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Minnesota: Mining Sales Tax Exemption


 May be exempt from Minnesota sales tax (depending on the circumstances).

Minnesota allows an exemption from sales tax for certain materials used (consumed) in the mining of tangible personal property that will be sold at retail. The exemption specifically applies to materials used in the production process.

Numerous materials may be purchased exempt from sales tax with a Certificate of Exemption (Form ST3), including but not limited to the following:

  • Bentonite
  • Chemicals (flocculents)
  • Electricity
  • Explosives
  • Fuels (coals, diesel, natural gas)
  • Lubricants

In addition, the exemption also applies to certain items used to make qualifying detachable tools. Additional information, including a list of activities that are not considered to be part of the production process (and therefore do not trigger the exemption), is available on Sales Tax Fact Sheet 147.

Simplify management of sales and use tax exemptions by implementing an automated solution. Learn how it 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.