The bill, H.F. No. 2062, proposed in the Minnesota House of Representatives, relates to sales and use taxation and introduces a vendor allowance in the tax calculation process.

Key Provisions of the Bill:

1. Amendments to Minnesota Statutes (Sections 289A.20 & 297A.77)

   • It revises the due dates and remittance process for businesses paying sales and use taxes.
   • Businesses must continue following monthly or specific scheduled remittance deadlines.

2. Estimated June Liability Remittance Changes

   • Large vendors (liabilities of $250,000 or more annually) must remit a certain percentage of their estimated June net liability before June 30; the remainder is due by August 20.
   • The required percentage remitted in June will gradually reduce over time and eventually expire as per state financial conditions.

3. Electronic Payment Requirements

   • Vendors with liabilities of $10,000 or more must remit electronically.
   • Vendors with over $250,000 in liabilities must follow special remittance rules.

4. Exemptions for Religious Beliefs

   • Individuals prohibited from electronic tax payments due to religious beliefs are permitted to submit payments by mail without additional fees.

5. Special Classification for Construction Materials Vendors

   • A ‘vendor of construction materials’ is defined (e.g., selling lumber, plywood, millwork, or concrete) and is subject to certain tax rules.

6. Introduction of a Vendor Allowance

   • A vendor allowance is introduced, affecting net tax liabilities (as referenced in Section 297A.816), meaning businesses may retain a portion of sales tax collections.

Impact of the Bill:

• Provides relief to vendors by allowing them to keep a small portion of sales tax collection.
• Modifies tax remittance schedules for vendors based on their tax liabilities.
• Reduces upfront tax payments over time (eventual expiration of estimated June liability prepayments).
• Ensures electronic filing compliance, with exceptions for religious reasons.

This bill is a tax compliance and relief measure, making changes to vendor remittance obligations while gradually reducing upfront tax payments and providing a financial incentive (vendor allowance).