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Last Updated: 12/28/2016

Frequently Asked Questions

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Sales and Use Tax

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Related Information

Sales and Use Tax > Tax Information > Capital Equipment Refund

  • What is use tax?Back to top

    Use tax complements sales tax and applies when you buy, lease or rent taxable items or services and aren’t charged sales tax by the seller. Use tax is based on the cost of your taxable purchases, like sales tax (and subject to the same exemptions). You are responsible to pay use tax, when owed. 

  • Are labor charges taxable?Back to top

    Sometimes. It may depend on the type of labor and whether it’s listed separately on an invoice. 

    Taxable labor charges include:
    • Fabrication labor – to make or create a product, or to alter an existing product.
    • Installation labor – to set an item of tangible personal property or equipment into position, or to connect, adjust or program it for use.
    Non-taxable labor charges include:
    • Construction labor – to attach an item or materials to a building or land (“real property”).
    • Repair labor – if listed separately from materials or parts on the invoice.