Flower Sales Tax Exemption.

 

The purpose of this bill is to exempt flowers from Minnesota’s sales tax in order to support local growers, encourage

horticultural activity, promote environmental stewardship, and make flowers more affordable to the public.

 

1. Supports Local Agriculture:

Minnesota has a growing number of small flower farms and greenhouse operations. Removing the sales tax increases

competitiveness for local growers against out-of-state suppliers.

2. Environmental Benefits:

Many locally grown flowers require fewer transportation miles than imported flowers, reducing carbon emissions and

supporting sustainable horticultural practices.

3. Economic Accessibility:

Flowers are commonly purchased for events such as funerals, weddings, school functions, and holidays. Eliminating the

sales tax reduces financial strain on families and increases consumer access.

4. Minimal Fiscal Impact:

Flowers represent a small portion of Minnesota’s overall retail sales base. The revenue loss is minor relative to the

state’s general fund, and the economic and environmental benefits outweigh the cost.

5. Administrative Feasibility:

The one-time appropriation ensures the Department of Revenue can update systems without burdening retailers or

increasing fees elsewhere.

 

a. “Flowers” means cut flowers, potted flowers, floral bouquets, floral arrangements, and live flowering plants sold at

retail.

b. “Retailer” refers to any business or vendor that sells flowers to consumers.

c. “Sales tax” refers to the state sales and use tax imposed under Minnesota Statutes, chapter 297A.

 

1. To implement this act, $250,000 is appropriated from the general fund to the Department of Revenue for:

a. Updating tax-processing software and electronic filing systems;

b. Producing and distributing updated tax guidance to Minnesota retailers;

c. Administrative costs associated with compliance and auditing procedures.

2. This is a one-time appropriation and is available until expended.

 

 

1. The Minnesota Department of Revenue will update all relevant tax forms, guidance documents, and digital systems to

reflect this exemption.

2. Retailers must maintain accurate records showing separation of taxable and non-taxable items, per Minnesota Statutes,

chapter 297A.

3. Failure to comply will result in standard audit procedures and penalties already established under Minnesota tax law.

 

This act shall take effect on July 1, 2026, unless amended by the committee or chamber.