Purpose of the Bill

The bill aims to change Minnesota's tax law concerning sales and use taxes. Specifically, it proposes an exemption for dietary supplements, removing them from the list of taxable items.

Main Provisions

• Exemption for Dietary Supplements: The bill seeks to amend the existing statutes to include dietary supplements as non-taxable items. Previously, dietary supplements were subject to sales tax when purchased.
• Amendments to Current Law: The bill proposes changes to two sections of the Minnesota Statutes 2024:
  • Section 297A.61, which outlines what constitutes a sale and purchase.
  • Section 297A.67, which details tax exemptions.

Significant Changes to Existing Law

• Change in Tax Applicability: The bill specifically removes dietary supplements from the list of taxable prepared foods and other consumer goods. This means consumers will no longer pay sales tax on dietary supplements.
• Impact on Revenue: While not explicitly stated, the exemption of dietary supplements from sales tax could impact state tax revenue derived from such sales.

Relevant Terms

• Tax exemption
• Dietary supplements
• Sales and use tax
• Minnesota Statutes
• Taxable goods and services