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Chapter 297A

Section 297A.67

Recent History

297A.67 General exemptions.

Subdivision 1. Scope. The gross receipts from the sale and purchase of, and storage, distribution, use, or consumption of the items contained in this section are specifically exempted from the taxes imposed by this chapter.

Subd. 2. Food products. Food products including, but not limited to, cereal and cereal products, butter, cheese, milk and milk products, oleomargarine, meat and meat products, fish and fish products, eggs and egg products, vegetables and vegetable products, fruit and fruit products, spices and salt, sugar and sugar products, coffee and coffee substitutes, tea, and cocoa and cocoa products are exempt.

Subd. 3. Food stamps. Tangible personal property purchased with food stamps, coupons, or vouchers issued by the federal government under the Food Stamp Program is exempt. This exemption also applies to food purchased under the Special Supplemental Food Program for Women, Infants, and Children. The exemption provided by this subdivision is effective and applies only to the extent required by federal law.

Subd. 4. Exempt meals at residential facilities. Meals or drinks served to patients, inmates, or persons residing at hospitals, sanitariums, nursing homes, senior citizen homes, and correctional, detention, and detoxification facilities are exempt.

Subd. 5. Exempt meals at schools. Meals and lunches served at public and private schools, universities, or colleges are exempt.

Subd. 6. Other exempt meals. Meals or drinks purchased for and served exclusively to individuals who are 60 years of age or over and their spouses or to handicapped persons and their spouses by governmental agencies, nonprofit organizations, or churches, or pursuant to any program funded in whole or in part through United States Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or served, are exempt.

Subd. 7. Medicines; medical devices. (a) Prescribed drugs and medicine, and insulin, intended for internal or external use, in the cure, mitigation, treatment, or prevention of illness or disease in human beings are exempt. "Prescribed drugs and medicine" includes over-the-counter drugs or medicine prescribed by a licensed physician.

(b) Nonprescription medicines consisting principally (determined by the weight of all ingredients) of analgesics that are approved by the United States Food and Drug Administration for internal use by human beings are exempt. For purposes of this subdivision, "principally" means greater than 50 percent analgesics by weight.

(c) Prescription glasses, hospital beds, fever thermometers, reusable finger-pricking devices for the extraction of blood, blood glucose monitoring machines, and other diagnostic agents used in diagnosing, monitoring, or treating diabetes, and therapeutic and prosthetic devices are exempt. "Therapeutic devices" means devices that are attached or applied to the human body to cure, heal, or alleviate injury, illness, or disease, either directly or by administering a curative agent. "Prosthetic devices" means devices that replace injured, diseased, or missing parts of the human body, either temporarily or permanently.

Subd. 8. Clothing. Clothing and wearing apparel, including sewing materials to be directly incorporated into wearing apparel, are exempt. For purposes of this subdivision, clothing and wearing apparel do not include the following:

(1) articles designed primarily for use while engaging in a specific sport or recreational activity that are not also worn for general use;

(2) articles designed primarily to provide safety or protection against injury while the user is engaged in industrial or general job activities;

(3) all articles commonly or commercially known as jewelry including, but not limited to, watches;

(4) nonprescription optical glasses of any sort;

(5) articles made entirely of fur on the hide or pelt, or partially of such fur if the value of the fur is more than three times the value of the next most valuable component material;

(6) perfume, lotions, creams, dyes, or other substances that are applied to the skin or the hair; and

(7) luggage, bags, purses, wallets, or cases of any sort.

Subd. 9. Baby products. (a) Products such as lotion, creams, ointments, oil, powder, or shampoo, and other articles designed for application to the hair or skin of babies are exempt.

(b) Baby bottles and nipples, pacifiers, teething rings, thumb sucking preventatives, and infant syringes are exempt.

Subd. 10. Caskets; vaults. Caskets and burial vaults for human burial are exempt.

Subd. 11. Automobiles; disabled veterans. Automobiles or other conveyances are exempt if the purchaser is assisted by a grant from the United States in accordance with United States Code, title 38, section 3902.

