Minnesota will change to an upfront sales tax exemption on eligible capital equipment purchases. For purchases before that date, you must continue to pay sales tax and then request a refund as described in this fact sheet. For purchases beginning July 1, 2015, you will receive an exemption at the time of purchase. If you pay sales tax after that date, you can still request a refund.
If you buy or lease qualifying capital equipment for use in Minnesota, you are eligible for an exemption or a refund of state and local sales or use tax you paid. This fact sheet explains how Minnesota sales and use tax applies to capital equipment.
Capital equipment means machinery and equipment purchased or leased, and used in Minnesota by the purchaser or lessee primarily for manufacturing, fabricating, mining, or refining tangible personal property to be sold ultimately at retail if the machinery and equipment are essential to the integrated production process of manufacturing, fabricating, mining, or refining. Capital
equipment also includes machinery and equipment used primarily
to electronically transmit results retrieved by a customer of an online computerized data retrieval system. To claim the exemption for eligible purchases beginning July 1, 2015, give the supplier a completed Form ST3, Certificate of Exemption. Use exemption reason code for “Capital equipment.”
More information: Minnesota Sales Tax Update, June-2015
To submit a copy of your updated 2015 tax exempt form please click here.