Nexus (Taxable Presence)

We collect tax from cigarette and tobacco products distributors and some retailers who are subject to the federal PACT Act or have physical or economic nexus with Minnesota. 

For more details, go to:

• Who is liable for Tobacco Tax?
• Use Tax Requirement for Tobacco Delivery Sellers
• PACT Act

Nexus for out-of-state business entities is established based on activities conducted within the state of Minnesota. A company does not need to have a physical presence in Minnesota to have an income tax filing requirement and Minnesota does not have a business income threshold. 

For more details, go to Filing Requirements.

We collect tax from health care providers, hospitals, and surgical centers that provide health care goods and services in Minnesota. We also collect tax on legend drugs sold, delivered, or distributed into the state. These taxes fund the MinnesotaCare program, a state health care program for Minnesotans with low incomes.

You may be subject to MinnesotaCare taxes if you have physical or economic presence in Minnesota.

For more details, go to:

• Taxable Presence for MinnesotaCare Taxes
• MinnesotaCare Taxes for Remote Sellers

Nexus is established differently depending on if you have a physical presence in Minnesota or if you are an out-of-state retailer or marketplace provider with no physical presence.

We can help you determine if you need to register and collect Minnesota Sales and Use Tax. Complete and send us Form ST101, Business Activity Questionnaire.

For more details on sales tax nexus requirements, go to:

• Who Needs to Register?
• Sales Tax for Marketplace Providers
• Sales Tax for Remote Sellers