Minnesota Governor Signs Bill Providing Tax Parity To Vending Operators

Posted On: 6/1/2017

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TAGS: Minnesota vending tax bill, Gov. Mark Dayton, Minnesota Automatic Merchandising Council, National Automatic Merchandising Association, Steve Marx, Royal Vending

ST. PAUL, MN -- Gov. Mark Dayton signed on May 30 a budget bill that included tax parity for vending operators in Minnesota. The Minnesota Automatic Merchandising Council and National Automatic Merchandising Association had advocated for the legislation for the past two years.

The new law remedies an inequity in Minnesota's tax codes regarding the taxation of items sold through vending machines. It extends the existing tax exemption on the sale of food products to vending operators and makes it applicable to all retail locations in an equitable manner. Food products that are exempt when sold in grocery stores, convenience stores and catering trucks will now be exempt when sold through vending machines, too.

"Our position on this legislation was that for vending operators in the state of Minnesota there was an inequity in the sales tax law related to food products sold through vending machines," said MAMC president Steve Marx of Royal Vending (Maple Grove, MN). "This change in the law will place vending operators in the same position as other retailers and they will not be forced to either absorb the sales tax or pass it on to consumers. This is a big win for the industry and our consumers."