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ST3 Certificate of Exemption Purchaser: Complete this certificate and give it to the seller. Seller: If this certificate is not fully completed, you must charge . Keep this certificate as part of your records. This is a blanket certificate, unless one of the boxes below is checked, and remains in force as long as the purchaser continues making purchases, or until otherwise cancelled by the purchaser.

Check if this certificate is for a single purchase and enter the related invoice/purchase order # . If you are a contractor and have a purchasing agent agreement with an exempt organization, check the box to make multiple purchases for a specific . Enter the exempt entity name and specific project: Exempt entity name Project description

Name of purchaser

Business address City State Zip code

Purchaser’s tax ID number State of issue

If no tax ID number, FEIN Driver’s license number/State issued ID number enter one of the following: state of issue number Type or print Type Name of seller from whom you are purchasing, leasing or renting

Seller’s address City State Zip code

Type of business.

1 0 Accommodation and food services 1 1 Transportation and warehousing 02 Agricultural, , , 12 Utilities 03 Construction 31 Wholesale trade 04 Finance and insurance 41 Business services 05 Information, publishing and communications 5 1 Professional services 06 Manufacturing 61 Education and health-care services

Type of business Type 07 Mining 17 Nonprofit organization 08 Real estate 18 Government 09 Rental and leasing 9 1 Not a business (explain) 0 1 Retail trade 20 Other (explain)

Reason for exemption.

A Federal government (department) J Agricultural production B Specific government exemption (from list on back) K Industrial production/manufacturing L Direct pay authorization C Tribal government (name) M Multiple points of use (services, digital goods, or computer D Foreign diplomat # software delivered electronically) E Charitable organization # N Direct mail F Educational organization # O Other (enter number from back page) P Percentage exemption Reason for exemption for Reason G Religious organization # H Resale Advertising (enter percentage) % I Capital Equipment Utilities (enter percentage) % Electricity (enter percentage) % I declare that the information on this certificate is correct and complete to the best of my knowledge and belief. (PENALTY: If you try to evade paying sales tax by using an exemption certificate for items or services that will be used for purposes other than those being claimed, you be fined $100 under Minnesota law for each transaction for which the certificate is used.) Signature of authorized purchaser Print name here Title Date Sign here

Rev. 10/15 Forms and fact sheets are available on our website at www.revenue.state.mn.us Exemption descriptions

See the Form ST3 instructions and exemption I. Capital equipment 15. Instrumentalities of each and all the states descriptions for more information about the Beginning July 1, 2015. Machinery and 16. Job opportunity building zones (JOBZ) following exemptions. equipment purchased or leased primarily 17. equipment for manufacturing, fabricating, mining, Purchasers are responsible for knowing if they 18. Materials used for business in a state or refining tangible personal property to qualify to claim exemption from tax and will where no sales tax applies be sold ultimately at retail if the machin- be held liable for any , interest and 19. Materials used to provide taxable services possible penalties due if the items purchased ery and equipment are essential to the integrated production process. 