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HF 1004

A bill for an act exempting the sales price of honeybees from the state sales and use tax.

2025-2026 Regular Session

HF 1004 would exempt the sales price of honeybees from Minnesota sales and use tax, lowering costs for beekeepers and simplifying tax handling for retailers.

Rereferred to Ways and Means.
#bees #salestaxes #taxexemptions #usetaxes
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WeVote Research Nonpartisan
Bill Summary · HF 1004

Summary of HF 1004 (2025) – Exemption of Honeybees from State Sales and Use Tax

Bill at a glance

  • Bill number: HF 1004
  • Title: A bill for an act exempting the sales price of honeybees from the state sales and use tax
  • Introduced: April 10, 2025
  • Status: Rereferred to Ways and Means (initially placed on Ways and Means; subsequently rereferred on May 15, 2025)
  • Subject: Bees, sales taxes, tax exemptions, use taxes

What the bill would do

  • The bill creates a tax exemption for the sales price of honeybees. In other words, when honeybees are sold in Minnesota, the sale would not be subject to the state sales tax.
  • Because of the interplay between sales tax and use tax rules, the bill references Code section 423.6, which provides that an item exempt from the sales tax is also exempt from the use tax. This means:
    • No sales tax on honeybee purchases
    • No use tax on honeybee purchases as well

Key provisions

  • New subsection added: In Section 423.3, a NEW SUBSECTION 111 is added stating: “The sales price of honeybees” is exempt.
  • Administrative linkage: The exemption is designed to apply consistently with existing state tax law that treats items exempt from sales tax as exempt from use tax as well (per Code section 423.6).

Who is affected

  • Primary beneficiaries: Purchasers of honeybees (beekeepers, hobby beekeepers, and other buyers of live honeybees).
  • Affected entities: Retailers and suppliers of honeybees in Minnesota would not collect sales tax on honeybee transactions; state tax administration would recognize and process the exemption consistently under current use tax rules.

Fiscal and administrative impact

  • The exemption would reduce state sales tax revenue on honeybee sales and, by extension, reduce use tax collections on those transactions as well. The exact fiscal impact is data-dependent and would typically be explored in a fiscal note accompanying the bill.
  • Tax administration would need to align forms, guidance, and return processing to reflect the exemption for honeybees.

Procedural timeline and status

  • Introduced: April 10, 2025
  • Initial action: Placed on Ways and Means calendar
  • Rereferred: May 15, 2025 (to Ways and Means)
  • Next steps: If advanced out of Ways and Means, the bill would proceed to the full chamber for consideration; otherwise, further amendments or revisions could occur during committee work.

Additional notes

  • The bill is narrowly targeted to honeybees and does not extend exemptions to related beekeeping equipment or supplies.
  • The policy objective appears to be supporting beekeeping activities by reducing the cost of honeybee purchases.

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

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