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Support a Vendor Allowance for Collecting and Remitting Sales and Use Tax

POSITION: Hospitality Minnesota supports legislation to provide a vendor allowance for collecting and remitting the state sales and use tax. Brick and mortar businesses continue to be impacted by higher costs, burdensome mandates, and increased regulations that create competitive disadvantages with border communities and online retailers. A sales and use tax vendor collection allowance will compensate main street Minnesota businesses for collecting and remitting sales and use tax to the state.

SUPPORTING STATEMENTS:
​
  • 28 states currently allow retailers a vendor allowance for collecting and remitting sales and use tax. Most all states bordering Minnesota reimburse retailers for collecting and remitting sales and use tax.
 
  • According to a 2014 report by Price Waterhouse Coopers, it costs the average retailer 3.09% of the tax they collect to administer sales and local taxes, including the processing fees for credit and debit cards.1
​
  • Minnesota businesses currently pay 100% of the costs associated with collecting and remitting state sales taxes, which include payment card fees, employee training, point of sale system programing, accounting, remitting and auditing.
 
  • In 2013, the Minnesota Legislature passed a reimbursement for collecting and remitting 911 fees and taxes on the sale of mobile phones, acknowledging significant costs on businesses for collection.
 
  • The allowance being proposed ranges from .75% to 2% depending on the size of the enterprise. This is reasonable and would be very helpful to small business owners.
​
  • An allowance would only be authorized when taxes are remitted on time and paid online. The State would benefit by having an additional incentive for timely and efficient remittance.
 
1 PWC, Paying Taxes 2014: The Global Picture

hospitality_minnesota_2022_issue_brief_support_vendor_allowance_collecting_remitting_sales_use_tax.pdf
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  • Membership
    • What Members Say
    • Join Forms >
      • Operator Form
      • Allied Business Form
      • Tourism Partner Form
    • Login to Renew
  • Engagement
    • Programs and Events
    • Education and Training >
      • ServSafe
      • Sex Trafficking Prevention
    • Volunteer
    • Allied Members >
      • Allied Network
      • Become a Partner
      • Advertise with Us
    • Calendar
  • Advocacy
    • At the Legislature >
      • 2023 Legislative Agenda
      • 2023 Days at the Capitol
      • Capitol Updates
    • Advocacy Action Center >
      • Contact Your Elected Officals
      • Advocacy Group
    • Issue Briefs
    • HOPAC
  • Resources
    • Hospitality Law Review
    • Reports and Guidance >
      • Economic Snapshots
      • Monthly STR Summaries
      • Jobs Reports
    • Vendor Directory
    • BusinessCenter
  • HMEF
    • About the Foundation
    • Our High School Programs >
      • Pro Start
      • HTMP
    • HMEF Resources >
      • For Educators >
        • DEED Grants Through HMEF
        • ProStart Educators
        • HTMP Educators
      • For Students >
        • Next Generation Leader
        • Scholarships
      • For Industry Professionals
    • HMEF Events >
      • Hospitality Career Student Expo
      • Stars of the Future
      • ProStart Invitational
    • Support HMEF
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    • About the Association >
      • 20-21 Accomplishments Report >
        • Key Accomplishments
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    • NewsCenter
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