MN SF1378

Expands capital equipment sales tax exemption to include machinery and equipment used by mobile food units and restaurants in furnishing, preparing, or serving prepared foods.

Removes the previous exclusion that prohibited machinery and equipment used by restaurants from qualifying as capital equipment for sales tax purposes.

Creates new sales tax exemption for complimentary meals, nonalcoholic beverages, and alcoholic beverages provided by restaurants to customers at no cost.

Creates new sales tax exemption for prepared food and drinks purchased for and served to restaurant employees.

All changes are effective for sales and purchases made after June 30, 2023.