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S.F. No. 160 - Providing for a vendor sales tax remittance allowance; various other provisions
Author: Senator Karin Housley
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: February 9, 2015


This bill increases the threshold of sales and use tax liability for retailers that remit on a quarterly basis; provides a vendor allowance for vendors that remit sales and use taxes; and requires the Department of Revenue to provide an electronic address and five-digit zip code lookup table for sales taxes.  Effective for sales and purchases made after June 30, 2015. 




Increases the threshold amount for retailers that remit sales and use taxes on a quarterly basis.  Under current law, the threshold is $500.  The threshold would be increased to $1,000 provided that the average of the retailer’s last four quarterly returns does not exceed $3,000.  Under current law, the authorization to file quarterly remains in effect if a return for the previous reporting period does not exceed $1,500. 


Changes the term “liability” to “net liability” for purposes of vendor remittance.  The new definition of net liability is sales and use tax liability minus the vendor allowance authorized in section 4.


Allows vendors to retain the portion of the vendor allowance authorized in section 4.


Authorizes a vendor allowance that applies if the tax required to be remitted, minus the vendor allowance, is reported and remitted in a timely manner.  Provides that use taxes paid by the retailer on its own purchases are not included in calculating the vendor allowance, but all other sales and use taxes collected by the retailer are eligible to be included in calculating the allowance.  Provides that the vendor allowance is three percent of tax liability in the reporting period, up to a maximum of $90.  The minimum allowance is $10 or the total amount of sales tax collected during the reporting period, whichever is less.


Requires the commissioner of revenue to make accessible, by January 1, 2017, a free, electronically accessible address and five-digit zip code lookup table for purposes of local sales tax collection.  The commissioner may contract with an outside vendor to provide the table required under this section.  This section amends the current law requirement for the commissioner to provide a nine-digit or geo code database for purposes of local sales tax collections.  The administration of both the database and proposed table are funded by local sales tax collections.


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