St. Paul, MN – Senator Grant Hauschild [DFL-Hermantown] is proud to highlight legislation he co-authored that was heard today in the Senate Tax Committee that aims to provide critical support to restaurants and small business owners across Minnesota. Senate File (S.F.) 34, establishes a sales tax exemption for food service equipment used in the production of prepared food and beverages.
Under the proposed bill, restaurants, catering services, and mobile food establishments will no longer be subject to sales tax on essential capital equipment such as machinery, cooking equipment, and other integral tools used for preparing and serving food. This relief, effective for purchases made after June 30, 2025, comes at a crucial time as inflation continues to increase the cost of food and operating expenses.
“This legislation represents a meaningful step toward helping our small business owners navigate the ongoing financial challenges brought on by inflation,” said Senator Hauschild. “By reducing costs for restaurants, we not only support their long-term growth and success, but it could also help lower food prices for customers who are feeling the pinch of rising costs.”
The bill defines “food service equipment” as items integral to the production and service of food or beverages in accordance with the Minnesota Food Code. Exemptions, however, do not extend to items like utensils, napkins, tables, and chairs, ensuring the focus remains on operational equipment.
As small businesses form the backbone of Minnesota’s economy, this sales tax exemption aims to ease their financial burden, allowing them to invest in their establishments and better serve their communities.
“Restaurants are more than just businesses; they are critical to the economy of Northern Minnesota where tourism plays a large part in our circular economy,” Senator Hauschild added. “This exemption will empower restaurant owners to focus on what they do best—providing exceptional experiences for Minnesotans.”
Senator Hauschild remains committed to advocating for policies that foster economic stability and growth while providing direct benefits to Minnesotans. For more information about Senate File No. 34, which was laid over, and its impact on small businesses, please contact Senator Hauschild’s office.
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