Minnesota Sales and Use Tax Instruction Booklet

1 Minnesota Sales and Use Tax Instruction Booklet Revised January 2017. Inside this Booklet Need help with your taxes? We're ready to answer your questions! Who needs to register? Minnesota state and local Sales Phone: 651-296-6181. and use taxes or 1-800-657-3777. What's taxable? What's not taxable? E-mail: Fact sheets General filing information Preparing to file your return 600 North Robert Street, St. Paul, MN 55146-6330. Hours: 7:30 5:00 Monday through Friday Filing electronically Requesting a refund Information in this Booklet is available in other formats upon request for persons with disabilities. Amending a return File your return and pay tax electronically and subscribe to receive email updates regarding Sales and use taxes at 1.

2 Who needs to register? You must register to collect Sales tax if you Minnesota . An entity is an affiliate of a begin selling a product or service that is make taxable retail Sales in Minnesota . This Minnesota business if the related entity reported separately such as liquor (on includes sellers outside Minnesota who: promotes the affiliate's business or provides or off-sale), car rentals, waste hauling services to the out-of-state entity and the services, etc. If you file your return on have an office; distribution, Sales , or retailer and entity are related parties. A re- the Internet, you can add these tax types sample room location; warehouse or tailer and entity are related parties if at least when filing.

3 If you file by phone, you other place of business in Minnesota , one of the following is true: must call our office to add them. either directly or by a subsidiary;. one of the parties owns directly or find your taxable Sales have increased so have a representative, agent, salesperson, indirectly at least 50 percent of the other that you are required to file more often canvasser, or solicitor in Minnesota , on party's outstanding stock; (see General filing information on page either a permanent or temporary basis, one of the parties is a partnership, estate 12). who operates under the authority of the retailer or its subsidiary for any purpose, or trust that owns directly or indirectly at close your business.

4 Such as repairing, selling, delivering, in- least 50 percent of the capital, stock, or Notifying us of significant changes in the stalling, soliciting orders for the retailer's value of the other party; or structure or location of your business will goods or services, or leasing tangible an individual stockholder or the stock- help you avoid tax bills and periods of items in Minnesota ; holder's family owns directly or indi- noncompliance. If you have a Minnesota deliver items into Minnesota in their own rectly at least 50 percent of the value of tax ID, you can make some changes online, vehicles; outstanding stock of both entities. or you can call our office.

5 Provide taxable services in Minnesota ; or For example, if two entities are related and have entered into an agreement with a the in-state entity advertises, promotes or Multiple locations solicitor for the referral of Minnesota facilitates the establishment or maintenance If you operate your business from more customers for a commission and your of a market in Minnesota for an out-of-state than one permanent physical location, you gross receipts over 12 months is at least seller, the in-state entity creates nexus for may hold a single ID number and file one $10,000. the out-of-state seller. consolidated tax return for all locations or choose to apply for separate Minnesota tax See Revenue Notice #00-10, Sales and In addition, if the in-state entity provides ID numbers and file separate tax returns for Use Tax Nexus Standards, for criteria on services to the out-of-state seller (such as each location.)

6 Determining when an out-of-state retailer is accepting returns from the seller's custom- required to register, collect and remit Min- ers, resolving complaints from the seller's Examples of separate physical locations: nesota Sales or use tax on Sales made into customers, etc.), the in-state entity also cre- permanent storefronts where retail Sales Minnesota . ates nexus for the out-of-state seller. are made. If you make retail Sales in any cities, coun- kiosks in a mall. ties or other local taxing areas that have a How to register or report The following are not separate physical local Sales tax, you must also register to business changes locations: collect those local taxes (see Fact Sheet You may register for a Minnesota tax ID.

7 164, Local Sales and Use Taxes, for a number online at: Sales at craft shows (unless the location is listing of local taxes; also see Fact Sheets or by calling 651-282-5225 or 1-800-657- permanent). 164M, Minneapolis Special Local Taxes, 3605. vending machines at multiple locations. and 164S, Special Local Taxes: Detroit services performed at various locations, Lakes, Giants Ridge, Mankato, Rochester, You must notify us if you: such as a janitorial service or a landscap- St. Cloud, St. Paul). change your legal organization (from er. If you sell only nontaxable items, you do individual to partnership or LLC, partner- doing business from a vehicle that moves not need to register for Sales tax.

8 Ship to corporation, etc.). from place to place. add or close a location. If you do not make taxable Sales , but make purchases subject to use tax, you must reg- begin making Sales in a city, county or Operators of selling events ister to remit use tax. The department may area with a local tax (see Fact Sheet 164, Before an operator of a county fair, craft automatically register you for use tax filing Local Sales and Use Taxes, for a listing show, art fair, flea market, trade show, or if you register for withholding tax. See the of local taxes). If you file your return on similar selling event can rent space to a section Minnesota state and local Sales and the Internet, you can add a local tax when person to sell at the event, the operator must use taxes on page 3 for more information filing.

9 If you file by phone, you must call have written documentation from the seller about use tax. our office to add a local tax. that they hold a valid Sales tax registra- are in a locality that imposes a new local tion, or a written statement from the seller It is against the law to make taxable retail Sales and use tax. (We will generally add that no taxable items are being sold. Form Sales or provide taxable services in Min- ST19, Operator Certificate of Compliance, the new local tax.). nesota without being registered. is available for this purpose. You can find Affiliate nexus. Affiliates of Minnesota this form on our website at businesses are required to collect and remit Minnesota Sales tax on Sales made into 2 Continued Who needs to register?

10 (continued). Anyone who pays to sell at such an event The seller makes Sales of $500 or less is considered to be in business and must during the calendar year; and Receive electronic updates collect Sales tax on all retail Sales of taxable The seller provides a written statement Subscribe to receive Sales and use tax items unless they qualify for the occasion- to that effect, and includes the seller's notices electronically, including updates al Sales exemption described below. name, address and telephone number. to Sales and use tax law changes, rules, Occasional Sales exemptions applicable An organizer can accept a written state- fact sheets, and other related Sales and at flea markets and similar events.