Bill > S1363

This bill establishes a sales tax retention allowance, meaning that vendors who collect sales tax will be allowed to keep a small portion of the tax they collect. Specifically, vendors can retain an amount equal to two percent of the total sales tax they collect in a calendar year. This retention is also extended to use tax, which is a tax on goods purchased out-of-state for use within the state, with vendors also able to retain two percent of the use tax they collect. However, there's a cap: the total amount a single vendor can retain from both sales and use taxes combined in a year is limited to $2,000. Vendors will deduct these amounts by taking no more than two percent of the sales or use tax collected during their regular reporting periods, and once they reach the $2,000 annual limit, they cannot deduct any more until the next calendar year begins. This provision is set to take effect on January 1, 2013.