Minnesota – Exempt Sales and Purchases by Townships

SALT Report 1603 – The Minnesota Department of Revenue has released a series a FAQ regarding the sales and use tax exemption for towns.  The exemption allows towns to purchase taxable tangible personal property and services exempt from tax, with the following exceptions:

  • Goods and services that are produced by the township that are generally provided by a private business, and
  • Property that would be taxable if purchased by a private business engaged in the same activity as the township

The FAQ’s address the effective date of the exemption; the exemption as it applies to statutory or home rule charter cities, counties or special taxing districts; the refund procedure if sales tax is paid but not owed; and the exemption as it applies to the purchase of motor vehicles.

For Further Information:

Mnnesota Department of Revenue – Township Exemption FAQs