Bill > HF2062

This bill modifies Minnesota's sales and use tax regulations by introducing a new vendor allowance program that compensates retailers for the costs of collecting and administering sales taxes. Under the new provisions, retailers can retain a percentage of the sales tax they collect based on their total sales tax liability for the fiscal year. Specifically, retailers with annual sales tax liability under $60,000 can retain two percent of collected taxes, those with liability between $60,000 and $600,000 can retain $1,200 plus 1.5 percent of the amount over $60,000, and retailers with liability over $600,000 can retain $9,300 plus two percent of the amount exceeding $600,000. The bill also adjusts tax reporting requirements, defining "net liability" as the total tax collected minus the vendor allowance, and ensures that retailers must still report and remit taxes in a timely manner to be eligible for the allowance. The changes will take effect for sales and purchases made after June 30, 2025, providing retailers with a financial incentive for diligent tax collection and reporting while potentially offsetting some of their administrative costs.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2062&ssn=0&y=2025