Exemption for Restaurant Equipment from Sales Tax

Last week, Representative Dave Baker introduced HF893, which provides sales tax exemption for restaurant machinery and equipment. Hospitality Minnesota has long advocated for this provision and will continue to push for this much needed change.
  
Here are the takeaways from the bill: 

• Includes machinery and equipment used by restaurants in the furnishing, preparing or serving prepared foods. 
  
• Effective retroactively for sales and purchases made after December 31, 2019. 
  
• For sales and purchases made after February 29, 2020 and before January 1, 2022 the capital equipment exemption under this section applies to all materials, supplies, or equipment used by restaurants to adapt to health guidelines or any executive order relating to COVID-19, including but not limited to tents, dividers and plexiglass. 

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Read HF893
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Read Hospitality Minnesota’s Issue Brief