COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. For more information, updates, and resources, see Our Response to COVID-19.
Contractors who do work for libraries must pay tax on all materials used in the construction contract. The only exception is if the materials are used in a construction contract with an exempt entity and the entity authorizes the contractor as their purchasing agent under specific rules.
Motor vehicles purchased or leased for use as a bookmobile or delivery vehicle are exempt from sales tax.
Utilities purchased by a library are exempt.
If the library is in a building with other offices and the library does not have its own utility meter, only the percentage of utilities used by the library is exempt. To claim exemption, give the utility provider a completed Form ST3, Certificate of Exemption specifying the government exemption for libraries.
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 and 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