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HF2705 (Legislative Session 94 (2025-2026))

Clothing exemption modified to include only clothing $150 or less per item.

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify the existing tax exemptions for clothing in the state of Minnesota. The bill aims to specify and limit the types of clothing eligible for sales tax exemption.

Main Provisions

  • Exemption Limit: The sales tax exemption will apply only to clothing items with a sales price of $150 or less per item.
  • Definition of Clothing: The bill includes a detailed list of what constitutes "clothing," such as general apparel items suitable for everyday use, including gloves, hats, shoes, and underwear.
  • Exclusions: Certain items are specifically excluded from being considered clothing for tax exemption purposes. These include:
    • Belt buckles sold separately
    • Costume masks sold separately
    • Sewing equipment and supplies
    • Sports or recreational equipment
    • Protective equipment
    • Fur clothing
  • Accessories and Equipment: Items such as briefcases, cosmetics, jewelry, and non-prescription sunglasses are classified as accessories and are not tax-exempt.

Significant Changes to Existing Law

The bill represents a shift in the exemption policy, where previously all clothing may have been tax-exempt. It now imposes a price cap of $150 for each item to qualify for exemption, and more clearly delineates excluded items.

Relevant Terms

  • Tax exemption
  • Clothing
  • Accessories
  • Protective equipment
  • Sales tax
  • Minnesota Statutes

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 31, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the sales and use tax exemption on clothing items under section 297A.67.",
      "modified": [
        "Modifies the exemption to include only clothing with a sales price of $150 or less per item."
      ]
    },
    "citation": "297A.67",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the definition of fur clothing under section 297A.61.",
      "modified": []
    },
    "citation": "297A.61",
    "subdivision": "subdivision 46"
  }
]

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