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Last Updated: 7/12/2016

Capital Equipment Refund

Note: On July 1, 2015, Minnesota changed to an up-front sales tax exemption on eligible capital equipment purchases.

For purchases beginning July 1, 2015, you will receive an exemption by completing Form ST3, Certificate of Exemption at the time of purchase. If you pay sales tax after that date, you can still request a refund.

Businesses that buy or lease “capital equipment” for use in Minnesota can request a refund of sales or use tax they paid on qualifying purchases. Use Form ST11, Sales and Use Tax Refund Request and Multiple Period Amended Return to file a request.

To qualify for this refund, the equipment must be used to manufacture, fabricate, mine, or refine products that are ultimately sold at retail sale. For a detailed list, see What qualifies for the Capital Equipment Refund?

You can file no more than two Capital Equipment Refund requests per calendar year. Requests must be filed within 3½ years of the month after you were invoiced or paid the tax, or within 1 year of the date of a Department of Revenue tax order (whichever is later).

Required Documentation

You must include the following documentation with your request:

1. A description of your business activity.

2. Copies of the entire lease(s) involved including all worksheets. Include one invoice from the request period showing the tax.

3. Copies of the use tax accrual sheets if use tax was paid on the purchase.

4. A worksheet, with the following information:

    • Project number (if applicable)

    • Invoice date

    • Invoice number

    • Vendor name

    • Equipment purchased

    • Whether you paid sales or use tax

    • Month and year tax you paid the tax

    • Purchase price

    • Total sales and/or use tax you paid

    • Amount of state tax refund requested

    • Amount of local tax refund requested

    • Detailed description of how the equipment is used

You may submit this documentation electronically on a CD or by email as directed on Form ST11. We may request additional documentation, such as invoices or canceled checks. Keep copies of your refund request and all supporting records for at least 3½ years.