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Taxable Sales

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Most retail sales are taxable in Minnesota.

A retail sale means any sale, lease, or rental of tangible personal property (goods) for any purpose other than resale, sublease, or subrent. A retail sale also includes services for any purpose other than for resale.

Sales, leases, and rentals are taxable regardless of quantity or if the item is new or used, unless an exemption applies.

See the following table for specific examples.

Taxable Sales More Information
Admissions and amusement fees – to access health clubs, amusement devices, tanning facilities, spas, athletic facilities, golf clubs, ski hills, recreational areas, movies, etc.
Aircraft
Building materials, supplies, and equipment – sold to owners, contractors, subcontractors, and builders to build, alter, repair or improve real property

Candy and soft drinks

Computer software – for sale, lease, or license to use a canned or prewritten program
Delivery charges – including shipping and handling, for taxable items or services  
Dietary supplements
Digital products – any product transferred electronically to the customer
Fabrication labor – labor that results in a new or changed product, even if the customer provides materials for the product
Fur clothing
Grooming and hygiene products
Installation labor – to set an item into position or connect, adjust, or program it for use
Lodging and related services – sold by the facility or through an online lodging seller or other type of accommodation intermediary
Meals and drinks  – prepared by the seller, including take-out orders and catering
Motor vehicles – leases and rentals of motor vehicles
Off-road vehicles – vehicles that do not require registration, including all-terrain vehicles, mini-bikes, racing bikes, etc.
Pay television services
Prepaid telephone calling cards and recharging fees
Services
Tobacco products except cigarettes
Utilities
Vending machine sales – of prepared food, soft drinks, candy, and dietary supplements