Skip to main content

Minnesota Sales Tax Construction Labor

By November 10, 2022Sales Tax

Minnesota Sales Tax Construction Labor

Minnesota Department of Revenue has updated its Contractors and Other Property Installers Industry Guide. The guide clarifies that leased items are not real property because they are not intended to be permanent; but, a transaction is not a lease when the security agreement or deferred payment plan contracts require the transfer of title upon completion of the required payments. Further, construction labor is not taxable and it includes labor that permanently incorporates tangible personal property into real property or construction of a structure that is intended to be permanent. The guide adds new tax guidelines for contractor-retailers or businesses that contract to improve real property and also make retail sales of building materials, supplies, equipment, and other tangible items. And the guide gives specific examples of when use tax may be due for taxable purchases when no Minnesota sales tax is charged.

Minnesota Sales Tax Construction Labor

Ansari Law Firm

Author Ansari Law Firm

More posts by Ansari Law Firm

Leave a Reply