Exemptions

the 'upfront' Minnesota capital equipment exemption

Companies that make capital equipment purchases in Minnesota will no longer have to go through the pain of paying sales tax, and then filing refund claims. Minnesota legislation (enacted in 2014) changing the capital equipment exemption to an 'upfront' exemption goes live July 1, 2015.

According to Minnesota Sales Tax Fact Sheet No. 103, taxpayers must give a supplier a completed Form ST3, Certificate of Exemption and use the code, "Capital Equipment" to claim the exemption.

This is welcome news for taxpayers in Minnesota. The process of filing refund claims was not only costly (causing taxpayers to pay the tax first), but created a burden on taxpayers to jump through 'hoops' to identify eligible purchases, gather the paperwork and file the claims.