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					MINNESOTA Department of Revenue


                                  Sales Tax Newsletter
                                  Number 56                                                                                   December 1996

                                                                                             Interest rates for 1997
                                         Seasons greetings                                   The interest rate on delinquent sales and use tax
                                         The Department of Revenue wishes you a              and on refunds will be eight percent beginning
                                         happy and prosperous New Year. We also              January 1, 1997. By law, the interest rate on
                                         thank you for your cooperation in collect-          unpaid tax is adjusted each year according to the
                                         ing sales tax and filing reporting forms.           “adjusted prime rate charged by banks to busi-
                                         Your efforts are appreciated!                       nesses,” as determined by the Board of Governors
                                                                                             of the Federal Reserve System.


                                  Reminder –                                                 Capital equipment vs.
                                  personalized returns                                       replacement capital
                                  Please use your personalized return when filing            equipment
                                  and paying your sales tax. If you don’t receive            During 1996, the department issued several
                                  your return, it is still your responsibility to file on    Revenue Notices relating to capital equipment
                                  time. You may either use a blank piece of paper,           and replacement capital equipment. Of interest to
                                  or a file copy. In either case, be sure to include the     many is Revenue Notice 96-17. This Revenue
                                  appropriate lines, your account number, name               Notice explains a change in department position
                                  and address, and period of return. Also include            relating to whether equipment qualifies for a full
                                  your daytime phone number in case we have a                refund of the tax paid on capital equipment or for
                                  question about your return.                                a partial refund of the tax paid on replacement
                                                                                             capital equipment.
                                                                                             To decide, answer the following two questions
                                     Contents                                                about the equipment purchased: (1) Does the new
                                     1 Interest rates for 1997                               equipment produce a new product? If no, then the
                                     1 Personalized returns                                  new equipment is replacement capital equipment.
                                     1 Capital equipment vs. replacement capital             If yes, ask question two. (2) Was the old equip-
For sales and use tax                  equipment                                             ment capable of making the new product? If yes,
information contact:
Minnesota Department of
                                     2 Sales to American Indians                             the new equipment is replacement capital equip-
  Revenue                            2 Call the Tipline with information                     ment. If no, the new equipment is capital equip-
Sales and Use Tax Division
Mail Station 6330                    2 Exemption certificates                                ment. The Revenue Notice also provides a defini-
St. Paul, MN 55146-6330              2 Ready mix transportation charges                      tion to help determine whether a new product is
                                                                                             made.
Phone:                               3 Residential heating fuels
  Twin Cities (612) 296-6181
  or toll free 1-800-657-3777
                                     3 Hermantown sales tax                                  If you have already filed refund claims for equip-
For TDD, contact Minnesota           3 Use tax exemption for individuals                     ment purchased since July 1, 1994, and the
Relay at (612) 297-5353 or
                                     3 Cigarette and tobacco product sales                   equipment qualifies as capital equipment under
1-800-627-3529.
                                     4 Get the facts!
                                                                                             these new guidelines, you may refile for the
Minnesota Sales Tax                                                                          difference in refund due. This refile will not count
Newsletter is published by           4 Minnesota Department of Revenue is on the Internet!
the Minnesota Department
                                                                                             as one of the two-claims per year limit. For more
                                     4 Refunds to businesses
of Revenue’s                                                                                 information about refiling, call the department at
Communications Division.             4 Manufactured and prefabricated homes                  (612) 296-3330, or 1-800-657-3646.
We welcome your comments
and questions.
                                     5 1997 Winter/Spring business education workshops
                                                                                             Also see the article on “Revenue Notices” for a list
Write us at:                         6 Nonprofit organizations
Minnesota Department of
                                                                                             of other notices published on capital equipment.
                                     6 Did you know?
  Revenue                                                                                    The department also plans to publish Revenue
Communications Division              6 Revenue Notices                                       Notices on special purpose buildings, on-line data
Mail Station 4300
St. Paul, MN 55146-4300                                                                      retrieval, and the integrated production process in
                                                                                             the near future.
                                                                                1
Publication No. 2960055
Printed on recycled paper with 10% post-consumer waste using soy-based ink.
