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Last Updated: 6/9/2017

Taxable Purchases

Items you use to operate your business are taxable unless an exemption applies. Several services are also taxable. If you do not pay sales tax on a taxable purchase, then use tax is due. See the table below for specific examples.

Taxable Purchases

Examples

General items

  • Books, manuals, and other reference material
  • Cleaning supplies
  • Computer hardware and software, Fact Sheet 134
  • Credit card machines and cash registers
  • Employee name badges
  • Furniture and fixtures
  • Invoices, claim forms, price lists
  • Office equipment and supplies
  • Training and educational videos

Chiropractic equipment

  • Durable medical equipment, including repair and replacement parts
  • Exam tables
  • Massage chairs
  • Patient divider screens
  • Spinal column models
  • Surgical instruments, including disposable/single use
  • Therapy tools: balls, tubing
  • Ultrasound machines
  • X-ray machines, film, and other supplies

Items given away

  • Appointment cards
  • Brochures and pamphlets
  • Business cards
  • Greeting cards
  • Promotional items, such as calendars, magnets, pens
  • Stickers, toys, coloring books

Utilities

  • Electricity
  • Gas
  • Water

Taxable services

For more information, see a complete list of taxable services.

Use tax

If you buy equipment, supplies, or other taxable items for your business and the seller does not charge Minnesota sales tax, you owe use tax on the cost of the items. If your business is located in an area with a local tax, you may also owe local use tax.

Some common situations where you may owe use tax include:

  • You buy taxable items or services online without paying sales tax
  • You withdraw an item from inventory to use (instead of selling it), donate, or give away
  • You buy taxable items outside of Minnesota
  • You buy taxable items in another Minnesota city or county with a lower (or no) local sales tax

For more information, see Fact Sheet 146, Use Tax for Businesses and Fact Sheet 164, Local Sales and Use Taxes.

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