1.1 	A bill for an act
1.2 	relating to taxation; recodifying and clarifying the
1.3 	powers of the commissioner of revenue; recodifying a
1.4 	criminal penalty; appropriating money; amending
1.5 	Minnesota Statutes 2004, sections 16D.08, subdivision
1.6 	2; 115B.49, subdivision 4; 239.785, subdivision 4;
1.7 	256.9657, subdivision 7; 256.9792, subdivision 8;
1.8 	273.11, subdivision 5; 287.37; 289A.35; 289A.42,
1.9 	subdivision 1; 289A.60, subdivision 13; 295.57,
1.10 	subdivision 1; 295.60, subdivision 7; 297A.64,
1.11 	subdivision 3; 297B.11; 297H.10, subdivision 1;
1.12 	297I.10, by adding a subdivision; proposing coding for
1.13 	new law as Minnesota Statutes, chapter 270C; repealing
1.14 	Minnesota Statutes 2004, sections 270.01; 270.02;
1.15 	270.021; 270.022; 270.04; 270.05; 270.052; 270.058;
1.16 	270.059; 270.06; 270.0601; 270.0602; 270.0603;
1.17 	270.0604; 270.0605; 270.061; 270.062; 270.063;
1.18 	270.064; 270.065; 270.066; 270.0665; 270.067; 270.068;
1.19 	270.0681; 270.0682; 270.069; 270.07; 270.084; 270.09;
1.20 	270.10; 270.101; 270.102; 270.11, subdivisions 2, 3,
1.21 	4, 5, 6, 7; 270.13; 270.14; 270.15; 270.16; 270.17;
1.22 	270.18; 270.19; 270.20; 270.21; 270.22; 270.23;
1.23 	270.24; 270.25; 270.26; 270.27; 270.271; 270.272;
1.24 	270.273; 270.274; 270.275; 270.276; 270.277; 270.278;
1.25 	270.30; 270.485; 270.494; 270.60; 270.65; 270.652;
1.26 	270.66; 270.67; 270.68; 270.69; 270.691; 270.70;
1.27 	270.7001; 270.7002; 270.701; 270.702; 270.703;
1.28 	270.704; 270.705; 270.706; 270.707; 270.708; 270.709;
1.29 	270.71; 270.72; 270.721; 270.73; 270.74; 270.75;
1.30 	270.76; 270.771; 270.78; 270.79; 287.39; 289A.07;
1.31 	289A.13; 289A.31, subdivisions 3, 4, 6; 289A.36;
1.32 	289A.37, subdivisions 1, 3, 4, 5; 289A.38, subdivision
1.33 	13; 289A.43; 289A.65; 290.48, subdivisions 3, 4;
1.34 	290.92, subdivisions 6b, 22, 23; 290.97; 296A.20;
1.35 	296A.201; 296A.25; 297A.86; 297A.93; 297D.14; 297E.08;
1.36 	297E.09; 297E.12, subdivision 10; 297E.15; 297F.15,
1.37 	subdivisions 1, 2, 3, 4, 5, 6, 7, 8; 297F.16; 297F.22;
1.38 	297G.14, subdivisions 1, 2, 3, 4, 5, 6, 7, 8; 297G.15;
1.39 	297G.21; 297I.45; 297I.50; 297I.55; 297I.95.
1.40 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.41 	ARTICLE 1
1.42 	RECODIFICATION
2.1 	COMMISSIONER GENERAL POWERS

2.2 	Section 1. [270C.01] DEFINITIONS.
2.3 		Subdivision 1.Applicability. For purposes of this
2.4 	chapter only, the following words, terms, and phrases have the
2.5 	meanings given them in this section unless the language or
2.6 	context clearly indicates that a different meaning is intended.
2.7 		Subd. 2.Commissioner. "Commissioner" means the
2.8 	commissioner of revenue or a person to whom the commissioner has
2.9 	delegated functions.
2.10 		Subd. 3.Department. "Department" means the Department
2.11 	of Revenue.
2.12 		Subd. 4.Electronic means; electronically. "Electronic
2.13 	means" and "electronically" mean a method that is electronic, as
2.14 	defined in section 325L.02, paragraph (e), and that is
2.15 	prescribed by the commissioner.
2.16 		Subd. 5.Law administered by the commissioner. "Law
2.17 	administered by the commissioner" means a law or rule that vests
2.18 	or imposes a power, duty, responsibility, or authority in the
2.19 	commissioner, except the following laws:  (1) the property tax
2.20 	laws, and (2) Minnesota Statutes, chapter 16D.
2.21 		Subd. 6.Person. "Person" means an individual, trust,
2.22 	estate, fiduciary, partnership, company, corporation, limited
2.23 	liability company, association, governmental unit or agency,
2.24 	public or private organization of any kind, or other legal
2.25 	entity.
2.26 		Subd. 7.Property tax laws. "Property tax laws" means
2.27 	all laws and rules related to the administration of the tax on
2.28 	property referred to in section 272.01, subdivision 1, and all
2.29 	laws related to the administration of the tax on wind energy
2.30 	production imposed under section 272.029, subdivision 1.
2.31 		Subd. 8.Return. "Return" means a return, information
2.32 	return, or report, required by a law administered by the
2.33 	commissioner.
2.34 		Subd. 9.State revenue laws. "State revenue laws" means
2.35 	all laws administered by the commissioner and the property tax
2.36 	laws.
3.1 		Subd. 10.Tax. "Tax" means a tax or fee imposed by a law
3.2 	administered by the commissioner.
3.3 		Subd. 11.Taxpayer. "Taxpayer" means a person subject
3.4 	to, or liable for, a tax or fee imposed by a law administered by
3.5 	the commissioner; a person required to file a return,
3.6 	information return, or report, with respect to, or to pay, or
3.7 	withhold or collect and remit, a tax or fee imposed by a law
3.8 	administered by the commissioner; a person required to obtain a
3.9 	license or a permit under a law administered by the
3.10 	commissioner; or a person required to keep records regarding a
3.11 	tax or fee imposed by a law administered by the commissioner.
3.12 	
EFFECTIVE DATE. This section is effective August 1, 2005.

3.13 	Sec. 2. [270C.02] DEPARTMENT OF REVENUE; COMMISSIONER.
3.14 		Subdivision 1.Commissioner; supervision of department
3.15 	and appointment. The Department of Revenue is under the
3.16 	supervision and control of the commissioner.  The commissioner
3.17 	shall be appointed by the governor under the provisions of
3.18 	section 15.06.  The commissioner shall be selected on the basis
3.19 	of ability and experience in the field of tax administration and
3.20 	without regard to political affiliations.[270.01; 270.02,
3.21 	subd. 8]
3.22 		Subd. 2.Power to appoint staff. (a) The commissioner
3.23 	may organize the department as the commissioner deems necessary,
3.24 	and appoint one deputy commissioner, a department secretary,
3.25 	directors of divisions, and such other officers, employees, and
3.26 	agents, as the commissioner deems necessary to carry out the
3.27 	duties, responsibilities, and authority entrusted to the
3.28 	commissioner.  The commissioner may define the duties of such
3.29 	officers, employees, and agents, and delegate to them any of the
3.30 	commissioner's powers or duties, subject to the commissioner's
3.31 	control and under such conditions as the commissioner may
3.32 	prescribe.  Appointments to exercise delegated power to sign
3.33 	documents which require the signature of the commissioner or a
3.34 	delegate by law shall be by written order filed with the
3.35 	secretary of state.[270.02, subd. 3]
3.36 	(b) The commissioner may appoint agents as the commissioner
4.1 	considers necessary to make examinations and determinations.
4.2 	The agents have the rights and powers conferred on the
4.3 	commissioner to subpoena, examine, and copy books, records,
4.4 	papers, or memoranda, subpoena witnesses, administer oaths and
4.5 	affirmations, and take testimony.[270.06, clause (17)]
4.6 		Subd. 3.Salaries. The commissioner shall appoint and
4.7 	employ additional employees and other agents, purchase supplies
4.8 	or materials, or incur other expenditures in the administration
4.9 	and enforcement of state revenue laws as considered necessary.
4.10 	The salaries of all agents and employees provided for in this
4.11 	chapter shall be fixed by the appointing authority, subject to
4.12 	the approval of the commissioner of employee relations.
4.13 	[270.06, clause (18)]
4.14 		Subd. 4.Office and supplies furnished; expenses. The
4.15 	commissioner shall be provided with suitable and necessary
4.16 	office furniture, supplies, stationery, books, periodicals,
4.17 	newspapers, maps, and financial and commercial reports; and all
4.18 	necessary expenses therefor shall be audited and paid as other
4.19 	expenses are audited and paid.  The actual necessary expenses of
4.20 	the commissioner, the commissioner's employees and agents, and
4.21 	such experts and assistants as may be employed by the
4.22 	commissioner while traveling on the business of the department,
4.23 	shall be paid by the state.  The expenditures must be sworn to
4.24 	by the party who incurred the expense and approved by the
4.25 	commissioner.[270.04]
4.26 		Subd. 5.Filing officers. The commissioner is the filing
4.27 	officer and custodian of the books, files, and records of the
4.28 	department.  The commissioner may certify copies of the books,
4.29 	files, and records in the custody of the commissioner for all
4.30 	purposes in the same manner as other custodians of public
4.31 	records.  The commissioner may authorize other employees of the
4.32 	department to certify books, files, and records in the custody
4.33 	of the commissioner.  The authorization must be made by a
4.34 	written order stating the documents that may be certified and
4.35 	must be filed with the secretary of state.[270.022]
4.36 		Subd. 6.Department seal. The department shall have a
5.1 	seal engraved with the words, "State of Minnesota, Department of
5.2 	Revenue."  Such seal may be used to authenticate the official
5.3 	acts of the commissioner or any other employees of the
5.4 	department, but the failure to use the seal shall not invalidate
5.5 	any such acts.  Duplicate seals may be provided for the use of
5.6 	directors of divisions or other employees of the department.
5.7 	[270.02, subd. 4]
5.8 	
EFFECTIVE DATE. This section is effective August 1, 2005.

5.9 	Sec. 3. [270C.03] POWERS AND DUTIES.
5.10 		Subdivision 1.Powers and duties. The commissioner shall
5.11 	have and exercise the following powers and duties:
5.12 	(1) administer and enforce the assessment and collection of
5.13 	taxes;[270.06, clause (14)]
5.14 	(2) make determinations, corrections, and assessments with
5.15 	respect to taxes, including interest, additions to taxes, and
5.16 	assessable penalties;[289A.35, first sentence]
5.17 	(3) use statistical or other sampling techniques consistent
5.18 	with generally accepted auditing standards in examining returns
5.19 	or records and making assessments;[289A.35, last sentence]
5.20 	(4) investigate the tax laws of other states and countries,
5.21 	and formulate and submit to the legislature such legislation as
5.22 	the commissioner may deem expedient to prevent evasions of state
5.23 	revenue laws and to secure just and equal taxation and
5.24 	improvement in the system of state revenue laws;[270.06, clause
5.25 	(10)]
5.26 	(5) consult and confer with the governor upon the subject
5.27 	of taxation, the administration of the laws in regard thereto,
5.28 	and the progress of the work of the department, and furnish the
5.29 	governor, from time to time, such assistance and information as
5.30 	the governor may require relating to tax matters;[270.06,
5.31 	clause (11)]
5.32 	(6) execute and administer any agreement with the secretary
5.33 	of the treasury of the United States or a representative of
5.34 	another state regarding the exchange of information and
5.35 	administration of the state revenue laws;[270.06, clause (19)]
5.36 	(7) require town, city, county, and other public officers
6.1 	to report information as to the collection of taxes received
6.2 	from licenses and other sources, and such other information as
6.3 	may be needful in the work of the commissioner, in such form as
6.4 	the commissioner may prescribe;[270.06, clause (5)]
6.5 	(8) authorize the use of unmarked motor vehicles to conduct
6.6 	seizures or criminal investigations pursuant to the
6.7 	commissioner's authority; and [270.06, clause (20)]
6.8 	(9) exercise other powers and authority and perform other
6.9 	duties required of or imposed upon the commissioner by law.
6.10 	[270.06, clause (21)]
6.11 		Subd. 2.Mission; efficiency. It is part of the
6.12 	department's mission that within the department's resources the
6.13 	commissioner shall endeavor to:
6.14 	(1) prevent the waste or unnecessary spending of public
6.15 	money;
6.16 	(2) use innovative fiscal and human resource practices to
6.17 	manage the state's resources and operate the department as
6.18 	efficiently as possible;
6.19 	(3) coordinate the department's activities wherever
6.20 	appropriate with the activities of other governmental agencies;
6.21 	(4) use technology where appropriate to increase agency
6.22 	productivity, improve customer service, increase public access
6.23 	to information about government, and increase public
6.24 	participation in the business of government;
6.25 	(5) utilize constructive and cooperative labor-management
6.26 	practices to the extent otherwise required by chapters 43A and
6.27 	179A;
6.28 	(6) report to the legislature on the performance of agency
6.29 	operations and the accomplishment of agency goals in the
6.30 	agency's biennial budget according to section 16A.10,
6.31 	subdivision 1; and 
6.32 	(7) recommend to the legislature appropriate changes in law
6.33 	necessary to carry out the mission and improve the performance
6.34 	of the department.[270.02, subd. 3a]
6.35 	
EFFECTIVE DATE. This section is effective August 1, 2005.

6.36 	Sec. 4. [270C.04] USE OF INFORMATION.
7.1 	Notwithstanding the provisions of any other law, the
7.2 	commissioner may use any and all information in the
7.3 	commissioner's possession, or to which the commissioner has
7.4 	access, to insure equal and consistent application and
7.5 	enforcement of all state revenue laws.  This section shall not
7.6 	be construed as granting to the commissioner any power to
7.7 	release any information outside the department.[270.065]

7.8 	EFFECTIVE DATE. This section is effective August 1, 2005.

7.9 	Sec. 5. [270C.05] ACCESS TO CRIMINAL JUSTICE DATA.
7.10 	The commissioner may enter into an agreement with the
7.11 	commissioner of public safety to allow designated employees of
7.12 	the Department of Revenue to have access to the criminal justice
7.13 	data communications network provided in section 299C.46.  For
7.14 	purposes of that section, the criminal investigation unit of the
7.15 	Department of Revenue is considered a criminal justice agency.
7.16 	[270.062]

7.17 	EFFECTIVE DATE. This section is effective August 1, 2005.

7.18 	Sec. 6. [270C.055] CRIMINAL INVESTIGATIONS, REFERRAL, AND
7.19 	INFORMATION DISCLOSURE.
7.20 		Subdivision 1.Requesting assistance. If the
7.21 	commissioner has reason to believe that a criminal violation of
7.22 	the state revenue laws or chapter 349 has occurred, the
7.23 	commissioner may request the attorney general or the prosecuting
7.24 	authority of any county to assist in a criminal investigation.
7.25 	[270.064]
7.26 		Subd. 2.Referral for prosecution. If a proceeding is
7.27 	referred to a prosecuting authority, and the prosecuting
7.28 	authority fails to issue or cause to be issued an indictment or
7.29 	criminal complaint within 30 days after the referral by the
7.30 	commissioner, the attorney general may conduct the proceeding.
7.31 		Subd. 3.Authority to disclose information. The
7.32 	commissioner may disclose information to the prosecuting
7.33 	authority and attorney general pursuant to section 270B.05,
7.34 	subdivision 2, clause (1).[270.68, subd. 1, paragraph (c)]
7.35 	
EFFECTIVE DATE. This section is effective August 1, 2005.

7.36 	Sec. 7. [270C.06] RULEMAKING AUTHORITY.
8.1 	The commissioner shall, from time to time, make, publish,
8.2 	and distribute rules for the administration and enforcement of
8.3 	state revenue laws.  The rules have the force of law.[270.06,
8.4 	clause (14)]

8.5 	EFFECTIVE DATE. This section is effective August 1, 2005.

8.6 	Sec. 8. [270C.07] REVENUE NOTICES.
8.7 		Subdivision 1.Authority. The commissioner may make,
8.8 	adopt, and publish interpretive revenue notices.  A "revenue
8.9 	notice" is a policy statement that has been published pursuant
8.10 	to subdivision 5 and that provides interpretation, details, or
8.11 	supplementary information concerning the application of state
8.12 	revenue laws or rules promulgated by the commissioner.  Revenue
8.13 	notices are published for the information and guidance of
8.14 	taxpayers, local government officials, the department, and
8.15 	others concerned.
8.16 		Subd. 2.Effect. Revenue notices do not have the force
8.17 	and effect of law and have no precedential effect, but may be
8.18 	relied on by taxpayers until revoked or modified.  A notice may
8.19 	be expressly revoked or modified by the commissioner, by the
8.20 	issuance of a revenue notice, but may not be revoked or modified
8.21 	retroactively to the detriment of the taxpayers.  A change in
8.22 	the law or an interpretation of the law occurring after the
8.23 	revenue notice is issued, whether in the form of a statute,
8.24 	court decision, administrative rule, or revenue notice, results
8.25 	in revocation or modification of the notice to the extent that
8.26 	the change affects the notice.
8.27 		Subd. 3.Retroactivity. Revenue notices are generally
8.28 	interpretive of existing law and therefore are retroactive to
8.29 	the effective date of the applicable law provision unless
8.30 	otherwise stated in the notice.
8.31 		Subd. 4.Issuance. The issuance of revenue notices is at
8.32 	the discretion of the commissioner.  The commissioner shall
8.33 	establish procedures governing the issuance of revenue notices
8.34 	and tax information bulletins.  At least one week before
8.35 	publication of a revenue notice in the State Register, the
8.36 	commissioner shall provide a copy of the notice to the chairs of
9.1 	the Taxes Committee of the house of representatives and the
9.2 	Taxes and Tax Laws Committee of the senate.
9.3 		Subd. 5.Publication. The commissioner shall publish the
9.4 	revenue notices in the State Register and in any other manner
9.5 	that makes them accessible to the general public.  The
9.6 	commissioner may charge a reasonable fee for publications.
9.7 	[270.0604]
9.8 	
EFFECTIVE DATE. This section is effective August 1, 2005.

9.9 	Sec. 9. [270C.08] TAX INFORMATION BULLETINS.
9.10 	The commissioner may issue tax information bulletins.  "Tax
9.11 	information bulletins" are informational guides to enable
9.12 	taxpayers and local governmental officials to become more
9.13 	familiar with state revenue laws and their rights and
9.14 	responsibilities under these laws.  Nothing contained in the tax
9.15 	information bulletins supersedes, alters, or otherwise changes
9.16 	any provisions of the state revenue laws, administrative rules,
9.17 	court decisions, or revenue notices.[270.0605]

9.18 	EFFECTIVE DATE. This section is effective August 1, 2005.

9.19 	Sec. 10. [270C.09] OPINION OF ATTORNEY GENERAL; EFFECT.
9.20 	The commissioner may in writing request the opinion of the
9.21 	attorney general upon any matter regarding the state revenue
9.22 	laws.  Any written opinion of the attorney general upon any such
9.23 	matter rendered in response to such request shall have the force
9.24 	and effect of law unless and until overruled by a decision of
9.25 	the Tax Court or a court of competent jurisdiction.[270.09]

9.26 	EFFECTIVE DATE. This section is effective August 1, 2005.

9.27 	Sec. 11. [270C.10] EX-EMPLOYEES NOT TO REPRESENT
9.28 	TAXPAYERS; PENALTY.
9.29 	An employee of the department may not, for a period of one
9.30 	year after the employee's employment has terminated, act as
9.31 	counsel, attorney, or agent for a taxpayer in connection with a
9.32 	claim or proceeding pending in the department.  An employee of
9.33 	the department may not act as counsel, attorney, or agent for a
9.34 	taxpayer at any time after termination of employment in
9.35 	connection with a claim or proceeding of which the person has
9.36 	knowledge that was acquired during the term of employment.  A
10.1 	violation of this section is a gross misdemeanor.[270.021]

10.2 	EFFECTIVE DATE. This section is effective August 1, 2005.

10.3 	Sec. 12. [270C.105] BASIS FOR EVALUATION OF DEPARTMENT OF
10.4 	REVENUE EMPLOYEES.
10.5 	The department must not use tax enforcement results to
10.6 	impose individual revenue quotas with respect to employees or
10.7 	their immediate supervisors who are directly involved in
10.8 	assessment or collection activities.  The department may,
10.9 	however, use individual performance with regard to number of
10.10 	cases completed and, in the case of collections employees,
10.11 	dollars collected, as factors in evaluating an employee and not
10.12 	be considered as failing to comply with this section.
10.13 	[270.0602]

10.14 	EFFECTIVE DATE. This section is effective August 1, 2005.

10.15 	Sec. 13. [270C.11] TAX EXPENDITURE BUDGET.
10.16 		Subdivision 1.Statement of purpose. State governmental
10.17 	policy objectives are sought to be achieved both by direct
10.18 	expenditure of governmental funds and by the granting of special
10.19 	and selective tax relief or tax expenditures.  Both direct
10.20 	expenditures of governmental funds and tax expenditures have an
10.21 	effect on the ability of the state and local governments to
10.22 	lower tax rates or to increase expenditures.  As a result, tax
10.23 	expenditures should receive a regular and comprehensive review
10.24 	by the legislature as to (1) their total cost, (2) their
10.25 	effectiveness in achieving their objectives, (3) their effect on
10.26 	the fairness and equity of the distribution of the tax burden,
10.27 	and (4) the public and private cost of administering tax
10.28 	expenditure financed programs.  This section is intended to
10.29 	facilitate a regular review of the state and local tax
10.30 	expenditure budget by the legislature by providing for the
10.31 	preparation of a regular biennial tax expenditure budget.
10.32 		Subd. 2.Preparation; submission. The commissioner shall
10.33 	prepare a tax expenditure budget for the state. The tax
10.34 	expenditure budget report shall be submitted to the legislature
10.35 	by February 1 of each even-numbered year.
10.36 		Subd. 3.Period covered. The report shall include
11.1 	estimates of annual tax expenditures for, at a minimum, a
11.2 	three-year period including the two-year period covered in the
11.3 	governor's budget submitted in the preceding January pursuant to
11.4 	section 16A.11.
11.5 		Subd. 4.Contents. The report shall detail for each tax
11.6 	expenditure item the amount of tax revenue foregone, a citation
11.7 	of the statutory or other legal authority for the expenditure,
11.8 	and the year in which it was enacted or the tax year in which it
11.9 	became effective.  The report may contain additional information
11.10 	which the commissioner considers relevant to the legislature's
11.11 	consideration and review of individual tax expenditure items.
11.12 	This may include, but is not limited to, statements of the
11.13 	intended purpose of the tax expenditure, analysis of whether the
11.14 	expenditure is achieving that objective, and the effect of the
11.15 	expenditure device on the distribution of the tax burden and
11.16 	administration of the tax system.
11.17 		Subd. 5.Revenue estimates; legislative bills. Upon
11.18 	reasonable notice from the chair of the house or senate tax
11.19 	committee that a bill is scheduled for hearing, the commissioner
11.20 	shall prepare an estimate of the effect on the state's tax
11.21 	revenues which would result from the passage of a legislative
11.22 	bill establishing, extending, or restricting a tax expenditure.
11.23 	These revenue estimates shall contain the same information as
11.24 	provided in subdivision 4 for expenditure items contained in the
11.25 	tax expenditure budget, as appropriate.
11.26 		Subd. 6.Definitions. For purposes of this section, the
11.27 	following terms have the meanings given:
11.28 	(1) "tax expenditure" means a tax provision which provides
11.29 	a gross income definition, deduction, exemption, credit, or rate
11.30 	for certain persons, types of income, transactions, or property
11.31 	that results in reduced tax revenue; and 
11.32 	(2) "tax" means any tax of statewide application or any tax
11.33 	authorized by state law to be levied by local governments
11.34 	generally.  It does not include a special local tax levied
11.35 	pursuant to special law or to a special local tax levied
11.36 	pursuant to general authority that is no longer applicable to
12.1 	local governments generally.[270.067]
12.2 	
EFFECTIVE DATE. This section is effective August 1, 2005.

