Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
Director
   Senate   
State of Minnesota
 
 
 
 
 
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.

Section

Provision

1

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.
 

2

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.

 

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 02/09/2015
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn