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HF 419

A bill for an act exempting from the state sales and use tax the sales price of lodging supplies sold to a lodging provider.

2025-2026 Regular Session Introduced by Jon Dunwell and 6 co-sponsors

HF 419 exempts lodging supplies sold to providers from Minnesota sales and use taxes when guests use them, cutting tax costs for hotels and keeping tax rules aligned.

Subcommittee recommends passage.
#lodging #prices #salestaxes #usetaxes
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WeVote Research Nonpartisan
Bill Summary · HF 419

Summary of HF 419

Overview

HF 419 is a bill that would exempt the sales price of certain lodging supplies from Minnesota state sales and use tax when those supplies are sold to a lodging provider and are consumed or used by the lodging provider’s customer (i.e., the guest). The bill defines key terms and aligns the exemption in both sales and use tax statutes.

  • Introduced: February 13, 2025
  • Current status: Subcommittee recommends passage (as of March 11, 2025)
  • Sponsors: Thomson (primary), Jeneary, C. Johnson, Dunwell, Fisher, Nordman, Mommsen
  • Subject: lodging, prices, sales taxes, use taxes

What the bill does (Key Provisions)

  • Exemption: The sales price of lodging supplies sold to a lodging provider is exempt from state sales and use taxes if the supplies are consumed or used by the lodging provider’s customer.
  • Tax coverage: Because the exemption applies to the sales tax under Code section 423.3, it also removes the use tax on those same items under Code section 423.5 (per Code section 423.6).
  • Targeted transaction: The exemption only applies when the lodging supplies are used or consumed by the lodging provider’s customer (e.g., hotel guest), not necessarily when used by the lodging provider’s staff or for other purposes.

Definitions (as used in the bill)

  • Customer: A user, as defined in section 423A.2.
  • Lodging provider: The entity defined as a lodging provider in section 423A.2.
  • Lodging supplies: Items such as toilet tissue, facial tissue, shampoo, conditioner, complimentary toiletries, running water, electrical service to a guest room, bottled water, towels, sheets, blankets, pillows, wrapped glasses, coffee cups, television service, pens, paper, phone service, and cleaning supplies.

Scope and Examples

  • Eligible items include common in-room amenities and supplies typically furnished to guests.
  • The exemption applies to the sales price paid by the lodging provider for these supplies, provided they are used or consumed by guests.

Legislative history and timeline

  • Introduced: February 13, 2025
  • February 26, 2025: Subcommittee on Ways and Means (Johnson, C.; Hermanson; Wichtendahl) meeting
  • March 11, 2025: Subcommittee meeting; subcommittee recommends passage
  • Next steps: If the subcommittee-approved path continues, the bill would move through the full committee and legislative process for final passage

Who is affected

  • Lodging providers (hotels, motels, and similar establishments) that purchase lodging supplies intended for guest use
  • Suppliers of lodging supplies (retailers and distributors) who sell to lodging providers
  • Consumers/guests indirectly benefit through potential cost reductions reflected in lodging operations

Practical impact

  • Potential reduction in tax costs for lodging providers on guest-use supplies
  • Simplifies tax treatment by creating a clear exemption for supplies used by guests
  • Keeps revenue impact aligned between sales and use taxes (exemption applies to both, per existing tax code linkage)

If you’d like, I can add a brief section comparing HF 419 to current law or provide a one-page quick-reference for lodging industry stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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