Sales

Common Carrier Services

Common carriers are hired to transport goods. Fees charged to provide these services are not taxable. Common carriers often transport goods by:

• air
• ship
• tractor-trailer
• train
• truck

Note: Delivery of aggregate materials may be taxable. For more information, see the Delivery (hauling) of aggregate materials section.

Passenger Transportation Services

Passenger transportation services transport people to places. Fees charged to transport passengers are not taxable. Examples of passenger transportation include:

• aircraft
• bus
• ferry
• light rail
• limousine
• taxicab and ride share services
• train

When parking and transportation services are sold together for one fee, the entire sale is taxable even though transportation by itself is a nontaxable service. (When sold together, the transportation service is taxable because it is necessary to complete the sale of the parking service.)

For the transportation service to be nontaxable, the vendor must give customers the option of not taking the transportation service and separately state the charges on the invoice.

Stating that the charge is for 50 percent parking and 50 percent transportation on the invoice or a sign is not sufficient to relieve the seller of its responsibility to charge and remit tax on the total price.

For more information, see Revenue Notice 00-04, Sales Price – Mixed Transactions.

Delivery (hauling) of aggregate materials and concrete block is taxable, except as noted below or if an exemption applies. Delivery charges for aggregate are taxable regardless of:

• Who delivers it (the seller or a third-party hauler).
• Whether it will be used to improve real property.
• How it is deposited at the delivery site.

Nontaxable Delivery of Aggregate

Delivery (hauling) of aggregate is not taxable when the charges are:

• To move customer-owned aggregate or concrete block from one location to another.
• For delivery of aggregate by third-party haulers, if the aggregate will be used in road construction as defined in Minnesota Statutes 297A.61, subd. 3.
• To deliver aggregate material and concrete block outside of Minnesota.

For more information, see Delivery Charges.

If you sell taxable items at retail in Minnesota – such as packaging materials or prepared food – you must collect state and local sales tax. The table below lists some examples of taxable sales.