I took over as treasurer of our local conservation/sportsmans’ club last year and am preparing to pay our annual sales taxes for 2014.
I think I have a pretty good handle on what is subject to sales tax and what is not. My question is if I have to charge sales tax to our customers and in turn pay sales tax to the sate on goods in which sales tax was paid when they were purchased. Take shotgun shells for example. The club purchases shells annually from one of the big sporting goods stores and pays sales tax. We in turn sell these shells to our customers throughout the year. Do I need to give the state 6.875% of these sales?
Here is a clauses I found on Minnesota’s Sales Tax website that made me ask the question:
Athletic Facilities, Recreational Areas, Resorts and Campgrounds, Sales Tax Fact Sheet 123
Resale exemption
Items that are purchased for resale or to be held exclusively for lease or rental to the customer may be purchased ex-empt from tax. Give your supplier a Certificate of Exemption, Form ST3, and use Exemption Code G, Resale, to claim exemption. Examples include: pop, candy, insect repellent, and other items sold over the counter.
