This bill amends Minnesota Statutes to introduce a vendor allowance for retailers collecting sales and use taxes. It modifies section 289A.20, subdivision 4, to specify that vendors with a liability of $250,000 or more must remit their estimated June net tax liability to the commissioner before June 30, with any additional amounts due by August 20. The bill also clarifies that "net liability" is defined as the total liability minus the vendor allowance authorized under the new section 297A.816. Additionally, it establishes that the tax collected by retailers must be remitted to the commissioner, with an exception for the amount allowed to be retained as a vendor allowance.

The newly proposed section 297A.816 outlines the eligibility and calculation of the vendor allowance, allowing retailers to retain a portion of the sales tax collected to compensate for their costs in administering the tax. The allowance is calculated based on the retailer's sales tax liability, with specific thresholds and rates defined for different levels of liability. The bill stipulates that this vendor allowance is applicable only if the tax, minus the allowance, is reported and remitted in a timely manner. Both sections amended in the bill will take effect for sales and purchases made after June 30, 2025.

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