Multistate Tax Commission/Association of Fund-Raising Distributors & Suppliers   Minnesota

Agency:  MN Department of  Revenue, Sales & Use Tax Division

Contact Person/Department:  Sales and Use Tax Information

Tel. No.:  (651) 296-6181

Fax No.:  (651) 556-3102

Web site:  www.taxes.state.mn.us    

E-mail:  Larry.wilkie@state.mn.us

  1. If your State exempts fundraising sales by certain groups from sales or use taxes, please indicate which of the following are exempt in your State.

    Public Schools (K-12)

    Private Schools (K-12)

    School Groups (e.g., clubs, bands, teams)

    PTAs

    PTOs

    Other parent groups

    (please identify)

    Church Groups

    Youth Sports League

    501 (c)(3) organizations

    501 (c)(6) organizations

    Other (specify:__________________)

    All of these groups may be exempt if they meet the requirements specified in M. S. 297A.70, Subd's. 13 and 14. (copy attached).

    1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?

    Yes

    1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.

  2.  

  3. If your State exempts fundraising sales of certain products from sales and use tax, please indicate which of the following products are exempt.

    Candies and Confections - Not Exempt.  However, candy is exempt when sold by educational groups as defined under M. S. 297A.70, Subd. 13 (a) (4) for fundraising purposes.

    Cookies and Other Baked Goods - Exempt

    Cheese Products - Exempt

    Meat Products - Exempt

    Nuts, popcorn and other snack food - Exempt

    Other edible items (please identify) - See Sales Tax Fact Sheets 102A Food and Food Ingredients, 102B Candy, and 102C Soft Drinks and Other Beverages for details.

    Magazine subscriptions - Exempt

    Paper products (e.g., calendars, cards stationery, books, gift wrap) - Not exempt

    Decorative tins, baskets, other containers - Not exempt

    Decorative novelties (mugs, ornaments) - Not exempt

    Sundry items (please specify item below) - Not exempt

    Clothing and accessories - Most clothing is exempt; accessories are taxable. See Fact Sheet #105, Clothing for details.

    Jewelry- Not exempt

    Plant and seeds - Not exempt

    Other hard good items - Not exempt

    2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?

    Yes

    2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.

    There is no specific exemption for fundraising product sales, other than the exemption in M. S. 297A.70, Subd. 13 (a) (4). for gum, candy and candy products sold for fundraising purposes by a nonprofit organization that provides educational and social activities primarily for young people 18 years of age and under.

  4.  

  5. If some or all fundraising groups or products qualify for exemption from sales and use tax in your State, please indicate any exceptions to or limitations on such exemptions. (Check all that apply and specify the limitation.)

    Limits on number of fundraiser events per year - Yes

    Limits on duration of fundraisers - Yes

    Limits on dollar amount of each item - No limit

    Limits on total amounts raised per year - Yes

    Other_________________________________

    See M. S. 297A.70, Subd's. 13 and 14.

  6.  

  7. If some or all fundraising groups qualify for exemption from sales and use tax in your State, please set forth the procedure through which a group may establish its qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

    See M. S. 297A.70, Subd's. 13 and 14.

  8.  

  9. If some or all fundraising products qualify for exemption from sales and use tax in your State, please set forth the procedure for establishing a product's qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

    See M. S. 297A.70, Subd. 13 (a) (4).  Candy is exempt when sold for fundraising purposes by nonprofit organizations that provide educational and social activities for young people primarily under age 18.

  10.  

  11. In instances where a fundraising product or group is not exempt from sales or use tax, please indicate who bears the responsibility for collecting and remitting the tax.

    The fundraising group (e.g., school, PTA, church).

  12.  

  13. In instances where a fundraising product or group is not exempt from sales or use tax, what is the basis for calculating the sales/use tax?

    The price paid by the consumer to fundraising group.

  14.  

  15. Provide any additional information regarding the sales and use tax treatment of fundraising transactions and/or groups in your State. Also set forth any statements, disclosures, disclaimers, etc.,to be provided as part of the clearinghouse regarding your state's practices and procedures. Attach additional sheets if necessary.

Last Updated: September 2005