MN HF3381

Amends Minnesota Statutes section 297A.70, subdivision 4, to create a new sales tax exemption for prepared food purchased by charitable, religious, or educational nonprofit organizations

Prepared food qualifies for exemption only when the nonprofit distributes it in performance of the organization's exempt purpose (e.g., food banks, meal programs, religious food services)

Current law excludes prepared food, candy, soft drinks, and alcoholic beverages from the general nonprofit sales tax exemption; this bill carves out an exception specifically for prepared food used in charitable distribution

Effective date is July 1, 2026, applying to sales and purchases made after June 30, 2026