The bill amends Minnesota Statutes to introduce a vendor allowance for retailers collecting sales and use taxes. It modifies section 289A.20, subdivision 4, to clarify the remittance process for vendors with varying tax liabilities, specifying that vendors with a liability of $250,000 or more must remit their estimated June net liability by June 30, while those with a liability of $10,000 to $250,000 must remit electronically by the 20th of the following month. Additionally, the bill defines "net liability" as the total liability minus the vendor allowance, which is a new provision introduced in the bill. The effective date for these changes is set for sales and purchases made after June 30, 2025.

Furthermore, the bill proposes a new section, 297A.816, which outlines the eligibility and calculation of the vendor allowance. Retailers can retain a portion of the sales tax collected as compensation for the costs associated with tax collection, provided they report and remit the tax in a timely manner. The allowance is calculated based on the retailer's sales tax liability, with specific thresholds and rates established for different levels of liability. The effective date for this section is also set for sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 289A.20, 297A.77