Retailers Support Proposed Vendor Collection Allowance

Tax Relief

The Minnesota Retailers Association–in partnership with the Minnesota Grocers Association and Minnesota Petroleum Marketers Association, and with support from the Minnesota Chamber, the National Federation of Independent Business and seven other organizations–is working on providing relief for businesses across Minnesota that collect and remit state sales taxes. The relief mechanism, called a Vendor Collection Allowance (Minnesota House File 69/Senate File 324), would allow Minnesota businesses that collect state sales taxes from customers to retain 1% of the taxes they collect to help offset their collection costs.

Breaking it down – a business that remits $50,000 in sales taxes to the State over a year would retain a Vendor Collection Allowance of $500. (The reality is that 1% is just the starting point and many other percentages will be looked as the MNRA continues to advocate for the idea.)

Read more about the Vendor Collection Allowance supporting organizations and some good reasons for legislators to support a bill here. Learn why a Vendor Collection Allowance makes sense here.