12.3 	Sec. 14. [270C.12] TAX INFORMATION SAMPLE DATA.
12.4 		Subdivision 1.Preparation of samples. The commissioner
12.5 	shall prepare microdata samples of income tax returns and other
12.6 	information useful for purposes of:
12.7 	(1) estimating state revenues;
12.8 	(2) simulating the effect of changes or proposed changes in
12.9 	state and federal tax law on the amount of state revenues; and 
12.10 	(3) analyzing the incidence of present or proposed taxes.
12.11 		Subd. 2.Coordinating committee. A coordinating
12.12 	committee is established to oversee and coordinate preparation
12.13 	of the microdata samples.  The committee consists of:
12.14 	(1) the director of the Research Division of the department
12.15 	who shall serve as chair of the committee;
12.16 	(2) the state economist;
12.17 	(3) the chair of the Committee on Taxes of the house of
12.18 	representatives or the chair's designee; and 
12.19 	(4) the chair of the Committee on Taxes and Tax Laws of the
12.20 	senate or the chair's designee.  The committee shall consider
12.21 	the analysis needs and use of the microdata samples by the
12.22 	finance and revenue departments and the legislature in designing
12.23 	and preparing the samples, including the type of data to be
12.24 	included, the structure of the samples, size of the samples, and
12.25 	other relevant factors.
12.26 		Subd. 3.Contents of samples. The samples must consist
12.27 	of information derived from a random sample of federal and
12.28 	Minnesota individual income tax returns.  The samples prepared
12.29 	in odd numbered years must be augmented by additional
12.30 	information from other sources as the coordinating committee
12.31 	determines is feasible and appropriate.  The coordinating
12.32 	committee shall consider inclusion of:
12.33 	(1) information derived from property tax refund returns;
12.34 	(2) the estimated market value of the taxpayer's home from
12.35 	the homestead declaration; and 
12.36 	(3) information from other sources, such as the surveys
13.1 	conducted by the United States Departments of Commerce and Labor.
13.2 		Subd. 4.Consultation on analysis models. The
13.3 	coordinating committee shall facilitate regular consultation
13.4 	among the Department of Revenue, the Department of Finance, and
13.5 	house and senate staffs in development and maintenance of their
13.6 	respective computer models used to analyze the microdata
13.7 	samples.  The committee shall encourage efforts to attain more
13.8 	commonality in the models, greater sharing of program
13.9 	development efforts and programming tasks, and more consistency
13.10 	in the resulting analyses.[270.0681]
13.11 	
EFFECTIVE DATE. This section is effective August 1, 2005.

13.12 	Sec. 15. [270C.13] TAX INCIDENCE REPORTS.
13.13 		Subdivision 1.Biennial report. The commissioner shall
13.14 	report to the legislature by March 1 of each odd-numbered year
13.15 	on the overall incidence of the income tax, sales and excise
13.16 	taxes, and property tax.  The report shall present information
13.17 	on the distribution of the tax burden as follows:  (1) for the
13.18 	overall income distribution, using a systemwide incidence
13.19 	measure such as the Suits index or other appropriate measures of
13.20 	equality and inequality; (2) by income classes, including at a
13.21 	minimum deciles of the income distribution; and (3) by other
13.22 	appropriate taxpayer characteristics.
13.23 		Subd. 2.Bill analyses. At the request of the chair of
13.24 	the house Tax Committee or the senate Committee on Taxes and Tax
13.25 	Laws, the commissioner shall prepare an incidence impact
13.26 	analysis of a bill or a proposal to change the tax system which
13.27 	increases, decreases, or redistributes taxes by more than
13.28 	$20,000,000.  To the extent data is available on the changes in
13.29 	the distribution of the tax burden that are affected by the bill
13.30 	or proposal, the analysis shall report on the incidence effects
13.31 	that would result if the bill were enacted.  The report may
13.32 	present information using systemwide measures, such as Suits or
13.33 	other similar indexes, by income classes, taxpayer
13.34 	characteristics, or other relevant categories.  The report may
13.35 	include analyses of the effect of the bill or proposal on
13.36 	representative taxpayers.  The analysis must include a statement
14.1 	of the incidence assumptions that were used in computing the
14.2 	burdens.
14.3 		Subd. 3.Income measure. The incidence analyses shall
14.4 	use the broadest measure of economic income for which reliable
14.5 	data is available.[270.0682]
14.6 	
EFFECTIVE DATE. This section is effective August 1, 2005.

14.7 	Sec. 16. [270C.14] AUTHORITY TO PAY LOCAL TAXES;
14.8 	APPROPRIATION.
14.9 	The commissioner may pay to any local government unit, any
14.10 	locally imposed sales taxes that may be assessed against the
14.11 	department.  There is appropriated to the commissioner from the
14.12 	general fund the amount needed to make the payments.[270.058]

14.13 	EFFECTIVE DATE. This section is effective August 1, 2005.

14.14 	Sec. 17. [270C.15] REVENUE DEPARTMENT SERVICE AND
14.15 	RECOVERY SPECIAL REVENUE FUND.
14.16 	A Revenue Department service and recovery special revenue
14.17 	fund is created for the purpose of recovering the costs of
14.18 	furnishing government data and related services or products, as
14.19 	well as recovering costs associated with collecting local taxes
14.20 	on sales.  All money collected under this section is deposited
14.21 	in the Revenue Department service and recovery special revenue
14.22 	fund.  Money in the fund is appropriated to the commissioner to
14.23 	reimburse the department for the costs incurred in administering
14.24 	the tax law or providing the data, service, or product.  Any
14.25 	money paid to the department as a criminal fine for a violation
14.26 	of state revenue law that is designated by the court to fund
14.27 	enforcement of state revenue law is appropriated to this fund.
14.28 	[270.059]

14.29 	EFFECTIVE DATE. This section is effective August 1, 2005.

14.30 	Sec. 18. [270C.16] COLLECTION OF DELINQUENT LIABILITIES;
14.31 	COSTS.
14.32 		Subdivision 1.Appropriation. For the purpose of
14.33 	collecting delinquent tax liabilities or debts as defined in
14.34 	section 16D.02, subdivision 3, there is appropriated to the
14.35 	commissioner an amount representing the cost of collection by
14.36 	contract with collection agencies, revenue departments of other
15.1 	states, or attorneys to enable the commissioner to reimburse
15.2 	these agencies, departments, or attorneys for this service.  The
15.3 	commissioner shall report quarterly on the status of this
15.4 	program to the chair of the house Tax and Appropriation
15.5 	Committees and senate Tax and Finance Committees.[270.063,
15.6 	subd. 1]
15.7 		Subd. 2.Prepayment. Notwithstanding section 16A.15,
15.8 	subdivision 3, the commissioner may authorize the prepayment of
15.9 	sheriff's fees, attorney fees, fees charged by revenue
15.10 	departments of other states, or court costs to be incurred in
15.11 	connection with the collection of delinquent tax liabilities
15.12 	owed to the commissioner.[270.063, subd. 2]
15.13 	
EFFECTIVE DATE. This section is effective August 1, 2005.

15.14 	Sec. 19. [270C.17] COMMISSIONER TO COLLECT CERTAIN LOCAL
15.15 	TAXES.
15.16 		Subdivision 1.Costs deducted; appropriation. If the
15.17 	commissioner agrees to collect a local tax, the local unit of
15.18 	government must agree that all the direct and indirect costs of
15.19 	the department for collecting the tax and any other statewide
15.20 	indirect costs will be deducted from the amounts collected and
15.21 	paid to the local unit of government.
15.22 		Subd. 2.Development costs. If the commissioner
15.23 	determines that a new computer system will be required to
15.24 	collect the local taxes, the costs of development of the system
15.25 	will be charged to the first local units of government to be
15.26 	included in the system.  Any additional local units of
15.27 	government that by agreement are added to the system will be
15.28 	charged for a share of the development costs.  The charge will
15.29 	be determined by the commissioner who shall then refund to the
15.30 	original local units of government their portion of the
15.31 	development costs recovered from the additional users.
15.32 	[270.069]
15.33 	
EFFECTIVE DATE. This section is effective August 1, 2005.

15.34 	Sec. 20. [270C.18] SETOFF OF POLITICAL SUBDIVISION
15.35 	DEBTS.
15.36 	(a) As used in this section, "political subdivision" means
16.1 	counties and home rule charter or statutory cities, and "debts"
16.2 	means a legal obligation to pay a fixed amount of money, which
16.3 	equals or exceeds $100 and which is due and payable to the
16.4 	claimant political subdivision.
16.5 	(b) If one political subdivision owes a debt to another
16.6 	political subdivision, and the debt has not been paid within six
16.7 	months of the date when payment was due, the creditor political
16.8 	subdivision may notify the commissioner of the debt, and shall
16.9 	provide the commissioner with information sufficient to verify
16.10 	the claim.  If the commissioner has reason to believe that the
16.11 	claim is valid, and the debt has not been paid, the commissioner
16.12 	shall initiate setoff procedures under this section.
16.13 	(c) Within ten days of receipt of the notification from the
16.14 	creditor political subdivision, the commissioner shall send a
16.15 	written notice to the debtor political subdivision, advising it
16.16 	of the nature and amount of the claim.  This written notice
16.17 	shall advise the debtor of the creditor political subdivision's
16.18 	intention to request setoff of the refund against the debt.
16.19 	The notice will also advise the debtor that the debt can be
16.20 	setoff against a state aid payment, and will advise the debtor
16.21 	of the right to contest the validity of the claim at a hearing.
16.22 	The debtor must assert this right by written request to the
16.23 	commissioner, which request the commissioner must receive within
16.24 	45 days of the mailing date of the notice.
16.25 	(d) If the commissioner receives written notice of a debtor
16.26 	political subdivision's intention to contest at hearing the
16.27 	claim upon which the intended setoff is based, the commissioner
16.28 	shall initiate a hearing according to contested case procedures
16.29 	established in the state Administrative Procedure Act not later
16.30 	than 30 days after receipt of the debtor's request for a
16.31 	hearing.  The costs of the hearing shall be paid equally by the
16.32 	political subdivisions that are parties to the hearing.  The
16.33 	Office of Administrative Hearings shall separately bill each
16.34 	political subdivision for one-half of the costs.
16.35 	(e) If the debtor political subdivision does not object to
16.36 	the claim, or does not prevail in an objection to the claim or
17.1 	at a hearing on the claim, the commissioner shall deduct the
17.2 	amount of the debt from the next payment scheduled to be made to
17.3 	the debtor under section 273.1398 or chapter 477A.  The
17.4 	commissioner shall remit the amount deducted to the claimant
17.5 	political subdivision.[270.66, subd. 4]

17.6 	EFFECTIVE DATE. This section is effective August 1, 2005.

17.7 	Sec. 21. [270C.19] TAXES AND FEES; REFUND AND SHARING
17.8 	AGREEMENTS WITH INDIANS.
17.9 		Subdivision 1.Taxes paid by indians. The commissioner
17.10 	is authorized to enter into a tax refund agreement with the
17.11 	governing body of any federally recognized Indian reservation in
17.12 	Minnesota.  The agreement may provide for a mutually agreed upon
17.13 	amount as a refund to the governing body of any sales or excise
17.14 	tax paid by the total resident Indian population on or adjacent
17.15 	to a reservation into the state treasury, or for an amount which
17.16 	measures the economic value of an agreement by the tribal
17.17 	government to pay the equivalent of the state sales tax on items
17.18 	included in the sales tax base but exempt on the reservation,
17.19 	notwithstanding any other law which limits the refundment of
17.20 	taxes.  The total resident Indian population on or adjacent to a
17.21 	reservation shall be defined according to the United States
17.22 	Department of the Interior, Bureau of Indian Affairs, as
17.23 	determined and stated in its Report on Service Population and
17.24 	Labor Force.
17.25 		Subd. 2.Sales, use, and excise taxes. (a) The
17.26 	commissioner is authorized to enter into a tax agreement with
17.27 	the governing body of any federally recognized Indian
17.28 	reservation in Minnesota, that provides for the state and the
17.29 	tribal government to share sales, use, and excise tax revenues
17.30 	generated from on reservation activities of non-Indians and off
17.31 	reservation activities of members of the reservation.  Every
17.32 	agreement entered into pursuant to this subdivision must require
17.33 	the commissioner to collect all state and tribal taxes covered
17.34 	by the agreement.
17.35 	(b) The commissioner is authorized to collect any tribal
17.36 	taxes imposed pursuant to any agreement entered into pursuant to
18.1 	this subdivision and to make payments authorized by the
18.2 	agreement to the tribal government from the funds collected.
18.3 	(c) The commissioner shall pay to the tribal government its
18.4 	share of the taxes collected pursuant to the agreement, as
18.5 	indicated in the agreement, and grant the taxpayer a credit for
18.6 	the taxpayer's share of the amount paid to the tribal government
18.7 	against the taxpayer's Minnesota tax.
18.8 		Subd. 3.Appropriation. There is annually appropriated
18.9 	from the general fund to the commissioner the amounts necessary
18.10 	to make the refunds provided in this section.
18.11 		Subd. 4.Payments to counties. (a) The commissioner
18.12 	shall pay to a county in which an Indian gaming casino is
18.13 	located:
18.14 	(1) ten percent of the state share of all taxes generated
18.15 	from activities on reservations and collected under a tax
18.16 	agreement under this section with the tribal government for the
18.17 	reservation located in the county; or 
18.18 	(2) five percent of excise taxes collected by the state
18.19 	that are determined by the department to have been generated
18.20 	from activities on a reservation located in the county, the
18.21 	tribal government of which does not have a tax agreement under
18.22 	this section and did not have a tax agreement on June 30, 2003.
18.23 	If the tribe has casinos located in more than one county,
18.24 	the payment must be divided equally among the counties in which
18.25 	the casinos are located.
18.26 	(b) The commissioner shall make the payments required under
18.27 	this subdivision by February 28 of the year following the year
18.28 	the taxes are collected.
18.29 	(c) An amount sufficient to make the payments authorized by
18.30 	this subdivision is annually appropriated from the general fund
18.31 	to the commissioner.
18.32 		Subd. 5.Fees; appropriation. (a) The commissioner may
18.33 	enter into an agreement with the governing body of any federally
18.34 	recognized Indian reservation in Minnesota concerning fees
18.35 	administered by the commissioner that are paid by the tribe,
18.36 	members of the tribe, or persons who conduct business with the
19.1 	tribe, or otherwise imposed on on-reservation activities.  The
19.2 	agreement may provide for the refund or sharing of the fee.  The
19.3 	commissioner may make any payments required by the agreement
19.4 	from the fees collected.
19.5 	(b) Each head of an agency, board, or other governmental
19.6 	entity that administers a program that is funded by fees
19.7 	administered by the commissioner may sign an agreement entered
19.8 	into by the commissioner under this subdivision.  An agreement
19.9 	is not valid until signed by the head of each agency, board, or
19.10 	other governmental entity that administers a program funded by
19.11 	the particular fee covered in an agreement and by the
19.12 	commissioner.
19.13 	(c) There is annually appropriated to the commissioner from
19.14 	the funds for which the fees are collected the amounts necessary
19.15 	to make payments as provided in this subdivision.[270.60]
19.16 	
EFFECTIVE DATE. This section is effective August 1, 2005.
19.17 	TAX ADMINISTRATION

19.18 	Sec. 22. [270C.25] PROHIBITION OF SUITS TO RESTRAIN
19.19 	ASSESSMENT OR COLLECTION.
19.20 		Subdivision 1.General rule. No suit to restrain
19.21 	assessment or collection of a tax, fee, penalty, or interest,
19.22 	imposed by a law administered by the commissioner, including a
19.23 	declaratory judgment action, can be maintained in any court by
19.24 	any person except pursuant to the express procedures in (1) this
19.25 	chapter, (2) chapter 271, (3) chapter 289A, and (4) any other
19.26 	law administered by the commissioner for contesting the
19.27 	assessment or collection of taxes, fees, penalties, or interest.
19.28 		Subd. 2.Facial challenge to constitutionality. An
19.29 	action, otherwise prohibited under subdivision 1, that asserts a
19.30 	facial challenge to the constitutionality of a tax or fee
19.31 	imposed by a law administered by the commissioner may be
19.32 	maintained only if it is demonstrated to the court by clear and
19.33 	convincing evidence that under no circumstances could the
19.34 	commissioner ultimately prevail and that the taxpayer or fee
19.35 	payer will suffer irreparable harm if the relief sought is not
19.36 	granted.[289A.43]
20.1 	
EFFECTIVE DATE. This section is effective August 1, 2005.

20.2 	Sec. 23. [270C.26] PENALTY FOR FILING CERTAIN DOCUMENTS
20.3 	AGAINST DEPARTMENT OF REVENUE EMPLOYEES.
20.4 		Subdivision 1.Definitions. (a) "Recording office" means
20.5 	a county recorder, registrar of titles, or secretary of state in
20.6 	this state or another state.
20.7 	(b) "Filing party" means the person or persons requesting
20.8 	or causing another person to request that the recording office
20.9 	accept documents or instruments for recording or filing.
20.10 		Subd. 2.Invalid documents naming commissioner or
20.11 	department employees. Filing a document, including a
20.12 	nonconsensual common law lien under section 514.99, that
20.13 	purports to create a claim against the commissioner or an
20.14 	employee of the department based on performance or
20.15 	nonperformance of duties by the commissioner or employee is
20.16 	invalid unless accompanied by a specific order from a court of
20.17 	competent jurisdiction authorizing the filing of the document or
20.18 	unless a specific statute authorizes the filing of the document.
20.19 		Subd. 3.Civil penalty. If a filing party causes a
20.20 	document described in subdivision 2 to be recorded in a
20.21 	recording office, the commissioner may assess a penalty against
20.22 	the filing party of $1,000 per document filed, payable to the
20.23 	general fund.  An order assessing a penalty under this section
20.24 	is reviewable administratively under section 270C.35 and is
20.25 	appealable to Tax Court under chapter 271.  The penalty is
20.26 	collected and paid in the same manner as a tax collected by the
20.27 	commissioner.  The penalty is in addition to any other remedy
20.28 	available to the commissioner or to an employee of the
20.29 	department against whom the document has been filed.[270.278]
20.30 	
EFFECTIVE DATE. This section is effective August 1, 2005.

20.31 	Sec. 24. [270C.27] CIVIL DAMAGES FOR FAILURE TO RELEASE
20.32 	LIEN.
20.33 		Subdivision 1.In general. (a) A taxpayer may bring a
20.34 	civil action for damages against the commissioner in district
20.35 	court when an employee or the department has knowingly or
20.36 	negligently:
21.1 	(1) failed to release a lien as required by section
21.2 	270C.63, subdivision 11; or 
21.3 	(2) failed to release a lien within 30 days after
21.4 	satisfaction of the liability on which the lien is based.
21.5 	(b) An action under paragraph (a), clause (2), must be
21.6 	preceded by 30 days' written notice by the taxpayer to the
21.7 	commissioner and the taxpayer's rights advocate that the lien
21.8 	has not been released.  An action under paragraph (a) must be
21.9 	commenced within two years after the date the right of action
21.10 	accrued.
21.11 		Subd. 2.Damages. On a finding of liability on the part
21.12 	of the defendant in an action brought under subdivision 1, the
21.13 	defendant is liable to the plaintiff in an amount equal to the
21.14 	sum of actual, direct economic damages sustained by the
21.15 	plaintiff due to the actions of the defendant, plus the costs of
21.16 	the action.  Damages must be paid in accordance with section
21.17 	3.736, subdivision 7.
21.18 		Subd. 3.Mitigation of damages. Damages awarded must be
21.19 	reduced by the amount of the damages that could reasonably have
21.20 	been mitigated by the plaintiff.[270.275]
21.21 	
EFFECTIVE DATE. This section is effective August 1, 2005.

