MN HF3764

Establishes a new vendor allowance program allowing retailers and sellers to retain a portion of collected sales tax to compensate for collection and administration costs, effective for sales after June 30, 2024.

Vendor allowance rates are tiered based on annual sales tax liability: 2% for vendors with liability less than $60,000, 1% for those between $60,000 and $600,000, and 0.75% for those over $600,000, with a minimum allowance of $10 per reporting period.

Modifies the definition of "net liability" in sales and use tax payment requirements to exclude the vendor allowance amount, ensuring vendors report and remit only the tax net of their allowance.

Requires that the vendor allowance program only applies when taxes minus the allowance are reported and remitted to the commissioner in a timely manner, and excludes use taxes paid by sellers on their own purchases from allowance calculations.

Applies the vendor allowance to all sales and use taxes collected except those paid by sellers on their own purchases.