Clothing exemption modified to include only clothing $150 or less per item.

HF 2705 modifies Minnesota's sales tax exemption for clothing, limiting the exemption to items priced at $150 or less per item. The bill defines "clothing" broadly to include standard apparel like jackets, shoes, diapers, and swimwear, but explicitly excludes accessories (e.g., handbags, jewelry), sports equipment (e.g., cleats, helmets), and protective gear (e.g., hard hats, safety glasses). It does not exempt items sold separately, such as belt buckles or costume masks, or materials that become part of clothing (e.g., zippers, fabric). The change takes effect for sales after September 30, 2025, directly affecting consumers purchasing clothing above the $150 price point and retailers applying the tax exemption.