21.22 	Sec. 25. [270C.275] CIVIL DAMAGES FOR CERTAIN
21.23 	UNAUTHORIZED COLLECTION ACTIONS.
21.24 		Subdivision 1.In general. If in connection with the
21.25 	collection of delinquent taxes, an employee of the department
21.26 	recklessly or intentionally disregards a law administered by the
21.27 	commissioner, the taxpayer may bring a civil action for damages
21.28 	against the commissioner in district court within two years
21.29 	after the date the right of action accrues.
21.30 		Subd. 2.Damages. On a finding of liability on the part
21.31 	of the defendant in an action brought under subdivision 1, the
21.32 	defendant is liable to the plaintiff in an amount equal to the
21.33 	lesser of $200,000, or the sum of (1) actual, direct economic
21.34 	damages sustained by the plaintiff as a proximate result of the
21.35 	reckless or intentional actions of the employee and (2) the
21.36 	costs of the action.  Damages must be paid in accordance with
22.1 	section 3.736, subdivision 7.
22.2 		Subd. 3.Limitations. A judgment for damages must not be
22.3 	awarded under subdivision 2 unless the court determines that the
22.4 	plaintiff has exhausted the administrative remedies available to
22.5 	the plaintiff within the department.  Damages awarded must be
22.6 	reduced by the amount of the damages that could reasonably have
22.7 	been mitigated by the plaintiff.
22.8 		Subd. 4.Penalties for procedures instituted primarily
22.9 	for delay. When it appears to the district court that:
22.10 	(1) proceedings before it under this section have been
22.11 	instituted or maintained by the taxpayer primarily for delay;
22.12 	(2) the taxpayer's position in such proceeding is frivolous
22.13 	or groundless; or 
22.14 	(3) the taxpayer unreasonably failed to pursue available
22.15 	administrative remedies,
22.16 	the district court, in its decision, may require the taxpayer to
22.17 	pay to the department a penalty not in excess of $25,000.  The
22.18 	penalty may be collected and paid in the same manner as a tax
22.19 	collected by the commissioner.[270.276]
22.20 	
EFFECTIVE DATE. This section is effective August 1, 2005.

22.21 	Sec. 26. [270C.28] DISCLOSURE OF RIGHTS OF TAXPAYERS.
22.22 		Subdivision 1.In general. The commissioner shall
22.23 	prepare statements that set forth in simple and nontechnical
22.24 	terms:
22.25 	(1) the rights and obligations of the department and the
22.26 	taxpayer during an audit;
22.27 	(2) the procedures by which a taxpayer may appeal an
22.28 	adverse decision of the department, including administrative and
22.29 	judicial appeals;
22.30 	(3) the procedures for filing refund claims and filing of
22.31 	taxpayer complaints; and 
22.32 	(4) the procedures that the department may use in enforcing
22.33 	a law administered by the commissioner, including assessment,
22.34 	jeopardy assessment, levy and distraint, and the filing of liens.
22.35 		Subd. 2.Distribution. The appropriate statement
22.36 	prepared in accordance with subdivision 1 must be distributed by
23.1 	the commissioner to all taxpayers contacted with respect to the
23.2 	determination or collection of a tax, other than the providing
23.3 	of tax forms.  Failure to receive the statement does not
23.4 	invalidate the determination or collection action.[270.0603]
23.5 	
EFFECTIVE DATE. This section is effective August 1, 2005.

23.6 	Sec. 27. [270C.285] PROCEDURES INVOLVING IN-PERSON
23.7 	TAXPAYER INTERVIEWS.
23.8 		Subdivision 1.Recording of interviews. (a) Upon
23.9 	reasonable advance notice from the taxpayer, a taxpayer shall be
23.10 	allowed to make an audio recording, with the taxpayer's
23.11 	equipment and at the taxpayer's expense, of an interview of the
23.12 	taxpayer by the department regarding the audit or collection of
23.13 	a tax.
23.14 	(b) An employee of the department may record an interview
23.15 	described in paragraph (a) if the taxpayer is informed of the
23.16 	recording before the interview and a transcript or copy of the
23.17 	recording is made available to the taxpayer on the taxpayer's
23.18 	request, provided the department is reimbursed by the taxpayer
23.19 	for the cost of transcribing or copying the recording.
23.20 		Subd. 2.Safeguards. (a) Before or at the start of an
23.21 	initial interview, an employee of the department shall provide
23.22 	to the taxpayer in the case of an audit interview an explanation
23.23 	of the audit process and the taxpayer's rights under that
23.24 	process and, in the case of a collection interview, an
23.25 	explanation of the collection process and the taxpayer's rights
23.26 	under that process.
23.27 	(b) If a taxpayer requests to consult with an attorney,
23.28 	accountant, agent, preparer, or any other person permitted to
23.29 	represent the taxpayer before the department at any time during
23.30 	an interview, except an interview initiated by an administrative
23.31 	subpoena, the interview must be suspended for no more than 30
23.32 	days.
23.33 		Subd. 3.Representatives holding power of attorney. An
23.34 	attorney, accountant, agent, preparer, or any other person
23.35 	permitted to represent the taxpayer before the department who
23.36 	has a written power of attorney executed by the taxpayer may
24.1 	represent the taxpayer in an interview described in subdivision
24.2 	1.  The taxpayer may be required to accompany the representative
24.3 	only if a subpoena is issued.  In this instance, with the
24.4 	consent of an immediate supervisor and after ten days' notice to
24.5 	the representative, the department employee may notify the
24.6 	taxpayer directly that the employee believes the representative
24.7 	is unreasonably delaying the examination or investigation
24.8 	process.
24.9 		Subd. 4.Not to apply to certain investigations. This
24.10 	section does not apply to criminal investigations or
24.11 	investigations relating to the conduct of an employee of the
24.12 	department.[270.272]
24.13 	
EFFECTIVE DATE. This section is effective August 1, 2005.

24.14 	Sec. 28. [270C.29] NOTICES TO HOLDERS OF POWERS OF
24.15 	ATTORNEY.
24.16 	If a taxpayer has executed a written power of attorney, in
24.17 	a form prescribed by the commissioner, the commissioner shall
24.18 	allow the taxpayer to elect, in writing, that all notices and
24.19 	correspondence between the department and the taxpayer will be
24.20 	sent to the holder of the power of attorney.[270.277]

24.21 	EFFECTIVE DATE. This section is effective August 1, 2005.

24.22 	Sec. 29. [270C.30] RETURNS; FORMAT; FURNISHING.
24.23 	The commissioner shall prescribe the content and format of
24.24 	all returns, and may furnish them subject to charge on
24.25 	application.[270.07, subd. 1, paragraph (a); 270.06, clause
24.26 	(15)]

24.27 	EFFECTIVE DATE. This section is effective August 1, 2005.

24.28 	Sec. 30. [270C.302] RETURNS, OTHER FORMS; WHERE FILED.
24.29 	Returns and other forms required to be filed under a law
24.30 	administered by the commissioner must be filed at the
24.31 	commissioner's office in St. Paul, or such other place as the
24.32 	commissioner may designate.[289A.13]

24.33 	EFFECTIVE DATE. This section is effective August 1, 2005.

24.34 	Sec. 31. [270C.304] ELECTRONICALLY FILED RETURNS;
24.35 	SIGNATURES.
24.36 	For purposes of a law administered by the commissioner, the
25.1 	name of the taxpayer, the name of the taxpayer's authorized
25.2 	agent, or the taxpayer's identification number, will constitute
25.3 	a signature when transmitted as part of the return information
25.4 	on returns filed by electronic means by the taxpayer or at the
25.5 	taxpayer's direction.  "Electronic means" includes, but is not
25.6 	limited to, the use of a touch-tone telephone to transmit return
25.7 	information in a manner prescribed by the commissioner.
25.8 	[289A.07]

25.9 	EFFECTIVE DATE. This section is effective for returns
25.10 	filed on or after August 1, 2005.

25.11 	Sec. 32. [270C.306] COMMISSIONER MAY REQUIRE SOCIAL
25.12 	SECURITY OR IDENTIFYING NUMBERS ON FORMS.
25.13 	Notwithstanding the provisions of any other law, the
25.14 	commissioner may require that a form required to be filed with
25.15 	the commissioner include the Social Security number, federal
25.16 	employer identification number, or Minnesota taxpayer
25.17 	identification number of the taxpayer or applicant.[270.066]

25.18 	EFFECTIVE DATE. This section is effective August 1, 2005.

25.19 	Sec. 33. [270C.308] PROHIBITION OF DISPLAY OF SOCIAL
25.20 	SECURITY NUMBERS.
25.21 	No label, envelope, or other material printed by the
25.22 	department may include the Social Security number of the
25.23 	taxpayer in a place that will be visible to a third party when
25.24 	delivered or mailed to the taxpayer.[270.0665]

25.25 	EFFECTIVE DATE. This section is effective August 1, 2005.

25.26 	Sec. 34. [270C.31] EXAMINATIONS AND INVESTIGATIONS.
25.27 		Subdivision 1.Scope. To determine the accuracy of a
25.28 	return, to fix liability under state revenue law, to administer
25.29 	state revenue law, when conducting an investigation or an audit
25.30 	of a taxpayer, for the purpose of collection, and in any matter
25.31 	which the commissioner has the power to investigate or
25.32 	determine, the commissioner has authority to take the actions
25.33 	allowed in this section.[270.06, clauses (6) and (9); 289A.36,
25.34 	subd. 1]
25.35 		Subd. 2.Reasonable examinations or investigations of
25.36 	taxpayer. The commissioner may make reasonable examinations or
26.1 	investigations of a taxpayer's place of business, tangible
26.2 	personal property, equipment, computer systems, and facilities.
26.3 	The commissioner may inspect and copy the taxpayer's relevant
26.4 	books, records, papers, documents, and other data, in whatever
26.5 	form.[289A.36, subds. 1 and 3, clause (1), regarding
26.6 	taxpayers]
26.7 		Subd. 3.Access to records. The commissioner may
26.8 	examine, except where privileged by law, the relevant records
26.9 	and files of any person, business, institution, financial
26.10 	institution, state agency, agency of the United States
26.11 	government, or agency of any other state where permitted by
26.12 	statute, agreement, or reciprocity.[289A.36, subd. 2]
26.13 		Subd. 4.Examinations under oath. The commissioner may
26.14 	administer oaths and affirmations and examine taxpayers and
26.15 	other persons under oath or affirmation.[270.15; 289A.36,
26.16 	subd. 3, clauses (1) and (2)]
26.17 		Subd. 5.Depositions. The commissioner may depose
26.18 	witnesses who reside inside or outside the state, or who are
26.19 	absent from the state.  Depositions are to be taken, upon notice
26.20 	to the interested party, if any, in the same manner that
26.21 	depositions of witnesses are taken in civil actions in the
26.22 	district court.[270.06, clause (9)]
26.23 		Subd. 6.Witness fees. The fees of witnesses required by
26.24 	the commissioner to appear are equal to those allowed to
26.25 	witnesses appearing before courts of this state.  The fees must
26.26 	be paid in the manner provided for the payment of other expenses
26.27 	incident to the administration of state revenue law.[289A.36,
26.28 	subd. 3, clause (2)]
26.29 		Subd. 7.Limitation of authority. The authority granted
26.30 	in this section to the commissioner does not apply to a matter
26.31 	that has been appealed to Tax Court.[270.0601]
26.32 	
EFFECTIVE DATE. This section is effective August 1, 2005.

26.33 	Sec. 35. [270C.32] SUBPOENAS.
26.34 		Subdivision 1.Authority to issue subpoenas. In addition
26.35 	to the authority to examine and investigate granted under
26.36 	section 270C.31, and to carry out that authority, the
27.1 	commissioner may issue subpoenas to compel a person, at a time
27.2 	and place reasonable under the circumstances, to appear and give
27.3 	testimony, and to produce relevant books, records, papers,
27.4 	documents, and other data, in whatever form, for inspection and
27.5 	copying.[289A.36, subds. 2 and 3, clause (1); 270.06, clause
27.6 	(7)]
27.7 		Subd. 2.Request by taxpayer for subpoena. When the
27.8 	commissioner has the authority to issue a subpoena, the
27.9 	commissioner shall honor a reasonable request by a taxpayer to
27.10 	issue a subpoena.[289A.36, subd. 6]
27.11 	Subd. 3.[THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY
27.12 	IS KNOWN.] (a) An examination or investigation may extend to a
27.13 	person that the commissioner determines has access to
27.14 	information that may be relevant to the examination or
27.15 	investigation.  When a subpoena requiring the production of
27.16 	records as described in subdivision 1 is served on a third-party
27.17 	record keeper, written notice of the subpoena must be mailed to
27.18 	the taxpayer and to any other person who is identified in the
27.19 	subpoena.  The notices must be given within three days of the
27.20 	day on which the subpoena is served.  The notice required by
27.21 	this subdivision is sufficient if it is mailed to the last known
27.22 	address of the addressee.
27.23 	(b) The provisions of this subdivision regarding notice to
27.24 	the taxpayer or other parties identified in the subpoena do not
27.25 	apply if there is reasonable cause to believe that the giving of
27.26 	notice may lead to attempts to conceal, destroy, or alter
27.27 	records or assets relevant to the examination, to prevent the
27.28 	communication of information from other persons through
27.29 	intimidation, bribery, or collusion, or to flee to avoid
27.30 	prosecution, testifying, or production of records.[289A.36,
27.31 	subd. 4]
27.32 	Subd. 4.[THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY
27.33 	IS NOT KNOWN.] (a) The commissioner may issue a subpoena that
27.34 	does not identify the person or persons with respect to whose
27.35 	liability the subpoena is issued, but only if:
27.36 	(1) the subpoena relates to the investigation of a
28.1 	particular person or ascertainable group or class of persons;
28.2 	(2) there is a reasonable basis to believe that the person
28.3 	or group or class of persons may fail or may have failed to
28.4 	comply with a state revenue law;
28.5 	(3) the information sought to be obtained from the
28.6 	examination of the records, and the identity of the person or
28.7 	persons with respect to whose liability the subpoena is issued,
28.8 	is not readily available from other sources;
28.9 	(4) the subpoena is clear and specific as to the
28.10 	information sought to be obtained; and 
28.11 	(5) the information sought to be obtained is limited solely
28.12 	to the scope of the investigation.
28.13 	(b) The party served with a subpoena that does not identify
28.14 	the person or persons with respect to whose tax liability the
28.15 	subpoena is issued shall, within 20 days after service of the
28.16 	subpoena, petition the district court for the judicial district
28.17 	of the county in which that party is located for a determination
28.18 	as to whether the commissioner has complied with all the
28.19 	requirements in paragraph (a), clauses (1) to (5), and thus,
28.20 	whether the subpoena is enforceable.  If no petition is made by
28.21 	the party served within the time prescribed, the subpoena shall
28.22 	have the force and effect of a court order.[270.06, clause
28.23 	(8); 289A.36, subd. 5]
28.24 		Subd. 5.Access to records in connection with examination
28.25 	of businesses located outside the state. (a) In order to
28.26 	determine whether a business located outside the state of
28.27 	Minnesota is required to file a return under a law administered
28.28 	by the commissioner, the commissioner may examine the relevant
28.29 	records and files of the business.  To the full extent permitted
28.30 	by the Minnesota and United States Constitutions, the
28.31 	commissioner may compel production of those relevant records and
28.32 	files by subpoena.  The subpoena may be served on the secretary
28.33 	of state along with the address to which service of the subpoena
28.34 	is to be sent and a fee of $50.  The secretary of state shall
28.35 	forward a copy of the subpoena to the business using the
28.36 	procedures for service of process in section 5.25, subdivision 6.
29.1 	(b) The commissioner shall pay the reasonable cost of
29.2 	producing records subject to subpoena under this subdivision if:
29.3 	(1) the subpoenaed party cannot produce the records without
29.4 	undue burden; and 
29.5 	(2) the examination made pursuant to paragraph (a) shows
29.6 	that the subpoenaed party is not required to file a return under
29.7 	a law administered by the commissioner.[289A.36, subd.9]
29.8 	Subd. 6.[DEMAND FOR COURT ADMINISTRATOR'S SUBPOENA.] In
29.9 	addition to administrative subpoenas of the commissioner, upon
29.10 	demand of the commissioner or an agent of the commissioner, the
29.11 	court administrator of any district court shall issue a subpoena
29.12 	for a witness to appear before the agent, or for the production
29.13 	of relevant books, records, papers, documents, and other data,
29.14 	in whatever form, to the agent for inspection and copying.
29.15 	[270.06, clause (17)]
29.16 		Subd. 7.Enforcement of subpoenas. Failure to comply
29.17 	with a subpoena shall be punished in the same manner as contempt
29.18 	of the district court in the following venues:
29.19 	(1) the district court of the district in which a court
29.20 	administrator's subpoena is issued under subdivision 6;[270.06,
29.21 	clause (17)]
29.22 	(2) the district court of the district in which the party
29.23 	served with a subpoena is located, when the subpoena is issued
29.24 	by the commissioner or the commissioner's agent; and [270.06,
29.25 	clause (17); 289A.36, subd. 7, paragraph (a)]
29.26 	(3) the District Court for Ramsey County, when a subpoena
29.27 	is issued under subdivision 5.  In addition to contempt
29.28 	remedies, the court may issue any order it deems reasonable to
29.29 	enforce compliance with a subpoena issued under subdivision 5.
29.30 	[289A.36, subd. 7, paragraph (b)]
29.31 		Subd. 8.Penalty for violating court order to comply with
29.32 	subpoena. In addition to sanctions imposed under subdivision 7,
29.33 	a penalty of $250 per day is imposed on any business that is in
29.34 	violation of a court order to comply with a subpoena that is
29.35 	seeking information necessary for the commissioner to be able to
29.36 	determine whether the business is required to file a return or
30.1 	pay a tax.  The maximum penalty is $25,000.  Upon the request of
30.2 	the commissioner, the court shall determine the amount of the
30.3 	penalty and enter it as a judgment in favor of the
30.4 	commissioner.  The penalty is not payable until the judgment is
30.5 	entered.[289A.36, subd. 10]
30.6 		Subd. 9.Cost of production of records. The cost of
30.7 	producing records of a third party required by a subpoena must
30.8 	be paid by the taxpayer, if the taxpayer requests the subpoena
30.9 	to be issued, or if the taxpayer has the records available but
30.10 	has refused to provide them to the commissioner.  In other cases
30.11 	where the taxpayer cannot produce records and the commissioner
30.12 	then issues a subpoena for third-party records, the commissioner
30.13 	shall pay the reasonable cost of producing the records.  The
30.14 	commissioner may later assess the reasonable costs against the
30.15 	taxpayer if the records contribute to the determination of an
30.16 	assessment of tax against the taxpayer.[289A.36, subd. 8]
30.17 		Subd. 10.Limitation of authority. The authority granted
30.18 	in this section to the commissioner and the commissioner's
30.19 	agents does not apply to a matter that has been appealed to Tax
30.20 	Court.[270.0601]
30.21 	
EFFECTIVE DATE. This section is effective August 1, 2005.

30.22 	Sec. 36. [270C.33] COMMISSIONER ASSESSMENT PROCEDURES.
30.23 		Subdivision 1.Orders and decisions. All orders and
30.24 	decisions of the commissioner, or any subordinates, respecting
30.25 	any tax, assessment, or other obligation, must be in writing and
30.26 	entered into the records of the commissioner.[270.10, subd. 1]
30.27 		Subd. 2.Notices. (a) At the same time that notice of an
30.28 	assessment, determination, or order, of the commissioner is
30.29 	given to a taxpayer, the taxpayer must be given a written notice
30.30 	that:
30.31 	(1) describes the taxpayer's appeal rights;
30.32 	(2) lists the amounts of tax, interest, additions to tax,
30.33 	and penalties due; and 
30.34 	(3) explains the basis for the assessment.
30.35 	(b) Failure to provide all the required information does
30.36 	not invalidate the assessment, determination, or order for
31.1 	purposes of satisfying statutory notice requirements if the
31.2 	assessment, determination, or order contains sufficient
31.3 	information to advise the taxpayer that an assessment has been
31.4 	made.[270.10, subd. 1a; 289A.37, subd. 1, paragraph (a)]
31.5 		Subd. 3.Commissioner filed returns. If a taxpayer fails
31.6 	to file a return, the commissioner, from information in the
31.7 	commissioner's possession or obtainable by the commissioner, may
31.8 	make and file a return for the taxpayer, or may issue an order
31.9 	of assessment under subdivision 4.[289A.35]
31.10 		Subd. 4.Orders of assessment. (a) The commissioner may
31.11 	issue an order of assessment in any of the following
31.12 	circumstances:
31.13 	(1) the commissioner determines that the correct amount of
31.14 	tax is different than that assessed on a return filed with the
31.15 	commissioner;[289A.37, subd. 1]
31.16 	(2) no return has been filed and the commissioner
31.17 	determines the amount of tax that should have been assessed;
31.18 	[289A.37, subd. 1]
31.19 	(3) the commissioner determines that the correct amount of
31.20 	a refundable credit is different than the amount claimed by a
31.21 	taxpayer.  For purposes of this subdivision, "refundable credit"
31.22 	means a refund benefit or credit due a person that is unrelated
31.23 	to the person's liability for a tax.  "Refundable credit" does
31.24 	not include estimated tax payments or withholding taxes.  An
31.25 	assessment for an overpayment of a refundable credit may be
31.26 	collected in the same manner as a tax collected by the
31.27 	commissioner; and 
31.28 	(4) the commissioner determines the correct amount of a tax
31.29 	that the taxpayer is not required to assess by a return filed
31.30 	with the commissioner.
31.31 	(b) An order of assessment must be in writing.[270.10,
31.32 	subd. 1]
31.33 	(c) An order of assessment must be signed by the
31.34 	commissioner or a delegate, or have their facsimile signature,
31.35 	if the change in tax, excluding penalties and interest, exceeds
31.36 	$1,000.[270.10, subd. 1]
32.1 	(d) An order of assessment is final when made but, as
32.2 	applicable, is reviewable administratively under section
32.3 	270C.35, or appealable to Tax Court under chapter 271.[289A.37,
32.4 	subd. 1, paragraph (a)]
32.5 		Subd. 5.Prohibition against collection during appeal
32.6 	period of an order. No collection action can be taken on an
32.7 	order of assessment, including the filing of liens under section
32.8 	270C.63, and no late payment penalties may be imposed when a
32.9 	return has been filed for the tax type and period upon which the
32.10 	order is based, during the appeal period of an order.  The
32.11 	appeal period of an order ends:  (1) 60 days after the order has
32.12 	been mailed to the taxpayer by the commissioner; (2) if an
32.13 	administrative appeal is filed under section 270C.35, 60 days
32.14 	after determination of the administrative appeal; (3) if an
32.15 	appeal to Tax Court is filed under chapter 271, when the
32.16 	decision of the Tax Court is made; or (4) if an appeal to Tax
32.17 	Court is filed and the appeal is based upon a constitutional
32.18 	challenge to the tax, 60 days after final determination of the
32.19 	appeal.  This subdivision does not apply to a jeopardy
32.20 	assessment under section 270C.36, or a jeopardy collection under
32.21 	section 270C.36.[289A.37, subd. 1, paragraph (b); 270.10,
32.22 	subd. 5]
32.23 		Subd. 6.Assessment presumed valid. A return or
32.24 	assessment of tax made by the commissioner is prima facie
32.25 	correct and valid.  The taxpayer has the burden of establishing
32.26 	its incorrectness or invalidity in any related action or
32.27 	proceeding.[289A.37, subd. 3]
32.28 		Subd. 7.Aggregate refund or assessment. The
32.29 	commissioner, on examining returns for more than one year or
32.30 	period, may issue one order covering the period under
32.31 	examination that reflects the aggregate refund or additional tax
32.32 	due.[289A.37, subd. 4]
32.33 		Subd. 8.Sufficiency of notice. An assessment of tax
32.34 	made by the commissioner, sent postage prepaid by United States
32.35 	mail to the taxpayer at the taxpayer's last known address, is
32.36 	sufficient even if the taxpayer is deceased or is under a legal
33.1 	disability, or, in the case of a corporation, has terminated its
33.2 	existence, unless the commissioner has been provided with a new
33.3 	address by a party authorized to receive notices of assessment.
33.4 	[289A.37, subd. 5]
33.5 		Subd. 9.Consent agreement. A taxpayer shall have the
33.6 	right at any time, whether or not an order has been issued, to
33.7 	sign and deliver to the commissioner a written consent to a
33.8 	change in tax liability that waives the requirement of any
33.9 	additional notice and all rights to an administrative appeal and
33.10 	appeal to Tax Court concerning the assessment and collection of
33.11 	any part or all of the tax liability.[270.67, subd. 3]
33.12 	
EFFECTIVE DATE. This section is effective for assessments
33.13 	made on or after August 1, 2005.

