State agencies generally provide nontaxable services to the public. However, you must charge sales tax if you sell taxable goods and services, unless an exemption applies.

Examples include:

  • Admissions to state parks
  • Campground fees
  • Camping accessories
  • Equipment rentals (canoes, kayaks, GPS units)
  • Greenhouse supplies
  • Lodging
  • Maps or travel guides
  • Parking fees
  • Prepared food, candy, and soft drinks
  • Seeds and plants
  • Vending machine sales including prepared food, soft drinks, candy, and dietary supplements

Do not pay sales tax when you purchase goods and services for resale. Instead, give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

Note: You must pay tax on purchases to provide admission to parks, campground fees, lodging, and parking services.

Interagency Transfers

Interagency transfers are not taxable. Certain state agencies may produce goods and services to support other state agencies’ operations. The reimbursements between the provider and recipient are considered exchanges and are not taxable. The state agency owes tax on any taxable inputs used to produce the goods and services provided.