This bill amends Minnesota Statutes 2024, section 297A.70, subdivision 4, to modify the nonprofit exemption related to sales and use taxation. Specifically, it introduces a new provision that exempts certain purchases of prepared food by nonprofit organizations from sales tax, provided that the food is distributed by the organization in the performance of its exempt purpose. This change allows nonprofit organizations that qualify under the existing definitions to purchase prepared food without incurring sales tax, thereby supporting their charitable, religious, or educational missions.

Additionally, the bill specifies that this exemption for prepared food will take effect for sales and purchases made after June 30, 2026. The amendment aims to enhance the ability of nonprofit organizations to serve their communities by reducing the financial burden associated with purchasing prepared food for distribution.

Statutes affected:
Introduction: 297A.70