Purpose

• The bill changes Minnesota tax law to exempt certain health care materials from sales and use tax. It broadens the tax-exemption rules to cover items prescribed by a physician that are used for medical purposes.

Main Provisions

• Adds a new subdivision (Subd. 7b) to Minnesota Statutes 2024 section 297A.67.
• Exemption: Health care materials are exempt from sales tax.
• Definition of health care materials: Nondurable disposable health care materials prescribed by a physician that are primarily and customarily used to serve a medical purpose, and are generally not used by a person in the absence of illness or injury and not used repeatedly by different individuals.
• Note on terminology: The term “prescribed” has the meaning given in subdivision 7 of the same statute.

Significance and What It Changes

• Establishes a specific sales tax exemption for certain medical supplies.
• Clarifies what counts as health care materials (based on use, permanence, and physician prescription), so these items would be exempt when purchased for medical purposes.

Definitions and Key Terms (within the bill)

• Health care materials
• Nondurable disposable health care materials
• Prescribed
• Medical purpose
• Sales and use tax exemption
• Minnesota Statutes 2024, section 297A.67, subdivision 7b

Relevant Terms - sales tax exemption - health care materials - nondurable disposable - physician prescription - medical purpose - subdivision 7b - Minnesota Statutes 2024 - 297A.67 - health plans (contextual relevance to purchases related to health care materials)