HF 2228

CHAPTER 151
EFFECTIVE DATE: Various

Revenue commissioner general powers recodified and clarified, criminal penalty recodified, and money appropriated.

ARTICLE 1: RECODIFICATION COMMISSIONER GENERAL POWERS

Section 1: Related terms defined.
Sec. 2: Department of revenue commissioner position established and duties provided.
Sec. 3: Powers and duties of commissioner detailed.
Sec. 4: Information usage provision established.
Sec. 5: Criminal justice data access provided.
Sec. 6: Criminal investigations, referral, and information disclosure provisions established.
Sec. 7: Rulemaking authority provided.
Sec. 8: Revenue notices provided.
Sec. 9: Tax information bulletins provided.
Sec. 10: Attorney general opinion request procedure detailed.
Sec. 11: Ex-employees not to represent taxpayers and penalty provided.
Sec. 12: Department of revenue employee evaluation basis detailed.
Sec. 13: Tax expenditure budget provided.
Sec. 14: Tax information sample data detailed.
Sec. 15: Tax incidence reports required.
Sec. 16: Local tax payment authority provided and money appropriated.
Sec. 17: Revenue department service and recovery special revenue fund provided.
Sec. 18: Delinquent liabilities cost collection provided.
Sec. 19: Local tax collection required.
Sec. 20: Political subdivision debt setoff provided.
Sec. 21: Tribal refund and sharing agreements relating to taxes and fees regulated.

TAX ADMINISTRATION
Sec. 22: Suit prohibition to restrain assessment or collection provided.
Sec. 23: Penalty for filing certain documents against department of revenue employees established.
Sec. 24: Civil damages for failure to release lien regulated.
Sec. 25: Civil damages for certain unauthorized collection actions provided.
Sec. 26: Taxpayer rights disclosure provided.
Sec. 27: In-person taxpayer interviews procedures established.
Sec. 28: Holders of powers of attorney notices required.
Sec. 29: Content and format of returns prescription required.
Sec. 30: Other return filing procedures specified.
Sec. 31: Electronically filed returns and signatures modified.
Sec. 32: Social security or identifying numbers required on forms.
Sec. 33: Social security number display prohibited on department materials.
Sec. 34: Examinations and investigation regulations and procedures established.
Sec. 35: Subpoena authority detailed.
Sec. 36: Commissioner assessment procedures provided.
Sec. 37: Penalty, interest, and tax charge abatement provided.
Sec. 38: Minimum and cancellation determination provided.
Sec. 39: Erroneous remittance procedure established.
Sec. 40: Rebate check and warrant reissuance authority provided and money appropriated.
Sec. 41: Administrative review provided.
Sec. 42: Jeopardy assessment and collection provided.
Sec. 43: Taxpayer assistance order terms established and taxpayer¿s rights advocate position created.
Sec. 44: Notice of determination or action of the commissioner procedure established.
Sec. 45: Tax due date on Saturday, Sunday or holiday procedures established.
Sec. 46: Timely mailing treated as timely filing and paying.
Sec. 47: Interest made payable to commissioner.
Sec. 48: Refund interest provided.
Sec. 49: Internal Revenue Service agreement provided.
Sec. 50: Electronic payments required and penalty provided.
Sec. 51: Financial transaction cards provided and money appropriated.
Sec. 52: Refund installment payments provided.
Sec. 53: Commissioner practice governance provided.
Sec. 54: Tax preparation service regulations established.
Sec. 55: Legal action to enjoin tax return preparer commencement procedures provided.

