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Admissions and Amusement Devices Industry Guide
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Taxable Purchases and Use Tax

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Items you use to operate your business are taxable unless an exemption applies. Several services are also taxable. If you do not pay sales tax on a taxable purchase, then use tax is due.

Taxable Purchases Examples
General items
  • Appliances and cookware
  • Cash register tapes
  • Cleaning supplies
  • Computer hardware and software
  • Equipment and supplies provided to customers along with admissions
  • Equipment and supplies provide to customers along with use of recreational or athletic facilities
  • Furniture and fixtures
  • Office equipment and supplies
  • Paper towels
  • Toilet tissue
Utilities
  • Electricity
  • Gas
  • Water
Taxable services

For more information, see Taxable Services.
Promotional items
  • Calendars
  • Stationery
  • Pens
  • Mugs

Tokens, Tickets, and Prizes

Prizes given away to winners of games of chance, amusement, or skill are taxable to operators of the machines, unless the item itself is exempt from sales tax (clothing). Tokens used to operate the machines or tickets used to redeem prizes are also taxable to the operator.

Carnival, Festival, and Fair Exemption

Prizes for games of skill or chance conducted at events such as carnivals, festivals, and fairs lasting less than six days are exempt from sales tax. Give your supplier a completed Form ST3, Certificate of Exemption. Use the Other exemption and write in prizes.

Vending Machine Purchases

When you buy or lease a new or used vending machine or other coin-operated device for use in Minnesota, you must either pay sales tax or accrue use tax on the purchase price or lease payments.

For more information, see Vending Machines and Other Coin-Operated Devices.

Use Tax

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 an 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

For more information, see Use Tax for Businesses and Local Sales and Use Taxes.