HF 3106

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/17/2023 11:37pm

A bill for an act
relating to taxation; sales and use; providing for a small business sales tax
allowance; amending Minnesota Statutes 2022, section 297A.77, subdivision 3;
proposing coding for new law in Minnesota Statutes, chapter 297A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 297A.77, subdivision 3, is amended to read:

Subd. 3.

Tax must be remitted.

The tax collected by a retailer under this section new text begin , except
for the amount allowed to be retained by the seller under section 297A.816, new text end must be remitted
to the commissioner as provided in chapter 289A and this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales taxes first due and remitted
after June 30, 2023.
new text end

Sec. 2.

new text begin [297A.816] SMALL BUSINESS SALES TAX ALLOWANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin A qualifying retailer may retain a portion of sales tax collected
as an allowance in compensation for the costs of collecting and administering the tax under
this chapter. This section applies only if the tax minus the allowance is both reported and
remitted to the commissioner in a timely fashion as required under chapter 289A. For
purposes of this section, a "qualifying retailer" means a retailer that maintains a place of
business operating out of real property located in the state that has 15 or fewer employees
during each of the 12 calendar months immediately preceding the reporting period.
new text end

new text begin Subd. 2. new text end

new text begin Tax not eligible for allowance. new text end

new text begin Use taxes paid by the retailer on the retailer's
own purchases and local sales and use taxes collected by the retailer are not included in
calculating the allowance under this section.
new text end

new text begin Subd. 3. new text end

new text begin Calculation of allowance; maximum amounts. new text end

new text begin The amount of the allowance
is equal to the sum of one-half of one percent of the tax collected in the reporting period,
up to $500. The allowance must not reduce the tax owed in the reporting period to less than
zero.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales taxes first due and remitted
after June 30, 2023.
new text end