Minnesota – Certain Services Now Taxable

SALT Report 2550 – With the recent passage of the Minnesota omnibus tax bill, HF677, certain services are now taxable. Retailers who have tax obligations in Minnesota will now have to collect sales tax on the following services:

  • Laundry and dry cleaning services including cleaning, pressing, repairing, altering, and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, drapery, upholstery, and industrial cleaning.
  • Motor vehicle e washing, waxing, and cleaning services, including services provided by coin operated facilities operated by the customer, and rustproofing, undercoating, and towing of motor vehicles,
  • Building and residential cleaning, maintenance, and disinfecting services
  • Pest control and exterminating services,
  • Detective, security, burglar, fire alarm and armored car services,
  • Pet grooming services,
  • Lawn care, fertilizing, mowing, spraying and sprigging services; garden planting and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant care; tree, bush, shrub, and stump removal,
  • Massages, except when provided by a licensed health care facility or professional or upon written referral from a health care professional,
  • Lodging and board and care services for animals in kennels,
  • Telecommunications services, ancillary services associated with telecommunication services, cable and pay television services,
  • Services to repair and maintain commercial and industrial machinery and equipment,
  • Services to repair and maintain electronic and precision equipment, when the service can be deducted as a business expense, and
  • Specified digital audiovisual works, digital books, movies, digital code and other digital products

The provisions apply to sales and purchases made after June 30, 2013.

For Further Information

Minnesota State Legislature – House Finance Bill 677, Laws 2013