Minnesota Sales and Use Tax
New: The Minnesota State general sales and use tax rate will increase to 6.875% beginning July 1, 2009.
Review a detailed summary(.xls) of the tax treatment required for common items sold/rented on campuses that are subject to Minnesota sales tax.
Minnesota Certificate of Exemption, Form ST3:
Meals:
Generally, meals are subject to sales tax. However, exemptions exist for Board Contracts and Incidental Meals at Educational Programs.
Please review the following rule changes (8130.4700 Subp.8 & 9) made in 2005 by the Minnesota Department of Revenue to board contracts and incidental meals served at educational programs.
Prepaid Meal Plans: Minnesota law provides that meals served to students are exempt from sales tax if provided under a "board contract." The board contract must exist between the institution and the student. Institutions interested in reviewing/pursuing a prepaid meal plan for their students should contact Steve Gednalske at 651-632-5016.
Tickets:
Sales Tax Exemption: Effective for sales after June 30, 2006 and before July 1, 2011: tickets or admissions to events or activities sponsored by the Minnesota High School League are exempt.
Minnesota State Colleges and Universities successfully supported legislation which now exempts system artistic event ticket sales from Minnesota sales tax. Artistic events include theatre, choir, and art exhibits. This exemption applies to events held at a facility owned by the educational institution holding the event. This law became effective for tickets and admissions to events held on or after August 1, 2005.
Phone Bills & Taxes
Please see the memo, "Phone Bills & Taxes"(.wrd) sent to College/University Business Offices, for a discussion regarding the college & university exemption from taxes on communication services.
