- The owner files one return for all locations. Under this option, the vendor consolidates their business licenses and files one return. The vendor compensation credit will then be calculated by the department’s system without issue.
- The owner files a return for each location. Under this option, the vendor compensation credit would be more difficult to calculate. The department will calculate the credit based on the first return to post in the system. This order may be different from the order in which the vendor calculated the credit on their returns and may cause the credit to be denied on any subsequent returns.
- The vendor may choose to not calculate the vendor compensation credit on any of its returns and allow the department’s system to calculate the credit for them. When the department receives a return where the vendor has not calculated the vendor compensation credit, the department will calculate the credit and notify the vendor of the credit amount on their monthly account statement. This credit can be applied to future tax liabilities.
The vendor compensation credit can be calculated at 1.95% of the first $6,250 of taxes due and 1% of any amount over $6,250. The total amount of credit taken may not exceed $500 in any reporting period. The credit is only available if the return and payment are postmarked by the 15th day of the month in which the taxes are due and the vendor does not have an outstanding balance.
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