20. Medical supplies for a health-care facility are not eligible for exemption. J. Agricultural production 21. Motor carrier direct pay (MCDP) autho- A. Federal government Materials and supplies used or con- rization Fill in department. sumed in agricultural production of 22. Nonprofit clubs B. Specific government exemption items intended to be sold ultimately at 23. Nursing homes and boarding care • Ambulance services retail. Does not cover furniture, fixtures, homes machinery, tools (except qualifying • Biosolids processing equipment 24. Packing materials used to ship household detachable tools and special tooling) or goods outside Minnesota • Bullet-resistant body armor accessories used to produce a product. 25. Poultry feed • Chore/homemaking services K. Industrial production 26. Prizes used for games at fairs or other • Correctional facility meals or drinks Materials and supplies used or consumed events lasting fewer than six days • Emergency rescue vehicle repair and in industrial production of items intend- 27. Purchasing agent agreement with exempt replacement parts ed to be sold ultimately at retail. Does not organization • Emergency vehicle accessory items cover furniture, fixtures, machinery, tools 28. Repair or replacement parts used in an- (except qualifying detachable tools and • Firefighter equipment other state/country as part of a mainte- special tooling) or accessories used to • Hospitals nance contract produce a product. • Libraries 29. Resource recovery facility authorization • L. Direct pay 30. Senior citizen group (exempt status au- • Nursing homes Direct pay authorization issued by the thorization required) Department of Revenue. Cannot be used • Petroleum products used by govern- 31. Ship replacement parts and lubricants for meals, lodging and most services. ment 32. Ski items • Regionwide public safety radio com- M. Multiple points of use 33. Solar energy systems munication system Beginning July 1, 2013. Services, digital 34. production items • Solid waste disposal facility goods, or electronically delivered com- 35. Telecommunications, cable television and • State or local government agency from puter software concurrently available for direct satellite equipment This exemp- another state use in more than one taxing jurisdiction tion was not in effect from July 1, 2013 • Local governments at the time of purchase. through March 31, 2014. • Transit program vehicles N. Direct mail services 36. Textbooks • Water used directly in providing fire O. Other exemptions 37. Tribal government construction contract protection 1. Aggregate delivered by a third party 38. TV commercials C. Tribal government hauler to be used in road construction 39. Veteran organizations Fill in the name of the Tribe. 2. Airflight equipment 40. Waste-management containers and com- pactors D. Foreign diplomat 3. Ambulances 41. Wind energy conversion systems and Fill in the number issued to the foreign 4. Aquaculture production equipment materials used to construct, install, repair diplomat. 5. Automatic fire-safety sprinkler systems or replace them. E. Charitable organization 6. Coin-operated entertainment and amusement devices 42. Preexisting construction contracts and Organizations that operate exclusively bids. for charitable purposes. 7. Construction exemption for special projects under M.S. 297A.71 43. Lump-sum construction contracts — F. Educational organization temporary exemption for new local tax on 8. Exempt publications Schools, school districts, scouts, youth building materials 9. Farm machinery groups, etc. P. Percentage exemptions 10. Handicapped accessible (building • Advertising materials for use outside G. Religious organization materials) Churches and other religious organiza- Minnesota or local taxing area. 11. Handicapped accessible (vehicle costs) tions. • Utilities used in agricultural or indus- 12. Horse materials trial production. H. Resale 13. Hospitals and outpatient surgical • Electricity used in the operation of Items or services purchased for resale. centers Liquor retailers cannot sell alco- qualified data centers. holic beverages exempt for resale. 14. Instructional materials for post-second- M.S.340A.505 ary school students Certificate of Exemption Form ST3 instructions and exemption descriptions

