Sales and use tax; vendor allowance provided.

HF 386 amends Minnesota's sales and use tax rules to change payment schedules for large vendors and establish a new vendor allowance. Retailers with annual tax liabilities of $250,000 or more must now remit 84.5% of their estimated June tax liability by June 30 (reduced from 87.5% for 2020-2021) and the remainder by August 20. It also creates a vendor allowance (section 297A.816), allowing retailers to retain a portion of collected sales tax - calculated as a percentage of eligible taxes - to cover their collection costs, with a minimum $10 per reporting period. This affects most Minnesota retailers collecting sales tax, particularly larger businesses, and takes effect for transactions after June 30, 2025.