Minnesota – Taxability of Delivery Charges for Aggregate Materials

SALT Report 1708 – The Minnesota Department of Revenue updated its sales and use tax guidance regarding delivery charges for aggregate materials.  The notice now reflects that the “delivery of aggregate used for road construction is not a taxable service” as provided in Minnesota Statutes, section 297A.61 (3)(g)(5). However, tax applies to delivery charges for aggregate materials and concrete block made by a seller or a third-party delivery service.

Aggregate material is defined as “nonmetallic natural mineral aggregate including, but not limited to, sand, silica sand, gravel, crushed rock, limestone granite, and borrow, but only if the borrow is transported on a public road, street, or highway.”  Stone, boulders, uncrushed rock, rip-rap, crushed granite and crushed limestone would also be considered to be aggregate material. Coarse tailings from taconite plants that are being marketed as aggregate would also be considered to be aggregate materials.

Aggregate material does not include dimension stone and dimension granite, dirt, clay, soil, agricultural lime or limestone used in taconite production of flux pellets.

For Further Information:

Minnesota Department of Revenue – Revenue Notice 02-12