COLLECTION

Sec. 56: Collection remedy usage regulated.
Sec. 57: Payment allocation provided.
Sec. 58: Settlement agreements regulated.
Sec. 59: Taxpayer inability to pay regulated.
Sec. 60: Financial institution fee collection provided.
Sec. 61: Federal tax refund offset fees provided.
Sec. 62: Personal liability imposed.
Sec. 63: Successor liability of business regulated.
Sec. 64: Liability of transferees and fiduciaries detailed.
Sec. 65: Transferee liability for estate tax provided.
Sec. 66: Liability of third parties paying or providing for wages regulations established.
Sec. 67: Legal action and judgment confession provided.
Sec. 68: Date of assessment definition modified.
Sec. 69: Tax lien creation and filing procedures provided.
Sec. 70: Overpayment credit to delinquent tax liabilities provided.
Sec. 71: Setoff right detailed.
Sec. 72: State withholding contracts detailed.
Sec. 73: Levy and distraint authority addressed.
Sec. 74: Continuous levy authority provided.
Sec. 75: Employer withholding of delinquent taxes authority provided.
Sec. 76: Personal liability for failure to honor a levy provided.
Sec. 77: Seized property sale provided.
Sec. 78: Perishable goods sale provided.
Sec. 79: Property redemption procedures established.
Sec. 80: Sale certificate provided.
Sec. 81: Certificate of sale effect provided.
Sec. 82: Records of sale detailed.
Sec. 83: Levy and sale expense determination procedure provided.
Sec. 84: Levy proceeds application provided.
Sec. 85: Levy release authority and return property regulations provided.
Sec. 86: Acquisition and resale of seized property provided.
Sec. 87: Tax clearance license issuance provided.
Sec. 88: Certificate of business authority revocation procedures defined.
Sec. 89: Sales tax permit revocation provided.
Sec. 90: Tax delinquency posting provided.
Sec. 91: Delinquent taxpayer name publication authorized.
Sec. 92: Property tax law administration provided.
Sec. 93: Abatement power and error correction provided.
Sec. 94: Minnesota assessors¿ manual revision provided.
Sec. 95: Orders and decisions required in writing.
Sec. 96: County assessor¿s reports of assessment required to be filed with commissioner.
Sec. 97: County auditor to calculate tax rate.
Sec. 98: Record of proceedings changing net tax capacity required, duties of county auditor modified.
Sec. 99: Improper or negligent administration of property tax laws complaint procedure provided.
Sec. 100: Municipality may be party to tax hearing.
Sec. 101: Tax hearing request by municipality authorized.
Sec. 102: Witness summoning procedure provided.
Sec. 103: Fact and order finding and appeals.
Sec. 104: Appeal notice provided.
Sec. 105: Collection staying appeal prevented.
Sec. 106: Net tax capacity increase provided and additional taxes detailed.
Sec. 107: Proceeding determination of net tax capacity provided.
Sec. 108: Omitted or undervalued properties reassessment procedures established.
Sec. 109: Assessor qualification regulations established.
Sec. 110: Reassessment compensation and county reimbursement provided.
Sec. 111: Property omission provided.
Sec. 112: Senior accreditation provided.
Sec. 113: Assessor office reinstatement election by certain townships and cities provided.
Sec. 114: Recodification of rules.
Sec. 115: Purpose and effect detailed.
Sec. 116: Revisor instruction.
Sec. 117: Repealer.

ARTICLE 2: CONFORMING PROVISIONS

Sections 1-16: Technical and conforming provisions.
Sec. 17: Revisor¿s instruction.

ARTICLE 3: PROPERTY TAXES

Section 1: Poultry biomass facility exemption provided.
Sec. 2-8: Biomass Electric Generation Facility Personal Property exemptions
provided.
Sec. 9: Efficiency determination procedures modified.
Sec. 10: Sliding scale exclusion provisions modified.
Sec. 11: Agricultural homestead assessment procedures clarified.
Sec. 12: Class 4 property modified.
Sec. 13: E-file claim early payment authorized.
Sec. 14: Total revenue definition provided.
Sec. 15: Tax limit speocified.
Sec. 16: Emergency services charge procedure modified.
Sec. 17: Unpaid service charge collection procedures modified.
Sec. 18: Recapture provision clarified.
Sec. 19: Effective date.

ARTICLE 4 PROPERTY TAX AIDS AND CREDITS

Section 1: State demographer appointment modified.
Sec. 2: Residential homestead market value credit modified.
Sec. 3: Population definition modified.
Sec. 4: Metropolitan Council population estimates required.
Sec. 5-6: Conforming change.
Sec. 7: City revenue need definition modified.
Sec. 8: City aid base definition modified.
Sec. 9: Household size definition modified.
Sec. 10: Population over age 65 definition modified.
Sec. 11: County tax-base equalization aid appropriation procedures clarified.
Sec. 12: City aid reductions modified.
Sec. 13: Levy plus aid revenue base definition modified.
Sec. 14: Definition modified..
Sec. 15: Court aid adjustment provided.
Sec. 16: District court budget reduced.

ARTICLE 5 DEPARTMENT OF REVENUE PROPERTY TAXES

Section 1: Manufactured home personal property taxes clarified.
Sec. 2: Assessor?s report requirements modified.
Sec. 3: Technical modification for assessor appraisal duties.
Sec. 4: Leased property relating to cooperative farming agreement addressed.
Sec. 5: Exemption limitation modified.
Sec. 6: Taconite production tax proceeds tax clarified.
Sec. 7: Religious corporation clarified.
Sec. 8: Childrens homes exemption provided.
Sec. 9: Housing and redevelopment authority and tribal housing authority property exemption provided.
Sec. 10: Housing and redevelopment authority exemption provided.
Sec. 11: Regional rail authority exemption provided.
Sec. 12: Spirit mountain recreation area authority exemption provided.
Sec. 13: Installed capacity defined.
Sec. 14: Wind energy conversion system reporting date modified.
Sec. 15: Revenue distribution regulated.
Sec. 16-19: Technical references and language clarifications added.
Sec. 21: Homestead trust property eligibility modified.
Sec. 22: 1B property regulations modified.
Sec. 23: Lease definition modified.
Sec. 24: Utility or railroad valuation proceedings revised and clarified.
Sec. 25: Technical.
Sec. 26: Proof of compliance and transfer of duties revised.
Sec. 27: ?Meeting days? defined.
Sec. 28: County auditor reduction of certified taxes eliminated.
Sec. 29: Reporting requirements modified.
Sec. 30: Effective date provided.
Sec. 31: Prohibited purchasers regulated.
Sec. 32: Taxing district proceed apportionment procedures modified.
Sec. 33: Forfeited agricultural land sales technical reference added.
Sec. 34-36: Technical reference added.
Sec. 37: Calculation of deferred property tax amount procedures revised.
Sec. 38: Annual certification technical references revised.
Sec. 39: Covenant length specified.
Sec. 40: Withdrawal procedures revised.
Sec. 41: Technical reference.
Sec. 42: Language clarified.
Sec. 43-44: Dates added.
Sec. 45: Lincoln and Pipestone county town levy adjustment provided.
Sec. 46: Repealer.

