Gross receipts tax enforcement on various services

SF 3397 imposes a 2% gross receipts tax on specific business-to-business services provided within Minnesota, including legal, accounting, IT, consulting, and professional services. It directly affects businesses that provide these services to other businesses (e.g., a law firm billing another company for legal work). The tax is collected by the service provider (if they choose) and must be separately stated on invoices, or paid directly by the business receiving the services if the provider didn’t collect it. Businesses that paid similar taxes to another state can claim a credit for those payments. This tax is in addition to existing sales and income taxes under Minnesota law.