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HF2794 (Legislative Session 94 (2025-2026))

Sales and use tax exemption for dietary supplements provided.

AI Generated Summary

Purpose of the Bill

The bill aims to modify existing tax laws in Minnesota specifically related to sales and use taxation by providing an exemption for dietary supplements. This intends to reduce the costs for consumers purchasing these products by removing the sales tax.

Main Provisions

  • Exemption for Dietary Supplements: The bill proposes to amend the Minnesota Statutes to include dietary supplements in the list of items exempted from sales tax. This would mean that when consumers purchase dietary supplements in Minnesota, they would not be required to pay the state sales tax.
  • Adjustment to Definition of Sale and Purchase: The bill clarifies the definition of what constitutes a sale and purchase within the context of taxable goods and services but excludes dietary supplements from this taxable category.

Significant Changes to Existing Law

  • Tax Code Amendment: The primary change is the alteration of tax law to exempt dietary supplements, which were previously listed among taxable items such as prepared foods, soft drinks, and candy.
  • Expansion of Exemptions: By adding a subsection to the current sales and use tax statutes, dietary supplements are officially recognized as exempt from taxation, aligning them with other exempt items.

Relevant Terms

  • Tax exemption
  • Dietary supplements
  • Sales and use tax
  • Minnesota tax laws

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 31, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Dietary supplements added to the list of taxable food items."
      ],
      "removed": [],
      "summary": "This bill addresses what constitutes a sale and purchase under taxation laws.",
      "modified": [
        "Clarifies taxable services and items included as part of a sale or purchase."
      ]
    },
    "citation": "297A.61",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References licensed peace officers in the context of nontaxable security services.",
      "modified": [
        "Defines what constitutes working as a licensed peace officer."
      ]
    },
    "citation": "626.84",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced to define exclusions in taxable lawn care services.",
      "modified": [
        "Clarifies when land clearing is not a taxable service."
      ]
    },
    "citation": "297A.68",
    "subdivision": "subdivision 40"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines service contracts related to vehicle rentals under sales tax considerations.",
      "modified": [
        "Establishes context for when vehicle rentals are taxable."
      ]
    },
    "citation": "59B.02",
    "subdivision": "subdivision 11"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Related to the definition of taxable cannabis products.",
      "modified": [
        "Specifies cannabis products as taxable items."
      ]
    },
    "citation": "295.81",
    "subdivision": "subdivision 1"
  }
]

Sponsors