The Minnesota Tax Department has released Revenue Notice 22-04, which clarifies the taxability of services. The Tax Department has determined that services are taxable if those services are necessary to complete the sale of a taxable good or service. The taxable services do exclude delivery and installation charges, but all other services are subject to tax, even if the retailer does not allow purchasers to opt out of the services or if the retailer offers a credit for the purchase of services. This will apply to all purchases of taxable goods, regardless of the time lapse between the sale of the taxable good and the services being provided.
This Notice also replaces and revokes Revenue Notice 06-06, which created a similar standard which only applied to interior design services. The exception to this is the one-year lookback period established for interior design which will continue until March 31,2023.
(Minnesota Department of Revenue Notice #22-04, Publication date 12/19/2022)