Minnesota: How to Tax Coin-Operated Entertainment
- Jul 8, 2014 | Gail Cole
Entertainment takes many forms, including coin-operated devices. And in Minnesota, retailers may now purchase coin-operated entertainment and amusement devices tax-free under certain conditions.
Generally in Minnesota, vending machines are a taxable purchase, subject either to sales tax at the time of purchase or use tax. However, retailers may now purchase “coin-operated entertainment and amusement devices” exempt from sales tax “if they sell admissions to or use of amusement devices.”
Coin-operated entertainment and amusement devices eligible for the exemption include:
- Batting cages;
- Fortune-telling machines;
- Jukeboxes; and
- Pool tables.
Coin-operated entertainment and amusement devices not eligible for the exemption include:
- Gaming devices;
- Lottery devices; and
- Vending machines.
The Minnesota exemption for certain coin-operated entertainment took effect July 1, 2014. Additional information is available on Minnesota Department of Revenue Fact Sheet 158.
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