Section

Provision

1

Adds a definition of “net liability” for purposes of vendor remittance.  The definition of net liability is the sales and use tax liability minus the vendor allowance.
 

2

Requires that the taxes collected by retailers must be remitted as under current law except for the amount allowed to be retained as a vendor allowance.
 

3

Authorizes a vendor allowance that applies if the tax required to be remitted, minus the vendor allowance, is reported and remitted in a timely manner.  Provides that use taxes paid by the retailer on its own purchases are not included in calculating the vendor allowance, but all other sales and use taxes collected by the retailer may be included.  The vendor allowance is based on threshold amounts for sales tax liability in the previous fiscal year.  The minimum allowance is the lesser of $10 or the total amount of sales tax collected during the reporting period.