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Minnesota Townships and Sales Tax Exemptions

  • May 1, 2013 | Gail Cole

 Minnesota DOR explains sales tax exemptions for townships.

The Department of Revenue has issued a fact sheet reminding that, since October 1, 2011, "certain purchases by townships" are exempt from sales and use tax. Townships must provide vendors with exemption certificates at the time of purchase in order for the exemption to be valid.

Local Tax Exemption:

Local governments in Minnesota are exempt from local general sales and use taxes. They are not, however, exempt from restaurant, lodging, and liquor taxes.

Exempt Services:

The township exemption applies to a variety of services "that are not in competition with private businesses." These include, but are not limited to:

  • Ambulance services;
  • Correctional services;
  • Housing services;
  • Public safety services; and
  • Sewer and water services.

Exempt Goods:

Tangible goods may also be purchased free of sales and use tax if they are used in providing an exempt services. These may include, but are not limited to:

  • Culverts that will be installed into real property;
  • Dyed diesel used in off-road equipment;
  • Gravel used for road and bridge maintenance;
  • Office equipment and supplies; and
  • Snowplows and dump trucks used for road maintenance.

Do you sell to local governments? How does your business manage sales tax exemption certificates?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.