Subd. 12. Parts and accessories used to make a motor vehicle handicapped accessible. Parts, accessories, and labor charges that are used solely to modify a motor vehicle to make it handicapped accessible are exempt.

Subd. 13. Textbooks. Textbooks that are prescribed for use in conjunction with a course of study in a school, college, university, and private career school to students who are regularly enrolled at such institutions are exempt. For purposes of this subdivision (1) a "school" is as defined in section 120A.22, subdivision 4; and (2) "private career school" means a school licensed under section 141.25.

Subd. 14. Personal computers prescribed for use by school. Personal computers and related computer software sold by a school, college, university, or private career school to students who are enrolled at the institutions are exempt if:

(1) the use of the personal computer, or of a substantially similar model of computer, and the related computer software is prescribed by the institution in conjunction with a course of study; and

(2) each student of the institution, or of a unit of the institution in which the student is enrolled, is required by the institution to have such a personal computer and related software as a condition of enrollment.

For the purposes of this subdivision, "school" and "private career school" have the meanings given in subdivision 13.

Subd. 15. Residential heating fuels. Residential heating fuels are exempt as follows:

(1) all fuel oil, coal, wood, steam, hot water, propane gas, and L.P. gas sold to residential customers for residential use;

(2) for the billing months of November, December, January, February, March, and April, natural gas sold for residential use to customers who are metered and billed as residential users and who use natural gas for their primary source of residential heat; and

(3) for the billing months of November, December, January, February, March, and April, electricity sold for residential use to customers who are metered and billed as residential users and who use electricity for their primary source of residential heat.

Subd. 16. Residential water services. Water services for residential use are exempt regardless of how the services are billed.

Subd. 17. Feminine hygiene products. Sanitary napkins, tampons, or similar items used for feminine hygiene are exempt.

Subd. 18. Used motor oils. Used motor oils are exempt.

Subd. 19. Cross-country ski passes. Cross-country ski passes issued under sections 85.40 to 85.43 are exempt.

Subd. 20. Manufactured homes. Manufactured homes, as defined in section 327.31, subdivision 6, to be used by the purchaser for residential purposes are exempt, unless the sale is the first retail sale of the manufactured home in this state.

Subd. 21. De minimis exemption. A purchase subject to use tax under section 297A.63 is exempt if (1) the purchase is made by an individual for personal use, and (2) the total purchases that are subject to the use tax do not exceed $770 in the calendar year. For purposes of this subdivision, "personal use" includes purchases for gifts. If an individual makes purchases subject to use tax of more than $770 in the calendar year, the individual must pay the use tax on the entire amount. This exemption does not apply to purchases made from retailers who are required or registered to collect taxes under this chapter.

Subd. 22. Property brought into Minnesota by nonresident. All articles of tangible personal property brought into Minnesota by a person who was a nonresident of this state immediately prior to bringing such property into this state for the person's use, storage, or consumption are exempt from the use tax imposed by section 297A.63.

Subd. 23. Occasional sales. Isolated and occasional sales in Minnesota not made in the normal course of business, and the storage, use, or consumption of property or services resulting from such sales, are exempt.

Subd. 24. Constitutional prohibitions. The gross receipts from the sale of and the storage, use, or other consumption in Minnesota of tangible personal property, tickets, or admissions, electricity, gas, or local exchange telephone service, that the state of Minnesota is prohibited from taxing under the Constitution or laws of the United States or under the Constitution of Minnesota, are exempt.

Subd. 25. Maintenance of cemetery grounds. Lawn care and related services used in the maintenance of cemetery grounds are exempt. For purposes of this subdivision, "lawn care and related services" means the services listed in section 297A.61, subdivision 16, paragraph (g), clause (6), and "cemetery" means a cemetery for human burial.

HIST: 2000 c 418 art 1 s 11,44 subd 3; 2000 c 490 art 8 s 13

* NOTE: This section, as added by Laws 2000, chapter 418, *article 1, section 11, is effective for sales and purchases *occurring after June 30, 2001. Laws 2000, chapter 418, article *1, section 46.

Official Publication of the State of Minnesota
Revisor of Statutes