"Not Paying Sales Tax on Installed Orders, Mn"
ST3 Certificate of Exemption Purchaser: Complete this certificate and give it to the seller. Do not send to the Department of Revenue. Seller: Keep this certificate as a part of your records. If this certificate is not fully completed, you must charge tax. Check one Single purchase certificate Blanket certificate (if checked, this certificate continues in force until cancelled by the purchaser) Name of purchaser’s business or organization Business address City State Zip code Print or type Purchaser’s state tax ID number State of issue If no number, give reason Name of seller from whom you are purchasing, leasing or renting Seller’s address City State Zip code Describe the nature of your business or organization. Include a description of the items normally sold in your business, Describe business/ if applicable. exempt items Describe the items for which you are claiming exemption. Circle the exemption reason code. Enter the number or title where applicable. Code Description A Agricultural or industrial production. B Direct pay. Enter DP# Type of exemption C Exempt organization. Enter ES# or type of group D Motor carrier direct pay. Enter MCDP# E Multiple points of use. F Percentage exemption. Advertising (enter percentage) % Utilities (enter percentage) % G Resale. H Resource recovery facility. Enter CN# I Other. Enter title Stock No. 2100030 (Rev. 1/03) I declare that the information on this certificate is correct and complete to the best of my knowledge and belief. (PENALTY—If you try to evade paying sales tax by using an exemption certificate for items or services that will be used for purposes other than those Sign here being claimed, you may be fined $100 under Minnesota law for each transaction for which the certificate is used.) Signature of authorized purchaser Print name here Phone Date ( ) If you have questions, call 651-296-6181. TTY: Call 711 for Minnesota Relay. Forms and fact sheets are available on our website at www.taxes.state.mn.us. Exemption reason codes See the descriptions on pages 3 D. Motor carrier direct pay • Handicapped accessible (building Motor carrier direct-pay number issued materials) and 4 for more information about by Department of Revenue. • Handicapped accessible (vehicle costs) the following exemptions. E. Multiple points of use • Horse materials Services or electronically delivered • Logging equipment computer software that is made available • Materials for business use in a state A. Agricultural and for use in more than one taxing jurisdic- where no sales tax applies industrial production tion at the same time. Materials and supplies used or consumed • Materials used to provide taxable in agricultural or industrial production F. Percentage exemptions services of items intended to be sold ultimately at • Advertising materials for use outside • Medical supplies for a health-care retail. Does not cover machinery, tools Minnesota or local taxing area. facility (except qualifying detachable tools and special tooling), accessories, furniture and • Utilities used in agricultural or • Packing materials used to ship house- fixtures used to produce a product. industrial production. hold goods outside Minnesota • Poultry feed B. Direct pay G. Resale Items or services purchased for resale. • Prizes used for games at fairs or other Direct-pay number issued by Depart- events lasting fewer than six days ment of Revenue. Cannot be used for meals, lodging and most services. H. Resource recovery facility • Repair or replacement parts used in Issued CN number by Department of another state/country as part of a C. Exempt organizations Revenue. maintenance contract • Charitable (ES# required) • Ship replacement parts and lubricants I. Other exemptions • Chore/homemaking services for elderly • Airflight equipment • Ski area items and disabled • Ambulances • State or local government agency from • Federal government another state • Aquaculture production equipment • Hospitals • Taconite production items • Automatic fire-safety sprinkler systems • Libraries • Telecommunications equipment • Biosolids processing equipment • Nursing homes • Townships (gravel, machinery, and • Bullet-resistant body armor • Outpatient surgical centers equipment used for road and bridge • Emergency-vehicle accessories maintenance) • Religious and educational (churches, schools, school districts, scouts, youth • Emergency-rescue-vehicle repair • TV commercials groups, etc.) • Exempt publications • Veteran organizations • Senior citizen group (ES# required) • Farm machinery • Waste-management containers and • Firefighter equipment compactors • Wind energy systems 2 Exemption descriptions Use Form ST3, Exemption Certificate, to • Outpatient surgical centers that Resource recovery facilities. Applies to claim the following exemptions. Fact sheets qualify as charitable under IRC 501(c)(3) equipment used for processing solid or are available for some of the items as noted. can use this certificate without an hazardous waste (after collection and before exemption number or may apply for an disposal) at a resource recovery facility. You Call our office for details about other ES# from the Department of Revenue. must apply for and receive approval from exemptions not listed here. • Religious and educational organiza- the Department of Revenue. Enter the CN# tions. Churches, schools, school districts, on Form ST3. Agricultural or industrial production. scouts, youth groups, etc., operated Materials and supplies used or consumed in exclusively for religious or educational Other exemptions agricultural or industrial production of purposes can use Form ST3 without an Airflight equipment. Must be purchased items intended to be sold ultimately at retail. exemption number or may apply for an by an airline company taxed under M.S. Does not cover machinery, tools (except ES# from the Department of Revenue. 