Bill > HF2705

This bill modifies the existing sales tax exemption for clothing in Minnesota by limiting the exemption to only clothing items priced at $150 or less per item. Currently, all clothing is tax-exempt, but under this proposed change, only clothing items with a sales price of $150 or less would be exempt from sales tax. The bill provides a comprehensive definition of what qualifies as clothing, including items like shirts, pants, shoes, underwear, and formal wear, while specifically excluding accessories, sports equipment, protective gear, and items like belt buckles or sewing supplies. The definition of clothing remains broad, encompassing general wearing apparel suitable for everyday use. The modification to the tax exemption would become effective for sales and purchases made after September 30, 2025, which gives retailers and consumers time to prepare for the change. This bill aims to adjust the sales tax structure by placing a price limit on clothing tax exemptions, potentially generating additional revenue for the state while still providing tax relief for more affordable clothing items.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2705&ssn=0&y=2025