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HF 714

School supplies sales tax holiday provided.

2025-2026 Regular Session Introduced by Elliott Engen and 1 co-sponsor

HF 714 creates a temporary Minnesota sales tax holiday exempting qualifying school supplies from state tax during a defined period.

Introduction and first reading, referred to Taxes
#family #taxation-salesanduse
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WeVote Research Nonpartisan
Bill Summary · HF 714

Summary: HF 714 (2025-2026) – School Supplies Sales Tax Holiday Provided

Overview

HF 714 proposes a temporary sales tax holiday in Minnesota for school-related supplies. The bill aims to exempt certain school supplies from the state sales tax for a defined period, with the stated goal of reducing the cost burden on families during the back-to-school season.

Purpose and Intent

  • To provide a temporary tax relief measure by excluding qualified school supplies from the Minnesota sales tax.
  • To help families manage back-to-school expenses and stimulate purchases of required school materials.

Key Provisions (as proposed in HF 714)

  • Tax Holiday Period: Establishes a limited window (dates to be determined in the bill’s final version) during which qualified items would be tax-exempt.
  • Qualified Items: Specifies categories of school supplies eligible for the tax holiday. Typical categories in similar proposals include items such as:
    • Notebooks, paper, pens, pencils, pencils cases
    • Backpacks and folders
    • Binders, planners, planners
    • Calculators (certain types)
    • Art supplies, erasers, rulers
    • Other basic classroom supplies Note: The exact list and any exclusions (e.g., items over a price threshold, tangible personal property, or services) would be defined in the bill’s text.
  • Price Thresholds and Limits: Potentially sets a per-item price cap or overall limit for the tax-free period to prevent abuse. The bill’s final form would specify any caps (e.g., $50 per item, $250 per receipt, or similar).
  • Tax Coverage: Applies to the state sales tax; Minnesota’s local option sales taxes (if applicable) may or may not be included depending on the bill’s language.
  • Administrative Details: Provisions for administration, enforcement, and conformity with existing tax rules. This often includes:
    • How retailers report and handle the exemption at point of sale
    • Any required notices to consumers
    • Coordination with Department of Revenue for implementation

Affected Parties

  • Consumers/Families: Beneficiaries within the tax holiday period who purchase qualifying school supplies.
  • Retailers: Retailers collecting sales tax would need to apply the exemption during the specified period, adjust point-of-sale systems, and maintain records as required.
  • State Revenue/Tax Administration: Department of Revenue would oversee implementation, guidance, and compliance measures, and estimate fiscal impact.

Potential Impact

  • Fiscal: Temporary reduction in state revenue during the holiday period, proportional to the volume of qualifying sales. The magnitude depends on the scope of eligible items, the per-item caps, and consumer uptake.
  • Economic/Access: Lower out-of-pocket costs for families purchasing school supplies; potential increase in shopping activity during the holiday window.
  • Administrative: Short-term adjustments for retailers and tax administrators to accommodate the exemption.

Procedural and Timeline Aspects

  • Introduction and Referral: Introduced on February 13, 2025 and referred to the Taxes committee.
  • Legislative Process: As with other bills, HF 714 would require committee hearings, potential amendments, and floor votes in the Minnesota House of Representatives. If passed, it would move to the Senate for consideration and possible enactment into law.
  • Effective Date: Any tax holiday would specify an effective period (start and end dates) within the 2025-2026 session if enacted.

Notes

  • The bill currently has identified sponsors:
    • Primary sponsor:
    • Co-sponsors: Natalie Zeleznikar, Elliott Engen
  • Exact language, itemized list of eligible supplies, price caps, and sunset provisions would be detailed in the bill’s full text and any amendments adopted during committee review.

If you’d like, I can tailor this summary to a particular audience (e.g., policymakers, journalists, or constituents) or adjust for a deeper dive into the fiscal impact once the bill’s full text is available.

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

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