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Committee raises vendor compensation threshold in sales-tax bill and passes measure
Summary
A committee substitute to a sales-tax vendor compensation bill raised the threshold for the vendor's retention from $3,000 to $10,000 and was passed by voice vote.
A committee substitute to a sales-tax administration bill changed the vendor compensation threshold that merchants may retain when remitting sales taxes, and the committee approved the measure by voice vote.
A representative presenting the substitute described the change: "The committee recommended raising that, and my substitute simply raises, the, the vendor's compensation from 3% of the first 3000 to 3% of the first 10000. And, again, 1 half of 1% of the collect exceeding $10,000 beginning in January 26," the presenter said.
Nut graf: The substitute raises the portion of sales-tax collections vendors may keep (vendor compensation) by increasing the base amount to which the 3% retention applies from $3,000 to $10,000. The presenter said the change is intended to help small businesses and follows a 2024 study committee on credit card fees and sales taxes.
The presenter told the committee the vendor compensation had not been raised in more than 20 years and argued the change would "really help struggling small businesses." After questions, a motion to pass the bill was made, seconded, and the committee approved the measure by voice vote. The transcript does not include a recorded roll-call tally or the names of the members who moved or seconded the motion.
Ending: The measure was approved and the committee adjourned.
