HF930

H.F. No. 930 is a bill that proposes changes to how prepared food is defined for taxation purposes in Minnesota. Specifically, it aims to modify the sales and use tax law by altering the definition of prepared food in Minnesota Statutes 2024, section 297A.61 subdivision 31.

The revised definition of prepared food will include: 1. Food sold with eating utensils provided by the seller such as plates, knives, forks, spoons, glasses, cups, napkins, or straws. 2. Food that is either: - Sold in a heated state or heated by the seller. - Made by mixing two or more ingredients by the seller and sold as a single item.

However, certain items are exempt from being classified as prepared food under this definition: - Bakery items like bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas. - Unheated, ready-to-eat meat and seafood sold by weight. - Eggs, fish, meat, poultry, and foods containing these raw animal foods that require cooking by the consumer as per Food and Drug Administration guidelines to prevent foodborne illnesses. - Food that is only sliced, repackaged, or pasteurized by the seller. - Food sold by sellers primarily classified in the manufacturing sector under NAICS, but not within subsector 3118.

This bill seeks to clarify and update the taxation rules regarding what constitutes prepared food, potentially impacting how items are taxed under the sales and use tax regulations in Minnesota.