Sales to American Indians
All sales of taxable items to individual            Upper Sioux Reservation, Granite Falls   Utilities are exempt from sales tax on
American Indians that occur off a                   White Earth Chippewa Reservation,        the Lower Sioux and Upper Sioux
reservation are subject to sales tax. A sale        White Earth                              Reservations.
to an individual American Indian that
                                                If there is no agreement, sales occurring    Tribal governments or businesses
occurs on the reservation may or may
                                                on that reservation are exempt from          owned by a tribal government may buy
not be subject to sales tax, depending on
                                                sales tax.                                   goods or services for their own use
whether that reservation has entered
                                                                                             exempt from sales tax. In addition,
into an agreement with the state. Under         Exceptions:                                  construction contractors may purchase
these agreements, sales tax is collected        Under an agreement with the Red Lake         building materials for use on construc-
at the time of sale on all or most sales        Band of Chippewa Indians, no sales tax       tion contracts with tribal governments
made on that reservation, and then the          is collected on any sales occurring on       exempt from sales tax.
state refunds the tax quarterly according       the Red Lake Reservation. Currently,
to a formula. At this time, the following       there are no sales tax agreements with       Motor vehicles sold to individual
reservations have entered into agree-           the Shakopee Mdewakanton Sioux               members of any reservation, are
ments with the state:                           Reservation in Prior Lake or the Prairie     exempt from the sales tax on motor
                                                Island Sioux Reservation in Welch.           vehicles if the purchaser lives on the
    Bois Forte Chippewa Reservation, Nett
                                                Sales to individual Indians occurring on     reservation where they are a member
    Lake
                                                these reservations or delivered onto the     and the sale occurs on the reservation.
    Fond du Lac Chippewa Reservation,                                                        For purposes of the sales tax on motor
                                                reservations are exempt from sales and
    Cloquet                                                                                  vehicles, a sale occurs on the reserva-
                                                use taxes. However, an agreement with
    Grand Portage Chippewa Reservation,         the Shakopee Community was very              tion if papers are signed on the reserva-
    Grand Portage                               close to being finalized when this           tion, payment is made on the reserva-
    Leech Lake Chippewa Reservation, Cass       newsletter went to print. If you are         tion, or the vehicle is delivered to the
    Lake                                        making sales or delivering taxable           purchaser on the reservation.

    Lower Sioux Reservation, Morton             goods to individuals on this reserva-        Contact our office for additional
                                                tion, you should contact our office to       information and updates about sales
    Mille Lacs Chippewa Reservation,            see if an agreement has been finalized.      tax agreements with Indian Reserva-
    Vineland
                                                                                             tions in Minnesota.


                                                                                             Ready mix
Call the Tipline with information                                                            transportation
Do you know about someone:                      finding those who are not complying
                                                with Minnesota’s tax laws. We want all       charges
    who is not collecting sales tax when they                                                Delivery charges for ready mix are
                                                citizens of Minnesota to pay their share
    make a retail sale?                                                                      exempt from sales tax when they are
                                                of taxes - no more and no less than they
    who charges more or less than the           owe.                                         separately stated on the customer’s
    required amount of tax?                                                                  invoice. Because of concerns over the
    who collects sales tax and does not pay                                                  wide variations in delivery charges, the
                                                                                             department worked with industry
    it to the State?
                                                Exemption                                    representatives to establish a standard to
    who bought items outside Minnesota
    without paying the sales or use tax?        certificates                                 use for determining the nontaxable
                                                                                             delivery charge. Our position is that 22
Call the Minnesota Department of                A Minnesota state identification             percent of the total sales price for ready
Revenue Tipline to let us know, so that         number is not enough to exempt a sale.       mix can be deducted as a delivery
we can correct the situation.                   In order to exempt a sale, the vendor        charge. To be exempt the delivery charge
                                                must accept a properly completed             must be stated separately from the cost
In the metro area call (612) 297-5195 or
                                                exemption certificate in good faith          of the ready mix on the customer’s
toll-free 1-800-657-3500 to leave a
                                                from the customer at the time of sale.       invoice. If a delivery charge higher than
recorded message on voice mail.
                                                These exemption certificates are kept        the standard 22 percent is used, the
You may remain anonymous, or leave a            by the vendor to justify the exemption       vendor must be able to document how
number if you want someone from the             in case of an audit. If a vendor accepts     the higher cost was arrived at. (Revenue
department to contact you. Your                 only a number from the customer, the         Notice 96-18 stating this position was
information will remain confidential.           vendor may be assessed additional            published in the State Register on No-
We appreciate your assistance in                taxes.                                       vember 25, 1996.)

