Ship and Vessel Purchases

The taxability of purchases depends on how the item is used, whether in interstate or foreign commerce or in intrastate commerce.  

Repair, replacement, and rebuilding parts and materials, and lubricants, are exempt for the following:

• Ships or vessels used or to be used principally in interstate or foreign commerce
• Vessels with a gross registered tonnage of at least 3,000 tons

Interstate and foreign commerce includes ships and vessels doing business across state or national borders.  

To claim this exemption, give your vendor a completed Form ST3, Certificate of Exemption. Select the Other exemption and enter the applicable number for ship repair or replacement parts and lubricants.  

Intrastate Commerce 

Intrastate commerce includes ships and vessels doing business within Minnesota. Purchases for intrastate commerce are taxable.