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HF 4775

Definition of prepared food modified.

2025-2026 Regular Session Introduced by Jim Joy and 1 co-sponsor

HF 4775 redefines prepared food for Minnesota sales tax as items sold with utensils or heated/combined, with carve-outs for many bakery items, unheated meats/seafood, certain raw f

Author added Perryman
#foodandnutrition #taxation-salesanduse
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WeVote Research Nonpartisan
Bill Summary · HF 4775

Summary of HF 4775 (2025-2026) — Minnesota

Purpose and intent

HF 4775 proposes to modify Minnesota’s definition of “prepared food” for sales and use tax purposes. The change affects which food items are taxed as prepared foods, and thereby could influence tax treatment and compliance for sellers and consumers. The effective date is sales after June 30, 2026.

Key provisions

  • Current law reference: The bill amends Minnesota Statutes 2024, § 297A.61, subd. 31 (prepared food).

  • Definition of prepared food (new language): A food item qualifies as “prepared food” if it meets either of the following:

    1. The food is sold with eating utensils provided by the seller (e.g., plates, knives, forks, spoons, glasses, cups, napkins, or straws).
    2. The food is sold in a heated state or heated by the seller, or two or more food ingredients are mixed or combined by the seller for sale as a single item.

  • Exclusions (items that would not be considered prepared food under the bill): The bill retains and clarifies several carve-outs, including:

    • Bakery items (bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danishes, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas, etc.).
    • Ready-to-eat meat and seafood sold in an unheated state by weight.
    • Eggs, fish, meat, poultry, and foods containing these raw animal foods that require cooking by the consumer as recommended by FDA Food Code guidance (as referenced).
    • Food that is only sliced, repackaged, or pasteurized by the seller.
    • A new carve-out: food sold by a seller whose primary NAICS classification is manufacturing in sector 311, except subsector 3118.

  • Effective date: The act applies to sales and purchases made after June 30, 2026.

Who/what is affected

  • Taxation basis for prepared foods: Retailers and food sellers in Minnesota will need to determine whether a given food item is classified as “prepared food” under the revised definition, which could affect whether the sale is taxed as prepared food.
  • Businesses by NAICS classification: The new carve-out related to manufacturers (NAICS sector 311, excluding subsector 3118) could include certain food items produced by food manufacturers that otherwise might be considered prepared food when sold to consumers, potentially altering tax treatment for those products.
  • Consumers: Indirectly affected through potential changes in the applicability of sales tax to certain foods, particularly items that might fall into or out of the prepared-food category under the revised definition.

Procedural and timeline aspects

  • Introduction and status: Introduced and referred to the House Taxes committee on March 26, 2026. Co-sponsors include Jim Joy and Bernie Perryman. As of the latest update, the bill has progressed to a first reading with referral.
  • Next steps for passage: If advanced, the bill would proceed through the committee process, potential amendments, and floor votes in the Minnesota Legislature, followed by the usual reconciliation process if it passes in one chamber and must be enacted into law.

Summary in brief

HF 4775 modifies the threshold for what counts as “prepared food” for Minnesota sales and use tax purposes. It clarifies that the sale of food with provided utensils or food heated by the seller (or two or more ingredients mixed/combined for a single item) falls under the prepared-food category, subject to several explicit exclusions (notably many bakery items, unheated ready-to-eat meats/seafoods, certain raw animal foods per FDA guidance, and foods merely sliced/repacked/pasteurized). A new exemption targets food sold by certain manufacturing-sector sellers. The effective date is July 1, 2026 (sales after June 30, 2026).

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

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