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Bill > HF2961


MN HF2961

MN HF2961
Sales and use tax exemption for certain meals and drinks provided by a restaurant expanded.


summary

Introduced
04/01/2025
In Committee
04/01/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to taxation; sales and use; expanding the exemption for certain meals and drinks; amending Minnesota Statutes 2024, section 297A.68, by adding subdivisions.

AI Summary

This bill expands sales and use tax exemptions for certain meals and drinks provided by restaurants. Specifically, the bill creates two new tax exemptions: first, complimentary meals and beverages (including alcoholic drinks) provided by a restaurant to customers at no cost will be exempt from sales tax; second, prepared food and non-alcoholic beverages purchased for and served to restaurant employees will also be exempt from sales tax. The term "restaurant" is defined according to Minnesota Statutes section 157.15, subdivision 12. Both exemptions will take effect for sales and purchases made after June 30, 2025. These changes are designed to provide tax relief for restaurants by eliminating sales tax on certain types of meals and drinks that are either provided free to customers or served to employees.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

Introduction and first reading, referred to Taxes (on 04/01/2025)

bill text


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