Minnesota bill expands sales and use tax exemption to include certain meals and drinks provided by restaurants.

Minnesota bill HF2961 amends the sales and use tax to expand the exemption for certain meals and drinks provided by restaurants. Meals and beverages, including alcoholic beverages, provided to customers at no cost are exempt. Additionally, prepared food and beverages, excluding alcoholic beverages, purchased for and served to restaurant employees are also exempt. This change takes effect for sales and purchases made after June 30, 2025.

Minnesota bill expands sales and use tax exemption to include certain meals and drinks provided by restaurants.

Minnesota bill HF2961 amends the sales and use tax to expand the exemption for certain meals and drinks provided by restaurants. Meals and beverages, including alcoholic beverages, provided to customers at no cost are exempt. Additionally, prepared food and beverages, excluding alcoholic beverages, purchased for and served to restaurant employees are also exempt. This change takes effect for sales and purchases made after June 30, 2025.