                                                                     2
Residential heating fuels                                                                 Use tax exemption
Sales of all fuel oil, coal, wood, steam,
hot water, propane gas, and L.P. gas sold
                                             gas or electricity, or if there is a sepa-
                                             rate storage tank for heating fuels, the
                                                                                          for individuals
                                             fuel for the commercial operation is         Purchasers owe Minnesota use tax on
to residential customers for residential
                                             taxable and the residential portion is       taxable items if the vendor does not
use are exempt on a year-round basis.
                                             exempt.                                      charge sales tax, or if the amount of tax
Garages and personal greenhouses are
                                                                                          charged is less than Minnesota’s rate.
part of the residential property. Fuels
                                             If there is only one meter or tank, the      Use tax may be due on purchases made
used to heat these areas, even when
                                             fuel is exempt only when the space           in other states, countries or by mail.
they are not attached to the house, or
                                             used for the commercial operation is         The use tax rate is 6.5 percent, the same
when the fuel is stored in separate
                                             less than 50 percent of the total square     as the state sales tax rate. Minneapolis
tanks, are exempt from sales tax. When
                                             footage of the building or area heated.      and Rochester have a city use tax of 0.5
these fuels are delivered to a residential
                                             If the commercial operation is 50            percent.
customer, they are considered to be for
                                             percent or more of the total square
residential use. Customers can purchase                                                Beginning January 1, 1997, purchases
                                             footage, the fuel is taxable.
these fuels exempt when picking them                                                   made by an individual for personal use
up at the retailer’s location by giving                                                are exempt from use tax if the
the vendor a written statement indicat-      Hermantown                                individual’s total purchases subject to
ing that the fuel is for residential                                                   use tax are $770 or less in the calendar
heating.                                     sales tax                                 year. If an individual buys more than
                                             The city of Hermantown has approved       $770 of taxable items in a calendar year,
Natural gas and electricity sold to
                                             a general sales tax of one-half percent.  all of that person’s purchases are
residential customers are exempt from
                                             The new tax will apply to the same        taxable. This exemption does not apply to
sales tax only for the billing months
                                             items that are subject to the state sales sales by businesses that are required to
November through April, if used as the
                                             tax. The effective date for the new tax   collect Minnesota sales or use tax, or to
primary source of residential heat.
                                             has not yet been determined, but will be purchases made for business use. For more
In situations where a building or            sometime in 1997. The Department of       information, contact our office.
residence includes both residential          Revenue will administer and collect the
quarters and a commercial operation,         tax for the city. Once we have the final
the following rules apply:                   details, information will be sent to
If there is a separate meter for natural     businesses located in and around
                                             Hermantown.


Cigarette and tobacco product sales
Cigarette use tax. The law requires          charges may result. Packages of              Minnesota law requires retailers and
consumers who buy untaxed cigarettes         cigarettes without Minnesota tax             subjobbers to purchase tobacco prod-
outside Minnesota or through mail            stamps are also illegal. Retailers are       ucts from licensed tobacco products
order to pay Minnesota cigarette use         required to keep a copy of the invoice       distributors or subjobbers. Tobacco
tax when they bring them into Minne-         for cigarettes on the premises where         products purchased from unlicensed
sota. If consumers carry them into           the sale takes place for one year from       sellers are considered untaxed and may
Minnesota themselves, they are entitled      the date of purchase.                        be seized. Retailers must keep a copy
to a one-carton exemption. There is no                                                    of the invoice for tobacco products on
                                             Cigarette manufacturer’s coupons. If
exemption for mail order. The Cigarette                                                   the premises where the sale takes
                                             the manufacturer will reimburse you
Use Tax on a carton of 200 cigarettes is                                                  place for one year from the date of
                                             for the coupon, charge sales tax first,
$4.80, and $6.00 on a carton of 250. To                                                   purchase.
