field_block:node:guide:field_last_updated

Last Updated

April 08, 2025

field_block:node:guide:title

Arts and Crafts

field_block:node:guide:body

Sales of arts and crafts, except for most clothing, are subject to sales tax. This includes sales at:

Art fairs

Craft shows

Flea markets and similar events

Nonprofit events such as church bazaars

Private homes

Taxable Sales

Examples of taxable arts and crafts include but are not limited to:

Barrettes

Belt buckles (sold separately)

Billfolds

Caricatures

Dolls and doll clothing

Jewelry

Paintings

Pet clothing and supplies

Photo mementos

Photographs

Pottery

Purses

Sculptures

Wood carvings

Charging Sales Tax

When charging sales tax, you may show it separately from the sales price or you can include sales tax in the selling price.

If you include sales tax in the sales price:

The item must be marked “tax included” or a sign must be posted indicating that tax is included.

You must subtract the sales tax from the total receipts before filing your sales and use tax return. See Subtracting Sales Tax from Receipts.

Registering Your Business

You must register and collect sales tax in Minnesota if you have a taxable presence or nexus in Minnesota, even if you are an out-of-state retailer or marketplace provider. See Who Needs to Register? and Registering Your Business.

Nontaxable Sales

Clothing

Most clothing sales are not taxable. For examples, see Clothing.

Exemption Certificates

You do not have to collect sales tax if the purchaser gives you a completed Form ST3, Certificate of Exemption. You must keep the exemption certificate to show why you didn’t collect sales tax.

Exempt Purchases

When you make arts and crafts to sell, it is considered industrial production. You can buy the materials and other components that become part of your product exempt from sales tax. See Industrial Production.

To buy items without paying sales tax, you must give the seller a completed Form ST3, Certificate of Exemption.

Examples of exempt purchases:

Component parts and materials that become part of the product, such as paint and glue.

Items used once in producing the product, such as disposable polishing cloths or sandpaper.

Non-returnable packaging materials to package products.

Utilities used to run production equipment, such as the electricity used to run a saw. See Utilities Used in Production.
- Utilities used for space heating or lighting are taxable.

Lubricants for production equipment, such as oil for a sewing machine.

Cleaning solvents used during the production process.
- Solvents used to clean your work area, or to clean equipment are taxable.

Machinery, Equipment, and Tools

Machinery, equipment, and tools that are used primarily to make a product to be sold at retail, qualify for the capital equipment exemption. Primarily means that the machinery, equipment, and tools must be used 50% or more of its operating time in producing a product to be sold at retail. See Capital Equipment.

Capital equipment examples:

Glue gun

Paint brush

Scissors

Sewing machine

Wood lathe

Legal References and Resources