Minnesota's 75% rule determines taxability for prepared food, requiring businesses with 75% or more of sales from ready-to-eat items to tax their entire menu. This regulation shapes pricing, menu strategies, and compliance for restaurants and stores, influencing both businesses and consumers statewide. Understanding this rule is vital for businesses to avoid penalties and ensure accurate pricing strategies. It highlights how tax policies impact everyday dining choices in subtle yet significant ways. For more information, contact Prudent Accountants to ensure your business stays compliant.