Minnesota changes taxability of jukebox and vending machine sales
- Sales Tax News
- Nov 29, 2017 | Gail Cole
The taxability of jukebox music and certain food sold through vending machines changed in Minnesota as of July 1, 2017.
The purchase of music in any form (e.g., compact disc, digital audio work, or record) by operators that make jukeboxes available as amusement devices is now exempt if the music is used exclusively for the jukebox.
Prior to July 1, purchases of music by jukebox operators were taxable.
Vending machine sales
It used to be that all food sold through a vending machine or honor box was subject to Minnesota sales tax, even if it was exempt when sold elsewhere. Due to the enactment of the omnibus tax bill, HF1, however, only taxable food items are taxable when sold via vending machines.
According to Minnesota Department of Revenue Fact Sheet 158, taxable food includes:
- Dietary supplements
- Honey roasted nuts
- Hot coffee or cocoa
- Prepared food
- Sports drinks
Food that’s exempt when sold through honor boxes, vending machines, and other venues includes bottled water, cookies, licorice, milk, and muffins.
The law specifies that it applies to sales from honor boxes and vending machines located at schools and residential facilities such as correctional facilities, hospitals, and senior citizen homes, as well as those connected to certain government programs and nonprofit organizations.
Changes in product taxability laws complicate sales and use tax compliance in all states. Tax automation software can simplify it. Learn more.