Sales Tax Exemption

Sales Tax Fact Sheet #157

SALES TAX RULING – The Minnesota Sales Tax Law was amended effective April 1, 1978 and revised December 2002, to exempt from tax the sale of residential heating fuels.

Electricity sold for residential use to customers who are metered and billed as residential users and who use electric for their PRIMARY source of residential heat is exempt from the sales tax for the billing months of November, December, January, February, March and April.

For those residential and farm accounts whose home is heated by electric, who are eligible and billed through one meter, the total electric consumption for the months listed above are exempt from sales tax. For those residences where the heat is metered separately, only that portion is exempt.

To be eligible for residential electric sales tax exemption, you must have OVER 50% OF THE HEATING REQUIREMENT FURNISHED BY ELECTRIC UNITS. PORTABLE HEATERS ARE NOT CONSIDERED PRIMARY HEATING SOURCES.

Do you qualify?

If you have questions regarding your eligibility for sales tax exemptions, please contact the Minnesota Department of Revenue at 651-296-6181 or toll free at 1-800-657-3777 or email salesuse.tax@state.mn.us 

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If you qualify, please fill out and submit the sales tax exemption at the link below. We must have this affidavit before we can deduct the tax.

By submitting this form, you certify that you use electric as your PRIMARY source of residential heating.

Sales Tax Exemption Application