                                             then subtract the coupon amount.
pay Cigarette Use Tax, request Con-
                                                                                          A retailer who purchases tobacco
sumer Cigarette Tax Return, Form CT-         Tax on tobacco products. A 35 percent
                                                                                          products from unlicensed suppliers can
203, by calling the number provided. In      tax is imposed on the wholesale price
                                                                                          get a tobacco distributors license and
addition, you may owe the six and one-       of all tobacco products brought into
                                                                                          report and pay the tax monthly to the
half percent Minnesota use tax if you        Minnesota. Tobacco products include
                                                                                          state. To find out if a supplier is a
haven’t paid Minnesota sales tax. See        cigars, little cigars, chewing tobacco,
                                                                                          Minnesota licensed tobacco distributor,
the article above on use tax.                pipe tobacco, cigarette rolling tobacco
                                                                                          or to apply for a tobacco distributor’s
                                             or other kinds of tobacco for chewing
Cigarettes. Retailers must purchase                                                       license, write the Minnesota Depart-
                                             or smoking, but does not include
cigarettes from licensed distributors or                                                  ment of Revenue, Special Taxes Divi-
                                             cigarettes. The licensed tobacco dis-
subjobbers. Cigarettes purchased from                                                     sion, Mail Station 3331, St. Paul, MN
                                             tributor who arranges for tobacco
an unlicensed person are illegal. The                                                     55146-3331, or call (612) 297-1882 or 1-
                                             products to be brought into Minnesota
cigarettes may be seized and criminal                                                     800-657-3618.
                                             must pay the 35 percent tax.
                                                                  3
Get the Facts!
Following is a list of all of our sales tax fact sheets and their                      Hospital and Nursing Home Meals (9/93) . . . . . . . . . . 118
most recent revision date. We are also in the process of                               Hotels and Lodging Facilities (7/95) . . . . . . . . . . . . . . . 141
writing fact sheets concerning other industries and subjects.                          Industrial Production (9/95) . . . . . . . . . . . . . . . . . . . . . 145
If you have a topic where a fact sheet would be helpful to
                                                                                       Interstate Motor Carriers (12/93) . . . . . . . . . . . . . . . . . 107
you, please let us know - your input is always appreciated!
To request a fact sheet, please contact our office or find it on                       Laundry and Cleaning Services (9/93) . . . . . . . . . . . . . 120
the Internet (see our Internet address below).                                         Lawn and Garden Care, Landscaping (2/94) . . . . . . . . 121
                                                                                       Libraries (8/95) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
  Advertising-Creative Promotional Services (6/94) . . . . . 133
                                                                                       Logging Equipment (8/92) . . . . . . . . . . . . . . . . . . . . . 108
  Agricultural Production Equipment (3/92) . . . . . . . . . . . 100
                                                                                       Manufactured Homes, Prefabricated
  Aircraft Purchases (3/93) . . . . . . . . . . . . . . . . . . . . . . 101      NEW
                                                                                         Homes & Park Trailers (12/96) . . . . . . . . . . . . . . . . . 150
  Aquaculture Production (10/95) . . . . . . . . . . . . . . . . . . 130
                                                                                       Meat Processors (1/94) . . . . . . . . . . . . . . . . . . . . . . . 126
  Automotive Repairs and Service (12/93) . . . . . . . . . . . 131
                                                                                       Minnesota State Fair (7/96) . . . . . . . . . . . . . . . . . . . . 140
  Building Cleaning and Maintenance (10/92) . . . . . . . . 112
                                                                                       Mixed Municipal Solid Waste Mgmt Services (5/96) . . . 127
  Capital Equip. Distressed Co. (10/85) . . . . . . expired 104
                                                                                       Motor Vehicles (9/93)         . . . . . . . . . . . . . . . . . . . . . . . . 125
  Capital Equip., Replacement Capital Equip. (7/94) . . . . 103
                                                                                       Motor Vehicle Lease & Rental Tax (12/94)               . . . . . . . . . . 136
  Car Parking, Towing, Washing, Rustproofing (6/96) . . . 113
                                                                                       Occasional Sales Business Equip. (9/94) . . . . . . . . . . . 132
  Cities, Counties, and Other Local Govts (9/95) . . . . . . . 143
                                                                                       Pet Grooming & Kennel Services (9/93) . . . . . . . . . . . . 122
  Clothing and Wearing Apparel (12/91) . . . . . . . . . . . . 105
                                                                                       Promoters of Special Events (9/96)            . . . . . . . . . . . . . . . 149
