MinnesotaCare Taxes | Minnesota Business Registration

Who must register for MinnesotaCare taxes

Hospitals, health-care providers and surgical centers

You must register to file MinnesotaCare taxes if you are:

  • a self-employed licensed or registered health-care provider,
  • an employer of a licensed or registered health-care provider,
  • eligible to receive reimbursement from Medical Assistance for the health-care services you provide,
  • a seller of prescription eyewear or hearing aids and related equipment, or
  • a hospital or surgical center.

Wholesalers of legend drugs and pharmacies

Wholesalers of legend drugs and pharmacies that purchase legend drugs from a wholesaler not subject to MinnesotaCare tax must register to remit MinnesotaCare tax on the legend drugs. This includes all sellers in Minnesota, and sellers located outside Minnesota who:

  • have an office, a distribution, sales, sample room or warehouse location or other place of business in Minnesota, either directly or by a subsidiary,
  • have a representative, agent, salesperson, canvasser or solicitor in Minnesota, either on a permanent or temporary basis, who operates under the authority of the retail- er or its subsidiary for any purpose, such as repairing, selling, delivering, installing, soliciting orders for the retailer’s goods or services, or leasing tangible items in Min- nesota, or
  • deliver items into Minnesota in their own vehicles.

After you register for MinnesotaCare taxes

The department will send you a confirmation letter indicating your Minnesota tax ID number, fact sheets and a MinnesotaCare tax instruction booklet.

Once you are registered to file and pay MinnesotaCare taxes, you must electronically file an annual return even if there is no tax to report.

Line 3: Type of taxpayer

Check all appropriate boxes to indicate the type of taxpayer you are.

Check the box for provider of health-care services (other than a hospital or surgical center) if you are a:

  • self-employed health-care provider, such as a physician, dentist, chiropractor or psychologist,
  • business—such as a professional association, staff model health plan company or a licensed ambulance service—that employs health-care providers, or
  • self-employed person or an employer and you are eligible to receive reimbursement from the state of Minnesota Medical Assistance (MA) program for the services you provide.

Also be sure to indicate the services that best describe your business.

Check the box for wholesaler of legend drugs if you are:

  • licensed to sell legend drugs at wholesale in Minnesota, such as a legend drug manufacturer, distributor, jobber or broker,
  • a pharmacy located in another state required to be registered in Minnesota to sell legend drugs to consumers in Minnesota at retail, including by mail order, or
  • located outside Minnesota and you transport legend drugs, directly or through a distributor, to a retail store in Minnesota that is a member of the same corporation.

Check the box for prescription-drug use tax if you are:

  • a pharmacy that purchases legend drugs—for the purpose of resale in Min- nesota—from a wholesaler not subject to the MinnesotaCare tax, or
  • a person who purchases legend drugs, for use in Minnesota, from a pharmacy not subject to the MinnesotaCare tax.

This post is part of a series of posts on the Minnesota business registration process. For more information on how to register a business in Minnesota, contact an experienced business attorney.

CREDITS: This is an excerpt from A Guide to Starting a Business in Minnesota, provided by the Minnesota Department of Employment and Economic Development, Small Business Assistance Office, Twenty-eighth Edition, January 2010, written by Charles A. Schaffer, Madeline Harris, and Mark Simmer. Copies are available without charge from the Minnesota Department of Employment and Economic Development, Small Business Assistance Office.