Most purchases made by the University are exempt from sales tax. However, taxable property and taxable services sold by the University are subject to sales tax (unless the purchaser is exempt from sales tax). This means that University departments must charge sales tax when making sales of taxable items.

Many people have the misconception that because the University is often exempt from paying sales tax, they do not have to be concerned about sales tax. However, since we must charge sales tax on sales, like any other business, we need to be aware of what items are taxable and the appropriate tax rate that applies to the sales.

Local Tax Rates in MN - MN Department of Revenue Fact Sheet

Transit Improvement 0.25% Sales and Use Tax - Minnesota Department of RevenueNotice

Sales Tax Filing Information from the University Tax Management Office

Information for hosting Selling Events, i.e. Farmer's Market, Craft Fair, etc.

Minnesota laws impose a sales tax rate based on the destination of the sale. If a buyer picks up an item at the seller’s location, the rate at the seller’s location applies. If the goods are shipped to another location in Minnesota, the rate at the “shipped to” address applies. If the items are shipped out of Minnesota, Minnesota sales tax does not apply.

The Minnesota Department of Revenue provides information on local tax rates in Fact Sheet 164 (link above), entitled Local Sales and Use Taxes. Contact the Office of Tax Management if you need assistance in determining the appropriate tax rate to charge.

©2007 University Tax Management Office

University of Minnesota, Minneapolis, MN. All rights reserved. this page was last updated on November 17, 2008 3:54 PM