Bill > SF1454

This bill modifies the definition of "prepared food" for sales and use tax purposes in Minnesota by adding a new exception to what qualifies as prepared food. Currently, food is considered prepared if it is sold with eating utensils or is heated, mixed, or combined by the seller. The bill introduces an additional exemption for food sold by manufacturers classified under most North American Industry Classification System (NAICS) codes in the manufacturing sector 311 (except subsector 3118). This means that foods produced by certain manufacturers would not be considered "prepared food" for tax purposes, potentially affecting how these items are taxed. The new provision specifically excludes manufacturers in sector 311 (which generally covers food manufacturing like grain, dairy, meat, and other food product production) from being classified as sellers of prepared food, with the change set to take effect for sales and purchases made after June 30, 2025. This modification could have implications for how certain food products are taxed and how manufacturers classify their sales.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1454&ssn=0&y=2025