Sales Tax Credit
use electricity as their primary residential space heat (50% or
more) are exempt from sales tax for the November through April
If you have a
separate meter used solely or primarily to measure heating, then
only the electricity going through that meter is exempt from sales
tax. For example, only the usage on an off-peak meter is exempt.
bill is exempt for the six-month period if electricity is your
primary heat source but you have only one meter for both general
usage and electric heat.
Some of our
customers use electricity as their primary heat but only a small
portion of their electric heat registers on a separate meter. They
also qualify for the total sales tax exemption during the heating
You will not
be billed for Minnesota sales tax on your November statement if
you meet the requirements and you currently have an exemption
certificate on file at your Cooperative's office.
If you are
unsure of your sales tax status, please call us at (218) 935-2517
or (800) 244-5709.
receiving a tax credit for electric heating when electric heat is
not their primary source of heat are in violation of the sales tax
law. Please notify your Cooperative if you change from electric
heat to some other heating source.
(Click Here): Residential Heating Sales Tax Exemption Form
Statute 297A.25, Subd. 9, provides a sales tax exemption for
utilities consumed in agricultural or industrial production. The
exemption does not apply to service businesses or restaurants.
such as electricity, used by industries to produce items that are
ultimately sold at retail are exempt from sales tax if the
utilities are used directly in the production process. The
exemption does not include utilities used for space heat and
lighting of the production area, or of office, administration, or
other non-production areas.
To claim the
exemption, you must provide the utility a completed Form ST-3,
(Click Here): Ag Certificate of Exemption.
production and non-production equipment are not metered
separately, you will need to do an energy study to determine the
percentage of exempt utility usage. Sales Tax Fact Sheet 129,
Utilities Used in Production briefly outlines how each type of
energy study is done. It is designed to help you choose an
Forms and Fact
sheets are available from the MN Dept. of Revenue at (651)
296-6181. You can also download these forms, and any other tax
forms and Minnesota Tax information by visiting the MN Dept. of
Revenue's Web site at