MN SF2124

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

Adds computer software research, development, design, and production machinery to the list of exempt capital equipment.

Removes the exclusion that previously prohibited restaurants from claiming the capital equipment exemption, making their production equipment eligible for sales tax exemption.

Effective retroactively for sales and purchases made after December 31, 2019, with special provision for restaurant COVID-19 adaptation materials (tents, dividers, plexiglass) purchased between February 29, 2020 and January 1, 2022.

Amends Minnesota Statutes 2022, section 297A.68, subdivision 5, to update definitions and clarify what qualifies as exempt capital equipment used in manufacturing, fabricating, mining, refining, and restaurant food service operations.