Sales Tax Fact Sheet - Sales To Governments - Minnesota Department Of Revenue (Page 2 of 4) in pdf

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the services listed in M. S. Section 297A.61, Subd.

Tree, bush, and shrub removal services—Minnesota

3(g)

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

control

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

cleaning

- 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-

maintenance

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.

industries.

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

taxes.

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

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

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