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As I've been reading through my Minnesota SBA book, I came across "Sales and Use Tax". Use Tax is defined as: applying when you buy, lease or rent taxable items on services used in your business without paying sales tax to the seller. Both businesses and individuals are subject to use tax.

Now, in MN clothing is exempt from sales and use tax. But what isn't, are items such as clothing equipment (to my knowledge, it only specifies "clothing", computer goods, shipping and office supplies, etc.)

Here is our state form: http://www.taxes.state.mn.us/use/publications/fact_sheets/content/CM1_002975.pdf

What is most interesting about this is the "How would the state know section". Something is telling me unless you spend quite an extensive amount (I'm thinking $10,000+ in a fiscal year), they would have absolutely no idea. Even above that number, and they might still be in the shadows.

-- Does anyone here pay Use Tax, and if so, could you please explain what kind of processe(s) you had / have to go through to do so. Thanks!
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