Nontaxable Purchases

Do not pay sales or use tax on items sold in a vending machine. Instead, give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

If you pay sales tax on the products resold in a vending machine, you may deduct the sales tax paid from the tax remitted on your sales tax return. For more information, see Reporting Sales Tax.

Purchase of certain coin-operated entertainment and amusement devices are exempt from sales tax.

This exemption applies to purchases by retailers who either:

• Sell admissions to places of amusement where coin-operated entertainment and amusement devices are provided
• Make available coin-operated entertainment devices and amusement devices

Vending machines, lottery devices, and gaming devices do not qualify for this exemption.

Note: This exemption does not include repair or replacement parts for these devices.

For a list of these devices, see the Coin-Operated Entertainment and Amusement Devices section in Taxable Sales.

Purchases of music by jukebox operators who charge customers for use of the jukebox are exempt from sales tax as long as the music is only used for the jukebox. The music may be either a digital audio work or in a tangible form, such as a record or compact disc. Previously, the purchases of music by jukebox operators were taxable.