MN SF3068

Allows qualifying retailers to retain a portion of collected sales tax as compensation for collection and administration costs, effective for taxes due after June 30, 2023.

Defines a "qualifying retailer" as one maintaining a physical place of business in Minnesota with 15 or fewer employees during each of the 12 calendar months preceding the reporting period.

Calculates the allowance as one-half of one percent of tax collected per reporting period, with a maximum cap of $500 per period.

Excludes use taxes paid by retailers on their own purchases and local sales and use taxes from the allowance calculation.

Requires retailers to report and remit the tax minus the allowance to the commissioner in a timely fashion to be eligible for the allowance.