Bill > HF930

This bill modifies the definition of "prepared food" in Minnesota's sales and use tax law by adding an exception for food sold by manufacturers classified under specific North American Industry Classification System (NAICS) codes. Currently, prepared food is defined as food sold with eating utensils or food that is heated, mixed, or combined by the seller. The bill creates a new exception for food sold by sellers whose primary NAICS classification is in manufacturing sector 311 (with a specific subsector exclusion), which means certain manufactured food products would not be considered "prepared food" for sales tax purposes. This change could potentially impact how sales tax is applied to various food products sold by manufacturers. The new provision will take effect for sales and purchases made after June 30, 2025, giving businesses time to adjust to the updated definition. The bill aims to provide clarity and potentially reduce tax burdens for certain food manufacturers by excluding their products from the prepared food definition.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0930&ssn=0&y=2025