This bill amends Minnesota Statutes 2024, section 297A.61, subdivision 31, to modify the definition of "prepared food" for taxation purposes. The updated definition retains the existing criteria, which include food sold with eating utensils or food that is heated or combined by the seller. However, it introduces a new exception for food sold by sellers classified under the manufacturing sector (NAICS classification 311), excluding subsector 3118. Additionally, the bill removes the previous exception for food that is only sliced, repackaged, or pasteurized by the seller.

The changes will take effect for sales and purchases made after June 30, 2026. This amendment aims to clarify the taxation of prepared food and expand the categories of food that are exempt from being classified as prepared food, thereby potentially impacting the sales tax obligations of certain food manufacturers.

Statutes affected:
Introduction: 297A.61