Bill > HF859

This bill establishes a sales and use tax exemption for food service establishment equipment, which means restaurants, mobile food units, and catering services can now purchase equipment used in food preparation and beverage service without paying sales tax. The exemption covers a wide range of equipment such as cooking utensils, ovens, grills, refrigerators, dishwashers, coffee machines, and other items integral to food and beverage production, but excludes customer-facing items like tables, chairs, glasses, and utensils, as well as delivery vehicles. The bill defines key terms like "food service establishment," "prepared food," and "production," and specifies that the equipment must be used in the state during food or beverage preparation up to the point of delivery or service to customers. The tax exemption will become effective for sales and purchases made after June 30, 2025, potentially providing financial relief for food service businesses by reducing their equipment acquisition costs.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0859&ssn=0&y=2025