Minnesota Statutes 297A.63 – Use Taxes Imposed; Rates
Subdivision 1.Use of tangible personal property or taxable services.
(a) For the privilege of using, storing, distributing, or consuming in Minnesota tangible personal property or taxable services purchased for use, storage, distribution, or consumption in this state, a use tax is imposed on a person in Minnesota. The tax is imposed on the purchase price of retail sales of the tangible personal property or taxable services at the rate of tax imposed under section 297A.62. A person that purchases property from a Minnesota retailer and returns the tangible personal property to a point within Minnesota, except in the course of interstate commerce, after it was delivered outside of Minnesota, is subject to the use tax.
(b) No tax is imposed under paragraph (a) if the tax imposed by section 297A.62 was paid on the sales price of the tangible personal property or taxable services.
(c) No tax is imposed under paragraph (a) if the purchase meets the requirements for exemption under section 297A.67, subdivision 21.
(d) When a transaction otherwise meets the definition of a bundled transaction, but is not a bundled transaction under section 297A.61, subdivision 38, paragraph (d), and the seller‘s purchase price of the taxable product or taxable tangible personal property is equal to or greater than $100, then use tax is imposed on the purchase price of the taxable product or taxable personal property. For purposes of this paragraph, “purchase price” means the measure subject to use tax on purchases made by the seller.
Subd. 2.Use of tangible personal property made from materials.
(a) A use tax is imposed on a person who manufactures, fabricates, or assembles tangible personal property from materials, either within or outside this state and who uses, stores, distributes, or consumes the tangible personal property in Minnesota. The tax is imposed on the purchase price of retail sales of the materials contained in the tangible personal property at the rate of tax imposed under section 297A.62.
Terms Used In Minnesota Statutes 297A.63
- Bundled transaction: means the retail sale of two or more products when the products are otherwise distinct and identifiable, and the products are sold for one nonitemized price. See Minnesota Statutes 297A.61
- Person: includes any individual or group and any combination of individuals, groups, or individuals and groups acting as a unit. See Minnesota Statutes 297A.61
- Personal property: All property that is not real property.
- product: includes tangible personal property, services, intangibles, and digital goods, including specified digital products or other digital products, but does not include real property or services to real property. See Minnesota Statutes 297A.61
- purchase: include , but are not limited to, each of the transactions listed in this subdivision. See Minnesota Statutes 297A.61
- Purchase price: means the measure subject to the use tax and has the same meaning as "sales price. See Minnesota Statutes 297A.61
- Sales price: means the measure subject to sales tax, and means the total amount of consideration, including cash, credit, personal property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:
(1) the seller's cost of the property sold;
(2) the cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expenses of the seller;
(3) charges by the seller for any services necessary to complete the sale, other than delivery and installation charges;
(4) delivery charges, except the percentage of the delivery charge allocated to delivery of tax exempt property, when the delivery charge is allocated by using either (i) a percentage based on the total sales price of the taxable property compared to the total sales price of all property in the shipment, or (ii) a percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment; and
(5) installation charges. See Minnesota Statutes 297A.61
- seller: means any person making sales, leases, or rentals of personal property or services. See Minnesota Statutes 297A.61
- state: means any state of the United States, the District of Columbia, and any territory of the United States, including American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U. See Minnesota Statutes 297A.61
- Storage: includes keeping or retaining tangible personal property in Minnesota for any purpose except sale in the regular course of business. See Minnesota Statutes 297A.61
- Tangible personal property: includes , but is not limited to, electricity, water, gas, steam, and prewritten computer software. See Minnesota Statutes 297A.61
- Tax: means any fee, charge, exaction, or assessment imposed by a governmental entity on an individual, person, entity, transaction, good, service, or other thing. See Minnesota Statutes 645.44
- Use: includes the exercise of a right or power incident to the ownership of any interest in tangible personal property, or services, purchased from a retailer, other than the sale of that property in the regular course of business. See Minnesota Statutes 297A.61
(b) No tax is imposed under paragraph (a) if the tax imposed by section 297A.62 was paid on the sales price of materials contained in the tangible personal property.
Subd. 3.Transitional period for services.
When there is a change in the rate of tax imposed by this section, the following transitional period shall apply to the taxable services purchased for use, storage, distribution, or consumption in this state when the service purchased covers a billing period starting before and ending after the statutory effective date of the rate change:
(1) for a rate increase, the new rate shall apply to the first billing period starting on or after the effective date; and
(2) for a rate decrease, the new rate shall apply to bills rendered on or after the effective date.