33.14 	Sec. 37. [270C.34] ABATEMENT OF PENALTY, INTEREST, AND
33.15 	ADDITIONAL TAX CHARGE.
33.16 		Subdivision 1.Authority. (a) The commissioner may
33.17 	abate, reduce, or refund any penalty or interest that is imposed
33.18 	by a law administered by the commissioner as a result of the
33.19 	late payment of tax or late filing of a return, if the failure
33.20 	to timely pay the tax or failure to timely file the return is
33.21 	due to reasonable cause, or if the taxpayer is located in a
33.22 	presidentially declared disaster area.[270.07, subd. 1,
33.23 	paragraph (e)]
33.24 	(b) The commissioner shall abate any part of a penalty or
33.25 	additional tax charge under section 289A.25, subdivision 2, or
33.26 	289A.26, subdivision 4, attributable to erroneous advice given
33.27 	to the taxpayer in writing by an employee of the department
33.28 	acting in an official capacity, if the advice:
33.29 	(1) was reasonably relied on and was in response to a
33.30 	specific written request of the taxpayer; and 
33.31 	(2) was not the result of failure by the taxpayer to
33.32 	provide adequate or accurate information.[270.07, subd. 6,
33.33 	paragraph (c)]
33.34 		Subd. 2.Procedure. (a) A request for abatement of
33.35 	penalty under subdivision 1 or section 289A.60, subdivision 4,
33.36 	must be filed with the commissioner within 60 days of the date
34.1 	the notice was mailed to the taxpayer's last known address,
34.2 	stating that a penalty has been imposed.
34.3 	(b) If the commissioner issues an order denying a request
34.4 	for abatement of penalty, the taxpayer may file an
34.5 	administrative appeal as provided in section 270C.35 or appeal
34.6 	to Tax Court as provided in section 271.06.
34.7 	(c) If the commissioner does not issue an order on the
34.8 	abatement request within 60 days from the date the request is
34.9 	received, the taxpayer may appeal to Tax Court as provided in
34.10 	section 271.06.[270.07, subd. 6, paragraphs (a) and (b)]
34.11 	
EFFECTIVE DATE. This section is effective August 1, 2005.

34.12 	Sec. 38. [270C.345] DETERMINATION OF MINIMUMS AND
34.13 	CANCELLATION; ADDITIONAL TAX, COLLECTION, REFUNDS.
34.14 	Notwithstanding any other provision of law, the
34.15 	commissioner may:
34.16 	(1) based upon the administrative costs of processing,
34.17 	determine minimum standards for the determination of additional
34.18 	tax for which an order shall be issued;
34.19 	(2) based upon collection costs as compared to the amount
34.20 	of tax involved, determine minimum standards of collection;
34.21 	(3) based upon the administrative costs of processing,
34.22 	determine the minimum amount of a refund to be made where no
34.23 	claim has been filed; and 
34.24 	(4) cancel any amounts below these minimum standards
34.25 	determined under clauses (1) and (2).[270.07, subd. 3]

34.26 	EFFECTIVE DATE. This section is effective August 1, 2005.

34.27 	Sec. 39. [270C.346] ERRONEOUS REMITTANCES.
34.28 	If a remittance is erroneously made payable to the
34.29 	commissioner and the commissioner had knowledge that the proper
34.30 	payee is a state or local official of this state, the
34.31 	commissioner may endorse such remittance to the proper state or
34.32 	local official.  The commissioner is also authorized to return a
34.33 	remittance if the records indicate that it has been erroneously
34.34 	submitted.[270.07, subd. 4]

34.35 	EFFECTIVE DATE. This section is effective August 1, 2005.

34.36 	Sec. 40. [270C.347] REBATE CHECKS AND WARRANTS; AUTHORITY
35.1 	TO REISSUE; APPROPRIATION.
35.2 		Subdivision 1.Checks and warrants, authority to
35.3 	reissue. Notwithstanding any other provision of law, the
35.4 	commissioner may, based on a showing of reasonable cause,
35.5 	reissue an uncashed rebate or property tax refund warrant or
35.6 	check that has lapsed under any provision of law relating to
35.7 	rebates or under section 290A.18, subdivision 2.  The authority
35.8 	to reissue warrants or checks under this paragraph is limited to
35.9 	five years after the date of issuance of the original warrant or
35.10 	check.[270.07, subd. 3, paragraph (f)]
35.11 		Subd. 2.Appropriation. An amount sufficient for the
35.12 	reissuance of rebate warrants authorized under subdivision 1 is
35.13 	appropriated to the commissioner from the general fund.
35.14 	[270.07, subd. 3a]
35.15 	
EFFECTIVE DATE. This section is effective August 1, 2005.

35.16 	Sec. 41. [270C.35] ADMINISTRATIVE REVIEW.
35.17 		Subdivision 1.Taxpayer right to reconsideration. A
35.18 	taxpayer may obtain reconsideration by the commissioner of an
35.19 	order assessing tax, a denial of a request for abatement of
35.20 	penalty or interest imposed by a law administered by the
35.21 	commissioner, or a denial of a claim for refund by filing an
35.22 	administrative appeal under subdivision 4.  A taxpayer cannot
35.23 	obtain reconsideration under this section if the action taken by
35.24 	the commissioner is the outcome of an administrative appeal.
35.25 		Subd. 2.Appeal by taxpayer. A taxpayer who wishes to
35.26 	seek administrative review must follow the procedures in
35.27 	subdivision 4.
35.28 		Subd. 3.Notice date. For purposes of this section, the
35.29 	term "notice date" means the date of the order adjusting the tax
35.30 	or order denying a request for abatement, or, in the case of a
35.31 	denied refund, the date of the notice of denial.
35.32 		Subd. 4.Time and content for administrative appeal.
 35.33 	Within 60 days after the notice date, the taxpayer must file a
35.34 	written appeal with the commissioner.  The appeal need not be in
35.35 	any particular form but must contain the following information:
35.36 	(1) name and address of the taxpayer;
36.1 	(2) if a corporation, the state of incorporation of the
36.2 	taxpayer, and the principal place of business of the
36.3 	corporation;
36.4 	(3) the Minnesota identification number or Social Security
36.5 	number of the taxpayer;
36.6 	(4) the type of tax involved;
36.7 	(5) the date;
36.8 	(6) the tax years or periods involved and the amount of tax
36.9 	involved for each year or period;
36.10 	(7) the findings in the notice that the taxpayer disputes;
36.11 	(8) a summary statement that the taxpayer relies on for
36.12 	each exception; and 
36.13 	(9) the taxpayer's signature or signature of the taxpayer's
36.14 	duly authorized agent.
36.15 		Subd. 5.Extensions. When requested in writing and
36.16 	within the time allowed for filing an administrative appeal, the
36.17 	commissioner may extend the time for filing an appeal for a
36.18 	period not more than 30 days from the expiration of the 60 days
36.19 	from the notice date.
36.20 		Subd. 6.Determination of appeal. On the basis of
36.21 	applicable law and available information, the commissioner shall
36.22 	determine the validity, if any, in whole or part of the appeal
36.23 	and notify the taxpayer of the decision.  This notice must be in
36.24 	writing and contain the basis for the determination.
36.25 		Subd. 7.Agreement determining tax liability. When it
36.26 	appears to be in the best interests of the state, the
36.27 	commissioner may settle any taxes, penalties, or interest that
36.28 	the commissioner has under consideration by virtue of an appeal
36.29 	filed under this section.  An agreement must be in writing and
36.30 	signed by the commissioner and the taxpayer, or the taxpayer's
36.31 	representative authorized by the taxpayer to enter into an
36.32 	agreement.  The agreement shall be final and conclusive and,
36.33 	except upon a showing of fraud or malfeasance, or
36.34 	misrepresentation of a material fact, the case shall not be
36.35 	reopened as to the matters agreed upon.
36.36 		Subd. 8.Order and appeal of an administrative
37.1 	determination. Following the determination of an appeal and
37.2 	notwithstanding any period of limitations for making assessments
37.3 	or other determinations to the contrary, the commissioner must
37.4 	issue an order reflecting that disposition.  If the statute of
37.5 	limitations for making assessments or other determinations would
37.6 	have expired before the issuance of this order, except for this
37.7 	section, the order is limited to issues or matters contained in
37.8 	the appealed determination.  The order is appealable to the
37.9 	Minnesota Tax Court under section 271.06.
37.10 		Subd. 9.Appeal where no determination. If the
37.11 	commissioner does not make a determination within six months of
37.12 	the filing of an administrative appeal, the taxpayer may elect
37.13 	to appeal to Tax Court.
37.14 		Subd. 10.Exemption from administrative procedure act.
 37.15 	This section is not subject to chapter 14.[289A.65]
37.16 	
EFFECTIVE DATE. This section is effective August 1, 2005.

37.17 	Sec. 42. [270C.36] JEOPARDY ASSESSMENT AND COLLECTION.
37.18 		Subdivision 1.Assessment. If the commissioner has
37.19 	reasonable grounds to believe that a taxpayer is about to leave,
37.20 	or take property from, this state with the purpose of evading a
37.21 	tax, or that the collection of the tax will be jeopardized by
37.22 	delays incident to other methods of collection, the commissioner
37.23 	may immediately declare the taxpayer's reporting period to be at
37.24 	an end and assess the tax due by issuing an order under section
37.25 	270C.33, subdivision 4.  The commissioner may make the
37.26 	assessment on the basis of knowledge or information available to
37.27 	the commissioner, and notwithstanding the prohibition against
37.28 	collection under section 270C.33, subdivision 5, demand
37.29 	immediate payment of the amount due shown in the assessment.
37.30 	[290.48, subd. 4; 290.92, subd. 6b; 297A.93, paragraph (a)]
37.31 		Subd. 2.Collection. Notwithstanding the prohibition
37.32 	against collection in section 270C.33, subdivision 5, and the
37.33 	notice provisions in section 270C.67, subdivision 3, if the
37.34 	commissioner has reason to believe that collection of a tax is
37.35 	in jeopardy, notice and demand for immediate payment of the tax
37.36 	may be made.  If the tax is not paid, the commissioner may
38.1 	proceed to collect by levy or by filing a lien under section
38.2 	270C.63.  For this purpose, "tax" includes any penalty,
38.3 	interest, and costs, properly payable.[270.70, subds. 1 and 2,
38.4 	paragraph (b)]
38.5 		Subd. 3.Administrative review. Within five days after a
38.6 	jeopardy assessment or jeopardy collection is made to assess or
38.7 	collect a tax, the commissioner shall provide the taxpayer with
38.8 	a written statement of the information relied on in making the
38.9 	assessment or levy.  Within 30 days after the written statement
38.10 	is provided or, if not provided, within 35 days after the
38.11 	assessment or levy, the taxpayer may request the commissioner to
38.12 	review the action taken.  After a request for review, the
38.13 	commissioner shall determine whether the assessment or levy is
38.14 	reasonable and whether the amount assessed or demanded as a
38.15 	result of the action is appropriate under the circumstances.
38.16 		Subd. 4.Judicial review. A determination by the
38.17 	commissioner under subdivision 3 is appealable to the Tax Court
38.18 	in the manner provided by law, and the appeal must be
38.19 	expeditiously heard by the court.  If the court determines that
38.20 	the making of the assessment or levy is unreasonable, or that
38.21 	the amount assessed or demanded is inappropriate, the court may
38.22 	order the commissioner to release the levy, abate the
38.23 	assessment, redetermine in whole or in part the amount assessed
38.24 	or demanded, or take other action.  A determination by the court
38.25 	under this subdivision is final and may not be appealed by
38.26 	either party.
38.27 		Subd. 5.Burden of proof. In a proceeding under
38.28 	subdivision 4, the burden of proving that the assessment or
38.29 	collection of the tax was jeopardized by delay is on the
38.30 	commissioner.  Regarding the issue of whether the amount
38.31 	assessed or demanded as a result of the action is appropriate,
38.32 	the commissioner shall provide a written statement explaining
38.33 	the basis for determining the amount, and the burden is on the
38.34 	taxpayer to show that the statement is incorrect or invalid.
38.35 	[270.274]
38.36 		Subd. 6.Defenses. It is not a defense to an assessment
39.1 	or demand made under this section that the tax period has not
39.2 	terminated, that the time otherwise allowed by law to file a
39.3 	return has not expired, that the notices otherwise required by
39.4 	law for making an assessment or demand have not been given, or
39.5 	that the time otherwise allowed by law to appeal or pay the tax
39.6 	has not expired.[297A.93, paragraph (b)]
39.7 	
EFFECTIVE DATE. This section is effective for assessments
39.8 	made and collection action taken on or after August 1, 2005.

39.9 	Sec. 43. [270C.37] TAXPAYER ASSISTANCE ORDERS; TAXPAYER'S
39.10 	RIGHTS ADVOCATE.
39.11 		Subdivision 1.Authority to issue. On application filed
39.12 	by a taxpayer with the Department of Revenue taxpayer's rights
39.13 	advocate, in the form, manner, and in the time prescribed by the
39.14 	commissioner, and after thorough investigation, the taxpayer's
39.15 	rights advocate may issue a taxpayer assistance order if, in the
39.16 	determination of the taxpayer's rights advocate, the manner in
39.17 	which a law administered by the commissioner is being carried
39.18 	out is creating or will create an unjust and inequitable result
39.19 	for the taxpayer.
39.20 		Subd. 2.Terms of a taxpayer assistance order. A
39.21 	taxpayer assistance order may require the department within a
39.22 	specified time period to release property of the taxpayer levied
39.23 	on, cease any action, take any action as permitted by law, or
39.24 	refrain from taking any action to enforce a law administered by
39.25 	the commissioner against the taxpayer, until the issue or issues
39.26 	giving rise to the order have been resolved.
39.27 		Subd. 3.Authority to modify or rescind. A taxpayer
39.28 	assistance order issued by the taxpayer's rights advocate under
39.29 	this section may be modified or rescinded by the commissioner.
39.30 		Subd. 4.Suspension of running of period of limitation.
 39.31 	The running of the period of limitation with respect to an
39.32 	action described in subdivision 2 is suspended from the date of
39.33 	the taxpayer assistance order until the expiration date of the
39.34 	order or, if modified, the expiration date of the modified order
39.35 	or, if rescinded, the date of the rescission.
39.36 	Subd. 5.[INDEPENDENT ACTION OF TAXPAYER'S RIGHTS
40.1 	ADVOCATE.] This section does not prevent the taxpayer's rights
40.2 	advocate from taking action in the absence of an application
40.3 	under subdivision 1.
40.4 	Subd. 6.[TAXPAYER'S RIGHTS ADVOCATE.] For purposes of
40.5 	this section, the term "taxpayer's rights advocate" includes a
40.6 	designee of the taxpayer's rights advocate.  The taxpayer's
40.7 	rights advocate shall represent the interests of taxpayers who
40.8 	have grievances against the department in connection with an
40.9 	audit or collection activity, and shall report directly to the
40.10 	commissioner.  A determination of the taxpayer's rights advocate
40.11 	under this section to issue or to not issue a taxpayer
40.12 	assistance order is final and cannot be appealed to the Tax
40.13 	Court or any other court.[270.273]
40.14 	
EFFECTIVE DATE. This section is effective August 1, 2005.

40.15 	Sec. 44. [270C.38] NOTICE OF DETERMINATION OR ACTION OF
40.16 	THE COMMISSIONER.
40.17 		Subdivision 1.Sufficient notice. If no method of
40.18 	notification of a written determination or action of the
40.19 	commissioner is otherwise specifically provided for by law,
40.20 	notice of the determination or action sent postage prepaid by
40.21 	United States mail to the taxpayer or other person affected by
40.22 	the determination or action at the taxpayer's or person's last
40.23 	known address, is sufficient.  If the taxpayer or person being
40.24 	notified is deceased or is under a legal disability, or, in the
40.25 	case of a corporation being notified that has terminated its
40.26 	existence, notice to the last known address of the taxpayer,
40.27 	person, or corporation is sufficient, unless the department has
40.28 	been provided with a new address by a party authorized to
40.29 	receive notices from the commissioner.
40.30 		Subd. 2.Service of notice by mail. Notwithstanding any
40.31 	other law to the contrary, the commissioner, if required to
40.32 	serve notices by registered or certified mail, may choose to
40.33 	make such service by regular mail, retaining a record of
40.34 	adequate proof of such service.[270.061]
40.35 	
EFFECTIVE DATE. This section is effective for notices
40.36 	issued on or after August 1, 2005.

41.1 	Sec. 45. [270C.39] DUE DATE ON SATURDAY, SUNDAY, OR
41.2 	HOLIDAY.
41.3 	When the last day prescribed by law for the payment of any
41.4 	tax to or the filing of any return, statement, or document with
41.5 	the commissioner or the department falls on Saturday, Sunday, or
41.6 	a legal holiday, the performance of such act shall be considered
41.7 	timely if it is performed on the next succeeding day which is
41.8 	not a Saturday, Sunday, or legal holiday.  For purposes of this
41.9 	section, the last day for the performance of the prescribed act
41.10 	shall be determined by including any authorized extension of
41.11 	time; the term "legal holiday" shall mean any day made a holiday
41.12 	in Minnesota by section 645.44, subdivision 5, or by the laws of
41.13 	the United States.[270.27]

41.14 	EFFECTIVE DATE. This section is effective August 1, 2005.

41.15 	Sec. 46. [270C.395] TIMELY MAILING TREATED AS TIMELY
41.16 	FILING AND PAYING.
41.17 		Subdivision 1.Date of delivery. When a document,
41.18 	including a return, claim, or statement, is required to be
41.19 	filed, or a payment is required to be made to the commissioner
41.20 	within a prescribed period, or on or before a prescribed date,
41.21 	and if the document or payment is delivered by electronic means
41.22 	or by United States mail after the period or the date to the
41.23 	place prescribed for filing or payment, then the date of
41.24 	delivery or of payment is the date of the confirmation
41.25 	time-and-date stamp of the transaction, if delivered by
41.26 	electronic means, or the date of the United States postmark
41.27 	stamped on the cover in which the document or payment is mailed,
41.28 	if delivered by United States mail, as the case may be.
41.29 		Subd. 2.Mailing requirements. Subdivision 1 applies
41.30 	only if:
41.31 	(1) the postmark date falls within the prescribed period or
41.32 	on or before the prescribed date,
41.33 	(i) for filing (including any extension granted for the
41.34 	filing) of the document, or 
41.35 	(ii) for making the payment (including any extension
41.36 	granted for making the payment); and 
42.1 	(2) the document or payment was within the time prescribed
42.2 	in clause (1), deposited in the mail in the United States in an
42.3 	envelope or other appropriate wrapper, postage prepaid, properly
42.4 	addressed to the office of the Department of Revenue with which
42.5 	the document is required to be filed or to which payment is
42.6 	required to be made.
42.7 		Subd. 3.Confirmation of electronic filing and payment
42.8 	and united states postal service postmark. The confirmation
42.9 	numbers and confirmation time-and-date stamps received by the
42.10 	taxpayer following electronic payment or filing are proof of the
42.11 	payment authorization and filing dates.  Only the postmark of
42.12 	the United States Postal Service, rather than those of private
42.13 	postage meters, qualifies as proof of timely mailing under this
42.14 	section.  If the document or payment is sent by United States
42.15 	registered mail, the date of registration shall be treated as
42.16 	the postmark date.  If the document or payment is sent by United
42.17 	States certified mail and the sender's receipt is postmarked by
42.18 	the postal employee to whom the envelope containing such
42.19 	document or payment is presented, the date of the United States
42.20 	postmark on the receipt shall be treated as the postmark date of
42.21 	the document or payment.
42.22 		Subd. 4.Receipt date otherwise governs. In any case in
42.23 	which the document or payment is not treated as timely filed or
42.24 	paid under this section, the date of receipt by the
42.25 	commissioner, and not the postmark date, shall govern for
42.26 	purposes of determining the amount of any penalties for late
42.27 	filing or payment.
42.28 		Subd. 5.Private delivery services. A reference in this
42.29 	section to the United States mail shall be treated as including
42.30 	a reference to any designated delivery service, and any
42.31 	reference in this section to a postmark by the United States
42.32 	Postal Service shall be treated as including a reference to any
42.33 	date recorded or marked by any designated delivery service in
42.34 	accordance with section 7502(f) of the Internal Revenue Code.
42.35 	[270.271]
42.36 	
EFFECTIVE DATE. This section is effective August 1, 2005.

