-17 for more information.
Other, and write in, “State or local government not taxed
in home state.”
Cellular phone and pager services—Minnesota state
agencies do not use direct pay for cellular phone and
pager services, including equipment rentals or sales
charges. Vendors should collect tax on these services.
Local governments
Local governments include Minnesota and non-
Public schools, school districts, the University of
Minnesota counties, cities, townships, local municipali-
Minnesota, state universities, community colleges, tech-
ties, and most local government instrumentalities, politi-
nical colleges, state academies, the Perpich Minnesota
cal subdivisions, commissions, special districts, and gov-
center for arts education, and an instrumentality of a po-
ernment boards.
litical subdivision that is accredited as an optional/special
function school by the North Central Association of Col-
Most sales and purchases by local governments are taxed
leges and Schools. However, purchases by an
using general guidelines. See our website for general in-
employee are taxable, even if reimbursed by the school.
formation on what’s taxable and what’s not taxable and
For more information, see Fact Sheet 111, Schools –
for sales tax fact sheets pertaining to specific topics or
Sales and Purchases.
Hospitals and nursing homes owned and operated
Specific exemptions apply to local governments and are
by a local government. Included in the exemption are
described below. To claim exemption, the local govern-
purchases of meals and snacks provided to patients at
ment must give the seller a fully completed Form ST3,
hospitals, sanitariums, nursing homes, or senior citizen
Certificate of Exemption, and use the applicable exemp-
homes as part of their routine care and included in the
tion code.
facility’s charge. For more information, see Fact Sheet
118, Hospital and Nursing Home Meals.
Local taxes. Local governments are exempt from local
general sales or use taxes. However, they must pay other
Public libraries. See Fact Sheet 139, Libraries.
types of local taxes, such as restaurant, liquor or lodging
Townships. Beginning October 1, 2011, townships
may purchase goods and services (with certain excep-
Exempt local governments
tions) exempt from tax. A township may purchase items
and services for their use in providing services that are
These local government entities are exempt from sales
not in competition with private businesses. The exemp-
and use tax.
tion only applies to purchases by townships. The exemp-
Minnesota Revenue, Sales to Governments


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