Bill > SF34

This bill creates a sales and use tax exemption for equipment used by food service establishments in producing prepared food or beverages, effective July 1, 2025. The bill defines "food service establishment" broadly to include restaurants, mobile food units, and catering services, and comprehensively outlines what qualifies as "food service equipment." Eligible equipment includes a wide range of items integral to food preparation and service, such as ovens, grills, refrigerators, dishwashers, coffee machines, and beer dispensing systems. The exemption applies to equipment purchased or leased and used within Minnesota up to the point where food or beverages are ready for customer delivery or service. Notably, the exemption excludes customer-facing items like tables, chairs, linens, and delivery vehicles. The bill provides detailed definitions for key terms like "prepared food," "production," and "furnishing of beverages" to ensure clear application of the tax exemption. By creating this targeted tax exemption, the bill aims to support food service businesses by reducing their equipment-related tax burden and potentially making it more affordable to invest in new or upgraded food service equipment.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0034&ssn=0&y=2025