43.1 	Sec. 47. [270C.40] INTEREST PAYABLE TO COMMISSIONER.
43.2 		Subdivision 1.Interest; rate. If any tax payable to the
43.3 	commissioner or to the department is not paid within the time
43.4 	specified by law for payment, the unpaid tax shall bear interest
43.5 	at the rate for each year determined in subdivision 5 from the
43.6 	date such tax should have been paid until the date that the tax
43.7 	was paid, unless otherwise provided by law.
43.8 		Subd. 2.Extension of time. When an extension of time
43.9 	has been granted by the commissioner, interest shall be paid at
43.10 	the rate for each year determined in subdivision 5 from the date
43.11 	such payment should have been made, if no extension had been
43.12 	granted, until the date of payment of such tax.
43.13 		Subd. 3.Penalty. If any penalty payable to the
43.14 	commissioner shall by law bear interest, such penalty shall bear
43.15 	interest at the rate for each year determined in subdivision 5
43.16 	from the date the penalty was assessable until the date that
43.17 	such penalty was paid, unless a different rate of interest is
43.18 	otherwise provided by law.
43.19 		Subd. 4.Underpayment of estimated tax. There shall be
43.20 	added to the amount of any underpayment of estimated tax,
43.21 	computed pursuant to chapter 289A, an amount in lieu of
43.22 	interest.  The amount in lieu of interest for that taxable year
43.23 	shall be the amount determined in subdivision 5 for January 1 on
43.24 	which begins the taxable year or precedes the beginning of the
43.25 	taxable year.  The amount in lieu of interest does not bear
43.26 	interest after the due date of the return for that taxable year.
43.27 		Subd. 5.Annual interest rate. The rate of interest or
43.28 	amount in lieu of interest contained in subdivisions 1 to 4
43.29 	shall be determined by the commissioner not later than October
43.30 	15 of each year and shall be equal to the prime rate charged by
43.31 	banks during the six-month period ending on September 30 of that
43.32 	year, rounded to the nearest full percent.  The rate of interest
43.33 	or amount in lieu of interest becomes effective on January 1 of
43.34 	the immediately succeeding year except as provided in
43.35 	subdivision 4.  For purposes of this subdivision, the term
43.36 	"prime rate charged by banks" means the average predominant
44.1 	prime rate quoted by commercial banks to large businesses, as
44.2 	determined by the Board of Governors of the Federal Reserve
44.3 	System.  The determination of the commissioner pursuant to this
44.4 	subdivision shall not be considered a "rule" and shall not be
44.5 	subject to the Administrative Procedure Act contained in chapter
44.6 	14.
44.7 		Subd. 6.Unpaid judgment. Notwithstanding section
44.8 	549.09, if judgment is entered upon any tax payable to the
44.9 	commissioner which has not been paid within the time specified
44.10 	by law for payment, the unpaid judgment shall bear interest at
44.11 	the rate specified in this section from the date judgment is
44.12 	entered until the date of payment.[270.75]
44.13 	
EFFECTIVE DATE. This section is effective August 1, 2005.

44.14 	Sec. 48. [270C.405] INTEREST ON REFUNDS.
44.15 	When any tax payable to the commissioner or to the
44.16 	department is overpaid and an amount is due the taxpayer as a
44.17 	refund of the overpayment, the overpayment shall bear interest
44.18 	from the date of payment of the tax until the date the refund is
44.19 	paid or credit is made, unless another period for computing
44.20 	interest is provided by law.  The interest rate per annum on
44.21 	overpayments shall be the interest rate contained in section
44.22 	270C.40, subdivision 5; the rate shall be adjusted annually and
44.23 	become effective as provided in section 270C.40, subdivision 5.
44.24 	The determination of the commissioner pursuant to this
44.25 	subdivision is not a "rule" and is not subject to the
44.26 	Administrative Procedure Act contained in chapter 14.[270.76]

44.27 	EFFECTIVE DATE. This section is effective August 1, 2005.

44.28 	Sec. 49. [270C.41] AGREEMENT WITH INTERNAL REVENUE
44.29 	SERVICE.
44.30 	Pursuant to section 270B.12, the commissioner may enter
44.31 	into an agreement with the Internal Revenue Service to identify
44.32 	taxpayers who have refunds due from the department and
44.33 	liabilities owing to the Internal Revenue Service.  In
44.34 	accordance with the procedures established in the agreement, the
44.35 	Internal Revenue Service may levy against the refunds to be paid
44.36 	by the department.  For each refund levied upon, the
45.1 	commissioner shall first deduct from the refund a fee of $20,
45.2 	and then remit the refund or the amount of the levy, whichever
45.3 	is less, to the Internal Revenue Service.  The proceeds of fees
45.4 	shall be deposited into the Department of Revenue recapture
45.5 	revolving fund under section 270A.07, subdivision 1.[270.052]

45.6 	EFFECTIVE DATE. This section is effective August 1, 2005.

45.7 	Sec. 50. [270C.42] ELECTRONIC PAYMENTS; PENALTY.
45.8 		Subdivision 1.Payments required to be made
45.9 	electronically. (a) If a taxpayer is required to make payment
45.10 	of a tax to the commissioner by electronic means, the taxpayer
45.11 	shall make all payments of all taxes and fees paid to the
45.12 	commissioner by electronic means.
45.13 	(b) Paragraph (a) does not apply to payments required to be
45.14 	made for individual income taxes under section 289A.20,
45.15 	subdivision 1, paragraph (a), or 289A.25.[270.771]
45.16 		Subd. 2.Penalty for failure to pay electronically. In
45.17 	addition to other applicable penalties imposed by law, after
45.18 	notification from the commissioner to the taxpayer that payments
45.19 	for a tax payable to the commissioner are required to be made by
45.20 	electronic means, and the payments are remitted by some other
45.21 	means, there is a penalty in the amount of five percent of each
45.22 	payment that should have been remitted electronically.  After
45.23 	the commissioner's initial notification to the taxpayer that
45.24 	payments are required to be made by electronic means, the
45.25 	commissioner is not required to notify the taxpayer in
45.26 	subsequent periods if the initial notification specified the
45.27 	amount of tax liability at which a taxpayer is required to remit
45.28 	payments by electronic means.  The penalty can be abated under
45.29 	the abatement procedures prescribed in section 270C.34 if the
45.30 	failure to remit the payment electronically is due to reasonable
45.31 	cause.  The penalty bears interest at the rate specified in
45.32 	section 270C.40 from the due date of the payment of the tax to
45.33 	the date of payment of the penalty.[270.78]
45.34 	
EFFECTIVE DATE. This section is effective August 1, 2005.

45.35 	Sec. 51. [270C.425] FINANCIAL TRANSACTION CARDS; PAYMENT
45.36 	OF TAXES; APPROPRIATION.
46.1 	(a) The commissioner may allow taxpayers to use financial
46.2 	transaction cards, as defined in section 325G.02, subdivision 2,
46.3 	to pay any of the following which are payable to the
46.4 	commissioner:
46.5 	(1) taxes;
46.6 	(2) estimated tax deposits;
46.7 	(3) penalties;
46.8 	(4) interest;
46.9 	(5) additions to taxes; and 
46.10 	(6) fees.
46.11 	(b) The commissioner may impose a fee on each transaction
46.12 	under paragraph (a).  The fee is equal to the fee the
46.13 	commissioner is required to pay for the taxpayer's use of the
46.14 	financial transaction card.  This fee must be deposited in the
46.15 	general fund and is appropriated to the commissioner for the
46.16 	purpose of paying the transaction card fee.
46.17 	(c) The types of financial transaction cards that will be
46.18 	accepted shall be determined solely by the commissioner.  The
46.19 	selection of transaction card vendors shall be made through a
46.20 	request for proposals process.  Before issuing a request for
46.21 	proposals, the commissioner shall review the request for
46.22 	proposals and any specifications with the commissioner of
46.23 	finance.  The commissioner shall select the transaction card
46.24 	vendors from among those which meet the operational and cost
46.25 	requirements of the department.  The commissioner may limit the
46.26 	number of different types of financial transaction cards that
46.27 	will be accepted.
46.28 	(d) If the commissioner allows taxpayers to pay taxes with
46.29 	financial transaction cards, the commissioner shall report
46.30 	quarterly on the status of this program to the chairs of the
46.31 	house tax and appropriations committees and the chairs of the
46.32 	senate tax and finance committees.[270.74]

46.33 	EFFECTIVE DATE. This section is effective August 1, 2005.

46.34 	Sec. 52. [270C.43] REFUNDS PAYABLE IN INSTALLMENTS.
46.35 		Subdivision 1.Law held unconstitutional. Where there is
46.36 	(1) a final judicial determination that a law administered by
47.1 	the commissioner is unconstitutional, is in violation of state
47.2 	or federal law, or that a regulation or statute has been
47.3 	misinterpreted by the department; and (2) the determination is
47.4 	not limited to prospective application, the procedures in this
47.5 	section relating to refunds attributable to that determination
47.6 	apply.
47.7 		Subd. 2.Estimate of cumulative refunds. The
47.8 	commissioner shall estimate the cumulative refunds due resulting
47.9 	from the judicial determination.
47.10 		Subd. 3.General refund provisions. If the commissioner
47.11 	determines that the cumulative refunds due all affected
47.12 	taxpayers will not exceed $50,000,000, the general provisions
47.13 	for refunding for the particular tax type apply.
47.14 		Subd. 4.Refund procedures. (a) If the commissioner
47.15 	determines that the cumulative refunds due all affected
47.16 	taxpayers will exceed $50,000,000, the refund procedures in this
47.17 	subdivision apply.
47.18 	(b) The refunds due shall be paid in five installments.
47.19 	The first installment will be paid during the calendar year
47.20 	following the later of the filing of the refund claim or the
47.21 	final judicial determination and subsequent installments will be
47.22 	paid at any time during each of the four succeeding calendar
47.23 	years.
47.24 	(c) The commissioner shall compute the annual refund
47.25 	installment due under this subdivision, and notify the taxpayer
47.26 	of the total amount of the claim for refund which has been
47.27 	allowed.
47.28 	(d) The installment paid each year equals 20 percent of the
47.29 	refund allowed unless the commissioner determines that the
47.30 	cumulative refunds due for a particular year under this section
47.31 	will exceed $150,000,000.  If the refunds payable will exceed
47.32 	that amount, they will be reduced pro rata with any balance
47.33 	remaining due payable with the final refund installment.
47.34 	(e) Unless contrary to the provisions in this section, the
47.35 	provisions for refunds in the various tax types, including
47.36 	provisions related to the payment of interest, apply to the
48.1 	refunds subject to these provisions.
48.2 	(f) The commissioner may establish a de minimis individual
48.3 	refund amount below which the installment provisions do not
48.4 	apply.  The amount established under this paragraph is not
48.5 	subject to the provisions of chapter 14.
48.6 	(g) If the commissioner of finance determines that it is in
48.7 	the best interest of the state, refunds payable under this
48.8 	section may be paid in fewer than five installments.[270.79]
48.9 	
EFFECTIVE DATE. This section is effective for refunds
48.10 	payable on or after August 1, 2005.

48.11 	Sec. 53. [270C.44] PRACTICE BEFORE THE COMMISSIONER.
48.12 	The commissioner shall prescribe rules governing the
48.13 	qualification and practice of agents, attorneys, or other
48.14 	persons representing taxpayers before the commissioner.  The
48.15 	rules may require that those persons, agents, and attorneys show
48.16 	that they are of good character and in good repute, have the
48.17 	necessary qualifications to give taxpayers valuable services,
48.18 	and are otherwise competent to advise and assist taxpayers in
48.19 	the presentation of their case before being recognized as
48.20 	representatives of taxpayers.  After due notice and opportunity
48.21 	for hearing, the commissioner may suspend and bar from further
48.22 	practice before the commissioner any person, agent, or attorney
48.23 	who is shown to be incompetent or disreputable, who refuses to
48.24 	comply with the rules, or who with intent to defraud, willfully
48.25 	or knowingly deceives, misleads, or threatens a taxpayer or
48.26 	prospective taxpayer, by words, circular, letter, or by
48.27 	advertisement.  This section does not curtail the rights of
48.28 	individuals to appear in their own behalf or partners or
48.29 	corporations' officers to appear in behalf of their respective
48.30 	partnerships or corporations.[270.06, clause (16)]

48.31 	EFFECTIVE DATE. This section is effective August 1, 2005.

48.32 	Sec. 54. [270C.445] TAX PREPARATION SERVICES.
48.33 		Subdivision 1.Scope. (a) This section applies to a
48.34 	person who offers, provides, or facilitates the provision of
48.35 	refund anticipation loans, as part of or in connection with the
48.36 	provision of tax preparation services.
49.1 	(b) This section does not apply to:
49.2 	(1) a tax preparer who provides tax preparation services
49.3 	for fewer than six clients in a calendar year;
49.4 	(2) the provision by a person of tax preparation services
49.5 	to a spouse, parent, grandparent, child, or sibling; and 
49.6 	(3) the provision of services by an employee for an
49.7 	employer.
49.8 		Subd. 2.Definitions. (a) For purposes of this section,
49.9 	the following terms have the meanings given.
49.10 	(b) "Client" means an individual for whom a tax preparer
49.11 	performs or agrees to perform tax preparation services.
49.12 	(c) "Person" means an individual, corporation, partnership,
49.13 	limited liability company, association, trustee, or other legal
49.14 	entity.
49.15 	(d) "Refund anticipation loan" means a loan, whether
49.16 	provided by the tax preparer or another entity such as a
49.17 	financial institution, in anticipation of, and whose payment is
49.18 	secured by, a client's federal or state income tax refund or
49.19 	both.
49.20 	(e) "Tax preparation services" means services provided for
49.21 	a fee or other consideration to a client to:
49.22 	(1) assist with preparing or filing state or federal
49.23 	individual income tax returns;
49.24 	(2) assume final responsibility for completed work on an
49.25 	individual income tax return on which preliminary work has been
49.26 	done by another; or 
49.27 	(3) offer or facilitate the provision of refund
49.28 	anticipation loans.
49.29 	(f) "Tax preparer" or "preparer" means a person providing
49.30 	tax preparation services subject to this section.
49.31 		Subd. 3.Standards of conduct. No tax preparer shall:
49.32 	(1) without good cause fail to promptly, diligently, and
49.33 	without unreasonable delay complete a client's tax return;
49.34 	(2) obtain the signature of a client to a tax return or
49.35 	authorizing document that contains blank spaces to be filled in
49.36 	after it has been signed;
50.1 	(3) fail to sign a client's tax return when payment for
50.2 	services rendered has been made;
50.3 	(4) fail or refuse to give a client a copy of any document
50.4 	requiring the client's signature within a reasonable time after
50.5 	the client signs the document;
50.6 	(5) fail to retain for at least four years a copy of
50.7 	individual income tax returns;
50.8 	(6) fail to maintain a confidential relationship between
50.9 	themselves and their clients or former clients;
50.10 	(7) fail to take commercially reasonable measures to
50.11 	safeguard a client's nonpublic personal information;
50.12 	(8) make, authorize, publish, disseminate, circulate, or
50.13 	cause to make, either directly or indirectly, any false,
50.14 	deceptive, or misleading statement or representation relating to
50.15 	or in connection with the offering or provision of tax
50.16 	preparation services;
50.17 	(9) require a client to enter into a loan arrangement in
50.18 	order to complete a tax return;
50.19 	(10) claim credits or deductions on a client's tax return
50.20 	for which the tax preparer knows or reasonably should know the
50.21 	taxpayer does not qualify;
50.22 	(11) charge, offer to accept, or accept a fee based upon a
50.23 	percentage of an anticipated refund for tax preparation
50.24 	services;
50.25 	(12) under any circumstances, withhold or fail to return to
50.26 	a client a document provided by the client for use in preparing
50.27 	the client's tax return.
50.28 		Subd. 4.Required disclosures; refund anticipation
50.29 	loans. (a) If a tax preparer offers to make or facilitate a
50.30 	refund anticipation loan to the client, the preparer must make
50.31 	the disclosures in this subdivision.  The disclosures must be
50.32 	made before or at the same time the preparer offers the refund
50.33 	anticipation loan to the client.
50.34 	(b) The tax preparer must provide to a client a written
50.35 	notice on a single sheet of paper, separate from any other
50.36 	document or writing, containing:
51.1 	(1) a legend, centered at the top on the single sheet of
51.2 	paper, in bold, capital letters, and in 28-point type stating
51.3 	"NOTICE";
51.4 	(2) the following verbatim statements:
51.5 	(i) "This is a loan.  The annual percentage rate (APR),
51.6 	based on the estimated payment period, is (fill in the estimated
51.7 	APR)." 
51.8 	(ii) "Your refund will be used to repay the loan.  As a
51.9 	result, the amount of your refund will be reduced by (fill in
51.10 	appropriate dollar amount) for fees, interest, and other
51.11 	charges." 
51.12 	(iii) "You can get your refund in about two weeks if you
51.13 	file your return electronically and have the Internal Revenue
51.14 	Service send your refund to your own bank account." and 
51.15 	(3) if the client is subject to additional interest when a
51.16 	refund is delayed, the following verbatim statement must also be
51.17 	included in the notice:  "If you choose to take this loan and
51.18 	your refund is delayed, you may have to pay additional interest." 
51.19 	(c) All required statements must be in capital and small
51.20 	font type fonts, in a minimum of 14-point type, with at least a
51.21 	double space between each line in the statement and four spaces
51.22 	between each statement.
51.23 	(d) The notice must be signed and dated by the tax preparer
51.24 	and the client.
51.25 		Subd. 5.Itemized bill required. A tax preparer must
51.26 	provide an itemized statement of the charges for services, at
51.27 	least separately stating the charges for:
51.28 	(1) return preparation;
51.29 	(2) electronic filing; and 
51.30 	(3) providing or facilitating a refund anticipation loan.
51.31 		Subd. 6.Enforcement; penalties. The commissioner may
51.32 	impose an administrative penalty of not more than $1,000 per
51.33 	violation of subdivision 3, 4, or 5.  The commissioner may
51.34 	terminate a tax preparer's authority to transmit returns
51.35 	electronically to the state, if the commissioner determines the
51.36 	tax preparer engaged in a pattern and practice of violating this
52.1 	section.  Imposition of a penalty under this subdivision is
52.2 	subject to the contested case procedure under chapter 14.  The
52.3 	commissioner shall collect the penalty in the same manner as a
52.4 	tax collected by the commissioner.
52.5 		Subd. 7.Enforcement; civil actions. (a) Any violation
52.6 	of this section is an unfair, deceptive, and unlawful trade
52.7 	practice within the meaning of section 8.31.
52.8 	(b) A client may bring a civil action seeking redress for a
52.9 	violation of this section in the conciliation or the district
52.10 	court of the county in which unlawful action is alleged to have
52.11 	been committed or where the respondent resides or has a
52.12 	principal place of business.
52.13 	(c) A district court finding for the plaintiff must award
52.14 	actual damages, including incidental and consequential damages,
52.15 	reasonable attorney fees, court costs, and any other equitable
52.16 	relief as the court considers appropriate.
52.17 		Subd. 8.Exemptions; enforcement provisions. The
52.18 	provisions of subdivisions 6 and 7 do not apply to:
52.19 	(1) an attorney admitted to practice under section 481.01;
52.20 	(2) a certified public accountant holding a certificate
52.21 	under section 326A.04 or a person issued a permit to practice
52.22 	under section 326A.05;
52.23 	(3) a person designated as a registered accounting
52.24 	practitioner under Minnesota Rules, part 1105.6600, or a
52.25 	registered accounting practitioner firm issued a permit under
52.26 	Minnesota Rules, part 1105.7100;
52.27 	(4) an enrolled agent who has passed the special enrollment
52.28 	examination administered by the Internal Revenue Service; and 
52.29 	(5) any fiduciary, or the regular employees of a fiduciary,
52.30 	while acting on behalf of the fiduciary estate, the testator,
52.31 	trustor, grantor, or beneficiaries of them.[270.30]
52.32 	
EFFECTIVE DATE. This section is effective August 1, 2005.

