The bill amends Minnesota Statutes to introduce a vendor allowance for retailers collecting sales and use taxes. Specifically, it modifies section 289A.20, subdivision 4, to clarify the remittance process for vendors based on their tax liability, including the introduction of the term "net liability," which accounts for the vendor allowance. The bill stipulates that vendors with a liability of $250,000 or more must remit their estimated June net liability by June 30, with any additional tax due by August 20. It also allows vendors with lower liabilities to remit taxes electronically by the 20th of the following month.

Additionally, the bill establishes 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 to compensate for the costs of tax collection, provided they report and remit the tax timely. The allowance is calculated based on the retailer's sales tax liability, with specific thresholds and rates defined for different levels of liability. The effective date for these changes is set for sales and purchases made after June 30, 2025.

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