Sales of the following items are taxable unless an exemption applies.

• Books, brochures, CDs, DVDs
• Digital products, including audio, audio visual, and books, see Digital Products
• Hand creams or lotions
• Ice packs, hot packs, heat pads (disposable, nonreusable)
• Non-medicated muscle-soothing ointment, liniment, mineral ice, see Drugs

Vitamins, minerals, herbs, herbal capsules or pellets, enzymes, or other dietary supplements, see Dietary Supplements

Give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

Massages are taxable unless the massage is for the treatment of illness, injury, or disease.

If you contract with a massage therapist to provide massage services, the party who bills the customer is responsible for collecting and reporting sales tax. If their customer has a written referral for massage therapy, sales tax is not due.  A written referral must:

• State the massage is for ongoing treatment of illness, injury, or disease
• Be written by a licensed health care provider or licensed health care facility
  A written referral is a form of tax-exempt documentation, and you must keep a copy of all of them.
   

For more information, see Massages.

Copies of medical records are taxable unless they are electronically transferred. For more information, see Revenue Notice 02-15, Copies of Scanned Documents.

If you sell or lease equipment or other items you used in your business, the sale or lease may be taxable. For more information, see Isolated and Occasional Sales.

When you sell a taxable item, you must charge the state general sales tax and any local sales taxes that apply. Calculate tax based on the taxable sales price of the item (including any delivery charges).

Chiropractic treatments and therapy are not taxable.  However, gross revenues for chiropractic services and certain items are subject to MinnesotaCare taxes. For more information, see Chiropractors.

All drugs for human use, including prescribed drugs and over-the-counter drugs are exempt from sales tax. Vitamins and minerals are not included in the definition of over-the-counter drugs.

To determine if an over-the-counter item is an exempt drug, you must look at the label to see if it includes a Drug Facts panel, or a list of active ingredients. For more information, see Drugs.

Durable medical equipment for home use is not taxable. To qualify, the items must be reusable. Examples include:

• Heat lamps
• Heating pads, hot water bottles
• Ice packs and bags (reusable)
• Special pillows (abduction, cervical, orthotic)

For more information, see Durable Medical Equipment.

Note: Sales of durable medical equipment to chiropractors, hospitals, nursing homes, clinics, and doctors are taxable since they are not for home use.

Mobility enhancing equipment is exempt regardless who purchases the equipment. These items provide or increase ability to move from one place to another and are not generally used by people with normal mobility. Examples include:

• Canes and crutches
• Walkers
• Wheelchairs

For more information, see Mobility Enhancing Equipment.

Prosthetic devices are exempt from sales tax. Examples include:

• Abdominal belts and supports
• Arch supports
• Braces (neck, back, wrist, etc.)
• Cervical collars
• Elastic bandages and supports
• Head halters
• Shoe lifts and inserts

For more information, see Prosthetic Devices.

Certain purchases by nonprofit organizations are exempt from tax. To claim exemption, the nonprofit must give you a completed Form ST3, Certificate of Exemption.

For more information, see the Nonprofit Organizations Industry Guide.

The following purchases are subject to sales or use tax.

You do not pay sales tax on items you purchase for resale. Give your vendor a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

Clothing is not taxable. Examples include:

• Disposable clothing
• Gloves
• Gowns
• Uniforms

For more information, see Clothing.

Medical supplies used directly on patients as part of treatment are not taxable. Give your supplier a completed Form ST3, Certificate of Exemption. Specify Other: Medical supplies for a health-care facility.

Items that have direct contact with the patient but are not used as part of the treatment (used for diagnostic or sanitary purposes) are taxable.

Needles and Syringes

Needles and syringes used to treat patients do qualify for the medical supplies exemption, because they are not durable medical equipment even if they are reusable.

Needles and syringes used in diagnostic procedures do not qualify for the medical supply exemption.

The following items are also nontaxable purchases:

• Over-the-counter drugs administered to patients
• Magazine subscriptions
• Software as a service