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

responsibility of providing fire protection to the state

To claim exemption, the purchaser must present their

or a political subdivision is exempt. This exemption is

valid tax-exemption identification card issued by the De-

effective retroactively for sales and purchases made

partment of State. The vendor must check the infor-

after June 30, 2007,

mation on the card to see if the sale qualifies for exemp-

tion. Some cards will state that the official must pay sales

Water used by fire departments to fight fires or protect

tax on charges for prepared food, hotel rooms, or on pur-

property is not taxable. Water used for other purposes,

chases under a certain dollar amount. If the purchase

such as flushing hydrants, washing fire trucks or cleaning

qualifies, the cardholder must provide a fully completed

the fire station, is taxable.

exemption certificate, Form ST3. The Reason for Exemp-

tion is “Foreign Diplomat” and write-in the number dis-

See Revenue Notice 12-09, Government Exemptions –

played on the tax exemption identification card.

Water Used Directly in Providing Fire Protection for

more information and examples.

In lieu of an exemption certificate, if the official qualifies

for the exemption, write the individual tax exemption

No refunds will be made for amounts already paid on

number from the card on the billing or sales invoice.

water purchased between June 30, 2007, and January

Keep this in your file as proof of exemption.

30, 2010.

References

Use tax for local governments

M. S. 168.012, Subd. 1, Vehicles exempt from tax or license

Sales tax is generally charged by the seller at the time of

fees

sale. However, if the seller does not charge Minnesota

M. S. 297A.61, Subd. 3, Definitions

sales tax on equipment, supplies, or other taxable items,

M. S. 297A. 67, Subd. 4, Correctional Facilities

and no exemption applies, the local government must pay

M. S. 297A.67, Subd. 28, Ambulance supplies, parts, and

equipment

Minnesota state use tax. For example, you must pay

M. S. 297A.68, Subd. 19, Petroleum products

Minnesota state use tax if you buy equipment or taxable

M. S. 297A.70, Subd. 2, Sales to government

supplies directly or by mail, Internet, or phone order from

M. S. 297A.70, Subd. 3, Sales of certain goods and services

a seller for use in Minnesota when sales tax is not

to governments

charged by the seller.

M. S. 297A.70, Subd. 6, Ambulances

M. S. 297A.89, Direct payment by purchasers permitted

Report state use tax on the cost of the item purchased

M. S. 297B.03, Exemptions

when you electronically file your sales and use tax return.

M. S. 473.448, Transit assets exempt from tax but must pay

See Fact Sheet 146, Use Tax for Businesses, for more

assessments

Revenue Notice, 96-06, Exempt Entities

information.

Revenue Notice, 98-17, Biosolids Processing Equipment

Foreign Diplomatic and Consular

Revenue Notice, 02-17, Delivery of Aggregate Materials and

Concrete Block

Missions

Revenue Notice, 12-08, Exemption for Towns

The U.S. Department of State's Office of Foreign Mis-

Other fact sheets that may be of interest

sions issues sales tax exemption cards to qualifying for-

Labor – Installation, Fabrication and Construction, #152A

Labor – Repair, #152B

eign diplomats and consular personnel stationed in the

United States. The card contains the official's picture,

name, description, individual tax exemption number, and

information about the extent of the exemption.

Minnesota Revenue, Sales to Governments

Sales Tax Fact Sheet - Sales To Governments - Minnesota Department Of Revenue Page 4

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