  Computer Software (9/93) . . . . . . . . . . . . . . . . . . . . . 134         NEW
                                                                                       Printing Industry (1/94) . . . . . . . . . . . . . . . . . . . . . . . . 109
  Contractors (6/96) . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
                                                                                       Recreational Areas, Resorts, & Campgrounds (10/93) . . 123
  Detective and Security Services (8/96) . . . . . . . . . . . . . 114
                                                                                       Restaurants and Bars (2/96) . . . . . . . . . . . . . . . . . . . . 137
  Exercise Facilities and Health Clubs (9/93) . . . . . . . . . . 124
                                                                                       Sales to Governments (9/95) . . . . . . . . . . . . . . . . . . . . 142
  Farm Machinery (5/96) . . . . . . . . . . . . . . . . . . . . . . . 106
                                                                                       Schools - Sales and Purchases (1/94) . . . . . . . . . . . . . . 111
  Financial Institutions (4/95) . . . . . . . . . . . . . . . . . . . . . 138
  Fire Fighting Equipment (7/94) . . . . . . . . . . . . . . . . . . 135         NEW Special Event Exhibitors (7/96) . . . . . . . . . . . . . . . . . . 148
  Food Products, Candy, Soft Drinks (6/96) . . . . . . . . . . . 102             NEW Taconite & Iron Mining (6/96) . . . . . . . . . . . . . . . . . . . 147
                                                                                     Telephone Service (1/94) . . . . . . . . . . . . . . . . . . . . . . 119
  Food Stamps (1/88) . . . . . . . . . . . . . . . . . . . . . . . . . . 115
                                                                                       Use Tax (12/95) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
  Fuel for Non-Highway Use (6/92) . . . . . . . . . . . . . . . . 116
                                                                                       Utilities Used In Production (9/93) . . . . . . . . . . . . . . . . 129
  Goods for Business Use Outside Minnesota (1/94) . . . . 110
                                                                                       Veterinary Practice (9/96) . . . . . . . . . . . . . . . . . . . . . . 144
  Health Products (12/88) . . . . . . . . . . . . . . . . . . . . . . . 117



  Minnesota
  Department of                                        Refunds to                                              Manufactured and
  Revenue is on                                        businesses                                              prefabricated homes
                                                       Generally, if a business pays sales tax                 There has been some confusion about
  the Internet!                                        in error, they must request a refund                    how sales and use tax applies to manu-
                                                       from the vendor who collected it.                       factured homes, prefabricated homes
  If you can access the Internet,
                                                       Beginning January 1, 1997, businesses                   and park trailers. For information,
  many of your tax forms and sales
                                                       registered to collect sales and use tax                 request our new Fact Sheet 150, Manu-
  tax fact sheets are available
                                                       may apply directly to the Department                    factured Homes, Prefabricated Homes
  electronically!
                                                       of Revenue for the refund if the                        and Park Trailers.
                                                       claimed amount is more than $500. A
  Internet address:
                                                       purchaser may file only two claims in
  http://www.taxes.state.mn.us
                                                       a calendar year. Interest is computed
                                                       from the date the refund application is
  This information can be viewed
                                                       filed. Use Form ST-11PUR to file a
  and printed in PDF formats.
                                                       purchaser refund.
  Acrobat Reader is included FREE.
  Internet links to the federal forms
  also available.

                                                                                 4
1997 Winter/Spring business education workshops
   Basic Sales Tax Classes
                                                                  In addition, classes on the following topics will be
   (all classes 6-9:30 pm except where              noted*)
                                                                  held this winter and spring throughout Minnesota.
   Albert Lea . . . . . . . . . . . . . . . . .     Feb 11        Sessions will be held during the day, evenings, and
   Bloomington . . . . . . . . . . . . . . . .      Feb 18*       on Saturdays.
   Brooklyn Park . . . . . . . . . . . . . . .      Feb 25        Introduction to Business Taxes
   Bloomington . . . . . . . . . . . . . . . .      Mar 11        This class explains the basic types of business organiza-
   St. Paul . . . . . . . . . . . . . . . . . . .   Mar 15*       tions (sole proprietor, partnership, corporation, S-
                                                                  corporation) and the tax forms for each. Also covered:
   Mankato . . . . . . . . . . . . . . . . . .      Mar 18
                                                                  record keeping requirements; accounting methods and
   Rochester . . . . . . . . . . . . . . . . . .    Mar 18        periods; business start-up costs; travel and transporta-
   St. Cloud . . . . . . . . . . . . . . . . . .    Mar 18        tion; meal and entertainment expenses; business use of
   Virginia . . . . . . . . . . . . . . . . . . .   Mar 18        the home; self-employment and estimated taxes.
