Prudent Accountants

When it comes to tips, service charges, and other charges in Minnesota, it’s essential to understand the tax implications. The Minnesota Department of Revenue provides clear guidelines to ensure compliance. Let’s break it down. Voluntary Tips: Tips that customers voluntarily leave or add to a credit card receipt are not taxable. So, if your customers generously tip your staff, you don’t need to include them in taxable sales. Tips Added by Seller: However, if you, as the seller, add tips or service charges to the bill, they are taxable, even if the amount is given to employees. Different taxes apply based on the items involved. Here’s a breakdown: Food Only: 6.875% state general rate tax Any applicable local and special local taxes Liquor Only: 6.875% state general rate tax 2.5% liquor gross receipts tax Any applicable local or special local taxes Food and Liquor Combined: 6.875% state general rate tax 2.5% liquor gross receipts tax Any applicable local or special local taxes Note: If y...

Understanding the tax obligations associated with these services is crucial for businesses in the pet care industry. Let’s delve into the details and provide you with valuable insights from the Minnesota Department of Revenue. Boarding and Lodging Services: In Minnesota, charges for pet boarding, lodging, and care services are generally subject to sales tax. This means that businesses providing these services must charge and collect sales tax from their customers. Here are some examples of taxable boarding and lodging services: Administering drugs or medicines to pets other than by a licensed veterinarian Caring for an animal at a care provider’s home Caring for an animal at the animal owner’s home Impound services for animal control (including lodging, boarding, and care services) Picking up pet droppings Placement fees for an animal needing boarding or care services Transportation charges Walking, exercising, or providing entertainment for animals Grooming Services: Pet grooming serv...

Understanding which sales are exempt from sales tax is essential 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. Agricultural Animals: Sales of agricultural animals are generally not taxable. This includes the sale of various animals used in agricultural practices. For more comprehensive information, we recommend referring to the Agricultural and Farming Industry Guide provided by the Minnesota Department of Revenue. Horses: All horses, including racehorses, working stock, and pets, are exempt from sales tax in Minnesota. This exemption also applies to various services related to horses, such as horse boarding, grooming, horse shoeing, and trimming horse hooves. These services are considered nontaxable. Training Services: Training services provided to an owner’s animal are not taxable. It is important to separately state the training charge from any taxable fees for bo...

Let’s explore the intricacies of sales tax when it comes to leases, rentals, and equipment sales. Understanding the tax obligations associated with these transactions is essential for businesses to ensure compliance with state and local tax regulations. Let’s delve into the details and provide you with valuable insights Leases or Rentals: When you lease or rent equipment or other items, such as a pet carrier, it is important to note that these transactions are generally taxable. This means that you must charge sales tax on the lease or rental amount when providing these services to your customers. Equipment Sales: If you sell or lease equipment or other items that you have used in your business, sales tax may apply. It is important to be aware of the potential tax implications when selling or leasing equipment. For more detailed information and specific scenarios, we recommend referring to the guidelines provided by your local tax authority or the Minnesota Department of Revenue. You m...