Forms and fact sheets are available on our • Firefighter equipment December 2008 may choose to continue website at www.revenue.state.mn.us. • Hospitals using that number or they may use their Minnesota tax ID number. Purchasers • Libraries • Local Governments G. Religious organizations. Churches Complete this certificate and give it to the and other religious organizations operated seller. Do not send it to the Department of • Metropolitan Council exclusively for religious purposes can use Revenue. • Nursing homes Form ST3 without exempt status authoriza- You must include your Minnesota tax iden- • Petroleum products used by government tion or may apply for exempt status autho- tification number if you have one. • Regionwide public safety radio commu- rization from the Department of Revenue. Warning to purchaser: Purchasers are nication system Effective December 2008, organizations that responsible for knowing if they qualify to qualify for exempt status receive an autho- • Solid waste disposal facility claim exemption from tax and will be held rization letter from the department rather liable for any use tax, interest and possible • State or local government agency from than an exempt status number. Organiza- penalties due if the items purchased are not another state tions that received an exempt status number eligible for exemption. • Transit program vehicles prior to December 2008 may choose to continue using that number or they may use • Water used directly in providing fire their Minnesota tax ID number. Sellers protection Keep this certificate as part of your records. H. Resale. Items or services must be pur- Accepting a fully completed exemption cer- C. Tribal government. All sales to Indian chased for resale in the normal course of tificate relieves you from collecting the tax. tribal governments are exempt. business. If this certificate is not fully completed, you D. Foreign diplomat. Sales tax exemption I. Capital Equipment. Machinery and must charge sales tax. You may be required cards are issued to some foreign diplomats equipment purchased or leased primarily to provide this exemption certificate (or the and consular officials stationed in this coun- for manufacturing, fabricating, mining, or data elements required on the form) to the try. Fill in the number issued to the foreign refining tangible personal property to be state to verify this exemption. diplomat. sold ultimately at retail if the machinery and Exemption descriptions E. Charitable organizations. Must be equipment are essential to the integrated operated exclusively for charitable purposes. production process. Use Form ST3, Certificate of Exemption, to You must apply for and receive exempt claim the following exemptions. Fact sheets J. Agricultural production. Materials and status authorization from the Department are available for some of the items as noted. supplies used or consumed in agricultural of Revenue. (Some nonprofit organizations Contact our office for details about other production of items intended to be sold ul- do not qualify for sales tax exemption.) Ef- exemptions not listed here. timately at retail. Does not cover furniture, fective December 2008, organizations that fixtures, machinery, tools (except qualifying A. Federal government. The seller must qualify for exempt status receive an autho- detachable tools and special tooling) or ac- obtain a purchase order, payment voucher, rization letter from the department rather cessories used to produce a product. work order, a fully completed Form ST3 or than an exempt status number. Organiza- Fact Sheet 100, Agricultural Production. similar documentation to show the pur- tions that received an exempt status number chase was from the federal government. prior to December 2008 may choose to K. Industrial production. Materials and B. Specific government exemptions. Fill continue using that number or they may use supplies used or consumed in industrial in the title from the list below. For more their Minnesota tax ID number. production of items intended to be sold ul- information, see Fact Sheet 142, Sales to timately at retail. Does not cover furniture, F. Educational organizations. Schools Governments, and/or Fact Sheet 135, Fire fixtures, machinery, tools (except qualifying and school districts operated exclusively for Fighting, Police and Emergency Equipment. detachable tools and special tooling) or ac- educational purposes must use Form ST3 Also Fact Sheet 139, Libraries, and Fact cessories used to produce a product. on qualifying purchases. Nonprofit profes- Sheet 176- Local Governments- Cities, Coun- Fact Sheet 145, Industrial Production. sional and trade schools, scouts, youth ties, and Townships. groups, and youth athletic and recreational L. Direct pay. Allows the buyer to pay sales • Ambulance services programs, such as Little League, etc., oper- tax on certain items directly to the state instead of to the seller. Applicants must • Biosolids processing equipment ated exclusively for educational purposes must apply for exempt status authorization be registered to collect sales tax in order • Bullet-resistant body armor from the Department of Revenue and use to qualify and must apply for and receive • Chore/homemaking services Form ST3 on qualifying purchases. Effective direct pay authorization from the Depart- ment of Revenue. • Correctional facility meals or drinks December 2008, organizations that qualify • Emergency rescue vehicle repair and for exempt status receive an authorization replacement parts letter from the department rather than an exempt status number. Organizations that • Emergency vehicle accessory items received an exempt status number prior to Continued Rev. 6/14 1 Certificate of Exemption Form ST3 instructions and exemption descriptions (continued)