52.33 	Sec. 55. [270C.447] LEGAL ACTION TO ENJOIN TAX RETURN
52.34 	PREPARER.
52.35 		Subdivision 1.Commencement of action. A civil action in
52.36 	the name of the state of Minnesota may be commenced to enjoin
53.1 	any person who is a tax return preparer doing business in this
53.2 	state from further engaging in any conduct described in
53.3 	subdivision 2.  An action under this subdivision must be brought
53.4 	by the attorney general in the district court for the judicial
53.5 	district of the tax return preparer's residence or principal
53.6 	place of business, or in which the taxpayer with respect to
53.7 	whose tax return the action is brought resides.  The court may
53.8 	exercise its jurisdiction over the action separate and apart
53.9 	from any other action brought by the state of Minnesota against
53.10 	the tax return preparer or any taxpayer.
53.11 		Subd. 2.Injunction prohibiting specific conduct. In an
53.12 	action under subdivision 1, if the court finds that a tax return
53.13 	preparer has:
53.14 	(1) engaged in any conduct subject to a civil penalty under
53.15 	section 289A.60 or a criminal penalty under section 289A.63;
53.16 	(2) misrepresented the preparer's eligibility to practice
53.17 	before the Department of Revenue, or otherwise misrepresented
53.18 	the preparer's experience or education as a tax return preparer;
53.19 	(3) guaranteed the payment of any tax refund or the
53.20 	allowance of any tax credit; or 
53.21 	(4) engaged in any other fraudulent or deceptive conduct
53.22 	that substantially interferes with the proper administration of
53.23 	a law administered by the commissioner, and injunctive relief is
53.24 	appropriate to prevent the recurrence of that conduct,
53.25 	the court may enjoin the person from further engaging in that
53.26 	conduct.
53.27 		Subd. 3.Injunction prohibiting all business activities.
 53.28 	If the court finds that a tax return preparer has continually or
53.29 	repeatedly engaged in conduct described in subdivision 2, and
53.30 	that an injunction prohibiting that conduct would not be
53.31 	sufficient to prevent the person's interference with the proper
53.32 	administration of a law administered by the commissioner, the
53.33 	court may enjoin the person from acting as a tax return
53.34 	preparer.  The court may not enjoin the employer of a tax return
53.35 	preparer for conduct described in subdivision 2 engaged in by
53.36 	one or more of the employer's employees unless the employer was
54.1 	also actively involved in that conduct.[289A.60, subd. 13,
54.2 	paragraphs (b), (c), and (d)]
54.3 		Subd. 4.Tax return preparer. For purposes of this
54.4 	section, the term "tax return preparer" means an individual who
54.5 	prepares for compensation, or who employs one or more
54.6 	individuals to prepare for compensation, a return of tax or a
54.7 	claim for refund of tax.  The preparation of a substantial part
54.8 	of a return or claim for refund is treated as if it were the
54.9 	preparation of the entire return or claim for refund.  An
54.10 	individual is not considered a tax return preparer merely
54.11 	because the individual:
54.12 	(1) gives typing, reproducing, or other mechanical
54.13 	assistance;
54.14 	(2) prepares a return or claim for refund of the employer,
54.15 	or an officer or employee of the employer, by whom the
54.16 	individual is regularly and continuously employed;
54.17 	(3) prepares a return or claim for refund of any person as
54.18 	a fiduciary for that person; or 
54.19 	(4) prepares a claim for refund for a taxpayer in response
54.20 	to a tax order issued to the taxpayer.
54.21 	
EFFECTIVE DATE. This section is effective August 1, 2005.
54.22 	COLLECTION

54.23 	Sec. 56. [270C.50] USE OF COLLECTION REMEDIES.
54.24 	In addition to the remedies provided in the state revenue
54.25 	laws, the commissioner may use any remedy available to
54.26 	nongovernmental creditors to collect taxes.[270.06, clause
54.27 	(14)]

54.28 	EFFECTIVE DATE. This section is effective August 1, 2005.

54.29 	Sec. 57. [270C.51] ALLOCATION OF PAYMENT.
54.30 	In the discretion of the commissioner, payments received
54.31 	for taxes may be credited first to the oldest liability not
54.32 	secured by a judgment or lien.  For liabilities to which
54.33 	payments are applied, the commissioner may credit payments first
54.34 	to penalties, next to interest, and then to the tax due.
54.35 	[270.652; 297E.12, subd. 10]

54.36 	EFFECTIVE DATE. This section is effective August 1, 2005.

55.1 	Sec. 58. [270C.52] SETTLEMENT AGREEMENTS, PAYMENT
55.2 	AGREEMENTS, AND OFFERS IN COMPROMISE.
55.3 		Subdivision 1.Liability agreements. The commissioner,
55.4 	or any employee of the department authorized in writing by the
55.5 	commissioner, is authorized to enter into an agreement in
55.6 	writing with any taxpayer, or duly authorized agent or
55.7 	representative of the taxpayer, relating to the liability of the
55.8 	taxpayer in respect of any tax for any tax period ending prior
55.9 	to the date of the agreement.  The agreement shall be final and
55.10 	conclusive and, except upon a showing of fraud or malfeasance,
55.11 	or misrepresentation of a material fact, the case shall not be
55.12 	reopened as to the matters agreed upon, or the agreement
55.13 	modified, by any employee or agent of the state; and, in any
55.14 	suit, action, or proceeding, the agreement, or any
55.15 	determination, assessment, collection, payment, abatement,
55.16 	refund, or credit, made in accordance with the agreement, shall
55.17 	not be annulled, modified, set aside, or disregarded.[270.67,
55.18 	subd. 1]
55.19 		Subd. 2.Payment agreements. (a) When any portion of any
55.20 	tax payable to the commissioner together with interest and
55.21 	penalty thereon, if any, has not been paid, the commissioner may
55.22 	extend the time for payment for a further period.  When the
55.23 	authority of this section is invoked, the extension shall be
55.24 	evidenced by written agreement signed by the taxpayer and the
55.25 	commissioner, stating the amount of the tax with penalty and
55.26 	interest, if any, and providing for the payment of the amount in
55.27 	installments.
55.28 	(b) The agreement may contain a confession of judgment for
55.29 	the amount and for any unpaid portion thereof.  If the agreement
55.30 	contains a confession of judgment, the confession of judgment
55.31 	must provide that the commissioner may enter judgment against
55.32 	the taxpayer in the district court of the county of residence as
55.33 	shown upon the taxpayer's tax return for the unpaid portion of
55.34 	the amount specified in the extension agreement.
55.35 	(c) The agreement shall provide that it can be terminated,
55.36 	after notice by the commissioner, if information provided by the
56.1 	taxpayer prior to the agreement was inaccurate or incomplete,
56.2 	collection of the tax covered by the agreement is in jeopardy,
56.3 	there is a subsequent change in the taxpayer's financial
56.4 	condition, the taxpayer has failed to make a payment due under
56.5 	the agreement, or the taxpayer has failed to pay any other tax
56.6 	or file a tax return coming due after the agreement.
56.7 	(d) The notice must be given at least 14 calendar days
56.8 	prior to termination, and shall advise the taxpayer of the right
56.9 	to request a reconsideration from the commissioner of whether
56.10 	termination is reasonable and appropriate under the
56.11 	circumstances.  A request for reconsideration does not stay
56.12 	collection action beyond the 14-day notice period.  If the
56.13 	commissioner has reason to believe that collection of the tax
56.14 	covered by the agreement is in jeopardy, the commissioner may
56.15 	proceed under section 270C.36 and terminate the agreement
56.16 	without regard to the 14-day period.
56.17 	(e) The commissioner may accept other collateral the
56.18 	commissioner considers appropriate to secure satisfaction of the
56.19 	tax liability.  The principal sum specified in the agreement
56.20 	shall bear interest at the rate specified in section 270C.40 on
56.21 	all unpaid portions thereof until the same has been fully paid
56.22 	or the unpaid portion thereof has been entered as a judgment.
56.23 	The judgment shall bear interest at the rate specified in
56.24 	section 270C.40.
56.25 	(f) If it appears to the commissioner that the tax reported
56.26 	by the taxpayer is in excess of the amount actually owing by the
56.27 	taxpayer, the extension agreement or the judgment entered
56.28 	pursuant thereto shall be corrected.  If after making the
56.29 	extension agreement or entering judgment with respect thereto,
56.30 	the commissioner determines that the tax as reported by the
56.31 	taxpayer is less than the amount actually due, the commissioner
56.32 	shall assess a further tax in accordance with the provisions of
56.33 	law applicable to the tax.
56.34 	(g) The authority granted to the commissioner by this
56.35 	section is in addition to any other authority granted to the
56.36 	commissioner by law to extend the time of payment or the time
57.1 	for filing a return and shall not be construed in limitation
57.2 	thereof.[270.67, subd. 2]
57.3 		Subd. 3.Offer-in-compromise and installment payment
57.4 	program. (a) In implementing the authority provided in
57.5 	subdivision 2 or in sections 8.30 and 16D.15 to accept offers of
57.6 	installment payments or offers-in-compromise of tax liabilities,
57.7 	the commissioner shall prescribe guidelines for employees of the
57.8 	department to determine whether an offer-in-compromise or an
57.9 	offer to make installment payments is adequate and should be
57.10 	accepted to resolve a dispute.  In prescribing the guidelines,
57.11 	the commissioner shall develop and publish schedules of national
57.12 	and local allowances designed to provide that taxpayers entering
57.13 	into a compromise or payment agreement have an adequate means to
57.14 	provide for basic living expenses.  The guidelines must provide
57.15 	that the taxpayer's ownership interest in a motor vehicle, to
57.16 	the extent of the value allowed in section 550.37, will not be
57.17 	considered as an asset; in the case of an offer related to a
57.18 	joint tax liability of spouses, that value of two motor vehicles
57.19 	must be excluded.  The guidelines must provide that employees of
57.20 	the department shall determine, on the basis of the facts and
57.21 	circumstances of each taxpayer, whether the use of the schedules
57.22 	is appropriate and that employees must not use the schedules to
57.23 	the extent the use would result in the taxpayer not having
57.24 	adequate means to provide for basic living expenses.  The
57.25 	guidelines must provide that:
57.26 	(1) an employee of the department shall not reject an
57.27 	offer-in-compromise or an offer to make installment payments
57.28 	from a low-income taxpayer solely on the basis of the amount of
57.29 	the offer; and 
57.30 	(2) in the case of an offer-in-compromise which relates
57.31 	only to issues of liability of the taxpayer:
57.32 	(i) the offer must not be rejected solely because the
57.33 	commissioner is unable to locate the taxpayer's return or return
57.34 	information for verification of the liability; and 
57.35 	(ii) the taxpayer shall not be required to provide an
57.36 	audited, reviewed, or compiled financial statement.
58.1 	(b) The commissioner shall establish procedures:
58.2 	(1) that require presentation of a counteroffer or a
58.3 	written rejection of the offer by the commissioner if the amount
58.4 	offered by the taxpayer in an offer-in-compromise or an offer to
58.5 	make installment payments is not accepted by the commissioner;
58.6 	(2) for an administrative review of any written rejection
58.7 	of a proposed offer-in-compromise or installment agreement made
58.8 	by a taxpayer under this section before the rejection is
58.9 	communicated to the taxpayer;
58.10 	(3) that allow a taxpayer to request reconsideration of any
58.11 	written rejection of the offer or agreement to the commissioner
58.12 	to determine whether the rejection is reasonable and appropriate
58.13 	under the circumstances; and 
58.14 	(4) that provide for notification to the taxpayer when an
58.15 	offer-in-compromise has been accepted, and issuance of
58.16 	certificates of release of any liens imposed under section
58.17 	270C.63 related to the liability which is the subject of the
58.18 	compromise.[270.67, subd. 4]
58.19 	
EFFECTIVE DATE. This section is effective August 1, 2005.

58.20 	Sec. 59. [270C.53] COLLECTION; TAXPAYER INABILITY TO
58.21 	PAY.
58.22 	Notwithstanding any other provision of law, the
58.23 	commissioner may, based upon the inability of a taxpayer to pay
58.24 	a delinquent tax liability, abate the liability if the taxpayer
58.25 	agrees to perform uncompensated public service work for a state
58.26 	agency, a political subdivision or public corporation of this
58.27 	state, or a nonprofit educational, medical, or social service
58.28 	agency.  The Department of Corrections shall administer the work
58.29 	program.  No benefits under chapter 176 or 268 shall be
58.30 	available, but a claim authorized under section 3.739 may be
58.31 	made by the taxpayer.  The state may not enter into any
58.32 	agreement that has the purpose of or results in the displacement
58.33 	of public employees by a delinquent taxpayer under this
58.34 	section.  The state must certify to the appropriate bargaining
58.35 	agent or employees, as applicable, that the work performed by a
58.36 	delinquent taxpayer will not result in the displacement of
59.1 	currently employed workers or layoff from a substantially
59.2 	equivalent position, including partial displacement such as
59.3 	reduction in hours of nonovertime work, wages, or other
59.4 	employment benefits.[270.07, subd. 3, clause (e)]

59.5 	EFFECTIVE DATE. This section is effective August 1, 2005.

59.6 	Sec. 60. [270C.54] COLLECTION OF FINANCIAL INSTITUTION
59.7 	FEES.
59.8 	The commissioner shall collect from a taxpayer any
59.9 	collection fees or costs charged by financial institutions and
59.10 	incurred by the commissioner.[270.063, subd. 3]

59.11 	EFFECTIVE DATE. This section is effective August 1, 2005.

59.12 	Sec. 61. [270C.545] FEDERAL TAX REFUND OFFSET FEES; TIME
59.13 	LIMIT FOR SUBMITTING CLAIMS FOR OFFSET.
59.14 	For fees charged by the Department of the Treasury of the
59.15 	United States for the offset of federal tax refunds that are
59.16 	deducted from the refund amounts remitted to the commissioner,
59.17 	the unpaid debts of the taxpayers whose refunds are being offset
59.18 	to satisfy the debts are reduced only by the actual amount of
59.19 	the refund payments received by the commissioner.
59.20 	Notwithstanding any other provision of law to the contrary, a
59.21 	claim for the offset of a federal tax refund must be submitted
59.22 	to the Department of the Treasury of the United States within
59.23 	ten years after the date of the assessment of the tax owed by
59.24 	the taxpayer whose refund is to be offset to satisfy the debt.
59.25 	[270.063, subd. 4]

59.26 	EFFECTIVE DATE. This section is effective August 1, 2005.

59.27 	Sec. 62. [270C.56] PERSONAL LIABILITY.
59.28 		Subdivision 1.Liability imposed. A person who, either
59.29 	singly or jointly with others, has the control of, supervision
59.30 	of, or responsibility for filing returns or reports, paying
59.31 	taxes, or collecting or withholding and remitting taxes and who
59.32 	fails to do so, or a person who is liable under any other law,
59.33 	is liable for the payment of taxes, penalties, and interest
59.34 	arising under chapters 295, 296A, 297F, 297A, and 297G, or
59.35 	sections 290.92 and 297E.02.
59.36 		Subd. 2.Person defined. The term "person" includes, but
60.1 	is not limited to, a corporation, estate, trust, organization,
60.2 	or association, whether organized for profit or not, an officer
60.3 	or director of a corporation, a member of a partnership, an
60.4 	employee, a third party (including, but not limited to, a
60.5 	financial institution, lender, or surety), and any other
60.6 	individual or entity.  "Person" does not include an unpaid,
60.7 	volunteer member of a board of trustees or directors of an
60.8 	organization exempt from taxation under section 290.05, if the
60.9 	member is solely serving in an honorary capacity, does not
60.10 	participate in the day-to-day or financial operations of the
60.11 	organization, and has no actual knowledge of the failure to file
60.12 	returns or remit taxes.
60.13 		Subd. 3.Procedure for assessment. The commissioner may
60.14 	assess liability for the taxes described in subdivision 1
60.15 	against a person liable under this section.  The assessment may
60.16 	be based upon information available to the commissioner.  It
60.17 	must be made within the prescribed period of limitations for
60.18 	assessing the underlying tax, or within one year after the date
60.19 	of an order assessing underlying tax, whichever period expires
60.20 	later.  An order assessing personal liability under this section
60.21 	is reviewable under section 270C.35 and is appealable to Tax
60.22 	Court.
60.23 	If a person has been assessed under this section for an
60.24 	amount for a given period and the time for appeal has expired or
60.25 	there has been a final determination that the person is liable,
60.26 	collection action is not stayed pursuant to section 270C.33,
60.27 	subdivision 5, for subsequent assessments of additional amounts
60.28 	for the same person for the same period and tax type.
60.29 		Subd. 4.Right of contribution. A person who has paid
60.30 	all or part of a liability assessed under this section has a
60.31 	cause of action against other liable persons to recover the
60.32 	amount paid in excess of that person's share of the liability.
60.33 	A claim for recovery of contribution may be made only in a
60.34 	proceeding which is separate from, and cannot be joined or
60.35 	consolidated with, an administrative or judicial proceeding or
60.36 	investigation involving the commissioner's administration or
61.1 	enforcement of this section.  An order assessing liability under
61.2 	this section against the person from whom contribution is being
61.3 	sought is not a prerequisite for bringing an action for recovery
61.4 	of contribution, nor is the issuance of an order binding on the
61.5 	court in which the proceeding is brought.  The court can
61.6 	determine whether each person would be liable under this section
61.7 	and the share of liability.  The commissioner cannot be made a
61.8 	party to any proceeding for recovery of contribution, nor is a
61.9 	determination in such a proceeding binding on the commissioner
61.10 	for the purpose of administering or enforcing this section.  An
61.11 	action for contribution arises when the liability under this
61.12 	section is paid in full, or the liability of the person seeking
61.13 	contribution has been determined by agreement between the
61.14 	commissioner and such person and paid, and must be brought
61.15 	within the time period prescribed in section 541.05.[270.101]
61.16 	
EFFECTIVE DATE. This section is effective August 1, 2005.

61.17 	Sec. 63. [270C.57] SUCCESSOR LIABILITY OF BUSINESSES.
61.18 		Subdivision 1.Definitions. (a) The following terms used
61.19 	in this section have the following meanings.
61.20 	(b) "Successor" means a person who directly or indirectly
61.21 	purchases, acquires, is gifted, or succeeds to the business or
61.22 	stock of goods of any person quitting, selling, or otherwise
61.23 	disposing of a business or stock of goods.  Successor does not
61.24 	include a personal representative or beneficiary of an estate, a
61.25 	trustee in bankruptcy, a debtor in possession, a receiver, a
61.26 	secured party, a mortgagee, an assignee of rents, or any other
61.27 	lienholder.
61.28 	(c) "Person" means an individual, partnership, corporation,
61.29 	sole proprietorship, joint venture, limited liability company,
61.30 	or any other type of business entity or association.
61.31 	(d) "Withhold" means setting aside money or dealing with
61.32 	the payment of consideration in a manner that denies a
61.33 	transferring business the benefit of the transfer in an amount
61.34 	equal to the sales and withholding tax liability of the
61.35 	transferring business.
61.36 	(e) "Purchase price" means the consideration paid or to be
62.1 	paid for the transfer by the successor to the transferring
62.2 	business, and includes amounts paid for tangible property or
62.3 	intangibles such as leases, licenses, or goodwill.  Purchase
62.4 	price also includes debts assumed or forgiven by the successor,
62.5 	or real or personal property conveyed or to be conveyed by the
62.6 	successor to the transferring business.
62.7 	(f) "Arm's-length transaction" means a transfer for
62.8 	adequate consideration between independent parties both acting
62.9 	in their own best interests.  If the parties are related to each
62.10 	other, a rebuttable presumption arises that the transaction is
62.11 	not at arm's length.
62.12 	(g) "Transfer" means every mode, direct or indirect,
62.13 	absolute or conditional, voluntary or involuntary, of disposing
62.14 	of or parting with a business or an interest in a business, or a
62.15 	stock of goods, whether by gift or for consideration.  Transfer
62.16 	includes a change in the type of business entity or the name of
62.17 	the business, where one business is discontinued and a new one
62.18 	started.  Transfer also includes the acquisition by a new
62.19 	corporation of the assets of a prior business in exchange for
62.20 	the stock of the new corporation.  Transfer does not include an
62.21 	assignment for the benefit of creditors, foreclosure or
62.22 	enforcement of a mortgage, assignment of rents, security
62.23 	interest or lien, sale or disposition in a bankruptcy
62.24 	proceeding, or sale or disposition by a receiver.
62.25 	(h) "Transfer in bulk" means a transfer, other than in the
62.26 	ordinary course of the transferor's trade or business, of more
62.27 	than one-half of all the property of a business at all locations
62.28 	combined, as measured by the value of the property at the time
62.29 	of the transfer.
62.30 		Subd. 2.Bulk transfers; liability of successor; lien.
 62.31 	(a) Whenever a business transfers in bulk to a successor the
62.32 	business assets, and an enforceable lien for unpaid sales and
62.33 	withholding taxes has been filed against the business by the
62.34 	commissioner under section 270C.63, at least 20 days before
62.35 	taking possession of the assets or paying the purchase price,
62.36 	the successor shall notify the commissioner of the transfer and
63.1 	the terms and conditions related to it.  The notice must include
63.2 	the tax identification number of the transferring business.  If
63.3 	an agreement to transfer has been entered into, this notice
63.4 	requirement only applies:  (1) if a lien described under this
63.5 	paragraph has been filed prior to the date of the agreement; or
63.6 	(2) if the date of the transfer is more than 30 days after the
63.7 	date of the agreement, and a lien described under this paragraph
63.8 	is filed at least 30 days prior to the date of transfer.
63.9 	(b) If the successor fails to give the notice required in
63.10 	paragraph (a), the successor is liable for any unpaid sales and
63.11 	withholding taxes, interest, and penalties due from the
63.12 	transferring business to the extent of the purchase price.  If
63.13 	the successor provides the notice required in paragraph (a) and,
63.14 	within 20 days after receipt of the notice, the commissioner
63.15 	notifies the successor that tax liabilities exist in addition to
63.16 	those included on the lien or there are sales and withholding
63.17 	tax returns due but not filed, the successor is, in addition to
63.18 	being liable for the amounts included on the lien, liable for
63.19 	all other uncontested sales and withholding taxes, interest, and
63.20 	penalties as stated in the commissioner's notice from the
63.21 	transferring business to the extent of the purchase price if the
63.22 	successor pays the purchase price or takes possession of the
63.23 	assets without withholding and remitting the liability to the
63.24 	commissioner.  The successor is liable whether the purchase
63.25 	price is paid or the assets are transferred prior to or after
63.26 	notification from the commissioner.  The commissioner may also
63.27 	notify the successor that there are no sales or withholding tax
63.28 	liabilities or returns due from the transferring business other
63.29 	than the liabilities included on the lien, and of the current
63.30 	balance due to satisfy the lien.
63.31 	(c) If, based upon the information available, the
63.32 	commissioner determines that a transfer was not at arm's length
63.33 	or was a gift, the successor's liability under this section
63.34 	equals the value of the assets transferred.  For purposes of
63.35 	imposing the liability, the value of the property transferred is
63.36 	presumed, subject to rebuttal, to equal the unpaid sales and
64.1 	withholding taxes, interest, and penalties of the transferring
64.2 	business.
64.3 	(d) In the case of a gift resulting in successor liability
64.4 	under this section, return of the gifted property by the donee
64.5 	to the donor releases the donee's successor liability.
64.6 	(e) A successor who complies with the requirements of
64.7 	paragraphs (a) and (b) is not liable for any assessments of
64.8 	sales and withholding taxes of the transferring business made
64.9 	after the commissioner provides notice to the successor under
64.10 	paragraph (b), except for taxes assessed on returns filed to
64.11 	comply with the notice.  If the commissioner fails to provide
64.12 	the notice and the 20-day period expires, the successor is not
64.13 	liable for any sales and withholding taxes of the transferring
64.14 	business other than those included on the lien.
64.15 		Subd. 3.Assessment abatement; review. The commissioner
64.16 	may assess liability under this section within the time
64.17 	prescribed for collecting the underlying sales and withholding
64.18 	taxes, interest, and penalties.  The assessment is presumed to
64.19 	be valid, and the burden is upon the successor to show it is
64.20 	incorrect or invalid.  An order assessing successor liability is
64.21 	reviewable administratively under section 270C.35 and is
64.22 	appealable to Tax Court under chapter 271.  The commissioner may
64.23 	abate an assessment if the successor's failure to give the
64.24 	notice required under this section is due to reasonable cause.
64.25 	The procedural and appeal provisions under section 270C.34 apply
64.26 	to abatement requests under this subdivision.  Collection
64.27 	remedies available against the transferring business are
64.28 	available against the successor from the date of assessment of
64.29 	successor liability.
64.30 		Subd. 4.Disclosure. Notification by the commissioner to
64.31 	the successor under subdivision 2, paragraph (b), that the
64.32 	transferring business owes sales and withholding taxes,
64.33 	interest, and penalties or has returns that are due, or that
64.34 	there are no outstanding liabilities or returns other than the
64.35 	liabilities included on the lien, or of the current balance due
64.36 	to satisfy the lien, is not a disclosure violation under chapter
65.1 	270B.[270.102]
65.2 	
EFFECTIVE DATE. This section is effective August 1, 2005.

