Committee hears bill to exempt school supplies from sales tax; opponents say the cost is poorly targeted

The House Tax Committee heard sponsor testimony and public comment on House File 3.31, a proposal to exempt a wide range of school supplies from the state sales tax. The sponsor described HF 3.31 as a ‘‘pro‑family’’ measure intended to reduce front‑line out‑of‑pocket school expenses for families and students.

Opposition testimony: Malik Williams, a researcher with the We Make Minnesota coalition, testified against the bill, saying the exemption would offer minimal value to most families while creating a large revenue gap. "Based on [the Deloitte estimate], this bill would save the average family in Minneapolis $11.89 per child," Williams said, and he cited a Department figure in committee materials that showed a multi‑million‑dollar fiscal cost (testimony referenced roughly $93 million in annual revenue loss). Williams recommended strengthening targeted, income‑tested relief and expanding teacher deductions rather than creating a broad exemption.

Debate and committee concerns

Members pressed the sponsor and the testifier on several points: the breadth of the exemption (the bill’s listed items include many common office supplies), the difficulty of limiting purchases to school use rather than business or other uses, and the regressive distributional effects of blanket exemptions that benefit high spenders proportionally more than low‑income households. Some members said they preferred expanding the existing K‑12 income‑tested subtraction or increasing refundable credits (which are targeted to need) rather than narrowing the sales‑tax base.

Procedural outcome

An A1 author amendment to HF 3.31 was adopted by voice vote earlier in the hearing. The sponsor later moved HF 3.31, as amended, for possible inclusion in the House tax omnibus; the committee took up subsequent items without further roll‑call votes on the motion.

What’s next

Committee members asked the Department of Revenue for follow‑up data: a clearer revenue estimate, the dollar impact on households by income group, and a take‑up estimate for the K‑12 subtraction. The sponsor said she was open to tailoring the proposal and working with committee members on targeting.

Sources: testimony to the House Tax Committee; Malik Williams, We Make Minnesota coalition; sponsor remarks during the committee hearing.