Sales and use tax exemption for certain meals and drinks provided by a restaurant expanded.

HF 2961 expands Minnesota's sales tax exemption for certain restaurant meals and drinks. It adds two new exemptions: (1) complimentary meals and beverages (including alcohol) provided to customers at no cost, and (2) employee meals and non-alcoholic beverages purchased by restaurants. These exemptions apply to restaurants defined under Minnesota Statutes §157.15, subdivision 12. The changes take effect July 1, 2025, removing sales tax from these specific transactions.