Minnesota Resale Certificate: How to Get, Use, and Accept One

TL;DR

• Buyers: Use Minnesota Form ST3, Rev. 6/26 and select H. Resale when buying items for resale. Minnesota also accepts the SST Certificate of Exemption and the MTC Uniform Sales & Use Tax Resale Certificate for resale claims.

• Buyers: If you use exempt inventory instead of reselling it, you may owe use tax. Misusing a certificate to evade tax can trigger a $100 penalty per transaction.

• Sellers: Check that the certificate is complete and that the purchase reasonably fits the buyer’s business. A completed certificate received within 90 days of the sale can relieve you of tax liability. Keep sales tax records for at least 3½ years.

• Both: ST3 covers ongoing qualifying purchases unless the buyer checks single purchase or cancels the certificate.

What a Minnesota resale certificate is and how it differs from a tax registration

A resale certificate documents a buyer’s claim that a purchase qualifies for the resale exemption. Minnesota’s current Form ST3, revised June 2026, directs buyers claiming resale to select reason H. Resale applies to qualifying purchases for resale in the normal course of business. Manufacturing and nonprofit exemptions have different grounds and should not be claimed as resale.

Sales tax registration lets a business collect and remit tax, while a certificate documents a particular exemption claim to its seller. A Minnesota tax ID and a resale certificate are not interchangeable. Minnesota’s certificate rules also provide alternative buyer identification numbers, so a Minnesota tax ID is not required for every resale claim.

Buyer steps: how to get and use a Minnesota resale certificate

1. Confirm the purchase qualifies. You may claim resale when you buy items or services to resell in the normal course of business. Register to collect Minnesota sales tax if your sales require it, but do not assume you need a Minnesota tax ID to complete a resale certificate.

2. Get the current form. Download the Minnesota Department of Revenue’s Form ST3, Rev. 6/26. ST3 covers continuing purchases unless you check the single-purchase box. Enter the seller’s name and address on every ST3. For a single purchase, also enter the invoice or purchase order number.

3. Complete the buyer information. Enter your name and address. Use an ID in the form’s preference order, starting with a Minnesota tax ID if you have one. Otherwise, enter another state’s tax ID and state name, your FEIN, or a driver’s license or state-issued ID and its state of issue. Add the Minnesota business-type code that fits your business, such as 10 for retail trade or 13 for wholesale trade. Select H. Resale, then sign or provide an electronic signature that meets the form’s requirements.

4. Give the certificate to the seller. Do not send ST3 to the Department of Revenue. Update a continuing certificate when your buyer information changes. If you later use goods bought for resale in your business instead of reselling them, you owe use tax. A nonqualifying purchase may also bring tax, interest, and penalties. ST3 warns of a $100 penalty for each transaction in which a certificate is used to evade tax on goods bought for another purpose.

5. If you’re based outside Minnesota, use an accepted certificate. You do not need a Minnesota tax ID solely to make a resale claim. Minnesota also accepts the Streamlined Sales Tax Certificate of Exemption and the MTC Uniform Sales & Use Tax Resale Certificate. Use the MTC certificate only for resale claims, and enter Minnesota’s business-type code.

Seller steps: how to accept and verify a Minnesota resale certificate

1. Collect the certificate and check the claim. Minnesota places the burden of supporting an exempt sale on the seller. Check the buyer’s name, address, and identification number, along with the business-type code, resale reason, and signature or valid electronic signature. Check the seller information and, for a single-purchase ST3, the invoice or purchase order number. The resale claim should make sense for the buyer’s business and the item sold. A complete certificate can relieve the seller of liability; if the seller obtains it after a Department of Revenue request, the seller must also accept it in good faith.

2. Resolve missing information promptly. Charge tax if the buyer cannot provide a complete certificate at the sale. A complete certificate or all required information received within 90 days of the sale can still relieve the seller of liability. Minnesota’s 90-day rule applies to a fully completed certificate or all required information. If you miss that window, you have 120 days after a Department of Revenue substantiation request to obtain a completed certificate accepted in good faith or otherwise prove the sale was exempt. For a certificate obtained after the request, good faith requires a claim that applied on the sale date, covered the item, and was reasonable for the buyer’s business.

3. Keep the certificate with your sales records. Minnesota requires you to retain supporting records for at least three and a half years, and a longer assessment period can extend that obligation. A blanket ST3 has no fixed expiration while the buyer continues making purchases unless the buyer cancels it. Ask for updated information when the buyer’s details or purchasing pattern changes.

4. Reject claims you know are improper. Seller liability relief does not protect fraud, solicitation of unlawful exemption claims, a material falsehood you knew or had reason to know about, or knowing tax evasion. If the buyer cannot resolve a suspicious claim, charge tax rather than relying on the certificate.

Buyer vs. seller checklist

Common mistakes and edge cases

A blanket ST3 certificate can cover repeat purchases, but only purchases that qualify for resale. Buyers should update changed certificate details, and sellers should check for missing information, including the business-type code and reason H for resale. Buyers owe use tax when they take goods purchased for resale and use them instead.

Drop shipments need a separate check. Minnesota law allows a seller engaged in drop shipping to rely on the customer’s or reseller’s certificate, or other acceptable information, even if that customer lacks Minnesota sales tax registration. For orders involving other states, check the rules that apply to the sale rather than assuming a Minnesota certificate covers every delivery.

FAQs

• Does a Minnesota resale certificate expire? There’s no fixed expiration date. A blanket ST3 remains in force while the buyer continues making purchases unless the buyer cancels it. The buyer must update the certificate when its information changes.

• Can one certificate cover multiple purchases? Yes. Form ST3 treats the certificate as a blanket certificate unless the buyer checks the single-purchase box.

• What if a seller lacks a certificate during an audit? If the seller missed the 90-day period after the sale for collecting the required documentation, Minnesota law allows 120 days after a Department of Revenue request to obtain a completed certificate in good faith or otherwise establish the exemption. Without sufficient proof, the seller may owe the tax.

• How does resale differ from an exempt-use purchase? Resale applies when you buy an item to sell it in the normal course of business. An exempt-use purchase relies on a different qualifying reason, so you should not select resale merely because the purchase is tax-exempt.

• Can an out-of-state buyer claim resale? Yes. ST3 provides alternative buyer IDs, and Minnesota also accepts the SST Certificate of Exemption and the MTC certificate for resale.

• What about drop shipments? A seller engaged in drop shipping may rely on its customer’s resale documentation or other acceptable information even if that customer lacks Minnesota sales tax registration.

Conclusion

Buyers should keep resale documentation accurate as their purchases change, and sellers should keep the certificates that support untaxed sales. Treat each certificate as an ongoing compliance record rather than a form to file once.

Sources

• ST3, Rev. 6/26

• SST acceptance

• MTC resale certificate

• Certificate rules

• Seller rules

• Recordkeeping rules

• Minnesota Department of Revenue

General information, not tax advice. Rules change, so confirm current requirements with the Minnesota Department of Revenue.