This bill amends Minnesota Statutes 2024, section 297A.68, by adding a new subdivision that establishes a sales and use tax exemption for food service establishment equipment. The exemption applies to equipment purchased or leased by food service establishments, such as restaurants and catering services, that is used in the production of prepared food or the furnishing of beverages until they are ready for delivery or service to customers. The bill defines key terms related to food service establishments and the types of equipment that qualify for the exemption, while also specifying what items are excluded from this definition.

The new legal language outlines that food service equipment includes various machinery and supplies integral to food production and beverage service, while explicitly excluding items used by customers, such as linens and utensils, as well as delivery vehicles. The effective date for this exemption is set for sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 297A.68