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You are responsible for collecting and remitting sales tax on taxable sales made through your website and other sources. When the marketplace is not required to collect Minnesota sales tax on your behalf, you must also collect and remit Minnesota sales tax on those taxable sales.
Charges for maintenance or upgrades to online hosting software are not taxable, even if separately stated. Digital products are products provided to a customer electronically.
Common examples include:Clothing for general use, see Clothing.Food (grocery items), see Food and Food Ingredients.Prescription and over-the-counter drugs for humans, see Drugs.
The rendering of advertising and public relations services is not taxable when related to the development of media advertising. The total gross receipts for advertising services related to the development of media advertising billed by the service provider are not subject to sales tax.
In essence, the advertising income is subject to tax only if the periodical produces an overall profit for the year. If the circulation income of the periodical equals or exceeds the readership costs, the organization is not required to use circulation income and readership costs in calculating UBTI.
Charges for maintenance or upgrades to online hosting software are not taxable, even if separately stated. Digital products are products provided to a customer electronically.
If the web design is delivered electronically, meaning there is no tangible property transfer, no sales tax will be charged. However, if the finished site is transferred to a zip drive, disk or a paper copy of the site design is provided, there is a tangible property transfer, and sales tax must be charged.
Advertising that has functional use is taxable. Example: A brochure is used only for advertising. If the advertising message is taken away, nothing is left but a piece of paper. However, a calendar with an advertising message on it is used for both advertising and also date information.