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S.F. No. 324 - Providing for a vendor sales tax remittance allowance
Author: Senator Lyle Koenen
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: February 9, 2015


This bill allows retailers to deduct a portion of the sales taxes that they collect.  The portion deducted is based on a percentage of sales liability according to the retailers’ remittance schedule as required under current law.




Excludes the amount allowed to be deducted under section 2 from the provision of law that states that sales and use taxes collected are state funds from the time of collection.  Effective for sales and use taxes collected after December 31, 2015.


Allows vendors to deduct and retain a portion of the sales taxes collected and required to be remitted to the Department of Revenue.  The amount deducted is the greater of $5 or one percent of the vendor’s sales tax liability for the remittance period (monthly, quarterly, or annually), but may not reduce the vendor’s liability to less than zero.  The deduction is allowed only if the vendor is remitting sales or use taxes in a timely manner.  The deduction must be reported along with the remaining sales and use taxes on a scheduled return.  The vendor allowance does not apply to any local sales taxes or to use tax owed by the retailer on its own purchases.  Effective for sales and use taxes collected after December 31, 2015 and remitted after January 30, 2016.


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