Understanding Sales Tax on Pets and Pet Supplies in Minnesota

Understanding the taxability of Pets and Pet Supplies is important for businesses and individuals involved in the pet industry in Minnesota. Let’s delve into the details and guidelines provided by the Minnesota Department of Revenue.

Sales of Pets:

In general, sales of pets are taxable in Minnesota. This includes any adoption fees charged for pets. The definition of pets encompasses animals that are tamed and kept for affection and pleasure rather than for utility or profit. Here are some examples of pets:

Birds
Cats
Dogs
Exotic animals
Fish
Gerbils
Insects
Reptiles
Other animals

It’s important to note that all horses are exempt from tax in Minnesota. However, sales of service animals, including guide dogs or any animal trained to help an individual with a disability, are taxable. Show animals, trained animals (even if the training services are separately stated), working animals (sold as working stock, such as security or herd dogs), and pet breeding stock (including the sale of offspring) are also subject to sales tax.

Sales of Pet Supplies:

Pet supplies and care items are generally taxable in Minnesota. If you sell items such as bedding, bowls, cages, collars, combs, leashes, pet food, pet medicine (including prescription medications), shampoo, toys, or any other pet-related supplies, sales tax should be charged and collected on these transactions.

It’s important to note that pet clothing, including sweaters and booties, is also taxable in Minnesota.

Understanding the sales tax implications of pets and pet supplies is essential for businesses and individuals in the pet industry in Minnesota. In this blog post, we have provided information about the taxability of pets, including adoption fees, as well as various pet supplies and care items.

For more detailed and specific information, we recommend referring to the official resources and guidelines provided by the Minnesota Department of Revenue Sales of Pets or Pet Supplies | Minnesota Department of Revenue (state.mn.us)

Get in touch with Prudent Accountants and stay informed and compliant with tax regulations to ensure accurate reporting and a smooth business operation.