Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
State of Minnesota
S.F. No. 2055 - Vendor allowance
Author: Senator Roger C. Chamberlain
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: March 18, 2019


Section 1. Tax must be remitted. Modifies the remittance requirement to provide for the vendor allowance authorized under section 2.

Section 2. Vendor allowance. Authorizes retailers to retain a portion of sales taxes collected for purposes of complying with the remittance requirements in the sales tax chapter. Only retailers that timely collect and remit sales taxes may claim the vendor allowance. Retailers’ use taxes must not be used in calculating the vendor allowance. The allowance equals .25 percent of the tax collected in a reporting period, up to $250, but must not reduce tax owed to less than zero. Reporting periods are annually, quarterly, or monthly, depending on average monthly tax liabilities reported in the previous year.

Effective for sales tax remitted after June 30, 2019.

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: 03/18/2019
If you see any errors on this page, please e-mail us at