Minnesota Sales Tax Payment Method Law Change
Posted 7-7-2010 | By Teri Grahn | Download Article
Companies with sales or use tax liability of $120,000 or more during a fiscal year ending June 30, 2009, and thereafter, must now select one of two methods to submit monthly payments. This change is effective for taxes due and payable after September 1, 2010. Following is the Minnesota Department of Revenue description of the two sales tax payment methods:
Method 1: on or before the 14th day of the month following the month in which the taxable event occurred, the vendor must remit to the commissioner 90 percent of the estimated liability of the month in which the taxable event occurred.
Method 2: on or before the 20th day of the month in which the taxable event occurs, the vendor must remit to the commissioner a prepayment for the month in which the taxable event occurs, equal to 67 percent of the liability for the previous month.
Remaining tax payments not submitted through either method are due on the 20th day of the month following the month the taxable event occurred.
Once a company selects a payment method and the first payment is made, the method becomes a permanent selection for the fiscal year. Companies who do not select a method will be assigned Method 2.
For additional information please visit www.taxes.state.mn.us/taxes or contact Teri Grahn at tgrahn@hlbtr.com or 651-407-5889.