The Minnesota Department of Revenue has updated Sales Tax Fact Sheet 113 discussing which motor vehicle towing, washing and rustproofing services are taxable, and which are exempt.
In addition, the fact sheet addresses paint sealer applications services, free car washes with a tank of gas or free with a coupon, taxability of charges for coin-operated car washes, separate detachable units, sales to nonprofit organizations, equipment sales, resales of goods and services, local sales and use taxes, reporting use tax on purchases, and how to report the sales and use tax.
Purchases of certain materials used or consumed in providing taxable washing, waxing, cleaning, rustproofing, undercoating and towing services are exempt from tax. The materials must be used directly in providing the taxable service to qualify for the exemption. Examples of exempt services can be found in the tax sheet.
This exemption does not apply to equipment, implements, tools, accessories, appliances, furniture, and fixtures. It also does not apply to utilities used for space heating or lighting, or to other taxable services. Purchases of materials used for general business or administrative purposes are taxable. Pay sales tax to your supplier when you buy these items. If your supplier does not charge sales tax, you must report state and local use tax when you electronically file your sales and use tax return. Examples of taxable services can be found in the tax sheet.