Sales and use tax exemption provided for all school supplies.

HF 176 exempts all school supplies from Minnesota's sales and use tax, effective July 1, 2025. The bill defines "school supplies" to include common items like notebooks, pencils, binders, calculators, and book bags priced at $60 or less, while explicitly excluding items like regular stationery, wrapping paper, and hiking backpacks. This change directly affects students, families, and schools purchasing these items, removing a sales tax burden on required classroom materials. The policy alters Minnesota Statutes section 297A.67 by adding a specific tax exemption for the listed supplies.