HF2062 (Legislative Session 94 (2025-2026))
Sales and use tax; vendor allowance provided.
Related bill: SF2609
AI Generated Summary
Purpose of the Bill
This bill proposes changes to Minnesota's sales and use tax system by introducing a vendor allowance and adjusting the remittance schedules and amounts for businesses with certain tax liabilities.
Main Provisions
Vendor Allowance: The bill introduces a vendor allowance, which is a deduction from the owed sales tax that vendors can keep. This is intended to help offset the costs associated with collecting and remitting sales taxes.
Tax Remittance Schedule: Vendors with significant tax liabilities have specific schedules and requirements for remitting their sales taxes:
- Vendors with liabilities of $250,000 or more must remit a portion of their estimated June tax liability before the end of the month, with the remaining balance due in August.
- Vendors with liabilities between $10,000 and less than $250,000 are required to remit their liabilities electronically by the 20th of the following month.
Special Provisions for Construction Material Vendors: A specific definition for vendors dealing primarily in construction materials is provided, affecting how they report and remit taxes.
Electronic Payments: Most vendors are required to remit their taxes electronically unless prohibited by religious beliefs. In such cases, they may mail their payments without extra fees if the commissioner is notified.
Significant Changes to Existing Law
- The bill modifies how and when sales and use taxes are to be paid by certain vendors, with precise instructions for electronic and mail payments.
- It adjusts the percentages that large vendors must prepay for their June tax liabilities, which will gradually decrease according to the law.
Relevant Terms
sales tax, use tax, vendor allowance, electronic payments, construction materials, tax liability, remittance, vendor categories
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| March 12, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Clarification of electronic payment requirements and exemption for religious beliefs."
],
"removed": [],
"summary": "This bill amends the tax payment requirements under section 289A.20, subdivision 4, for vendors with specific liability thresholds.",
"modified": [
"Adjusted estimated remittance percentage due for vendors with $250,000 or more liability.",
"Updated deadlines and methods for vendors to remit taxes electronically or by mail."
]
},
"citation": "289A.20"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References requirements for the reporting period for vendors under section 289A.18.",
"modified": [
"Includes provisions for reporting deadlines related to sales events."
]
},
"citation": "289A.18"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References provision for use taxes due on an annual use tax return under section 289A.11, subdivision 1.",
"modified": []
},
"citation": "289A.11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References potential reduction of the remittance percentage through certification under section 16A.152, subdivision 2.",
"modified": []
},
"citation": "16A.152"
},
{
"analysis": {
"added": [
"Includes vendor allowance within the calculation of net tax liability."
],
"removed": [],
"summary": "This bill amends the vendor allowance provisions under section 297A.77, subdivision 3.",
"modified": []
},
"citation": "297A.77"
}
]