Bill > HF3190

This bill establishes a new gross receipts tax of 2% on certain business-to-business services in Minnesota, covering a wide range of professional services including legal, accounting, architectural, research and development, computer, consulting, administrative, repair, and technical services. The tax applies to retail sales of these services between trade or business entities, and businesses may choose to pass the tax directly to the purchaser by separately stating it on invoices. The tax is additional to existing sales and income taxes, and applies to services received in Minnesota starting January 1, 2026. The bill provides detailed definitions of key terms like "gross receipts" and "taxable services," outlines tax collection requirements, allows credits for taxes paid in other states, and specifies that the revenues will be deposited into the state's general fund. The commissioner of revenue will administer the tax using similar procedures to existing sales tax regulations, including rules for filing returns, paying taxes, and handling penalties and interest. Businesses with a nexus in Minnesota are required to collect and remit the tax, and the tax is considered a personal debt of the entity responsible for filing the return.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3190&ssn=0&y=2025