As part of H.F. No. 9 and signed into law on June 14, 2025, select businesses are now required to make accelerated sales tax payments. These businesses will now be required to prepay 5.6% of their June tax liability two business days before June 30th, and any remaining balance will be due by August 20th. This early payment rule applies to certain businesses with annual sales tax liabilities of $250,000 or more and is in effect for taxes remitted after May 31, 2027. The law also imposes a 10% penalty for businesses that fail to make the required accelerated payment on time. The penalty will be calculated on the unpaid amount of the required early payment.
The measure is part of a larger tax bill that covers other tax types such as income tax, property tax, cannabis excise tax and other administrative reforms. However, the accelerated payment provision stands out for the potential cash flow impact it will have on businesses, especially those with a large sales volume. The Minnesota Department of Revenue is expected to issue further guidance on which taxpayers are affected and how the accelerated payments should be calculated. Businesses should review their tax compliance procedures and make necessary adjustments to avoid penalties and ensure timely filing and payments.
(H.F. No. 9, Minnesota House of Representatives, Signed into law June 14, 2025)