Taxable Purchases and Use Tax

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Items you use to operate your photography business are taxable, unless an exemption applies. Several services are also taxable.

If you do not pay sales tax on a taxable purchase, then you owe use tax.

Taxable Purchases	Examples
General items	Camera cases or gadget cases Computer hardware and software Display samples that are not for sale Furniture and fixtures Office equipment and supplies
Photography equipment and supplies	Equipment and supplies are taxable if they are used to produce images delivered electronically. Examples include: Accessories and attachments to production equipment Camera cards, batteries, and flashbulbs Camera equipment Editing equipment and software Lighting equipment Props
Taxable services	Building Cleaning and Maintenance Detective and security services Lawn and garden maintenance For more information see Taxable Services.
Travel expenses	Travel expenses are taxable, even if you bill them to the customer. You may not purchase travel services exempt for resale. Examples include: Lodging Meals and beverages Transportation (airfare, vehicle rental, and motor vehicle fuel)

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.

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Taxable Purchases and Use Tax

Use Tax