Remote Sellers of Legend Drugs


Businesses that sell or distribute legend drugs into Minnesota without having physical presence in the state are remote sellers.

Remote sellers of legend drugs are subject to the following MinnesotaCare taxes, unless they qualify for the Small Seller Exception:

  • Wholesale Drug Distributor Tax on the gross revenue received from the wholesale sale or distribution of legend drugs into Minnesota (except for legend drugs sold to other wholesale drug distributors selling exclusively at wholesale, veterinarians, and veterinary bulk purchasing organizations). Go to Wholesale Drug Distributor Tax for more information.
  • Legend Drug Use Tax on the sale or distribution of legend drugs into Minnesota that are not subject to Wholesale Drug Distributor Tax (such as legend drugs sold to consumers in Minnesota). The tax is on the price the seller paid for drugs delivered into Minnesota. Go to Legend Drug Use Tax for more information.

Note: You may be subject to one or both of these taxes depending on if you sell at wholesale, to consumers, or both.


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