Ship and Vessel Purchases

Purchases that are used primarily for interstate or foreign commerce – doing business across state or national borders – qualify for an exemption and are not taxable.

To claim this exemption, give your vendor a completed Form ST3, Certificate of Exemption. Specify the ship repair or replacement parts and lubricants exemption.

Purchases that are used primarily for intrastate commerce – doing business within Minnesota – are taxable.

Exception: Purchases of ships or vessels with a gross registered tonnage of  at least 3,000 tons are exempt from tax.