--- title: "Minnesota Sales Tax: Commercial Printing vs. Manufacturing vs. Publishing" canonical: "https://taxstation.app/insights/minnesota-commercial-printing-manufacturing-publishers-sales-tax/" published: "2026-06-15T13:00:00.000Z" category: "Sales & Use Tax" author: "Brown & Associates" tags: - "minnesota-sales-tax" - "commercial-printing" - "manufacturing" - "publishers" - "industrial-production" summary: "Minnesota printers, manufacturers, and publishers face different sales tax rules for equipment, production inputs, publications, advertising, and delivery." authorities: - authority: "Minn. Stat. § 297A.61" jurisdiction: "MN" type: "statute" url: "https://www.revisor.mn.gov/statutes/cite/297a.61" - authority: "Minn. Stat. § 297A.68" jurisdiction: "MN" type: "statute" url: "https://www.revisor.mn.gov/statutes/cite/297a.68" - authority: "Minnesota Department of Revenue, Printing Industry" jurisdiction: "MN" type: "administrative-guidance" url: "https://www.revenue.state.mn.us/sites/default/files/2023-01/FS109.pdf" - authority: "Minnesota Department of Revenue, Capital Equipment Exemption" jurisdiction: "MN" type: "administrative-guidance" url: "https://www.revenue.state.mn.us/capital-equipment-exemption" - authority: "Minnesota Department of Revenue, Direct Mail and Fulfillment Services" jurisdiction: "MN" type: "administrative-guidance" url: "https://www.revenue.state.mn.us/guide/direct-mail-and-fulfillment-services" - authority: "Minnesota Revenue Notice 07-07" jurisdiction: "MN" type: "revenue-notice" url: "https://www.revenue.state.mn.us/revenue-notice/07-07-sales-and-use-tax-direct-mail-tax-rates-and-delivery-or-distribution-exemption" --- # Minnesota Sales Tax: Commercial Printing vs. Manufacturing vs. Publishing _Minnesota printers, manufacturers, and publishers face different sales tax rules for equipment, production inputs, publications, advertising, and delivery._ **Canonical URL:** https://taxstation.app/insights/minnesota-commercial-printing-manufacturing-publishers-sales-tax/ **Published:** Jun 15, 2026 **Author:** Brown & Associates **Category:** Sales & Use Tax ## Executive summary - Commercial printing is generally a taxable sale in Minnesota, including production labor, prepress work, and delivery, unless the customer provides a valid exemption. - Printing is industrial production, so qualifying production materials and capital equipment may be purchased exempt. - A qualifying publication has a separate exemption for the publication and certain property used or consumed in producing it. - Advertising, direct mail, and mixed-use equipment require separate analysis because the result can turn on the seller's role, destination, invoice presentation, and actual use. ## Key authorities - **Minn. Stat. § 297A.61** (MN) — Includes printing or processing tangible personal property for consideration within the definition of a sale and purchase. - **Minn. Stat. § 297A.68** (MN) — Addresses industrial production materials, capital equipment, publications, out-of-state advertising materials, and separately stated direct-mail delivery charges. - **Minnesota Department of Revenue, Printing Industry** (MN) — Explains taxable printing sales, qualifying publications, advertising, direct mail, production purchases, capital equipment, and taxable administrative purchases. - **Minnesota Department of Revenue, Capital Equipment Exemption** (MN) — Explains the up-front exemption for eligible capital equipment and the requirement to provide Form ST3. - **Minnesota Department of Revenue, Direct Mail and Fulfillment Services** (MN) — Explains that printing charges are taxable, qualifying production materials may be exempt, and bundled transactions require separate review. - **Minnesota Revenue Notice 07-07** (MN) — Addresses delivery information, direct-mail exemption certificates, purchaser use-tax responsibility, and separately stated delivery or distribution charges. ## Article A commercial printer, a general manufacturer, and a publisher may all use production equipment, consume materials, and deliver tangible products. Minnesota sales tax law does not treat them as interchangeable, however. The key is to separate three questions: - Is the business selling a taxable printed product or an exempt publication? - Which materials and equipment are used in qualifying production? - Is the business acting as a printer, a publisher, or a provider of nontaxable advertising services for the transaction? Those distinctions affect tax charged to customers, exemptions claimed from vendors, and the documentation needed on audit. ## Commercial Printing Is Generally a Taxable Sale Minnesota includes printing tangible personal property for consideration within the definition of a sale, even when the customer furnishes materials directly or indirectly. The Minnesota Department of Revenue's Printing Industry guidance states that charges for printed products and related production services are generally taxable. The taxable sales price can include raw materials, production labor, prepress or outside services, overhead, profit, and delivery. Separately stating design, setup, binding, cutting, or similar production steps does not necessarily remove them from the taxable sales price. A printer may make the sale without collecting tax when the customer provides a properly completed Form ST3, Certificate of Exemption, and the claimed exemption fits the transaction. Common examples may involve resale, a qualifying publication, exempt advertising materials shipped for use solely outside Minnesota, or direct-mail procedures. The customer's industry label is not enough. The printer should retain the certificate and connect it to the job, customer, product, and delivery facts supporting the exemption. ## Printers Also Participate in Industrial Production Although the printer's sale is generally taxable, printing is expressly included within Minnesota's definition of industrial production. This places a qualifying commercial printing operation within the same general production framework used by manufacturers. Minnesota exempts materials stored, used, or consumed in industrial production of tangible personal property intended to be sold ultimately at retail. Depending on use and useful life, exempt items can include: - Paper, ink, and other ingredients or components of the finished printed product; - Developing chemicals, production lubricants, and certain other consumables; - Nonreturnable packaging and qualifying product labels; - Fuel, electricity, gas, or steam consumed in the production process; - Separate detachable units that directly affect the product and have an ordinary useful life of less than 12 months. The Department's printing guidance identifies printing plates as an area where the useful-life test can be decisive. A plate that is a separate detachable unit and directly affects the product may qualify if its ordinary useful life is less than 12 months. Administrative supplies and equipment are different. Office furniture, general lighting, recordkeeping systems, inventory tracking equipment, and property used outside production are generally taxable. A computer or printer does not qualify merely because it is located in a printing business. ## Capital