ARTICLE 6: INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Section 1: Corporation modified.
Sec. 2: Various return filing dates modified.
Sec. 3: Estate tax return procedures modified.
Sec. 4: Joint income tax return liability clarified.
Sec. 5: Corporate franchise tax added to federal tax change provision.
Sec. 6: Technical.
Sec. 7: Refund form template modified.
Sec. 8: False or fraudulent return penalty modified.
Sec. 9: Property tax refund penalties modified.
Sec. 10: Tax return preparer penalties modified.
Sec. 11: Resident trust clarified.
Sec. 12: Federal taxable income additions clarified.
Sec. 13: Federal taxable income subtractions clarified.
Sec. 14: Technical.
Sec. 15: Credit for taxes paid to another state modified.
Sec. 16: Related terms defined.
Sec. 17: Technical.
Sec. 18: Partnership withholding modified.
Sec. 19: Minnesota adjusted taxable estate defined.
Sec. 20: Tax amount for state death taxes clarified.
Sec. 21: Repealer.

ARTICLE 7 SALES AND USE TAXES
Section 1: Technical reference.
Sec. 2: Purchaser filed refund claims regulated.
Sec. 3: Bad debt loss addressed.
Sec. 4: Purchaser filed return claims regulated.
Sec. 5: Capital equipment refund claims regulated.
Sec. 6: Definition of sale and purchase modified.
Sec. 7: Retail sale definition modified.
Sec. 8: Vehicle lease or rental tax exemptions rendered non applicable.
Sec. 9: Conforming change.
Sec. 10: Transportation equipment exemption provided.
Sec. 11: Food and food ingredient exemption clarified.
Sec. 12: Drug exemption clarified.
Sec. 13: Baby product exemptions revised.
Sec. 14: Industrial production materials exemption modified.
Sec. 15: Capital equipment exemption modified.
Sec. 16: Medical supply exemption clarified.
Sec. 17: Preexisting bids or contract regulations clarified.
Sec. 18: Chair lift, ramp, and elevator exemption clarified.
Sec. 19: Technical.
Sec. 20: Sellers permit statement regulation modified.
Sec. 21: Occasional sale provision modified.
Sec. 22: Tax base modified.
Sec. 23: Repealer.

ARTICLE 8 SPECIAL TAXES

Section 1: Armory building exemption provided.
Sec. 2: Furrier gross revenue effect clarified.
Sec. 3: Penalty abatement authorized.
Sec. 4: Distributor definition modified.
Sec. 5: Gambling product definition modified.
Sec. 6: Linked bingo game defined.
Sec. 7: Linked bingo game provider defined.
Sec. 8: Business record canceled check procedures clarified.
Sec. 9: Inspection rights of linked bingo games provided.
Sec. 10: Interstate commerce of cigarettes regulations revised.
Sec. 11: Bonding requirements provided.
Sec. 12: Monthly return regulations pertaining to cigarette distributors
modified.
Sec. 13: Tobacco products distributor monthly return modified.
Sec. 14: Bad debt regulations revised.
Sec. 15: Quarterly and annual payment regulations established.
Sec. 16: Reinsurance definition modified.
Sec. 17: Health Maintenance Organizations HMO and other service network tax
regulations modified.
Sec. 18: Commercial production defined.
Sec. 19: Corporate franchise penalty imposed.
Sec. 20: Repealer.

ARTICLE 9 MISCELLANEOUS

Section 1: Case reviewer duties modified.
Sec. 2: Scope modified.
Sec. 3: Itemized bill requirement modified.
Sec. 4: Penalty imposition classified as public data.
Sec. 5: Data exchange provided for state board of accountancy.
Sec. 6: Data exchange provided for lawyers board of professional
responsibility.
Sec. 7: Commissioner data exchange provided.
Sec. 8: Private data classified.
Sec. 9: Enforcement provisions modified.
Sec. 10: Tax preparer name publication list required.
Sec. 11: Assessment definition technical reference added.
Sec. 12: Compromise proposal fee imposed.
Sec. 13: Limitations period clarified.
Sec. 14: Debt definition modified.
Sec. 15: Electronic filing fee modified.
Sec. 16: Notice sufficiency provided.
Sec. 17: Extended delinquency penalties clarified.
Sec. 18: Information reports and withholding penalties clarified.
Sec. 19: Return preparer penalties clarified.
Sec. 20: Related definitions modified.
Sec. 21: Violation regulations revised.

AME
8-23-05