   E. Grand Forks . . . . . . . . . . . . . .       Mar 25        Introduction to Employment Taxes
   Owatonna . . . . . . . . . . . . . . . . .       Apr 8         This class explains employment requirements. The topics
                                                                  covered include corporation and S-corporation officers as
   Brainerd . . . . . . . . . . . . . . . . . .     Apr 22
                                                                  employees; withholding and deposit requirements;
   Moorhead . . . . . . . . . . . . . . . . .       Apr 22        unemployment tax; quarterly and annual filing require-
   Roseville . . . . . . . . . . . . . . . . . .    Apr 22        ments; and independent contractor/employee issues.
   Bemidji . . . . . . . . . . . . . . . . . . .    Apr 29        And other classes like:
   St. Paul . . . . . . . . . . . . . . . . . . .   May 13*       Business Assets/Depreciation
   Worthington . . . . . . . . . . . . . . . .      May 20        Partnerships
   Eden Prairie . . . . . . . . . . . . . . . .     May 20        S-Corporations
                                                                  C-Corporations
   Brooklyn Park . . . . . . . . . . . . . . .      May 20        Qualified Retirement Plans
   Duluth . . . . . . . . . . . . . . . . . . . .    May 20       Non-Profit Organizations
   Winona . . . . . . . . . . . . . . . . . . .     May 20        Section 125/Benefit Plans
   * 9 am - 12:30 pm                                              For information, or to register for one or more of
                                                                  these free classes, please call (612) 297-4213 in the
                                                                  Twin Cities metro area, or toll-free 1-800-888-6231.
   Sales Tax for Local Governments
   (all classes 9 am - 12:30 pm)
   St. Cloud . . . . . . . . . . . . . . . . . . Feb 18
   Mankato . . . . . . . . . . . . . . . . . . Feb 18
   Rochester . . . . . . . . . . . . . . . . . . Feb 18
                                                                      Sales Tax Border Issues
                                                                      (all classes 9 am - 3 pm except where noted*)
   Sales Tax Advertising Rule
                                                                      Metro (MN/WI) . . . . . . . . . . . . . Feb 4
   Bloomington . . . . . . . . . . . . . . . . Jan 25
                                                                      Sioux Falls, SD (MN/SD) . . . . . . . Apr 22
                                                                      Worthington (MN/SD) . . . . . . . . . Apr 29
                                                                      Fargo, ND (MN/ND)* . . . . . . . . May 6
   Sales Tax Industrial Production/                                   Albert Lea (MN/IA) . . . . . . . . . . . May 7
   Capital Equipment Classes                                          Grand Forks, ND (MN/ND)* . . . . May 7
   (all classes 9 am - 5 pm)                                          Spirit Lake, IA (MN/IA) . . . . . . . . May 14
   Duluth . . . . . . . . . . . . . . . . . . . . Jun 3
   Mankato . . . . . . . . . . . . . . . . . . Jun 3                  Sales Tax Contractor Border Issues
   Metro . . . . . . . . . . . . . . . . . . . . Jun 3                LaCrosse, WI (MN/WI) . . . . . . . . Mar 11
   St. Cloud . . . . . . . . . . . . . . . . . . Jun 3                Duluth (MN/WI) . . . . . . . . . . . . . Apr 15
   Winona . . . . . . . . . . . . . . . . . . . Jun 3                 *9 am - 12:30 pm

                                                              5
Nonprofit organizations                                                                          Did you know?
Do you ever wonder which of your              The following types of nonprofit
nonprofit customers can buy goods and         organizations do not qualify for                     Sales of pets, including dogs, cats, fish,
services exempt from sales tax? An            exemption unless the merchandise is                  gerbils, birds, and any other animals
exemption is provided for charitable,         purchased for resale:                                (except horses) that are tamed and kept
religious and educational organizations                                                            for affection and pleasure, are taxable.
