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Minnesota changes taxability of jukebox and vending machine sales

  • Nov 29, 2017 | Gail Cole

 Jukebox music is tax-free in Minnesota when purchased by jukebox providers for use in a jukebox.

The taxability of jukebox music and certain food sold through vending machines changed in Minnesota as of July 1, 2017.

Jukebox sales

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:

  • Candy
  • Dietary supplements
  • Honey roasted nuts
  • Hot coffee or cocoa
  • Prepared food
  • Soda
  • 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.

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.