Equipment Uses the Manufacturing Test Minnesota separately exempts qualifying capital equipment. The exemption applies to machinery and equipment used in Minnesota primarily to manufacture, fabricate, mine, or refine tangible personal property ultimately sold at retail, when the equipment is essential to the integrated production process. "Primarily" generally means 50% or more of the equipment's operating time is devoted to the qualifying activity. For a commercial printer, presses, qualifying prepress systems, production controls, quality-control equipment, and certain repair or replacement parts may qualify when the statutory use test is met. Equipment used primarily for administration, customer communication, inventory control, or other nonproduction functions generally does not. Mixed-use equipment should be supported with operating-time studies, workflow descriptions, system logs, job records, or another reasonable use analysis. Minnesota allows the capital equipment exemption at purchase when the purchaser provides Form ST3 and identifies the exemption. ## Publishers Have a Separate Publication Exemption Publishers may qualify under a rule that is not available to every manufacturer or printer. Minnesota exempts a publication regularly issued at average intervals not exceeding three months. The exemption also covers tangible personal property used or consumed in producing the qualifying publication. The statute includes qualified newspapers and their supplements or enclosures but excludes magazines and periodicals sold over the counter. Department guidance describes qualifying publications as being regularly issued to the general public at least four times per year and notes that confidential or internal-only materials do not qualify. The facts should be tested against the statute and current guidance rather than relying only on labels such as "newsletter," "catalog," or "magazine." The publication-materials exemption does not include machinery, equipment, tools, furniture, fixtures, or utilities used for ordinary space heating or lighting. A publisher may still evaluate machinery under the separate capital equipment rules, but the publication exemption itself should not be used as a blanket equipment exemption. For example, a newspaper publisher that manufactures newspapers for retail sale may need to claim the publication exemption for qualifying production materials and the capital equipment exemption separately for qualifying machinery and equipment. Advertising contained in a qualifying publication is also treated as a nontaxable service. This differs from a commercial printer that is hired merely to produce an advertiser's brochures or other printed materials. ## When a Publisher Hires a Commercial Printer When a qualifying publisher contracts with an outside printer, the parties should document the transaction as a publication job rather than assume the printer can infer the exemption. The publisher should provide a completed Form ST3 claiming the publication exemption and retain records showing: - The publication's title, audience, and distribution method; - Its issue dates and publication frequency; - Whether it is available to the general public; - Whether any copies are sold over the counter; - The contract and invoices from the commercial printer; - The treatment of supplements, inserts, and enclosures. The printer should retain the certificate with the customer and job records. If the publication does not satisfy the statutory conditions, the printing charge may remain taxable even though the customer describes itself as a publisher. ## Advertising and Direct Mail Need Their Own Review Printing for an advertising campaign does not automatically become a nontaxable advertising service. Department guidance distinguishes a printer hired to produce printed material from a business directly involved in creating the advertising concept and acting as an advertising agency. Ordinary printing is generally a taxable input to the advertising service. When the printer itself provides qualifying creative advertising services and has the required relationship with the advertiser, the printer may owe tax on its inputs instead of charging tax on the full sales price. Minnesota also exempts qualifying advertising materials transferred outside the state for use solely outside Minnesota. Destination records and exemption documentation are essential, particularly when only part of a print run is used outside Minnesota. Direct mail has additional sourcing rules. A purchaser may provide delivery information so the printer can source the taxable printing charge to recipient jurisdictions, or provide a direct-mail exemption certificate and assume the obligation to remit applicable use tax. Separately stated delivery or distribution charges for direct mail may be exempt, while production charges remain taxable. ## Build the Audit File Around Actual Use The strongest Minnesota printing or publishing file connects each exemption to the transaction and actual use. Useful records include: - Form ST3 certificates and direct-pay documentation; - Customer contracts, purchase orders, and final invoices; - Publication schedules and public distribution records; - Delivery reports by state and local jurisdiction; - Bills of materials for paper, ink, chemicals, plates, and packaging; - Equipment use studies separating production from administrative activity; - Utility studies identifying production and nonproduction consumption; - General-ledger mappings for taxable and exempt purchases; - Vendor correspondence and use-tax accrual workpapers. A review should look for both exposure and refund opportunities. Printers and publishers may have paid tax on qualifying production materials or capital equipment, while also failing to collect or accrue tax on taxable printing, mixed-use property, or unsupported exemption claims. ## Practical Takeaway Minnesota commercial printing is generally a taxable retail activity, but it is also industrial production for qualifying purchase exemptions. General manufacturers operate under much of the same production framework. Publishers may receive an additional and materially different exemption when the finished product satisfies Minnesota's publication requirements. The correct result depends on the product, purchaser, production use, publication frequency, audience, destination, invoice structure, and exemption documentation. Those facts should be confirmed before changing tax charged to customers, filing a refund claim, or applying an exemption prospectively. Brown & Associates helps printers, manufacturers, and publishers review sales and use tax treatment, identify overpayments and exposure, and build documentation that supports the position on audit. This article is general educational information and is not tax or legal advice. Minnesota law and administrative guidance should be confirmed for the specific transaction and period under review. --- This content is educational and does not create an attorney/CPA-client relationship. Verify any rule, rate, or filing obligation against the issuing jurisdiction's current guidance before acting on it. For fact-specific advice, contact Brown & Associates at .