The bill amends Minnesota Statutes 2024, section 297A.67, subdivision 8, to modify the sales tax exemption on clothing. The new provision specifies that only clothing items with a sales price of $150 or less will be exempt from sales tax. This change aims to clarify the definition of clothing for tax purposes, ensuring that it encompasses all human wearing apparel suitable for general use while explicitly excluding certain items such as clothing accessories, sports equipment, and protective gear.

Additionally, the bill includes an effective date, stating that the new provisions will apply to sales and purchases made after September 30, 2025. This timeline allows for a transition period before the updated tax exemption takes effect, ensuring that both consumers and retailers are aware of the changes in the sales tax policy regarding clothing.

Statutes affected:
Introduction: 297A.67