Taxable Sales
Sales of some chiropractic services and products may be taxable.
Note: While sales tax may not apply, gross revenues for chiropractic services and certain items are subject to MinnesotaCare taxes. For more information, see Chiropractors
The following are examples of taxable sales.
Sales of the following items are taxable unless an exemption applies.
- Books, brochures, CDs, DVDs
- Digital products, including audio, audio visual, and books, see Digital Products
- Hand creams or lotions
- Ice packs, hot packs, heat pads (disposable, nonreusable)
- Non-medicated muscle-soothing ointment, liniment, mineral ice, see Drugs
Vitamins, minerals, herbs, herbal capsules or pellets, enzymes, or other dietary supplements, see Dietary Supplements
Give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.
Massages
Massages are taxable unless the massage is for the treatment of illness, injury, or disease.
If you contract with a massage therapist to provide massage services, the party who bills the customer is responsible for collecting and reporting sales tax. If their customer has a written referral for massage therapy, sales tax is not due. A written referral must:
- State the massage is for ongoing treatment of illness, injury, or disease
- Be written by a licensed health care provider or licensed health care facility
A written referral is a form of tax-exempt documentation, and you must keep a copy of all of them.
For more information, see Massages.
Copies of medical records are taxable unless they are electronically transferred. For more information, see Revenue Notice 02-15, Copies of Scanned Documents.
If you sell or lease equipment or other items you used in your business, the sale or lease may be taxable. For more information, see Isolated and Occasional Sales.
When you sell a taxable item, you must charge the state general sales tax and any local sales taxes that apply. Calculate tax based on the taxable sales price of the item (including any delivery charges).
Some cities and counties have local sales and use taxes. If you are located in or make sales into an area with a local tax, you may owe local sales and use tax. For more information, see Local Sales and Use Taxes.
To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use our Sales Tax Rate Map or Sales Tax Rate Calculator to help you determine the sales tax rate.
Note:Â The map and rate calculator do not include special local taxes.
For more information, see:
Nontaxable Sales
The following products and services are nontaxable sales related to the chiropractic industry.
Chiropractic treatments and therapy are not taxable.  However, gross revenues for chiropractic services and certain items are subject to MinnesotaCare taxes. For more information, see Chiropractors.
All drugs for human use, including prescribed drugs and over-the-counter drugs are exempt from sales tax. Vitamins and minerals are not included in the definition of over-the-counter drugs.
To determine if an over-the-counter item is an exempt drug, you must look at the label to see if it includes a Drug Facts panel, or a list of active ingredients. For more information, see Drugs.
Durable medical equipment for home use is not taxable. To qualify, the items must be reusable. Examples include:
- Heat lamps
- Heating pads, hot water bottles
- Ice packs and bags (reusable)
- Special pillows (abduction, cervical, orthotic)
For more information, see Durable Medical Equipment.
Note:Â Sales of durable medical equipment to chiropractors, hospitals, nursing homes, clinics, and doctors are taxable since they are not for home use.
Mobility enhancing equipment is exempt regardless who purchases the equipment. These items provide or increase ability to move from one place to another and are not generally used by people with normal mobility. Examples include:
- Canes and crutches
- Walkers
- Wheelchairs
For more information, see Mobility Enhancing Equipment.
Prosthetic devices are exempt from sales tax. Examples include:
- Abdominal belts and supports
- Arch supports
- Braces (neck, back, wrist, etc.)
- Cervical collars
- Elastic bandages and supports
- Head halters
- Shoe lifts and inserts
For more information, see Prosthetic Devices.
Taxable Purchases and Use Tax
Items you use to operate your chiropractic business are taxable unless an exemption applies. Several services are also taxable.
If you do not pay sales tax on a taxable purchase, then use tax is due.
The following purchases are subject to sales or use tax.
| Taxable Purchases |
Examples |
| General items |
- Books, manuals, and other reference material
- Cleaning supplies
- Computer hardware and software
- Credit card machines and cash registers
- Employee name badges
- Furniture and fixtures
- Invoices, claim forms, price lists
- Office equipment and supplies
- Training and educational videos
|
| Chiropractic equipment |
- Durable medical equipment, including repair and replacement parts
- Exam tables
- Massage chairs
- Patient divider screens
- Spinal column models
- Surgical instruments, including disposable/single use
- Therapy tools: Balls, tubing,
- Ultrasound machines
- X-ray machines, film, and other supplies
|
| Items given away |
- Appointment cards
- Brochures and pamphlets
- Business cards
- Greeting cards
- Promotional items, such as calendars, magnets, pens
- Stickers, toys, coloring books
|
| Utilities |
|
| Taxable services |
- Building cleaning and maintenance
- Detective and security
- Lawn and garden maintenance
- Laundry and dry cleaning
For more information, see Taxable Services.
|
If you buy equipment, supplies, or other taxable items for your business and the seller does not charge Minnesota sales tax, you owe use tax on the cost of the items. If your business is located in an area with a local tax, you may also owe local use tax.
Some common situations where you may owe use tax include:
- You buy taxable items or services online without paying sales tax
- You withdraw an item from inventory to use (instead of selling it), donate, or give away
- You buy taxable items outside of Minnesota
- You buy taxable items in another Minnesota city or county with a lower (or no) local sales tax
For more information, see Use Tax for Businesses and Local Sales and Use Taxes.
Nontaxable Purchases
Items purchased for resale or that are exempt by law are not taxable.
Clothing is not taxable. Examples include:
- Disposable clothing
- Gloves
- Gowns
- Uniforms
For more information, see Clothing.
Medical supplies used directly on patients as part of treatment are not taxable. Give your supplier a completed Form ST3, Certificate of Exemption. Specify Other: Medical supplies for a health-care facility.
Items that have direct contact with the patient but are not used as part of the treatment (used for diagnostic or sanitary purposes) are taxable.
| Nontaxable Supplies |
Taxable Supplies |
| Adhesive and non-adhesive bandages |
Electrodes |
| Antiseptics |
Lancets |
| Cotton applicators |
Rolls of paper to cover exam tables |
| Gauze pads and strips |
Tongue depressors |
| Lotions
Oils |
|
Needles and Syringes
Needles and syringes used to treat patients do qualify for the medical supplies exemption, because they are not durable medical equipment even if they are reusable.
Needles and syringes used in diagnostic procedures do not qualify for the medical supply exemption.
The following items are also nontaxable purchases:
- Over-the-counter drugs administered to patients
- Magazine subscriptions
- Software as a service
Filing Returns and Record-Keeping
When filing your return, you must report all sales tax collected and use tax you owe.
When filing your return, you must report all sales tax collected and use tax you owe.
If you are not registered for sales and use tax, you must contact the Minnesota Department of Revenue and register to collect and report taxes. Call Business Registration at 651-282-5225 or 1-800-657-3605 (toll-free).
For more information, see Sales Tax Return Due Dates.
You must file a Sales and Use Tax return online through our e-Services system. For more information, see Filing Information.
It is important to keep good records to determine the correct amount of state and local tax you owe.
Your records should include:
- Bills, receipts, invoices, cash-register tapes, and any other documents that support the entries in your books
- Exemption certificates
- Shipping documents
- worksheets used to prepare your tax returns
For more information, see the Chiropractors – Sales Tax Fact Sheet & Industry Guide
