Bill > SF3753

This bill modifies existing tax law in Minnesota Statutes, specifically section 297A.70, subdivision 4, to expand the sales and use tax exemption for nonprofit organizations. Currently, certain purchases by nonprofit organizations are exempt from sales tax, but this exemption has exceptions, including for prepared food. This bill inserts new language to create an exception to that exception, meaning that sales of prepared food will now be exempt if purchased by a nonprofit organization that is organized and operated exclusively for charitable, religious, or educational purposes (as defined in paragraph (a), clause (1) of the existing law) and if that prepared food is distributed by the organization as part of its charitable, religious, or educational mission. This change is intended to provide further support to qualifying charitable organizations by reducing their costs when they provide food to those they serve, and it will take effect for sales and purchases made after June 30, 2026.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/SF/3753/