MN SF2609

Retailers may retain a portion of collected sales tax as compensation for costs of collecting and administering the tax, applicable only when taxes are reported and remitted on time

Vendor allowance rates are tiered: 2% for vendors with up to $60,000 annual sales tax liability; $1,200 plus 1.5% of amounts between $60,000-$600,000; and $9,300 plus 2% of amounts over $600,000

Minimum vendor allowance per reporting period is the lesser of $10 or total eligible taxes collected

Use taxes paid by retailers on their own purchases are excluded from the vendor allowance calculation

Effective date is July 1, 2025 (for sales and purchases made after June 30, 2025)