Committee hears bill to exempt nonprofit prepared‑meal programs from state sales tax

Rep. Richard Johnson presented House File 33 81 to the House Tax Committee on March 12 to clarify state sales-tax exemptions for nonprofit prepared-meal programs.

Angelica Bravo Lehi, director of community partnerships and investment at Second Harvest Heartland, told the committee that Second Harvest’s Kitchen Coalition launched in March 2020 to coordinate restaurants, caterers and hunger‑relief organizations; Kitchen Coalition partners cook prepared meals for people unable to use raw groceries. She said that in June 2025 the Minnesota Department of Revenue informed Second Harvest Heartland that the program would need to begin paying sales tax on prepared meals as of July 1, 2025, an unexpected expense she estimated at $50,000–$60,000 per month. “This legislation will provide a fix, exempting prepared meals when they are purchased and distributed in performance of our mission of ending hunger together,” she said, urging bipartisan support.

Members questioned how broadly the exemption should apply and whether it would extend to nonprofits that perform food distribution alongside other programs. House Research and Department of Revenue staff signaled the current reading limits the exemption to nonprofits whose sole purpose is preparing food; Joanna Behrs, legislative director for the Department of Revenue, said the department could help tighten language so it matches the author’s intent.

Rep. Johnson said the bill aims to restore the prior understanding so dollars go directly to meals rather than to taxes; he moved to lay the bill over for possible inclusion in the omnibus tax bill and the committee agreed to do so.

Next steps: HF 33 81 was laid over for possible inclusion; the committee asked staff to review bill language and the revenue estimate for clarity.

Speakers quoted or paraphrased in this article are listed in the committee record.