This legislative bill, H.F. No. 02172025, proposes an amendment to the Minnesota Statutes regarding taxation. Specifically, it aims to establish a new tax exemption for food service establishment equipment. If enacted, this bill would modify section 297A.68 of Minnesota Statutes 2024 by adding a subdivision that details the exemption.

Key aspects of the proposed bill include:

1. Exemption Description: The bill exempts equipment purchased or leased by food service establishments used in the production of prepared food or beverages from sales and use taxes. This exemption applies up to the point where the food or beverage is ready to be served to the customer.

2. Definitions:

   • Catering Service: A business that prepares food and beverages for specific events like parties or conferences.
   • Food Service Equipment: Defined as machinery, fixtures, and supplies integral to the production of food or beverages. This includes a wide range of items like ovens, grills, refrigerators, dishwashers, coffee machines, etc.
   • Exclusions: Items directly used by customers (e.g., linens, cups, tables) and delivery vehicles are not covered under this exemption.

3. Scope of Food Service Establishments: The exemption applies to various types of establishments such as traditional restaurants, mobile food units, and catering services, as defined under specific sections of the Minnesota Statutes.

This bill aims to support food service businesses by reducing the tax burden associated with purchasing or leasing essential equipment necessary for food preparation and service. The bill is currently referred to the Committee on Taxes for further consideration.