MN Sales Tax Exemption - Step 1

Step 1 - Apply for Nonprofit Exempt Status with the Minnesota Department of Revenue

Just like any other public or private school in Minnesota, you must first receive "Nonprofit Exempt Status" from the Minnesota Department of Revenue before you can claim an exemption from MN Sales Taxes for your homeschool purchases. There are two documents MN homeschoolers need to complete and deliver together to the Minnesota Department of Revenue, Sales and Use Tax Division in order to apply for this status. These are listed below, along with suggestions on how to complete these forms.

ST16, "Application for Nonprofit Exempt Status - Sales Tax". Below are suggested ways homeschoolers (vs. other non-profit organizations) should complete this form. These suggestions were confirmed with the Minnesota Department of Revenue, Sales and Use Tax Division. This same Division has also confirmed that exemption from federal income tax under IRS Code 501(c)(3) is NOT required, as suggested in the ST16 instructions.

  "Name of organization" - The MN Department of Revenue requires that the name of an organization be entered here, and not just the name of one or both parents of a homeschool family. Something like "Johnson Homeschool" is quite acceptable. If an application is received with just the parent's names, the MN Department of Revenue will add the word(s) "Homeschool" in their approval documentation.

"Organization's web address, if any" - Most homeschooling families will not have a website for their homeschool, and can therefore leave this field blank.

In the "Information About your Organization" section:

Do not check either the "Yes" or "No" box for the question, "Are donations to your organization deductible for Minnesota and federal income tax purposes?" You should leave both of these boxes blank (unless you will ever receive a donation. If you will, you should then check the applicable box.)

Homeschoolers should check the "No" box for the question, "Does your organization make retail sales of taxable items?" (unless you will be making such sales).

In the "Type of Organization" section, check the "Home School" box on page 1. Please note that the last two listed requirements, "Evidence of instructor qualifications..." and "The name of the school district...", will be satisfied when you include the "Affidavit Stating Nonprofit Home School Status for the Purpose of Obtaining a Sales Tax Exemption Number" (see link below) with your mailed ST16 form. In particular, you do not need to provide any evidence of instructor qualifications as a homeschooling parent. Skip everything else in this "Type of Organization" section and proceed to page 3.

In the "Principal Officers" section, homeschoolers should enter their names and use appropriate titles like "Father" and "Mother".

Be sure to sign and date the form at the bottom of page 3 using the same title(s) you defined above. Be sure to also include a completed Affidavit (accessed from the link below) with this mailed ST16 form.

Affidavit Stating Nonprofit Home School Status for the Purpose of Obtaining a Sales Tax Exemption Number.

For most, this is a simple, straight-forward form.

When completed, mail both of these together to:

  Minnesota Revenue
Sales and Use Tax Division
600 N Robert Street
Mail Station 6330
St Paul, MN 55146-6330

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