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HF2705 (Legislative Session 94 (2025-2026))

Clothing exemption modified to include only clothing $150 or less per item.

AI Generated Summary

Purpose of the Bill

The bill aims to modify the sales tax exemption rules for clothing in Minnesota by setting a specific price limit on individual clothing items.

Main Provisions

  • Price Limit for Exemption: Clothing items that are sold for $150 or less per item will continue to be exempt from sales tax. This means any clothing item priced above $150 will be subject to sales tax.
  • Definition of Clothing: The bill specifies that "clothing" includes various types of garments and accessories meant for general use, such as aprons, baby blankets, bathing suits, costumes, formal wear, uniforms, and wedding apparel.

Items Not Included in Exemption

  • Items such as belt buckles, costume masks, and sewing materials are not considered clothing for the purpose of the tax exemption.
  • The bill also excludes accessories or equipment like briefcases, handbags, umbrellas, sports equipment, and protective gear from the definition of clothing.
  • Protective equipment designed to prevent injury or harm is not exempt unless it falls within the definition of general-use clothing.

Significant Changes to Existing Law

The bill tightens the criteria for sales tax exemption by setting a monetary threshold, limiting the exemption to more basic and widely accessible clothing items while imposing taxes on more expensive clothing items.

Relevant Terms

  • Sales tax exemption
  • Clothing tax
  • Price limit
  • General-use apparel
  • Protective equipment
  • Clothing accessories

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 24, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
April 01, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Modification of the clothing definition to include apparel priced at $150 or less."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the sales and use tax exemption for clothing under section 297A.67, subdivision 8.",
      "modified": [
        "Clarified what constitutes clothing for tax exemption purposes, excluding items like belt buckles and costume masks sold separately."
      ]
    },
    "citation": "297A.67",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references section 297A.61, subdivision 46 for the definition of fur clothing in the context of tax exemption.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.61",
    "subdivision": "subdivision 46"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors