The bill proposes an amendment to Minnesota Statutes 2024, section 297A.68, to establish an annual tax holiday for school supplies. This tax exemption will apply for the seven days leading up to Labor Day, allowing individuals to purchase school supplies valued at a specified amount without incurring sales tax. The definition of "school supplies" is expanded to include a variety of items such as pencils, notebooks, calculators, and lunch boxes, while explicitly excluding certain products like stationery not primarily used for school work and backpacks designed for hiking.

Additionally, the bill specifies that the new tax holiday provisions will take effect for sales and purchases made after June 30, 2025. This initiative aims to alleviate the financial burden on families preparing for the school year by providing a designated period for tax-free purchases of essential school items.

Statutes affected:
Introduction: 297A.68