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Last Updated: 10/26/2017

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Sales and Use Tax

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Sales and Use Tax > Tax Information > Forms and Instructions

  • 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.

  • 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.  ​

  • What is “nexus”?Back to top

    For Minnesota tax purposes, “nexus” means your business has a taxable presence or sales in the state and must report and pay Minnesota taxes.

    Your business has nexus in Minnesota if it has a building or facility in the state. Your business may have nexus if you or another representative of the company make sales or perform other business activities in Minnesota. For more detailed information, see Revenue Notice 00-10, Sales & Use Tax - Nexus Standards.

    Unsure whether you have nexus in Minnesota? You may complete and submit Form ST101, Minnesota Business Activity Questionnaire for Determining Sales Tax Nexus. We’ll review the questionnaire and notify you if you are required to register and collect Minnesota Sales and Use Tax.

  • What services are taxable?Back to top

    • Admissions
      • Admissions to places of amusement (including recreational areas and athletic events)
      • Making available amusement devices (including video games and games of chance)
      • Making available health clubs, spas, tanning facilities, reducing salons, steam baths, or athletic facilities
      • Granting membership to a sports or athletic facility
    • Building cleaning and maintenance
    • Delivery of aggregate
    • Detective, security, and alarm services
    • Laundry, dry cleaning, and alterations services
    • Lawn, garden, tree, and bush services
    • Lodging and related services
    • Massages (not medically prescribed)
    • Motor vehicle towing, washing, waxing, rustproofing, and cleaning services
    • Parking services
    • Pet grooming, boarding, and care services
    • Telecommunication services
    Within each of these broad categories there are some activities that are not taxed.
     
    See our sales tax fact sheets and industry guides for more information.