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 aims to support nonprofit organizations in their charitable, religious, or educational activities by reducing their operational costs associated with food purchases.

Additionally, the bill specifies that this exemption for prepared food will take effect for sales and purchases made after June 30, 2026. The existing provisions regarding the types of nonprofit organizations eligible for sales tax exemptions and the exclusions for certain sales, such as lodging and construction materials, remain unchanged. This legislative change reflects a commitment to enhancing the support for nonprofit organizations in Minnesota.

Statutes affected:
Introduction: 297A.70