Commissioner of corrections authorized to revoke earned incentive credits granted under Minnesota Rehabilitation and Reinvestment Act, and earned incentive release and supervision abatement status modified.

2025-2026 Regular Session

The bill would exempt the sales (and, via law, the use) tax on laundry soap and detergent in Minnesota.

Second reading

What the bill would do (primary purpose)

HF 963, as introduced, would add a specific sales-tax exemption for the sale of laundry soap or detergent by amending Minnesota Statutes, section 423.3 (adding new subsection .111). By operation of Minnesota Statutes, section 423.6, an item exempt from the sales tax is also exempt from the use tax, so the change would remove both sales and use tax on laundry soap or detergent.

Note: The bill title and some metadata reference corrections-related changes (authority for the commissioner of corrections to revoke earned incentive credits). The text provided with this filing amends the sales-tax statute to exempt laundry soap/detergent. This appears to be a content/title mismatch or clerical error. Readers should consult the most recent enrolled/renumbered bill (see “Procedural status” below) or the companion SF 1366 for the authoritative text.

Key provisions

Adds a new subsection (.111) to Minn. Stat. § 423.3 explicitly exempting “the sales price on the sale of laundry soap or detergent.”

Under Minn. Stat. § 423.6, the exemption from sales tax would automatically apply to the use tax as well.

The introduced text does not specify effective date, eligibility limits, or definitions beyond the plain language phrase “laundry soap or detergent.”

Who would be affected

Consumers: Buyers of laundry soap or detergent in Minnesota would no longer pay Minnesota sales tax on those items.

Retailers and sellers: Point-of-sale systems and compliance procedures would need to account for the exemption; retailers would collect less tax on these transactions.

State and local governments: Loss of sales/use tax revenue to the state and potentially to localities that share in sales tax receipts (extent depends on current revenue-sharing rules and fiscal notes not included here).

Minnesota Department of Revenue: Would implement guidance and administrative changes for the new exemption.

Procedural history & timeline

Introduced: March 17, 2025; referred to Public Safety Finance and Policy, then Ways and Means.

Committee actions: Subcommittee met 4/09/2025; committee reported recommending passage (committee vote 24–0, 1 excused).

1st and 2nd readings occurred; committee reported to adopt as amended and renumbered the bill as HF 1022 (committee report approving bill, renumbered as HF 1022 on 2025‑04‑17).

2025-04-28: Bill withdrawn.

Related/companion bill: SF 1366.

Potential impacts and considerations

Revenue impact: The bill would reduce state (and possibly local) sales/use tax revenue; no fiscal estimate is included in the provided text. Fiscal effects would depend on consumption patterns and existing exemptions.

Implementation: The Department of Revenue would need to issue guidance; retailers would revise tax collection settings.

Legal/administrative clarity: The short text may raise definitional questions (e.g., what products qualify as “laundry soap or detergent”), so guidance or legislative refinement may be needed.

Recommendation / next steps for readers

Because of the apparent mismatch between the bill title (corrections-related) and the provided statutory amendment (sales-tax exemption), check the current text of HF 1022 (renumbered bill) and companion SF 1366, and consult the official Minnesota Legislature bill page or the Office of the Revisor for the latest enrolled language and any fiscal notes.

Bill