HF 3976

as introduced - 90th Legislature (2017 - 2018) Posted on 03/19/2018 03:03pm

A bill for an act
relating to taxation; sales and use; exempting prepared food used in certain nonprofit
food programs; amending Minnesota Statutes 2016, section 297A.70, by adding
a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
to read:

new text begin Subd. 21. new text end

new text begin Prepared food used by certain nonprofits. new text end

new text begin Sales of prepared food to a
nonprofit organization that, as part of its charitable mission, is sponsoring and managing
the provision of meals and other food though the federal Child and Adult Care Food Program
to unaffiliated centers and sites are exempt from sales tax. Only prepared food purchased
from a caterer or other business under a contract with the nonprofit and used directly in the
Child and Adult Care Food Program qualifies for this exemption. Prepared food purchased
by the nonprofit for other purposes remains taxable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2018.
new text end