MN Sales Tax Exemption - Step 1

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

Just like any other non-profit organization in Minnesota, including public schools, 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. The application process is easy, free, and quick, requiring just a couple of minutes to complete. Once you receive your MN Tax ID Number, it is permanent - no renewals are required unless there is a change in your status, e.g., a change of address. And there are no subsequent "filing" requirements, as there are for Income Taxes.

There are TWO one-page forms MN homeschooling Parents 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 linked below, along with suggestions on how to complete these forms. (Suggestions for Non-Parents also are included.)

Please read these suggestions carefully before completing these forms.


1. Form “ST16, Application for Nonprofit Exempt Status - Sales Tax" (Print to complete by hand, or download to use fillable fields in this pdf form). Below are suggested ways homeschoolers should complete this form. These suggestions were confirmed with the Minnesota Department of Revenue, Sales and Use Tax Division. Please note: This same Division has also confirmed that exemption from Federal income tax under IRS Code 501(c) (3) is NOT required for homeschooling families, even though this is suggested in the Form ST16 instructions.

When completing this Form ST16, please fill in your information BELOW each field title. For example, the name of your homeschool (e.g., "Johnson Homeschool") should be written BELOW the field title "Organization Name" and not on the line above this text. Similarly, enter your information BELOW the field titles "Mailing Address", "City", "State", and "Zip Code", and not on the lines above these texts.

  "Organization Name" - The MN Department of Revenue requires that the name of an organization be entered here, and NOT the name of one or both parents of a homeschool family. Something like "Johnson Homeschool" is quite acceptable, even if others are using th same name. If an application is received with just the parent's name(s), the MN Department of Revenue may add the word "Homeschool" in their approval documentation, or reject the application.

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

"Mailing Address" - The MN Department of Revenue will mail their response to your application to this address.

"Federal Tax ID Number" and "Minnesota Tax ID Number" fields should be left blank, unless you have these for your homeschool (unlikely). Please note: You cannot use Tax ID Numbers you may have for any other organization (e.g., your business). Your homeschool must obtain its own, unique, MN Tax ID Number.

"Phone" and "Email Address" fields are optional, but will be helpful should the MN Department of Revenue need to reach you with a question regarding your application.

In the "Type of Organization" section, check the "Home School" box. (We've done this for you in the linked form.)

"Supporting Documents" - The requirements for Parents and Non-Parents are different.

  Parent(s) of their own children must include a signed "Affidavit Stating Nonprofit Home School Status for the Purpose of Obtaining a Sales Tax Exemption Number" (see below) with this Form ST16 stating that your children’s school is a homeschool. Please note: When you include this affidavit with your mailed Form ST16, you do NOT need to provide the items listed below for Non-Parents (as suggested in the instructions for Form ST16). This signed affidavit is the ONLY “Supporting Document” Parents are required to include with Form ST16.

Non-Parents must include both of the following with this Form ST16:

i.) List the name of the school district in which the home school is located

ii.) Attach a copy of one of the following as evidence of instructor qualifications (as required under Minnesota Statute 120A.22, subd. 10):

 
  • your current Minnesota teaching license
  • teacher competency examination results
  • baccalaureate degree
  • the name and a copy of the license of the teacher you are directly supervised by

  • "Principal Officers" -

     
  • Parent(s) should enter their name(s) and “Parent” for their title. Listing just one parent is sufficient, although both parents can be listed.

  • Non-Parent(s) should enter their name(s) and “Teacher” for their title, or other appropriate titles.

  • Be sure to sign and date the form at the bottom of the page using the same title you defined above. The "Preparer Signature" and the other Preparer information fields may be left blank, unless someone else completed this form for you. Be sure to also include the "Supporting Documents", as outlined above, when submitting this Form ST16.


    2. Form "Affidavit Stating Nonprofit Home School Status for the Purpose of Obtaining a Sales Tax Exemption Number" (for Parents only). For most, this is a simple, straight-forward form. Please note: Enter your name(s), and NOT the name created for your homeschool listed in the "Organization Name" field in Form ST16. Either one or both parents may sign this form.


    When completed and signed, submit Form ST16 and the required "Supporting Documents" together in one of the following ways:

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

    By Fax: 651-556-3102

    By E-mail: nonprofit.exemptstatus@state.mn.us


    You are now ready for Step 2

    Copyright © 2021 Heppner's Legacy Homeschool Resources. Powered by Zen Cart
    Developed by Dogsoldier.com, LLC
    All Rights Reserved