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SF4880

July 2026 temporary sales tax holiday provision
Legislative Session 94 (2025-2026)

Related bill: HF4750

AI Generated Summary

Purpose

The bill creates a temporary sales tax holiday in Minnesota for July 2026 to honor the United States’ 250th anniversary.

Main provisions

  • Tax exemption: The sale of tangible personal property is exempt from the state sales tax under Minnesota Statutes chapter 297A during the specified period.
  • Period of exemption: From 12:01 a.m. on July 1, 2026 through 11:59 p.m. on July 31, 2026.
  • Scope of property: The exemption applies to tangible personal property as defined in Minnesota Statutes section 297A.61 subdivision 10.
  • Exclusions: The exemption does not apply to alcohol, taxable cannabis products, or motor vehicles.

Relationship to existing law / Significant changes

  • Adds a one-time, month-long sales tax holiday in July 2026.
  • Creates a temporary tax exemption for the sale of tangible personal property during that period, under the existing framework of Minnesota’s sales tax law (chapter 297A).

Potential impacts (summary)

  • Consumers may pay no state sales tax on qualifying purchases of tangible personal property during the July 2026 period.
  • Retailers and sellers must track the timing and ensure the exemption applies only to the eligible property and period, excluding alcohol, taxable cannabis products, and motor vehicles.

Practical considerations

  • This is a temporary, anniversary-related tax relief measure tied to a specific date range and defined property categories.

Relevant Terms sales tax holiday; tax exemption; tangible personal property; Minnesota Statutes chapter 297A; 297A.61 subdivision 10; 12:01 a.m. July 1, 2026; 11:59 p.m. July 31, 2026; period of exemption; alcohol; taxable cannabis products; motor vehicles; 250th anniversary of the United States.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2026SenateActionIntroduction and first reading
March 26, 2026SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Temporary sales tax holiday exemption reference to Minnesota Statutes chapter 297A, applicable to the July 2026 period.",
      "modified": []
    },
    "citation": "297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Uses the existing definition of tangible personal property from Minnesota Statutes section 297A.61, subdivision 10 for the July 2026 sales tax holiday.",
      "modified": []
    },
    "citation": "297A.61",
    "subdivision": "subdivision 10"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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