AI Generated Summary
Purpose of the Bill
This bill aims to modify the requirements for sales and use tax payments in Minnesota. It introduces a vendor allowance and amends existing tax statutes to provide specific remittance procedures for businesses based on their fiscal liability.
Main Provisions
- Monthly Payment Schedule: Taxes from chapter 297A must be paid monthly, due by the 20th of the month following the taxable event unless specified otherwise.
- Vendor Payment Requirements:
- Vendors with fiscal liabilities of $250,000 or more must remit a portion of their estimated June net liability before the end of the fiscal year.
- Vendors with fiscal liabilities between $10,000 and $250,000 are required to remit payments electronically for subsequent calendar years.
- Payment Methods: Electronic payment is mandated, with exceptions made for those with religious beliefs against electronic transactions, allowing them to pay by mail.
- Vendor Allowance: The bill provides for a vendor allowance, which reduces the net liability by a prescribed amount under section 297A.816.
- Specific Vendor Considerations: Defines "vendor of construction materials" and outlines different requirements for those who mainly sell construction materials.
Significant Changes to Existing Law
- Introduces a vendor allowance to reduce the net tax liability.
- Details a phased reduction in the percentage of estimated payments due by high-liability vendors, with an eventual expiration of this requirement.
- Adjusts electronic remittance requirements, emphasizing flexibility for vendors with traditional payment objections.
Relevant Terms
sales and use tax, vendor allowance, net liability, electronic remittance, construction materials, fiscal liability, taxable event.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 16, 2025 | Senate | Floor | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Defines new provisions for religious objections to electronic payment."
],
"removed": [],
"summary": "The bill amends the sales and use tax remittance process under section 289A.20, subdivision 4.",
"modified": [
"Changes in percentage of estimated June liability remittance from 87.5% to 84.5% for certain vendors starting in 2022."
]
},
"citation": "289A.20",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill refers to section 16A.152, subdivision 2 for calculation of vendor remittance percentages.",
"modified": [
"Clarifies the reference to reduced percentages for vendor remittances based on commissioner certification."
]
},
"citation": "16A.152",
"subdivision": "subdivision 2"
}
]