Taxable SalesĪdmissions and amusement fees – to access health clubs, amusement devices, tanning facilities, spas, athletic facilities, golf clubs, ski hills, recreational areas, movies, etc.īuilding materials, supplies, and equipment – sold to owners, contractors, subcontractors, and builders to build, alter, repair or improve real property See the following table for specific examples. Sales, leases, and rentals are taxable regardless of quantity or if the item is new or used, unless an exemption applies. A retail sale also includes services for any purpose other than for resale. Most retail sales are taxable in Minnesota.Ī retail sale means any sale, lease, or rental of tangible personal property (goods) for any purpose other than resale, sublease, or subrent. Note: For more information, see Minnesota Statutes 297A.668 and 297A.669. When an address is not available, charge tax based on the address from where the item was shipped or the service was provided.When the above do not apply, charge tax based on the customer’s address obtained during the transaction (for example, the address on a customer’s check).Billing Address – when 1 or 2 does not apply, charge tax based on the customer address in your records.Delivery Address – when the customer directs the seller to ship the product or service to a location, charge tax based on the location where the product or service is delivered.Seller’s Address – when the purchaser picks up the product at the seller’s location, charge tax based on the business location.The majority of sales fall into rule 1, 2, or 3. When rule 2 does not apply, go to rule 3. There are five general sourcing rules that determine where a sale takes place and what taxes are due. Enters into an agreement with a Minnesota resident for a commission or similar consideration and directly or indirectly refers potential buyers to the seller through website links or otherwise.Is an affiliate of a Minnesota retailer that promotes or provides other services to you and your business and the retailer are related parties.Keeps inventory in a fulfillment center in Minnesota. Delivers items into Minnesota in your own vehicles.Facilitates the sale of taxable goods or services to customers in Minnesota on behalf of a business.Has an employee, representative, agent, or independent contractor that does work on behalf of the retailer in Minnesota.Has retail sales that total more than $100,000 shipped into Minnesota over a period of 12 consecutive months.Has 200 or more retail sales shipped to Minnesota over a period of 12 consecutive months.Sells products to customers in Minnesota, using the internet, mail order, or telephone, without having a physical presence in that state and does not meet the small seller exemption.Maintains a physical location in Minnesota (office, warehouse, or distribution, sales, or sample room).You have presence in Minnesota if your business does any of the following:
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