M. Multiple points of use. Taxable services, 7. Construction exemption for special 15. Instrumentalities of each and all digital goods, or electronically delivered projects under M.S. 297A.71. Cer- the states are exempt from sales tax computer software that is concurrently avail- tain purchases for the construction of during their annual meeting on the able for use in more than one taxing jurisdic- a specific project or facility are exempt following items: prepared food, soft tion at the time of purchase. Purchaser is under M.S. 297A.71, such as waste drinks, candy, and alcoholic beverages. responsible for apportioning and remitting recovery facilities. This exemption does Effective July 1, 2014 - December 31, the tax due to each taxing jurisdiction. not apply to projects for which you 2014. must pay sales or use tax on qualifying N. Direct mail. Allows the buyer to pay sales 16. Job opportunity building zones purchases and then apply for a refund. tax on direct mail directly to the state instead (JOBZ). Applies to all goods and tax- of to the seller. Direct mail is printed material 8. Exempt publications. Materials and able services purchased by a qualified that meets the three following criteria: supplies used or consumed in the business and primarily used in the • it is delivered or distributed by U.S. Mail or production of newspapers and publica- zone. Also includes purchases by a other delivery service; tions issued at average intervals of three qualified business or a contractor of months or less. Includes publications construction materials and supplies to • it is sent to a mass audience or to addresses issued on CD-ROM, audio tape, etc. construct improvements to real proper- on a mailing list provided by the purchaser ty if the property is used by a qualified or at the direction of the purchaser; and 9. Farm machinery. Qualifying farm business within the zone. • the cost of the items is not billed directly to machinery, and repair or replacement 17. Logging equipment. recipients. parts (except tires) used to maintain Qualifying and repair it. Fact Sheet 106, Farm logging equipment, and repair or O. Other exemptions Machinery. replacement parts (except tires) used to maintain and repair it. Fact Sheet 108, 1. Aggregate delivered by a third party 10. Handicapped accessible (residen- Logging Equipment. hauler to be used in road construc- tial building materials). Building tion. Beginning July 1, 2008, charges for materials and equipment purchased by 18. Materials used for business outside delivery of aggregate materials by third nonprofit organizations if the materi- Minnesota in a state where no sales party haulers are exempt if the aggregate als are used in an existing residential tax applies to such items; or for use as will be used in road construction. structure to make it handicapped part of a maintenance contract. This accessible, and the homeowner would exemption applies only if the items 2. Airflight equipment. The aircraft must have qualified for a refund of tax paid would not be taxable if purchased in be operated under Federal Aviation on the materials under M.S. 297A.71, the other state (e.g., a state that does Regulations, parts 91 and 135. subd. 11 or subd. 22. Nonprofit organi- not have sales tax). 3. Ambulance services — privately zations include those entities organized 19. Materials used to provide taxable owned (leases of vehicles used as an and operated exclusively for charitable, services. Materials must be used or ambulance or equipped and intended religious, educational or civic purposes; consumed directly in providing services for emergency response). Must be used and veteran groups exempt from fed- taxable under M.S. 297A.61, subd. 3. by an ambulance service licensed by the eral taxation under IRC 501(c)(19). EMS Regulatory Board under section 20. Medical supplies for a health-care 11. Handicapped accessible (vehicle facility. Purchases by a licensed health 144E.10. Fact Sheet 135, Fire Fighting, costs). Conversion costs to make ve- Police, and Emergency Equipment. care facility, outpatient surgical center hicles handicapped accessible. Covers or licensed health-care professional 4. Aquaculture production equipment. parts, accessories and labor. of medical supplies used directly on a Qualifying aquaculture production 12. Horse materials. Covers consum- patient or resident to provide medical equipment, and repair or replacement able items such as feed, medications, treatment. The exemption does not parts used to maintain and repair it. bandages and antiseptics purchased apply to equipment, lab or radiologi- Fact Sheet 130, Aquaculture Production for horses. Does not cover machinery, cal supplies, etc. Fact Sheet 172, Health Equipment. tools, appliances, furniture and fixtures. Care Facilities. 5. Automatic fire-safety sprinkler sys- Fact Sheet 144, Veterinary Practice. 21. Motor carrier direct pay (MCDP). tems. Fire-safety sprinkler systems and 13. Hospitals and outpatient surgical Allows motor carriers to pay tax all component parts (including waterline centers. Sales to a hospital and outpa- directly to the state when they lease expansions and additions) are exempt tient surgical center are exempt if the mobile transportation equipment or when installed in an existing residential items purchased are used in providing buy certain parts and accessories. Ap- dwelling, hotel, motel or lodging house hospital or outpatient surgical services. plicants must be registered for sales tax that contains four or more dwelling (M.S. 297A.70, subd. 7) in order to apply. You must apply for units. and receive MCDP authorization from 14. Instructional materials required for the Department of Revenue. Fact Sheet 6. Coin-operated entertainment and study courses by college or private amusement devices 107, Interstate Motor Carriers. are exempt when career school students (M.S. 297A.67, purchased by retailers who (1) sell ad- subd. 13a) to places of amusement, or (2) Continued make available amusement devices. 2 Certificate of Exemption Form ST3 instructions and exemption descriptions (continued)

