The Minnesota State Legislature has introduced Senate Bill 1386, a measure aimed at providing tax exemptions for certain coin-operated entertainment and amusement devices. Introduced on February 13, 2025, the bill seeks to support local businesses by easing the financial burden associated with purchasing these devices, which include popular attractions like jukeboxes, foosball tables, and video games.

The key provisions of the bill amend existing statutes to exempt retailers from sales tax when they purchase coin-operated devices intended for amusement purposes. This exemption is designed specifically for businesses that sell admission to places of amusement and make these devices available to customers. Notably, the bill clarifies that vending machines, lottery devices, and gaming devices are not included in this exemption.

Supporters of the bill argue that it will help stimulate the local economy by encouraging more establishments to invest in entertainment options that attract customers. By reducing costs for businesses, proponents believe that this could lead to increased foot traffic and, ultimately, higher revenues for local economies.

However, the bill has faced some opposition. Critics express concerns that the tax exemptions could lead to a loss of state revenue, which might impact funding for essential public services. They argue that while supporting local businesses is important, it should not come at the expense of broader community needs.

The bill is set to take effect on July 1, 2025, if passed. Its implications could be significant for the entertainment industry in Minnesota, particularly for small businesses that rely on these devices to enhance customer experiences. As the legislative session progresses, the discussions surrounding Senate Bill 1386 will likely continue to evolve, reflecting the balance between economic support for local businesses and the need for sustainable state funding.