65.3 	Sec. 64. [270C.58] LIABILITY OF TRANSFEREES AND
65.4 	FIDUCIARIES.
65.5 		Subdivision 1.Transferees and fiduciaries. The amounts
65.6 	of the following liabilities are, except as otherwise provided
65.7 	in subdivision 3, assessed, collected, and paid in the same
65.8 	manner and subject to the same provisions and limitations as a
65.9 	deficiency in a tax imposed by chapter 290, including any
65.10 	provisions of law for the collection of taxes:
65.11 	(1) the liability, at law or in equity, of a transferee of
65.12 	property of a taxpayer for tax or overpayment of a refund,
65.13 	including interest, additional amounts, and additions to the tax
65.14 	or overpayment provided by law, imposed upon the taxpayer by
65.15 	chapter 290 or provided for in chapter 290A; and 
65.16 	(2) the liability of a fiduciary under subdivision 2, for
65.17 	the payment of tax from the estate of the taxpayer.  The
65.18 	liability may reflect the amount of tax shown on the return or
65.19 	any deficiency in tax.[289A.31, subd. 3]
65.20 		Subd. 2.Tax as a personal debt of a fiduciary. A tax
65.21 	imposed by chapter 290 and an overpayment of a refund provided
65.22 	for in chapter 290A, and interest and penalties, is a personal
65.23 	debt of the taxpayer from the time the liability arises,
65.24 	regardless of when the time for discharging the liability by
65.25 	payment occurs.  The debt is, in the case of the personal
65.26 	representative of the estate of a decedent and in the case of
65.27 	any fiduciary, that of the individual in the individual's
65.28 	official or fiduciary capacity only, unless the individual has
65.29 	voluntarily distributed the assets held in that capacity without
65.30 	reserving sufficient assets to pay the tax, interest, and
65.31 	penalties, in which event the individual is personally liable
65.32 	for the deficiency.[289A.31, subd. 4]
65.33 		Subd. 3.Time limit for assessment and collection for
65.34 	transferee or fiduciary. The period of limitation for
65.35 	assessment and collection of any liability of a transferee or
65.36 	fiduciary is as follows:
66.1 	(1) In the case of the liability of an initial transferee
66.2 	of the property of the taxpayer, the tax may be assessed within
66.3 	one year after the expiration of the period of limitation of
66.4 	assessment against the taxpayer.  The tax may be collected by
66.5 	action brought within one year after the expiration of the
66.6 	period of limitation for the starting of an action against the
66.7 	taxpayer.
66.8 	(2) In the case of the liability of the transferee of a
66.9 	transferee of the property of the taxpayer, the tax may be
66.10 	assessed within one year after the expiration of the period of
66.11 	limitation for assessment against the preceding transferee, but
66.12 	only if within 3-1/2 years after the expiration of the period of
66.13 	limitation for assessment against the taxpayer.  The tax may be
66.14 	collected by action brought within one year after the expiration
66.15 	of the period of limitation for the starting of an action
66.16 	against the preceding transferee, but only if within four years
66.17 	after the expiration of the period of limitation for bringing an
66.18 	action against the taxpayer; except that if before the
66.19 	expiration of the period of limitation for the assessment of the
66.20 	liability of the transferee a court proceeding for the
66.21 	collection of the tax or liability has been begun against the
66.22 	taxpayer or last preceding transferee, liability of the
66.23 	transferee expires one year after the return of execution in the
66.24 	court proceeding and the period of limitation for collection by
66.25 	action will expire one year after the liability is assessed.
66.26 	(3) In the case of the liability of a fiduciary, the tax
66.27 	may be assessed up to one year after the liability arises or not
66.28 	later than the expiration of the period for collection of the
66.29 	tax for which the liability arises, whichever is later, and may
66.30 	be collected by action brought within one year after assessment.
66.31 	(4) For the purposes of this subdivision, if the taxpayer
66.32 	is deceased, or in the case of a corporation, has ended its
66.33 	existence, the period of limitation for assessment against the
66.34 	taxpayer will be the period that would be in effect had death or
66.35 	termination of existence not occurred.
66.36 	As used in this subdivision, the term "transferee" includes
67.1 	heir, legatee, devisee, and distributee.[289A.38, subd. 13]
67.2 	
EFFECTIVE DATE. This section is effective August 1, 2005.

67.3 	Sec. 65. [270C.585] TRANSFEREE LIABILITY FOR ESTATE TAX.
67.4 	The personal representative and person to whom property
67.5 	that is subject to taxation under chapter 291 is transferred,
67.6 	other than a bona fide purchaser, mortgagee, or lessee, is
67.7 	personally liable for that tax, until its payment, to the extent
67.8 	of the value of the property at the time of the transfer.
67.9 	Personal liability also does not extend to subsequent
67.10 	transferees from bona fide purchasers, mortgagees, and lessees.
67.11 	[289A.31, subd. 6]

67.12 	EFFECTIVE DATE. This section is effective August 1, 2005.

67.13 	Sec. 66. [270C.59] LIABILITY OF THIRD PARTIES PAYING OR
67.14 	PROVIDING FOR WAGES.
67.15 	(a) For purposes of section 290.92, if a lender, surety, or
67.16 	other person, who is not an employer with respect to an employee
67.17 	or group of employees, pays wages directly to such an employee
67.18 	or group of employees, employed by one or more employers, or to
67.19 	an agent on behalf of such employee or employees, such lender,
67.20 	surety, or other person shall be liable to the commissioner in a
67.21 	sum equal to the taxes required to be deducted and withheld from
67.22 	such wages by such employer.
67.23 	(b) If a lender, surety, or other person supplies funds to
67.24 	or for the account of an employer for the specific purpose of
67.25 	paying wages of the employees of such employer, with actual
67.26 	notice or knowledge that such employer does not intend to or
67.27 	will not be able to make timely payment or deposit of the
67.28 	amounts of tax required by section 290.92 to be deducted and
67.29 	withheld by such employer from such wages, such lender, surety,
67.30 	or other person shall be liable personally to the commissioner
67.31 	in a sum equal to the taxes which are not paid over to the
67.32 	commissioner by such employer with respect to such wages.
67.33 	(c) For purposes of this section, a person shall be deemed
67.34 	for purposes of a particular transaction to have actual notice
67.35 	or knowledge of any fact from the time such fact is brought to
67.36 	the attention of the individual conducting such transaction, and
68.1 	in any event from the time such fact would have been brought to
68.2 	such individual's attention if the person had exercised due
68.3 	diligence.  A person exercises due diligence by maintaining
68.4 	reasonable routines for communicating significant information to
68.5 	the person conducting the transaction and there is reasonable
68.6 	compliance with the routines.  Due diligence does not require an
68.7 	individual acting for the person to communicate information
68.8 	unless such communication is part of the individual's regular
68.9 	duties or unless the individual has reason to know of the
68.10 	transaction and that the transaction would be materially
68.11 	affected by the information.
68.12 	(d) Any amounts paid to the commissioner pursuant to this
68.13 	section shall be credited to the liability of the employer.
68.14 	[290.92, subd. 22]

68.15 	EFFECTIVE DATE. This section is effective August 1, 2005.

68.16 	Sec. 67. [270C.61] LEGAL ACTION; CONFESSION OF JUDGMENT.
68.17 		Subdivision 1.Legal action. (a) In addition to all
68.18 	other methods authorized by law for the collection of tax, if
68.19 	any tax payable to the commissioner or to the department,
68.20 	including penalties and interest thereon, is not paid within 60
68.21 	days after it is required by law to be paid, the commissioner
68.22 	may proceed under this subdivision.  Within five years after the
68.23 	date of assessment of the tax or at any time a lien filed under
68.24 	section 270C.63 is enforceable, or, if the action is to renew or
68.25 	enforce a judgment, at any time before the judgment's
68.26 	expiration, the commissioner may bring an action in court
68.27 	against the person liable for the payment or collection of the
68.28 	tax, in the name of the state, for the recovery of the tax and
68.29 	interest and penalties due in respect thereof.  The action may
68.30 	be commenced by the commissioner in the same manner as any other
68.31 	civil action.
68.32 	(b) The commissioner may also serve the summons and
68.33 	complaint by mailing a copy to the taxpayer's last known address
68.34 	by certified mail.  Service by certified mail is complete when
68.35 	mailed in acceptable form with the United States Postal Service
68.36 	or with the central mail system of the state of Minnesota.
69.1 	[270.68, subd. 1]
69.2 		Subd. 2.Court-ordered returns. In addition to other
69.3 	remedies that may be available, the commissioner may bring an
69.4 	action in equity by the state against a taxpayer for an
69.5 	injunction ordering the taxpayer to file a complete and proper
69.6 	return or amended return.  The district courts of this state
69.7 	have jurisdiction over the action and disobedience of an
69.8 	injunction issued under this subdivision will be punished as a
69.9 	contempt of district court.  The action may be commenced by the
69.10 	commissioner in the same manner as any other civil action.
69.11 	[289A.36, subd. 3, clause (3)]
69.12 		Subd. 3.Prosecuting authority. The commissioner may
69.13 	request the county attorney or the attorney general to conduct
69.14 	the proceedings on behalf of the state.[270.68, subd. 1,
69.15 	paragraph (c)]
69.16 		Subd. 4.Appeals. Either party to an action or a
69.17 	judgment for the recovery of any taxes, interest, or penalties
69.18 	under subdivision 1 may appeal the judgment as in other civil
69.19 	cases.[270.68, subd. 2]
69.20 		Subd. 5.Tax presumed valid. The tax, as assessed by the
69.21 	commissioner, with any penalties included therein, shall be
69.22 	presumed to be valid and correctly determined and assessed, and
69.23 	the burden shall be upon the taxpayer to show its incorrectness
69.24 	or invalidity.  A statement filed by the commissioner showing
69.25 	the amount of the tax and penalties as determined or assessed by
69.26 	the commissioner, is admissible in evidence and shall establish
69.27 	prima facie the facts set forth therein.[270.68, subd. 3]
69.28 		Subd. 6.Confession of judgment. (a) The commissioner
69.29 	may, within 3-1/2 years after any return is filed,
69.30 	notwithstanding section 541.09, enter judgment on any confession
69.31 	of judgment contained in the return after ten days' notice
69.32 	served upon the taxpayer by mail at the address shown in the
69.33 	return.  The judgment shall be entered by the court
69.34 	administrator of district court upon the filing of a photocopy
69.35 	or similar reproduction of that part of the return containing
69.36 	the confession of judgment along with a statement of the
70.1 	commissioner or an agent that the tax has not been paid.  The
70.2 	commissioner may prescribe the words for the confession of
70.3 	judgment statement contained on the return.
70.4 	(b) Notwithstanding any other provision of the law to the
70.5 	contrary, the commissioner may, within five years after a
70.6 	written agreement is signed by the taxpayer and the commissioner
70.7 	under the provisions of section 270C.52, subdivision 2, enter
70.8 	judgment on the confession of judgment contained within the
70.9 	agreement after ten days' notice served upon the taxpayer at the
70.10 	address shown in the agreement.  Such judgment shall be entered
70.11 	by the court administrator of district court upon the filing of
70.12 	the agreement or a certified copy thereof along with a statement
70.13 	of the commissioner or an agent that the tax has not been paid.
70.14 	[270.68, subd. 4]
70.15 	
EFFECTIVE DATE. This section is effective August 1, 2005.

70.16 	Sec. 68. [270C.62] DATE OF ASSESSMENT; DEFINITION.
70.17 	For purposes of taxes, the term "date of assessment" means
70.18 	the date a liability reported on a return was entered into the
70.19 	records of the commissioner or the date a return should have
70.20 	been filed, whichever is later; or, in the case of taxes
70.21 	assessed by the commissioner, "date of assessment" means the
70.22 	date of the order assessing taxes or date of the return made by
70.23 	the commissioner; or, in the case of an amended return filed by
70.24 	the taxpayer, the assessment date is the date additional
70.25 	liability reported on the return, if any, was entered into the
70.26 	records of the commissioner; or, in the case of a check from a
70.27 	taxpayer that is dishonored and results in an erroneous refund
70.28 	being given to the taxpayer, remittance of the check is deemed
70.29 	to be an assessment and the "date of assessment" is the date the
70.30 	check was received by the commissioner.[270.65]

70.31 	EFFECTIVE DATE. This section is effective for assessments
70.32 	made on or after August 1, 2005.

70.33 	Sec. 69. [270C.63] LIEN FOR TAXES.
70.34 		Subdivision 1.Creation of lien. Tax, and interest and
70.35 	penalties imposed with respect thereto, including any recording
70.36 	fees, sheriff fees, or court costs that may accrue, shall become
71.1 	a lien upon all the property within this state, both real and
71.2 	personal, of the person liable for the payment or collection of
71.3 	the tax, except property exempt under subdivision 8, from and
71.4 	after the date of assessment of the tax.
71.5 		Subd. 2.Filing of liens necessary for enforceability
71.6 	against certain persons. The lien imposed by subdivision 1 is
71.7 	not enforceable against any purchaser, mortgagee, pledgee,
71.8 	holder of a Uniform Commercial Code security interest,
71.9 	mechanic's lienor, or judgment lien creditor whose interest has
71.10 	been duly perfected or is a conveyance or interest entitled to
71.11 	protection against judgments and attachments under section
71.12 	507.34 or under any other applicable provisions of state law,
71.13 	until a notice of lien has been filed by the commissioner in the
71.14 	office of the county recorder of the county in which real
71.15 	property is situated, or in the case of personal property in the
71.16 	Office of the Secretary of State.
71.17 		Subd. 3.Method of filing. Notices of liens, and lien
71.18 	releases, transcriptions, and renewals, in a form prescribed by
71.19 	the commissioner, may be filed with the county recorder or the
71.20 	secretary of state by mail, personal delivery, or by electronic
71.21 	transmission by the commissioner or an agent of the department
71.22 	into the computerized filing system of the secretary of state.
71.23 	The secretary of state shall transmit the notice electronically
71.24 	to the office of the county recorder, if that is the place of
71.25 	filing, in the county or counties shown on the computer entry.
71.26 	The filing officer, whether the county recorder or the secretary
71.27 	of state, shall endorse and index a printout of the notice in
71.28 	the same manner as if the notice had been mailed or delivered.
71.29 		Subd. 4.Entry of information into central
71.30 	database. County recorders and the secretary of state shall
71.31 	enter information relative to lien notices, transcriptions,
71.32 	renewals, and releases filed in their offices into the central
71.33 	database of the secretary of state.  For notices filed
71.34 	electronically with the county recorders, the date and time of
71.35 	receipt of the notice and county recorder's file number, and for
71.36 	notices filed electronically with the secretary of state, the
72.1 	secretary of state's recording information, must be entered by
72.2 	the filing officer into the central database before the close of
72.3 	the working day following the day of the original data entry by
72.4 	the department.
72.5 		Subd. 5.Conformity with federal lien registration
72.6 	act. The filing and indexing of all notices must be in
72.7 	accordance with the filing and indexing of notices of federal
72.8 	liens, certificates of release, and refiled notices under
72.9 	section 272.483.
72.10 		Subd. 6.Payment of recording fees. Notwithstanding any
72.11 	other law to the contrary, the department is exempt from payment
72.12 	of fees when a lien, lien renewal, or lien transcription is
72.13 	offered for recording.  The recording fees must be paid along
72.14 	with the release fee at the end of the month in which the
72.15 	release of lien is recorded, after receipt of a monthly
72.16 	statement from a county recorder or the secretary of state.  The
72.17 	department shall add the recording fees to the delinquent tax
72.18 	liability of the taxpayer.  Notwithstanding any other law to the
72.19 	contrary, the fee for filing or recording a notice of lien, or
72.20 	lien release, transcription, or renewal is $15.
72.21 		Subd. 7.Appropriation. There is appropriated to the
72.22 	commissioner an amount representing the cost of payment of
72.23 	recording fees to the county recorders and the secretary of
72.24 	state.  The commissioner shall keep a separate accounting of the
72.25 	costs and of payments for recording fees remitted by taxpayers,
72.26 	and make the records available to the legislature upon request.
72.27 		Subd. 8.Exempt property. The lien imposed on personal
72.28 	property by this section, even though properly filed, is not
72.29 	enforceable:  (1) against a purchaser with respect to tangible
72.30 	personal property purchased at retail in the ordinary course of
72.31 	the seller's trade or business, unless at the time of purchase
72.32 	the purchaser intends the purchase to or knows the purchase will
72.33 	hinder, evade, or defeat the collection of a tax; or (2) against
72.34 	the personal property listed as exempt in sections 550.37,
72.35 	550.38, and 550.39.
72.36 		Subd. 9.Period of limitations. The lien imposed by this
73.1 	section shall, notwithstanding any other provision of law to the
73.2 	contrary, be enforceable from the time the lien arises and for
73.3 	ten years from the date of filing the notice of lien, which must
73.4 	be filed by the commissioner within five years after the date of
73.5 	assessment of the tax or final administrative or judicial
73.6 	determination of the assessment.  A notice of lien filed in one
73.7 	county may be transcribed to any other county within ten years
73.8 	after the date of its filing, but the transcription shall not
73.9 	extend the period during which the lien is enforceable.  A
73.10 	notice of lien may be renewed by the commissioner before the
73.11 	expiration of the ten-year period for an additional ten years.
73.12 	The taxpayer must receive written notice of the renewal.
73.13 		Subd. 10.Enforceability of lien. The lien imposed by
73.14 	this section shall be enforceable by levy as authorized in
73.15 	section 270C.67, or by judgment lien foreclosure as authorized
73.16 	in chapter 550.
73.17 		Subd. 11.Notice of mortgage foreclosure or contract
73.18 	termination. In the case of a mortgage foreclosure upon real
73.19 	property commenced under chapter 580, or a termination of
73.20 	contract of sale of real property commenced under section
73.21 	559.21, if the commissioner has filed a lien under this section
73.22 	before the foreclosure sale or date of termination, notice of
73.23 	the mortgage foreclosure or termination of contract of sale
73.24 	shall be mailed to the commissioner not less than 25 days prior
73.25 	to the foreclosure sale or date of termination.  Provided,
73.26 	notice need not be given pursuant to this subdivision if the
73.27 	lien of the commissioner has been filed within 30 days or less
73.28 	prior to the foreclosure sale or date of termination.  The
73.29 	notice must contain the following information:  (1) the name and
73.30 	address of the taxpayer; (2) a copy of the notice of mortgage
73.31 	foreclosure or contract for deed cancellation; (3) a copy of the
73.32 	lien filed by the commissioner; (4) the total unpaid balance of
73.33 	the mortgage or contract for deed; (5) a legal description of
73.34 	the property; and (6) the fair market value of the property.
73.35 		Subd. 12.Filing entitlement. Execution of notices of
73.36 	liens or of other notices affecting state tax liens by the
74.1 	original or facsimile signature of the commissioner entitles
74.2 	them to be filed, and no other attestation, certification, or
74.3 	acknowledgment is necessary.  For purposes of this subdivision,
74.4 	transmission of notices under subdivision 3 constitutes
74.5 	execution.
74.6 		Subd. 13.Lien search fees. Upon request of any person,
74.7 	the filing officer shall issue a certificate showing whether
74.8 	there is recorded in that filing office, on the date and hour
74.9 	stated in the certificate, any notice of lien or certificate or
74.10 	notice affecting any lien filed on or after ten years before the
74.11 	date of the search certificate, naming a particular person, and
74.12 	giving the date and hour of filing of each notice or certificate
74.13 	naming the person.  The fee for a certificate shall be as
74.14 	provided by section 336.9-525 or 357.18, subdivision 1, clause
74.15 	(3).  Upon request, the filing officer shall furnish a copy of
74.16 	any notice of state lien, or notice or certificate affecting a
74.17 	state lien, for a fee of 50 cents per page.
74.18 		Subd. 14.Limitation for homestead property. A lien
74.19 	imposed under this section upon property defined as homestead
74.20 	property in sections 510.01 and 510.02 may not be enforced
74.21 	against homestead property by levy under section 270C.67, or by
74.22 	judgment lien foreclosure under chapter 550, but notwithstanding
74.23 	section 510.07, is enforceable against the proceeds from the
74.24 	sale, conveyance, or transfer of the homestead.
74.25 		Subd. 15.Erroneous liens. After the filing of a notice
74.26 	of lien under this section on the property or rights to property
74.27 	of a person, the person may appeal to the commissioner, in the
74.28 	form and at the time prescribed by the commissioner, alleging an
74.29 	error in the filing of the lien and requesting its release.  If
74.30 	the commissioner determines that the filing of the notice of any
74.31 	lien was erroneous, within 14 days after the determination, the
74.32 	commissioner must issue a certificate of release of the lien.
74.33 	The certificate must include a statement that the filing of the
74.34 	lien was erroneous.  In the event that the lien is erroneous and
74.35 	is not released within the 14-day period, reasonable attorney
74.36 	fees shall be paid.  Damages must be paid in accordance with
75.1 	section 3.736, subdivision 7.  Even if a lien is not erroneous,
75.2 	the commissioner may withdraw the lien if the filing of the lien
75.3 	was premature or not in accordance with administrative
75.4 	procedures of the commissioner, or withdrawal of the lien will
75.5 	facilitate the collection of the tax liability.
75.6 		Subd. 16.Lien release fee. A fee of $25 must be paid to
75.7 	the commissioner for each duplicate of an original release of
75.8 	lien.
75.9 		Subd. 17.Forty-five day rule. A notice of tax lien
75.10 	filed under this section has priority over a security interest
75.11 	arising under article 9 of the Uniform Commercial Code that is
75.12 	perfected before the date of filing of the lien imposed by this
75.13 	section, but only if:
75.14 	(1) the perfected security interest secures property
75.15 	acquired by the taxpayer or advances made by the secured party
75.16 	after the notice of tax lien is filed; and 
75.17 	(2) the property is acquired or the advance is made after
75.18 	the 45th day following the day on which the notice of tax lien
75.19 	is filed, or after the secured party has actual notice or
75.20 	knowledge of the tax lien filing, whichever is earlier.
75.21 		Subd. 18.Registered land. When a lien is filed with a
75.22 	county recorder under subdivisions 2 to 5, the county recorder
75.23 	shall search the registered land records in that county and
75.24 	cause the lien to be memorialized on every certificate of title
75.25 	or certificate of possessory title of registered land in that
75.26 	county which can be reasonably identified as owned by the
75.27 	taxpayer who is named on the lien.  The fees for memorializing
75.28 	the lien shall be paid in the manner prescribed by subdivision
75.29 	6.  The county recorders, and their employees and agents, shall
75.30 	not be liable for any loss or damages arising from failure to
75.31 	identify a parcel of registered land owned by the taxpayer who
75.32 	is named on the lien.
75.33 		Subd. 19.Assignment of liens. The commissioner may sell
75.34 	and assign to a third party the right of redemption in specific
75.35 	real property for liens filed under this section.  The
75.36 	redemption in the hands of the assignee shall not be enforceable
76.1 	by any of the collection remedies provided to the commissioner
76.2 	by law.  The assignee is limited to the same rights of
76.3 	redemption the commissioner would have in any mortgage
76.4 	foreclosure proceeding, but in any bankruptcy proceeding does
76.5 	not obtain the priority of the commissioner as a tax claimant.
76.6 	Should the taxpayer or its assigns exercise the right of
76.7 	redemption the assignment by the commissioner is extinguished.
76.8 		Subd. 20.Attachment to proceeds of property. Any lien
76.9 	imposed under this section attaches to the proceeds of property
76.10 	with the same priority that the lien has with respect to the
76.11 	property itself.  "Proceeds of property" means proceeds from the
76.12 	sale, lease, license, exchange, or other disposition of the
76.13 	property, including insurance proceeds arising from the loss or
76.14 	destruction of the property.[270.69]
76.15 	
EFFECTIVE DATE. This section is effective August 1, 2005.

