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Sales of Goods and Services

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Local governments generally provide nontaxable services to the public. However, some sales are taxable.

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You must charge sales tax if you sell taxable goods or services unless an exemption applies. 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.

Examples include, but are not limited to:

Admissions and membership to athletic facilities, recreational areas, or places of amusement
Admissions to city or county parks
Admissions to community centers with athletic or recreational facilities
Books and informational brochures
Campground fees
Copies (unless required to be furnished by law)
Equipment rentals (canoes, golf carts, tables and chairs)
Fees to fax a document
Golf membership and green fees
Maps
Vending machine sales including prepared food, soft drinks, candy, and dietary supplements

Examples of taxable services include, but are not limited to:

Alarm monitoring services
Lawn mowing, tree trimming, stump removal, and spraying services
Parking charges, except residential or meters
Towing charges, including administrative fees
Utilities such as electricity, steam, gas, communications, and commercial water

Waste Management Services

Waste management services are not subject to sales tax, but are subject to Solid Waste Management Tax. This tax is reported on your sales tax return. Bags and stickers are subject to this tax.

Nontaxable Sales [+]

The following are examples of nontaxable sales:

Copies required to be furnished by law (Minnesota Data Practices Act)
Educational lessons
Meals and drinks when furnished, prepared, or served to
- Patients at hospitals, sanitariums, nursing homes, or senior homes as part of routine care and included in the facilities charge
- Anyone on Pre K-12 school premises
- Inmates or residents at correctional, detention, or detox facilities
Notary services
Permit fees
Pet licenses
Primary residential heating during winter months
Residential water and sewer services
Security or detective services by an off-duty peace officer within the jurisdiction the peace officer normally serves

County Agricultural Society Sales Exemption [+]

The following sales by a county agricultural society are exempt:

Admissions to and parking at the county fairgrounds
Admissions to separately ticketed events run by the county agricultural society
Concessions and other sales made by employees or volunteers of the county agricultural society on the county fairgrounds

Starting May 25, 2023, the exemption of sales by county agricultural societies during regularly scheduled county fairs is expanded to include pre-sales. This exemption does not apply to sales or events held at a time other than at the time of the regularly scheduled county fair or for events not held on the county fairgrounds.

A county agricultural society must annually determine the amount of sales tax savings from the exempt sales and must use the amount equal to the sales tax savings to maintain, improve, or expand society-owned buildings and facilities on the fairgrounds.

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Sales of Goods and Services