Minnesota's Exemption for Capital Equipment Changes to an Upfront Exemption in July

Jun 5th, 2015

Beginning July 1, 2015, taxpayers will no longer have to pay tax on qualifying capital equipment and then apply for a refund. Minnesota exempts sales of qualifying capital equipment. "Capital equipment" means machinery and equipment used primarily in manufacturing, fabricating, mining, or refining tangible personal property for sale. Currently, taxpayers must pay tax on their purchases of such equipment and then apply for a refund from the state. Starting in July, taxpayers may claim the exemption up front instead. To claim the exemption up front, taxpayers should use Form ST3, Certificate of Exemption.

For purchases before July 1, 2015, the taxpayer must still pay tax and then apply for a refund using Form ST-11.