Nontaxable Purchases

If you create or sell tangible (physical) products, you may purchase certain items for your business without paying tax by giving your vendor Form ST3, Certificate of Exemption.

The following purchases are not taxable:

• Items you buy for resale to your customers
• Materials or supplies you use to create a tangible product (industrial production)
• Equipment used primarily in Minnesota to create a tangible product (capital equipment)

Note: These exemptions do not apply when images are delivered electronically, and there is no transfer of a tangible product.