Clothing 105
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www.taxes.state.mn.us Clothing 105 Fact Sheet Sales Tax Fact Sheet 105 Clothing is exempt from Minnesota sales and use tax. Clothing means all human wearing apparel suitable for general use. The exemption for clothing does not apply to fur clothing, clothing accessories or equipment, sports or recreational equip- ment, and protective equipment, which are taxable. Examples of nontaxable clothing for general use aprons (household and coveralls, work uniforms, incontinent briefs and snowmobile suits and shop) work clothes, etc. inserts boots athletic supporters dancing costumes insoles for shoes slippers baby receiving blankets diaper inserts jackets and coats sneakers bandanas diapers (cloth and dis- karate uniforms sun visors bath robes posable, baby or adult) lab coats sweat bands and arm beach capes and coats disposable clothing for leotards and tights bands belts general use mittens sweat shirts and sweat suits bibs ear muffs name patches or em- socks and stockings blaze orange jackets and footlets blems sold attached to steel toe shoes and boots pants formal apparel clothing boots garters and garter belts neckties suspenders bowling shirts and shoes girdles overshoes swim suits and caps bridal apparel gloves for general use pantyhose tennis shoes camouflage jackets and (cloth, leather, canvas, rainwear (ponchos, jack- T-shirts and jerseys pants latex, vinyl, etc.) ets, shirts and pants) tuxedos caps and hats (ski, hunt- gym suits and shorts rubber pants undergarments ing, fishing, golf, hats sandals uniforms (athletic and baseball) hosiery scarves nonathletic) costumes hospital scrubs shoes and shoe laces wedding apparel hunting jackets and pants shower caps Examples of taxable clothing accessories or equipment Clothing accessories or equipment means incidental items worn on the person or in conjunction with clothing. Appliqués, patches or cell phone accessories hair bows sunglasses (nonpre- emblems sold sepa- chevrons (badges or in- hairnets scription) rately signias) handbags tiaras backpacks cosmetics handkerchiefs umbrellas bags (overnight, beach, costume masks (sold headbands wallets etc.) separately from cos- hip waders watchbands barrettes tume) jewelry watches belt buckles (sold sepa- crib blankets, sheets, money belts and clips wigs, hair extensions, or rately from belt) mattress pads, rubber perfume hair pieces sheets, etc. billfolds pet clothing doll clothes briefcases purses button covers hair clips Sales and Use Tax Division – Mail Station 6330 – St. Paul, MN 55146-6330 This fact sheet is intended to help you become more familiar with Minnesota tax Phone: 651-296-6181 or 1-800-657-3777 laws and your rights and responsibilities under the laws. Nothing in this fact sheet Minnesota Relay (TTY) 711 supersedes, alters, or otherwise changes any provisions of the tax law, administrative rules, court decisions, or revenue notices. Alternative formats available upon request. Stock No. 2800105, Revised 01/09 Minnesota Revenue, Clothing 1 Sports or recreational equipment Protective equipment Sports or recreational equipment means items designed Protective equipment means items for human wear and for human use and worn in conjunction with an athletic designed as protection of the wearer against injury or or recreational activity that are not suitable for general disease or as protection against damage or injury of use. Sports and recreational equipment is taxable. other persons or property but not suitable for general Examples of taxable sports or recreational equip- use. Protective equipment is taxable. ment: Examples of taxable protective equipment ballet and tap shoes masks or shields, protective, breathing masks hard hats and liners cleated or spiked athletic such as baseball masks, chaps helmets (all types) shoes chest protectors, mouth clean room apparel & paint or dust respirators fishermen’s wading vests guards or shin guards equipment (reusable and reflective or safety vests, and jackets safety shields and visors, disposable) aprons, gloves, suits, etc. fishing boots (hip boots and (detachable) for helmets disposable shoe coverings safety belts waders) if sold separately ear and hearing protectors safety glasses and goggles gloves for use only in a shell belts and vests face masks for medical use (nonprescription) sporting or athletic activ- shoulder pads and padding face shields tool belts ity (baseball, bowling, skates (roller, ice) finger guards welding gloves and masks boxing, hockey, golf, etc.) ski boots gloves designed for protec- goggles (nonprescription) skin diving suits, goggles, tion against injury that hand, elbow, knee guards nose plugs, ear plugs, are not suitable for gen- helmets (all types) fins, equipment, etc. eral use are taxable (e.g., hunting or game pouches sports shoes (cleated or welding, metal boning and carriers spiked) gloves) leather glove guards waders life preservers and vests wet suits and fins Fur clothing Beginning July 1, 2008, clothing made of fur is subject to sales tax. Prior to July 1, 2008, fur clothing was subject to the gross receipts tax. Fur clothing means human wearing apparel that is required to be labeled as a fur product and the fur is the component of main value (that is, the value of fur is more than three times the value of the next most valuable component.) Fur means any animal skin with the hair, fleece, or fur fibers attached, but does not include leather or suede or other animal skins where the fur fiber has been completely removed in the processing of the skins. Sewing materials and equipment Sewing materials are not considered clothing. However, there is a separate exemption for sewing materials that become part of clothing. Sewing materials mean fabric, yarn, thread, zippers, interfacing, buttons, trim, and other items that are usually di- rectly incorporated into the construction of clothing, regardless of whether it is actually used for making clothing. The exemption does not apply to batting, foam, embroidery thread or fabric specifically manufactured for arts and crafts projects, or other materials for craft projects. These items are taxable. Sewing equipment is taxable. Sewing equipment includes knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures and thimbles. Minnesota Revenue, Clothing 2 Alterations, repairing and storing clothing Charges for repairing, altering and storing clothing are taxable. Charges for laundering, cleaning, pressing and dyeing clothing are also taxable. Examples of taxable services Examples of nontaxable services Repairing or patching clothing (replacing zippers, but- Clothing alterations that are included in the purchase tons, resewing seams, etc.) price of an item Altering clothing (shortening or lengthening, fitting, Seamstress’ or tailor’s charges for designing and/or restyling lapels or ties, etc.) sewing new clothing Embroidery or screen printing done on clothing pro- Custom-made shoes vided by the customer Embroidery or screen printing done on clothing before Hat blocking the sale Fur (natural and synthetic) cleaning, repairing and Shoe repair, dyeing, stretching and shining storing Laundry, dry cleaning and pressing services Dyeing clothing References M. S. 297A.61, Subd. 46, Fur clothing Services purchased for resale: Taxable services may be M. S. 297A.67, Subd. 8, Clothing purchased exempt for resale if the buyer gives the seller a M. S. 297A.67, Subd. 9, Baby products fully completed exemption certificate, Form ST3. For M. S. 297A.67, Subd. 27, Sewing materials example, a clothing retailer may contract with a tailor to provide alterations on sales of new clothing. The clothing Other fact sheets that you may need: Items for Business Use Outside Minnesota, #110 retailer buys the alterations exempt for resale. If the Laundry and Cleaning Services, #120 clothing retailer includes the alteration charges in the Local Sales and Use Taxes, #164 sales price of the clothing, no sales tax is due. If the al- Sales to Governments, #142 teration charges are separately stated on the invoice to the Use Tax for Businesses, #146 customer, the alteration charges are taxable. Use Tax for Individuals, #156 . Minnesota Revenue, Clothing 3.