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House Tax Committee approves bill to exempt essential infant items from state sales tax and sends it to Ways and Means
Summary
Lawmakers advanced House File 18, a proposal to remove state sales tax on a list of infant-care products, after committee debate over targeting, cost and whether broad exemptions better serve low-income families than expanding child tax credits.
The Minnesota House Tax Committee on Jan. 24 voted to pass House File 18 and recommend it to the Ways and Means Committee. The bill would exempt a list of infant and baby-care items from the state sales tax, a proposal supporters said would provide immediate savings to families buying essential items.
Representative Engen, the billsponsor, said the House considered a number of everyday baby items and estimated the change would reduce state revenue by roughly $10 million. "We're looking at $138 of savings for parents based on a set of common purchases," Engen said, summarizing an itemized example drawn from retail prices.
Co-chair Ayesha Gomez urged targeting public dollars to the lowest-income families and explained why she had…
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