HF 859

as introduced - 94th Legislature (2025 - 2026) Posted on 04/21/2025 01:42pm

A bill for an act
relating to taxation; sales and use; establishing an exemption for food service
establishment equipment; amending Minnesota Statutes 2024, section 297A.68,
by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 297A.68, is amended by adding a subdivision
to read:

new text begin Subd. 47. new text end

new text begin Food service establishment equipment. new text end

new text begin (a) Food service equipment purchased
or leased, and used in this state by a food service establishment in the production of prepared
food or furnishing of beverages, up to the point the prepared food or beverage is ready for
delivery or service to the customer, is exempt.
new text end

new text begin (b) For purposes of this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "catering service" means a business that prepares food and beverages for service in
support of an event with a predetermined guest list such as a reception, party, luncheon,
conference, ceremony, or trade show;
new text end

new text begin (2) "food service equipment" means machinery, equipment, fixtures, and supplies used
by a food service establishment that are integral to the production of prepared food or the
furnishing of beverages and that meet the standards imposed under Minnesota Rules, chapter
4626. Food service equipment:
new text end

new text begin (i) includes cooking utensils, serving utensils, ovens, grills, coolers, microwave ovens,
freezers, refrigerators and refrigerator stations, holding cabinets, deep fryers, condiment
stations, dishwashers, steamers, coffee machines, ice machines, water heaters, sinks, faucets,
food warmers and warming trays, tabletop chaffing equipment, buffets and buffet equipment,
self-service condiment equipment, self-service beverage equipment, beer dispensing systems,
equipment needed for bar service, and any other item that is integral to the production of
prepared food or the furnishing of beverages; and
new text end

new text begin (ii) excludes items used by customers such as linens, paper napkins, glasses, cups, mugs,
utensils, tables, and chairs. Also excluded are delivery vehicles or any motor vehicles
purchased by a food service establishment;
new text end

new text begin (3) "food service establishment" means a restaurant as defined in section 157.15,
subdivision 12; a mobile food unit as defined in section 157.15, subdivision 9; or a catering
service as defined in this subdivision;
new text end

new text begin (4) "furnishing of beverages" means the production of beverages, including alcoholic
beverages, by a bartender, server, caterer, or other person employed by a food service
establishment;
new text end

new text begin (5) "prepared food" has the meaning given in section 297A.61, subdivision 31; and
new text end

new text begin (6) "production" means an operation or series of operations where ingredients are changed
in form, composition, or condition that results in the creation of prepared food or a beverage.
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, 2025.
new text end