Senator Nelson bill to exempt medical-related purchases from sales tax receives first hearing

(ABC 6 News) — A bill authored by Senator Carla Nelson (R-Rochester) to help make medical supplies more affordable for Minnesotans was heard in the Senate Taxes Committee on Wednesday.

The bill is called Senate File 268, and it aims to make healthcare more affordable by getting rid of sales taxes on more essential medical supplies.

Currently, medical items like drugs, medical devices, and some durable equipment like prosthetics are exempt from sales tax. In addition, some of these purchases, such as accessories and supplies, are exempt only if purchased through Medicare or Medicaid.  

As a result, families managing illnesses or injuries would face reduced out-of-pocket costs, and healthcare providers would save on the supplies needed for patient care.

Items covered by private health insurance plans that are not already exempt would also qualify, extending the relief to a broader rang of purposes.

“Healthcare costs are a growing concern for families across Minnesota,” Senator Nelson said via a press release. “This bill provides relief where it’s needed most — on the essential items that keep people healthy. This is a common-sense step to reduce costs for patients and providers, and I’m optimistic we can get this included in this year’s comprehensive tax bill later in session.”