The 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. This exemption applies to equipment purchased or leased by food service establishments, which includes restaurants, mobile food units, and catering services, 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 such as "food service equipment," "food service establishment," and "prepared food," and specifies what items are included or excluded from the exemption.

The new legal language outlines that food service equipment encompasses various machinery and supplies integral to food production and beverage service, while explicitly excluding items used by customers and delivery vehicles. The effective date for this exemption is set for sales and purchases made after June 30, 2025. This legislation aims to support food service establishments by reducing their tax burden on essential equipment.

Statutes affected:
Introduction: 297A.68