MN SF3730

Exempts sales of prepared food from sales tax when purchased by nonprofit organizations that sponsor and manage the federal Child and Adult Care Food Program for unaffiliated centers and sites.

Exemption applies only to prepared food purchased from a caterer or other business under contract with the nonprofit and used directly in the Child and Adult Care Food Program.

Prepared food purchased by the nonprofit for other purposes remains subject to sales tax.

Effective for sales and purchases made after June 30, 2018.

Amends Minnesota Statutes 2016, section 297A.70, by adding subdivision 21.