MN SF172

Qualifying small retailers with 15 or fewer employees and a physical location in Minnesota may retain a portion of collected state sales tax as compensation for collection and administration costs

Allowance equals 0.5% of state sales tax collected during the reporting period, capped at $500 maximum per period

Use taxes on the retailer's own purchases and local sales/use taxes are excluded from the allowance calculation

Retailers must report and remit the tax (minus allowance) on time to qualify; the allowance cannot reduce tax owed below zero

Effective for sales taxes first due and remitted after June 30, 2025