On July 1, 2015, Minnesota will change to an upfront sales tax exemption on eligible capital equipment purchases. Beginning July 1, 2015, the exemption can be claimed by giving the supplier a completed exemption certificate (Form ST3) and using the exemption reason code “Capital equipment.” Capital equipment means machinery and equipment purchased or leased, and used in Minnesota by the purchaser or lessee primarily for manufacturing, fabricating, mining, or refining tangible personal property to be sold ultimately at retail if the machinery and equipment are essential to the integrated production process of manufacturing, fabricating, mining, or refining. Capital equipment also includes machinery and equipment used primarily to electronically transmit results retrieved by a customer of an on-line computerized data retrieval system. Prior to July 1, 2015, purchasers must pay sales tax on eligible capital equipment upfront and then request a refund. (Minnesota Statutes, Chapter 297A.68; Sales Tax Fact Sheet No. 103, Minnesota Department of Revenue, June 2015)