Bill > SF2609

This bill modifies Minnesota's sales and use tax laws to introduce a new vendor allowance provision that compensates retailers for the costs of collecting and administering sales taxes. The bill amends existing statutes to allow retailers to retain a portion of the sales taxes they collect, with the allowance percentage varying based on the retailer's total sales tax liability. For vendors with sales tax liability up to $60,000 in a fiscal year, they can retain two percent; for vendors with liability between $60,000 and $600,000, they can retain $1,200 plus 1.5 percent of the amount over $60,000; and for vendors with liability over $600,000, they can retain $9,300 plus two percent of the amount over $600,000. The vendor allowance is only applicable if the taxes are reported and remitted to the state in a timely manner, and use taxes paid by the retailer on their own purchases are not eligible. The bill also introduces the concept of "net liability," which is the total tax liability minus the vendor allowance, and requires retailers to report and remit this net amount. These changes are set to take effect for sales and purchases made after June 30, 2025, providing retailers with a financial incentive for efficient tax collection and administration.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2609&ssn=0&y=2025