Taxes on Airfare
The University of Minnesota is not exempt from taxes related to airfare charges. The airfare taxes are imposed pursuant to federal laws rather than under Minnesota sales tax laws. However, to help ease the burden of determining when to pay tax charged to the University versus short-paying an invoice when tax is charged erroneously, airfare is listed on the ST3, Certificate of Exemption, as one of the items excluded from the University's exemption.
Although the taxes on airfare are not Minnesota state sales taxes, it makes sense to list them where the other exclusions to our exempt status appear. Minnesota does not impose a sales tax on transportation services, so no one is charged Minnesota sales tax by providers of air transportation services. The tax is imposed at the federal level, and the University is not exempt from those federal taxes. Any tax charged on airfare should be paid by the University.
Please contact the Tax Management Office with any further questions about airfare.