Returnable Pallets Taxable in Minnesota

The Minnesota Department of Revenue issued a Revenue Notice concerning the taxability of returnable skids and pallets used for the storage and transport of food and beverage products. The Department ruled that skids and pallets are used primarily for storage and transport and not, necessarily, in the industrial production process. As they are not used in the production process and don’t qualify as packaging, they are subject to tax at the time of purchase. (Minnesota Revenue Notice No. 07-03, March 19, 2007)

Posted on April 1, 2008