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Minnesota: How to Tax Coin-Operated Entertainment


 Taxable or exempt in Minnesota?

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.”

Exempt

Coin-operated entertainment and amusement devices eligible for the exemption include:

  • Batting cages;
  • Fortune-telling machines;
  • Jukeboxes; and
  • Pool tables.

Not exempt

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.

How do you keep up with state sales tax changes? Learn how an automated sales tax solution works.

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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.