270.071 through 270.079. qualifying detachable tools and special • Senior citizen groups. Groups must Ambulances (leases of vehicles used tooling), accessories, furniture and fixtures limit membership to senior citizens age as ambulances). Must be used by an used to produce a product. Fact Sheet 100, 55 or older, or under 55 but physically ambulance service licensed by the EMS Agricultural Production, or Fact Sheet 145, disabled. They must apply for and receive Regulatory Board under section 144E.10. Industrial Production. an ES# from the Department of Revenue Direct pay. Allows the buyer to pay sales and enter it on Form ST3. Aquaculture production equipment. tax on certain items directly to the state Qualifying aquaculture production Motor carrier direct pay. Allows motor equipment, and repair or replacement parts instead of to the seller. Applicants must be carriers to pay tax directly to the state when used to maintain and repair it. Fact Sheet registered to collect sales tax in order to they lease mobile transportation equipment 130, Aquaculture Production Equipment. qualify and must apply for and receive or buy certain parts and accessories. approval and a DP# from the Department Automatic fire-safety sprinkler sys- Applicants must be registered for sales tax in of Revenue. Enter the DP# on Form ST3. tems. Fire-safety sprinkler systems and all order to apply. You must apply for, and Exempt organizations. Must be a receive approval and MCDP# from the component parts (including waterline government or nonprofit organization as Department of Revenue. Enter the MCDP# expansions and additions) are exempt when described below. Cannot be used to buy on Form ST3. Fact Sheet 107, Interstate installed in an existing residential dwelling, meals and lodging exempt, except for the Motor Carriers. hotel, motel or lodging house that contains federal government. four or more dwelling units. Multiple points of use. Taxable services • Charitable organizations. Must be or electronically delivered computer Biosolids processing equipment. operated exclusively for charitable software that is made available for use in Equipment designed to process, dewater purposes. You must apply for and receive more than one taxing jurisdiction at the and recycle biosolids for wastewater an ES# from the Department of Revenue. same time. Purchaser is responsible for treatment facilities of political subdivisions Enter the number on Form ST3. (Some apportioning and remitting the tax due to and materials incidental to installation of nonprofit organizations do not qualify for each taxing jurisdiction. that equipment. sales-tax exemption.) Bullet-resistant body armor. Must be Percentage exemption. • Chore/homemaking services purchased by a licensed peace officer, or a • Percentage exemptions may be claimed purchased by a local government state or local law-enforcement agency. for advertising materials for use specifically for elderly and disabled. outside Minnesota or local taxing area. Emergency rescue vehicle repair and • The federal government may provide Purchaser must enter exempt percentage replacement parts. Must be purchased by purchaser orders, payment vouchers, on Form ST3. Fact Sheet 133, Advertising a government entity and attached to an work orders or complete Form ST3. – Creative Promotional Services. emergency rescue vehicle. Emergency rescue • Hospitals owned by a local government • Exemption applies to percent of utilities vehicles are fire trucks, hook and ladder or that qualify as charitable under IRC used in agricultural or industrial trucks, ambulances and pumper trucks. 501(c)(3) can use this certificate without production. General space heating and Marked squad cars and fire-chief cars are an exemption number or may apply for lighting is not included in the exemption. not considered rescue vehicles. Fact Sheet an ES# from the Department of Revenue. Purchaser must enter exempt percentage 135, Fire Fighting, Police and Emergency • Libraries. Includes public, county law, on Form ST3. Fact Sheets 100, Agricultural Equipment. state agency, and the state and legislative Production; and 129, Utilities Used in Emergency vehicle accessory items libraries. Production. used to initially equip marked police cars, • Nursing homes owned by a local Resale. Items or services must be pur- fire trucks, hook and ladder trucks, pumper government or that qualify as charitable chased for resale in the normal course of trucks and ambulances. Fact Sheet 135, Fire under IRC 501 (c)(3) can use Form ST3 business. Fighting, Police and Emergency Equipment. without an exemption number or may apply for an ES# from the Department of Continued Revenue. 