Minnesota Sales Tax on Optional Maintenance Contracts Minnesota: Sales Tax Handbook


Are Optional Maintenance Contracts subject to sales tax?

While Minnesota's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of optional maintenance contracts in Minnesota, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in Minnesota.

General Optional Maintenance Contracts
In the state of Minnesota, the charge must be separately stated for exemption to be applicable. The lump-sum optional maintenance contracts are considered to be taxable if certain requirements are satisfied.

Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts
In the state of Minnesota, parts may be considered to be exempt if contract is seen as being taxable.

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