                                                 recreational and social clubs, such as            Pet supplies are also taxable.
and senior citizen groups that are
                                                 alumni clubs, lake improvement associa-
organized for pleasure, recreation, or                                                             Photography is taxable. All charges,
                                                 tions, and ski clubs;
nonprofit purposes.                                                                                including travel expenses, time, develop-
                                                 cemetery associations;
Charitable organizations include                                                                   ing, etc., to produce a picture, slide or
hospitals, nursing homes, day activity           civic and business clubs, such as cham-           film are taxable.
centers, United Way agencies, and                bers of commerce, Jaycees, and Lions
                                                 Clubs;                                            Taxable services, such as laundry and
youth athletic programs. These organi-                                                             dry cleaning, detective, and towing that
zations must give you a Certificate of           fraternal societies, such as Knights of           are performed for Minnesota customers
Exempt Status, Form ST-17, to exempt             Columbus, Masons, Odd Fellows, Orders             outside Minnesota, are not subject to
their purchases.                                 of Eastern Star, fraternities and sororities;     Minnesota sales or use tax. If the service
Religious and educational organiza-              social welfare organizations including            is performed partly in Minnesota and
tions (except public schools) must give          farm cooperatives, low-cost housing units,        partly outside of Minnesota, charge sales
you either a Certificate of Exemption,           and medical clinics;                              tax if the greater part of the cost of
Form ST-3 or a Certificate of Exempt             professional and trade associations, such         performing the service is within Minne-
Status, Form ST-17. For information on           as associations of dentists, teachers, and        sota.
sales to schools, request Fact Sheet 111,        contractors;                                      Except for collector and above-market
Schools - Sales and Purchases.                   trade unions and beneficial societies;            vehicles, passenger vehicles that are ten
Nonprofit organizations cannot buy or            veterans organizations, such as American          years or older are subject to a $10 tax,
lease motor vehicles, meals, lodging, or         Legion and VFW posts.                             rather than the 6.5 percent sales tax on
waste collection and disposal services                                                             motor vehicles.
exempt from sales or use tax or the 6.2       To find out if your customer is a
                                              qualifying nonprofit organization,                   Charges for using semi-trailers, railroad
percent tax on rented vehicles.                                                                    cars, etc. for storage space are taxable.
                                              please contact our office.



  Revenue Notices                       STATE REGISTER
                                        no.   volume issue    date issued        title
  The following Revenue                 96-05   20    47      May 20, 1996       Sales & Use Tax: Sales of Ultralight Planes
  Notices relating to sales and         96-06   20    48      May 28, 1996       Sales & Use Tax: Exempt Entities
  use tax were issued since             96-07   21    6       Aug. 5, 1996       Sales & Use Tax: Temporary Storage
  January 1, 1996. These notices        96-08   21    9       Aug. 26, 1996      Sales & Use Tax: Capital Equipment-Construction
  are either interpretations of                                                      Contractor as Purchasing Agent
  law, or statements of policy,         96-10 21       9      Aug. 26, 1996      Sales & Use Tax: Capital Equipment-Lease Renewal
  procedure, or audit position.                                                      or Buyout
  These notices are binding on          96-12 21       9      Aug. 26, 1996      Sales & Use Tax: Capital Equipment & Replacement
  the Department of Revenue,                                                         Capital Equipment-Attachment Equipment vs.
  but not on the taxpayer. They                                                      Accessories
  are published in the State            96-13 21       9      Aug. 26, 1996      Sales & Use Tax: Capital Equipment & Replacement
                                                                                     Capital Equipment-Used by the Purchaser
  Register. If you would like
  copies of any of the notices          96-14 21      11      Sept. 9, 1996      Sales & Use Tax: Capital Equipment-Research,
                                                                                     Development, and Design; Revocation of Revenue
  listed, please call the MINNE-                                                     Notice #96-09
  SOTA BOOKSTORE at (612)
                                        96-15 21      11      Sept. 9, 1996      Sales & Use Tax: Capital Equipment & Replacement
  297-3000.                                                                          Capital Equipment-What Activities Qualify;
                                                                                     Revocation of Revenue Notice #96-11
                                        96-16 21      19      Nov. 4, 1996       Corporate Franchise & Sales and Use Tax Nexus, In-
                                                                                     State Repair Services by Computer Companies
                                        96-17 21      20      Nov. 12, 1996      Sales & Use Tax: Determination of Capital Equipment
                                                                                     vs. Replacement Capital Equipment
                                        96-18 21      22      Nov. 25, 1996      Sales & Use Tax: Ready Mix Transportation Charges


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