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Furthermore, services are not taxable unless specifically included by law. Examples of taxable services include lodging, laundry and cleaning services, pet grooming, lawn care, digital downloads, and telecommunications. A remote seller is a retailer that does not have a physical presence in the state.

Repair labor restores an item so it can be used for its origi- nal purpose. Repair labor is not taxable as long as the labor charges are separately stated from parts or materials on the customer bill or invoice.

You must pay sales and use tax on the cost of all materials, supplies, and equipment used to complete a construction contract. These items are taxable at the time of purchase. If the supplier does not charge Minnesota Sales Tax, you owe use tax on the purchase price. See Taxable Purchases and Use Tax.

A contract for deed is an alternative financing agreement in which the seller finances the sale of the property rather than a lender. No Mortgage Registration Tax (MRT) is due on the recording of a contract for deed because a contract for deed is exempted under the MRT law.

Labor to permanently attach an item to real property is construction labor, which is not taxable because it is an im- provement to real property. Usually, the items stay with the building when it is sold to another party. Labor to repair items attached to real property is construction labor.

If you are primarily a contractor Pay sales tax on all purchases. If you later sell any of these items at retail, deduct the cost of the materials you already paid tax on when you file your Sales and Use Tax return. Follow these guidelines when filing your Minnesota Sales and Use Tax Return and invoicing your customer.