3 Exemption descriptions (continued) Exempt publications. Materials and Materials for business use outside State or local government agency from supplies used or consumed in the produc- Minnesota in a state: where no sales tax another state. Sales made to other states tion of newspapers and publications issued applies to such items; or for use as part of a and local government agencies are exempt if at average intervals of three months or less. maintenance contract. This exemption the item would not be taxed in the home Includes publications issued on CD-ROM, applies only if the items would not be state. (Does not apply to sales of meals and audio tape, etc. taxable if purchased in the other state (e.g., a lodging.) state that does not have sales tax). Farm machinery. Qualifying farm Taconite production items. Mill liners, machinery, and repair or replacement parts Materials used to provide taxable grinding rods and grinding balls used in (except tires) used to maintain and repair it. services. Materials must be used or taconite production if purchased by a Fact Sheet 106, Farm Machinery consumed directly in providing services company taxed under the in-lieu provisions taxable under M.S. 297A.61, subd. 3. of M.S. 298 if they are substantially Firefighter equipment. Personal protec- consumed in the production of taconite. tive equipment used to provide fire Medical supplies for a health-care protection when purchased or authorized facility. Purchases by a licensed health care Telecommunications equipment used by an organized fire department, fire facility, outpatient surgical center or licensed directly by a telecommunications service protection district or fire company that health-care professional of medical supplies provider primarily to provide telecommuni- provides fire protection to the state or a used directly on a patient or resident to cations services for sale at retail. Fact Sheet political subdivision. Fact Sheet 135, Fire provide medical treatment. The exemption 119, Telecommunication Services. Fighting, Police and Emergency Equipment. does not apply to equipment, lab or Townships (gravel, machinery, and radiological supplies, etc. Handicapped accessible (residential equipment used for road and bridge Fact Sheet 117, Health Products. building materials). Building materials maintenance). Purchases by a town of and equipment purchased by nonprofit Packing materials. Packing materials gravel, machinery, equipment and accesso- organizations if the materials are used in an used to pack and ship household goods to ries used exclusively for road and bridge existing residential structure to make it destinations outside Minnesota. maintenance. handicapped accessible, and the homeowner Poultry feed. The poultry must be for TV commercials. Covers TV commercials would have qualified for a refund of tax paid human consumption. and tangible personal property primarily on the materials under M.S. 297A.71, used or consumed in preproduction, subd. 11 or subd. 22. Nonprofit organiza- Prizes. Items given to players as prizes in production or postproduction of a TV tions include those entities organized and games of skill or chance at events such as commercial. Includes rental equipment for operated exclusively for charitable, religious, community festivals, fairs and carnivals preproduction and production activities educational or civic purposes; and veteran lasting fewer than six days. only. (Equipment purchased for use in any of groups exempt from federal taxation under Repair or replacement parts used in these activities is taxable.) Fact Sheet 163, IRC 501 (c)(19). another state or country as part of a TV Commercials. Handicapped accessible (vehicle maintenance contract. This does not apply Veteran organizations. Applies to costs). Conversion costs to make vehicles to equipment or tools used in a repair purchases by veteran organizations and handicapped accessible. Covers parts, business. their auxiliaries if they are organized in accessories and labor. Ship repair or replacement parts and Minnesota and exempt from federal income Horse materials. Covers consumable lubricants. Repair or replacement parts tax under IRC 501(c)19 of the IRC; and the items such as feed, medications, bandages and lubricants for ships and vessels engaged items are for charitable, civic, educational or and antiseptics purchased for horses. Does principally in interstate or foreign com- nonprofit use (e.g., flags, equipment for not cover machinery, tools, appliances, merce. youth sports teams, materials to make furniture and fixtures. poppies given for donations). Ski areas. Items used or consumed Logging equipment. Qualifying logging primarily and directly for tramways at ski Waste-management containers and equipment, and repair or replacement parts areas, or in snowmaking and snow- compactors purchased by a waste- (except tires) used to maintain and repair it. grooming operations at ski hills, ski slopes management service provider to use in Fact Sheet 108, Logging Equipment. or ski trails. Includes machinery, equipment, providing waste-management services that water additives and electricity used in the are subject to solid-waste management tax. production and maintenance of machine- Wind energy systems. Wind energy made snow. conversion systems and materials used to construct, install, repair or replace them. 4