Small business tax allowance establishment

SF 172 creates a small business sales tax allowance in Minnesota, directly affecting retailers with 15 or fewer employees. The bill allows these businesses to retain up to $500 of sales tax they collect, calculated as half a percent of the tax collected during a reporting period, provided they report and remit the remaining tax on time. This allowance reduces the amount they must pay to the state, but it cannot lower their total tax obligation below zero. The policy takes effect for sales taxes due after June 30, 2025.