Sales Tax Articles
Sales Tax State Activity Update - April 2007
Minnesota Manufacturing Pallets Slide into Exemption Skid Row
The Minnesota Department of Revenue's position is that returnable pallets and skids are subject to sales tax.
Minnesota statutes indicate packaging materials, including returnable containers used in packaging food and beverage products are exempt when used directly in industrial production.
Container means articles in which tangible personal property is placed for shipment and delivery, but does not include items used primarily to facilitate loading, unloading, handling, transportation or storage of products such as bakery delivery carts, bread trays, milk carts and crates.
Pallets and skids are defined to mean portable platforms for handling, storing or moving materials and packaging. The Department's position is that pallets and skids do not fall within the meaning of an exempt container according to the law and are therefore taxable.
The full text may be accessed on the Minnesota Department of Revenue website. (PDF)
(Minnesota Department of Revenue Notice 07-03, March 19, 2007)
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