AI Generated Summary
The proposed bill SF No 44 aims to amend existing tax law in Minnesota, particularly focusing on how sales and use taxes are handled by vendors. Here is a simpler explanation of the key points in the bill:
Tax Due Dates: The bill outlines when sales and use taxes must be paid to the state by vendors. Generally, taxes are due monthly, by the 20th day of the month following the month in which the transaction occurred. Additionally, some use taxes need to be paid annually by April 15th.
Special Rules for High-Revenue Vendors:
- Vendors with a fiscal year revenue of $250,000 or more must pay a partial estimated tax for June, two days before the end of June. The percentage of this early payment changes over a few years—87.5% initially, dropping to 84.5% after 2022.
- Any remaining tax for June is due by August 20th of that year.
- Vendors that fall into this category are required to handle all their tax liabilities electronically.
Medium Revenue Vendors:
- Vendors with annual liabilities of $10,000 to $250,000 must remit all their dues electronically by the 20th day following the month the taxable event occurred.
Exception for Religious Reasons: The bill provides an exception for individuals who, due to religious beliefs, cannot make electronic payments. These individuals can opt to mail their payments, provided they inform the state in advance and ensure the mail is postmarked at least two days before the due payment date.
Definition and Inclusion: The bill also details who is considered a vendor of construction materials (primarily those whose sales consist 50% or more of certain specified materials like lumber and concrete) and the policies affecting them differ slightly in terms of early tax payment percentages.
Vendor Allowance: It mentions a 'vendor allowance,' suggesting some form of deduction or credit against the net liability (total tax due after deductions), but details on what this entails are not fully detailed in the summary provided.
This bill adjusts the timing and method of tax payments for businesses and provides specific provisions for different categories of vendors based on their revenue and the nature of their sales, with a focus on modernizing and streamlining tax collection mechanisms while accommodating specific needs like religious exceptions.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 15, 2025 | Senate | Floor | Action | Introduction and first reading | |
| January 15, 2025 | Senate | Floor | Action | Referred to | Taxes |
| January 20, 2025 | Senate | Floor | Action | Author added | |
| February 26, 2025 | Senate | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill amends the existing rules regarding sales and use tax payments under section 289A.20.",
"modified": [
"Redefines the remittance schedule for vendors based on liability brackets and includes exceptions for certain construction material vendors."
]
},
"citation": "289A.20"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References are made to reporting periods under section 289A.18 in connection with sales tax remittance.",
"modified": [
"Clarifies the timeline for when sales tax remittances are due in certain situations."
]
},
"citation": "289A.18"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section provides the due date for annual use tax return payments under section 289A.11.",
"modified": []
},
"citation": "289A.11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section sets out the rules for estimated June liability payments for vendors.",
"modified": [
"Guides adjustments to the percentage of estimated payments required from vendors."
]
},
"citation": "16A.152"
}
]