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Last Updated: 12/29/2015

Charging Sales Tax

Sales price

The sales price includes all charges necessary to create the taxable product. The entire amount billed to the customer is taxable, even if services are separately stated.

Examples of items and services included in sales price:

  • actors or narrators
  • lodging (including taxes paid)
  • animation charges
  • meals (including taxes paid)
  • consultation
  • production charges
  • copyright or licensing fee
  • stylists and makeup artists
  • delivery charges
  • travel time and expenses (including taxes paid)
  • editing charges
  • wages or salaries paid to assistants
  • equipment rental
  • wardrobe
  • filming fee

Location and Sales Tax Rate

To determine the sales tax rate, use the location where the product is received by the customer – typically, your location or a delivery address. In the case of a digital product where an address is not known, use the best information you have. For details, see Minnesota Statute 297A.668, Sourcing of Sale.

Local taxes may apply in addition to the state tax. To find the rate, enter a valid address or nine-digit ZIP Code into the Sales Tax Rate Calculator. If the filming or delivery is in another state, check with that state to determine if its tax applies.

Example: Your studio and office is in Minneapolis. You film a wedding and reception in Duluth. You provide a proof to the couple on a flash drive at your studio, but deliver the finished video – or give electronic access – to the couple at their home in St Paul. You also send a video DVD to the bride’s mother in Wisconsin.

  • The flash drive you provided at your studio is taxed at the rate in effect for Minneapolis.

  • The finished video delivered to the couple’s home is taxed at the rate in effect for St. Paul.

  • If separately stated, no Minnesota tax applies to the mother’s DVD delivered out-of-state (Wisconsin).

 
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