39. Veteran organizations. Limited 22. Nonprofit snowmobile clubs. Certain slopes or ski . Includes machin- exemption applies to purchases by vet- machinery and equipment is exempt ery, equipment, water additives and eran organizations and their auxiliaries when used primarily to groom state (or electricity used in the production and if they are organized in Minnesota and grant-in-aid) trails. Prior certification maintenance of machine-made snow. exempt from federal under from DNR must be received. 33. Solar energy system means a set of IRC Section 501(c)(19); and the items 23. Nursing homes and bonding care devices whose primary purpose is to are for charitable, civic, educational or homes. Beginning July 1, 2013, sales collect solar energy and convert and nonprofit use (e.g. flags, equipment for to nursing homes and boarding care store it for useful purposes including youth sports teams, materials to make homes are exempt. Nursing homes must heating and cooling buildings or other poppies given for donations). be licensed by the state. Boarding care energy using processes, or to produce 40. Waste-management containers and homes must be certified as a nursing generated power by means of any com- compactors purchased by a waste- facility. bination of collecting, transferring, or management service provider to use in converting solar-generated energy. 24. Packing materials. Packing materials providing waste-management services used to pack and ship household goods 34. Taconite production items. Mill that are subject to solid-waste manage- to destinations outside of Minnesota. liners, grinding rods and grinding ment tax. balls used in taconite production if 25. Poultry feed. The poultry must be for 41. Wind energy systems. Wind energy purchased by a company taxed under human consumption. conversion systems and materials used the in-lieu provisions of M.S. 298 if to construct, install, repair or replace 26. Prizes. Items given to players as prizes they are substantially consumed in the them. in games of skill or chance at events production of taconite. Fact Sheet 147, such as community festivals, fairs and Taconite and Iron Mining. 42. Preexisting construction contracts carnivals lasting fewer than six days. and bids. A contractor is allowed an 35. Telecommunications, cable televi- exemption on certain services or items 27. Purchasing agent. Allows a business sion and direct satellite equipment that become taxable effective July 1. who has been appointed as a purchas- used directly by a service provider The exemption is for the change in tax ing agent by an exempt organization to primarily to provide those services for on those items or services if purchased make purchases exempt from sales tax. sale at retail. Fact Sheet 119, Telecom- during the transition period. All documentation pertaining to the munications, Cable Television, Direct purchasing agent agreement is kept by Satellite and Related Services. This For construction contracts, (1) the con- the purchasing agent to verify exemp- exemption was not in effect from July must have documentation of tion. 1, 2013 through March 31, 2014. a bona fide written lump-sum or fixed price construction contract in force 28. Repair or replacement parts used 36. Textbooks required for study to stu- before July 1; (2) the contract must not in another state or country as part of dents who are regularly enrolled. provide for allocation of future taxes; a maintenance contract. This does not 37. Tribal government construction and (3) for each contract, the contrac- apply to equipment or tools used in a contract. Materials purchased on or tor must give the seller documentation repair business. off the reservation by American Indian of the contract on which an exemption 29. Resource recovery facilities. Applies or non-American Indian contractors is to be claimed. Deliveries must be to equipment used for processing solid and subcontractors for use in construc- made before January 1. or hazardous waste (after collection and tion projects on the reservation when For construction bids, (1) the building before disposal) at a resource recovery the tribe or a tribally owned entity is a materials or services must be used pur- facility. You must apply for and receive party to the contract, and the contract suant to an obligation of a bid or bids, approval from the Department of Rev- is being undertaken for the purpose of the bid or bids must be submitted and enue. the tribe’s welfare. It does not extend to the purchase or lease of equipment or accepted prior to July 1; (2) the bid or 30. Senior citizen groups. Groups must tools for use on the project. bids must not be able to be withdrawn, limit membership to senior citizens age modified or changed without forfeit- 55 or older, or under 55 but physi- 38. TV commercials. Covers TV commer- ing a bond; and (3) for each qualifying cally disabled. They must apply for and cials and tangible personal property bid, the contractor must give the seller receive exempt status authorization from primarily used or consumed in pre- documentation of a bid on which an the Department of Revenue. production, production or post-pro- exemption is to be claimed. Deliveries duction of a TV commercial. Includes 31. Ship repair or replacement parts and must be made before January 1. rental equipment for preproduction lubricants. Repair or replacement parts and production activities only. (Equip- and lubricants for ships and vessels en- ment purchased for use in any of these gaged principally in interstate or foreign activities is taxable.) Fact Sheet 163, TV commerce. Commercials. 32. Ski areas. Items used or consumed primarily and directly for tramways at ski areas, or in snowmaking and snow- grooming operations at ski hills, ski 3 Certificate of Exemption Form ST3 instructions and exemption descriptions (continued)

43. Construction contracts. When a new • Utilities: Exemption applies to percent • Electricity: Exemption applies to local tax is enacted, a contractor is al- of utilities used in agricultural or percent of electricity used to operate lowed exemption from the new local tax industrial production. General space enterprise information technology on building materials during the transi- heating and lighting is not included in equipment, or used in office and meet- tion period. Contractors must have the exemption. Purchaser must enter ing spaces, and other support facilities documentation of a lump-sum contract exempt percentage on Form ST3. Fact in support of enterprise information in force before the new tax begins and Sheets 100, Agricultural Production; and technology equipment. Purchaser must deliveries must be made within the 129, Utilities Used in Production. enter exempt percentage on Form ST3. specific transition period. Revenue Notice 12-11: Sales Tax – Ex- emptions – Qualified Data Centers. P. Percentage exemptions • Advertising materials: Percentage Forms and information exemptions may be claimed for adver- Website: www.revenue.state.mn.us. tising materials for use outside of Min- Email: [email protected] nesota or local taxing area. Purchaser Phone: 651-296‑6181 or 1-800-657-3777 must enter exempt percentage on Form ST3. Fact Sheet 133, Advertising - Cre- ative Promotional Services.