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 vendors can retain a portion of the sales tax collected as a vendor allowance, provided they report and remit the tax in a timely manner.

The bill further details the eligibility and calculation of the vendor allowance, specifying that it applies only to sales and use taxes collected by retailers, excluding use taxes paid on their own purchases. The allowance is calculated based on the retailer's sales tax liability, with different percentages and thresholds established for various 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