76.16 	Sec. 70. [270C.64] CREDIT OF OVERPAYMENT TO DELINQUENT
76.17 	TAX LIABILITIES.
76.18 	Notwithstanding any other provision of law to the contrary,
76.19 	in the case of an overpayment of any tax collected by the
76.20 	commissioner, the commissioner may credit the amount of such
76.21 	overpayment against any uncontested delinquent tax liability on
76.22 	the part of the taxpayer who made the overpayment.  An
76.23 	overpayment may be credited under this subdivision only if the
76.24 	uncontested delinquent liability has been assessed within ten
76.25 	years of the date on which the overpayment is credited.
76.26 	However, this limitation shall not be applicable if the
76.27 	delinquent liability has been entered into judgment or if legal
76.28 	action is pending for collection of the liability or for renewal
76.29 	of the judgment.  An amount paid as tax shall constitute an
76.30 	overpayment even if in fact there was no tax liability with
76.31 	respect to which such amount was paid.[270.07, subd. 5]

76.32 	EFFECTIVE DATE. This section is effective August 1, 2005.

76.33 	Sec. 71. [270C.65] RIGHT OF SETOFF.
76.34 		Subdivision 1.Certification by commissioner. The
76.35 	commissioner of revenue is authorized to certify to the
76.36 	commissioner of finance, or to any state agency described in
77.1 	subdivision 3 which disburses its own funds, that a taxpayer has
77.2 	an uncontested delinquent tax liability owed to the commissioner
77.3 	of revenue.  The certification must be made within ten years
77.4 	after the date of assessment of the tax.  Once certification is
77.5 	made, the commissioner of finance or the state agency shall
77.6 	apply to the delinquent tax liability funds sufficient to
77.7 	satisfy the unpaid tax liability from funds appropriated for
77.8 	payment of an obligation of the state or any of its agencies
77.9 	that are due and owing the taxpayer.  No setoff shall be made
77.10 	against any funds exempt under section 550.37 or those funds
77.11 	owed an individual taxpayer who receives assistance under the
77.12 	provisions of chapter 256.
77.13 		Subd. 2.Setoff satisfies state obligation. All funds,
77.14 	whether general or dedicated, shall be subject to setoff in the
77.15 	manner herein provided.  Transfer of funds as herein provided is
77.16 	payment of the obligation of the state or any of its agencies to
77.17 	such taxpayer and any actions for said funds, if any, shall be
77.18 	had against the Department of Revenue on the issue of such tax
77.19 	liability.  Nothing in this section shall be construed to limit
77.20 	the previously existing right of the state or any of its
77.21 	agencies to setoff.
77.22 		Subd. 3.Agencies shall maintain records.
 77.23 	Notwithstanding any provision to the contrary, every person,
77.24 	organization, or corporation doing business (hereafter called
77.25 	vendor) with the state of Minnesota or any of its departments,
77.26 	agencies, or educational institutions including the University
77.27 	of Minnesota (all hereafter called agency) shall provide that
77.28 	agency with either their Social Security number, federal
77.29 	taxpayer identification number, or Minnesota tax identification
77.30 	number.  The commissioner may verify to the agency the
77.31 	identifying information provided by a vendor.  The agency shall
77.32 	maintain records of this information, and shall make these
77.33 	records available, on request, to the commissioner for the sole
77.34 	purpose of identifying people who have not filed state tax
77.35 	returns or who have not paid uncontested tax liabilities
77.36 	(hereafter called delinquent taxpayer).  When an agency is
78.1 	notified by the commissioner that a vendor is a delinquent
78.2 	taxpayer, payments shall not be made by the agency to the vendor
78.3 	until the commissioner notifies the agency that the vendor no
78.4 	longer is a delinquent taxpayer.  Furthermore, if the vendor has
78.5 	an uncontested delinquent tax liability, the setoff provided in
78.6 	subdivision 1 may be implemented.  The commissioner shall
78.7 	determine that a vendor no longer is a delinquent taxpayer when
78.8 	the vendor has filed all delinquent returns and (1) paid all
78.9 	uncontested tax liabilities or (2) entered into an agreement
78.10 	with the commissioner which provides for the payment of these
78.11 	liabilities.[270.66]
78.12 	
EFFECTIVE DATE. This section is effective August 1, 2005.

78.13 	Sec. 72. [270C.66] CONTRACTS WITH STATE; WITHHOLDING.
78.14 	No department of the state of Minnesota, nor any political
78.15 	or governmental subdivision of the state shall make final
78.16 	settlement with any contractor under a contract requiring the
78.17 	employment of employees for wages by said contractor and by
78.18 	subcontractors until satisfactory showing is made that said
78.19 	contractor or subcontractor has complied with the provisions of
78.20 	section 290.92.  A certificate by the commissioner shall satisfy
78.21 	this requirement with respect to the contractor or
78.22 	subcontractor.  If, at the time of final settlement, there are
78.23 	any unpaid withholding taxes, penalties, or interest arising
78.24 	from the government contract, the commissioner shall issue a
78.25 	certification to the contractor or subcontractor upon payment,
78.26 	with certified funds, of any unpaid withholding taxes,
78.27 	penalties, and interest.  Payment is received by the
78.28 	commissioner upon delivery of the certified funds to the central
78.29 	office located in St. Paul, or any district or subdistrict
78.30 	office located throughout the state.[290.97]

78.31 	EFFECTIVE DATE. This section is effective August 1, 2005.

78.32 	Sec. 73. [270C.67] LEVY AND DISTRAINT.
78.33 		Subdivision 1.Authority. If any tax payable to the
78.34 	commissioner or to the department is not paid when due, such tax
78.35 	may be collected by the commissioner within five years after the
78.36 	date of assessment of the tax, or if a lien has been filed,
79.1 	during the period the lien is enforceable, or if the tax
79.2 	judgment has been filed, within the statutory period of
79.3 	enforcement of a valid tax judgment, by a levy upon all property
79.4 	and rights to property, including any property in the possession
79.5 	of law enforcement officials, of the person liable for the
79.6 	payment or collection of such tax (except that which is exempt
79.7 	from execution pursuant to section 550.37) or property on which
79.8 	there is a lien provided in section 270C.63.  For this purpose,
79.9 	"tax" includes any penalty, interest, and costs, properly
79.10 	payable.
79.11 		Subd. 2.Writ of entry. The term "levy" includes the
79.12 	power of distraint and seizure by any means; provided, no entry
79.13 	can be made upon the business premises or residence of a
79.14 	taxpayer in order to seize property without first obtaining a
79.15 	writ of entry listing the property to be seized and signed by a
79.16 	judge of the district court of the district in which the
79.17 	business premises or residence is located.
79.18 		Subd. 3.Notice and demand; collection by levy. Before a
79.19 	levy is made, notice and demand for payment of the amount due
79.20 	must be given to the person liable for the payment or collection
79.21 	of the tax at least 30 days prior to the levy.  The notice
79.22 	required under this subdivision must be sent to the taxpayer's
79.23 	last known address and must include a brief statement that sets
79.24 	forth in simple and nontechnical terms:
79.25 	(1) the administrative appeals available to the taxpayer
79.26 	with respect to the levy and sale; and 
79.27 	(2) the alternatives available to the taxpayer that can
79.28 	prevent a levy, including installment payment agreements under
79.29 	section 270C.52, subdivision 2.
79.30 		Subd. 4.Manner of execution and sale. In making the
79.31 	execution of the levy and in collecting the taxes due, the
79.32 	commissioner shall have all of the powers provided in chapter
79.33 	550 and in any other law for purposes of effecting an execution
79.34 	against property in this state.  The sale of property levied
79.35 	upon, and the time and manner of redemption therefrom, shall, to
79.36 	the extent not provided in sections 270C.7101 to 270C.7109, be
80.1 	governed by chapter 550.  The seal of the court, subscribed by
80.2 	the court administrator, as provided in section 550.04, shall
80.3 	not be required. The levy for collection of taxes may be made
80.4 	whether or not the commissioner has commenced a legal action for
80.5 	collection of such taxes.
80.6 		Subd. 5.Stay of sale. (a) Where a jeopardy assessment
80.7 	or any other assessment has been made by the commissioner, the
80.8 	property seized for collection of the tax shall not be sold
80.9 	until the time has expired for filing an appeal of the
80.10 	assessment with the Tax Court pursuant to chapter 271.  If an
80.11 	appeal has been filed, no sale shall be made unless the taxes
80.12 	remain unpaid for a period of more than 30 days after final
80.13 	determination of the appeal by the Tax Court or by the
80.14 	appropriate judicial forum.
80.15 	(b) Notwithstanding paragraph (a), seized property may be
80.16 	sold if:
80.17 	(1) the taxpayer consents in writing to the sale; or 
80.18 	(2) the commissioner determines that the property is
80.19 	perishable or may become greatly reduced in price or value by
80.20 	keeping, or that such property cannot be kept without great
80.21 	expense.
80.22 	(c) The Tax Court has jurisdiction to review a
80.23 	determination made under paragraph (b), clause (2).  Review is
80.24 	commenced by motion of the commissioner or the taxpayer.  The
80.25 	order of the court in response to the motion is reviewable in
80.26 	the same manner as any other decision of the Tax Court.
80.27 		Subd. 6.Probate proceedings. Where a levy has been made
80.28 	to collect taxes pursuant to this section and the property
80.29 	seized is properly included in a formal proceeding commenced
80.30 	under sections 524.3-401 to 524.3-505 and maintained under full
80.31 	supervision of the court, such property shall not be sold until
80.32 	the probate proceedings are completed or until the court so
80.33 	orders.
80.34 		Subd. 7.Bond or security to release seizure. The
80.35 	property seized shall be returned by the commissioner if the
80.36 	owner gives a surety bond equal to the appraised value of the
81.1 	owner's interest in the property, as determined by the
81.2 	commissioner, or deposits with the commissioner security in such
81.3 	form and amount as the commissioner deems necessary to insure
81.4 	payment of the liability, but not more than twice the liability.
81.5 		Subd. 8.Injunction. Notwithstanding any other provision
81.6 	to the contrary, if a levy or sale pursuant to this section
81.7 	would irreparably injure rights in property which the court
81.8 	determines to be superior to rights of the state in such
81.9 	property, the district court may grant an injunction to prohibit
81.10 	the enforcement of such levy or to prohibit such sale.
81.11 		Subd. 9.Optional remedy. Any action taken by the
81.12 	commissioner pursuant to this section shall not constitute an
81.13 	election by the state to pursue a remedy to the exclusion of any
81.14 	other remedy.
81.15 		Subd. 10.Equitable relief. After the commissioner has
81.16 	seized the property of any person, that person may, upon giving
81.17 	48 hours notice to the commissioner and to the court, bring a
81.18 	claim for equitable relief before the district court for the
81.19 	release of the property to the taxpayer upon such terms and
81.20 	conditions as the court may deem equitable.
81.21 		Subd. 11.Levy and sale by sheriff. If any tax payable
81.22 	to the commissioner or to the department is not paid as provided
81.23 	in subdivision 3, the commissioner may, within the time periods
81.24 	provided in subdivision 1 for collection of taxes, delegate the
81.25 	authority granted by subdivision 1, by means of issuing a
81.26 	warrant to the sheriff of any county of the state commanding the
81.27 	sheriff, as agent for the commissioner, to levy upon and sell
81.28 	the real and personal property of the person liable for the
81.29 	payment or collection of the tax and to levy upon the rights to
81.30 	property of that person within the county, or to levy upon and
81.31 	seize any property within the county on which there is a lien
81.32 	provided in section 270C.63, and to return the warrant to the
81.33 	commissioner and pay to the commissioner the money collected by
81.34 	virtue thereof by a time to be therein specified not less than
81.35 	60 days from the date of the warrant.  The sheriff shall proceed
81.36 	thereunder to levy upon and seize any property of the person and
82.1 	to levy upon the rights to property of the person within the
82.2 	county (except the person's homestead or that property which is
82.3 	exempt from execution pursuant to section 550.37), or to levy
82.4 	upon and seize any property within the county on which there is
82.5 	a lien provided in section 270C.63.  For purposes of the
82.6 	preceding sentence, "tax" includes any penalty, interest, and
82.7 	costs, properly payable.  The sheriff shall then sell so much of
82.8 	the property levied upon as is required to satisfy the taxes,
82.9 	interest, and penalties, together with the sheriff's costs; but
82.10 	the sales, and the time and manner of redemption therefrom,
82.11 	shall, to the extent not provided in sections 270C.7101 to
82.12 	270C.7109, be governed by chapter 550.  The proceeds of the
82.13 	sales, less the sheriff's costs, shall be turned over to the
82.14 	commissioner, who shall then apply the proceeds as provided in
82.15 	section 270C.7108.
82.16 		Subd. 12.Priority of levy. Notwithstanding section
82.17 	52.12, a levy by the commissioner made pursuant to the
82.18 	provisions of this section upon a taxpayer's funds on deposit in
82.19 	a financial institution located in this state, shall have
82.20 	priority over any unexercised right of setoff of the financial
82.21 	institution to apply the levied funds toward the balance of an
82.22 	outstanding loan or loans owed by the taxpayer to the financial
82.23 	institution.  A claim by the financial institution that it
82.24 	exercised its right to setoff prior to the levy by the
82.25 	commissioner must be substantiated by evidence of the date of
82.26 	the setoff, and shall be verified by the sworn statement of a
82.27 	responsible corporate officer of the financial institution.
82.28 	Furthermore, for purposes of determining the priority of any
82.29 	levy made under this section, the levy shall be treated as if it
82.30 	were an execution made pursuant to chapter 550.
82.31 		Subd. 13.Effect of honoring levy. Any person in
82.32 	possession of (or obligated with respect to) property or rights
82.33 	to property subject to levy upon which a levy has been made who,
82.34 	upon demand by the commissioner, surrenders the property or
82.35 	rights to property (or who pays a liability under section
82.36 	270C.70, subdivision 1) shall be discharged from any obligation
83.1 	or liability to the person liable for the payment or collection
83.2 	of the delinquent tax with respect to the property or rights to
83.3 	property so surrendered or paid.
83.4 		Subd. 14.Notice of levy. Notwithstanding any other
83.5 	provision of law to the contrary, the notice of any levy
83.6 	authorized by this section may be served by mail or by delivery
83.7 	by an agent of the department.
83.8 		Subd. 15.Uneconomical levy. No levy may be made on
83.9 	property if the amount of the expenses that the commissioner
83.10 	estimates would be incurred by the department with respect to
83.11 	the levy and sale of the property exceeds the fair market value
83.12 	of the property at the anticipated time of levy.
83.13 		Subd. 16.Levy on appearance date of subpoena. No levy
83.14 	may be made on the property of a person on the day on which the
83.15 	person, or an officer or employee of the person, is required to
83.16 	appear in response to a subpoena issued by the commissioner to
83.17 	collect unpaid taxes, unless the commissioner determines that
83.18 	the collection of the tax is in jeopardy.[270.70]
83.19 	
EFFECTIVE DATE. This section is effective August 1, 2005.

83.20 	Sec. 74. [270C.68] CONTINUOUS LEVY.
83.21 		Subdivision 1.Authority. The commissioner may, within
83.22 	five years after the date of assessment of the tax, or if a lien
83.23 	has been filed under section 270C.63, within the statutory
83.24 	period for enforcement of the lien, give notice to a person to
83.25 	withhold the amount of any tax, interest, or penalties, due from
83.26 	a taxpayer.  The amounts withheld shall be transmitted to the
83.27 	commissioner at the times the commissioner designates.
83.28 		Subd. 2.Levy continuous. The levy made under
83.29 	subdivision 1 is continuous from the date the notice is received
83.30 	until the amount due stated on the notice has been withheld or
83.31 	the notice has been released by the commissioner under section
83.32 	270C.7109, whichever occurs first.
83.33 		Subd. 3.Amount to be withheld. The amount required to
83.34 	be withheld under this section is the least of:
83.35 	(1) the amount stated on the notice;
83.36 	(2) if the taxpayer is not a natural person, 100 percent of
84.1 	the payment; or 
84.2 	(3) if the taxpayer is an individual, 25 percent of the
84.3 	payment.
84.4 		Subd. 4.Payments covered. For purposes of this section,
84.5 	the term "payments" does not include wages as defined in section
84.6 	290.92 or funds in a deposit account as defined in section
84.7 	336.9-102(a)(29).  The term payments does include the following:
84.8 	(1) payments due for services of independent contractors,
84.9 	dividends, rents, royalties, residuals, patent rights, and
84.10 	mineral or other natural resource rights;
84.11 	(2) payments or credits under written or oral contracts for
84.12 	services or sales whether denominated as wages, salary,
84.13 	commission, bonus, or otherwise, if the payments are not covered
84.14 	by section 270C.69; and 
84.15 	(3) any other periodic payments or credits resulting from
84.16 	an enforceable obligation to the taxpayer.
84.17 		Subd. 5.Determination of status; effect. A
84.18 	determination of a taxpayer's status as an independent
84.19 	contractor under this section does not affect the determination
84.20 	of the taxpayer's status for the purposes of any other law or
84.21 	rule.[270.7001]
84.22 	
EFFECTIVE DATE. This section is effective August 1, 2005.

84.23 	Sec. 75. [270C.69] WITHHOLDING BY EMPLOYER OF DELINQUENT
84.24 	TAXES.
84.25 		Subdivision 1.Notice and procedures. (a) The
84.26 	commissioner may, within five years after the date of assessment
84.27 	of the tax, or if a lien has been filed under section 270C.63,
84.28 	within the statutory period for enforcement of the lien, give
84.29 	notice to any employer deriving income which has a taxable situs
84.30 	in this state regardless of whether the income is exempt from
84.31 	taxation, that an employee of that employer is delinquent in a
84.32 	certain amount with respect to any taxes, including penalties,
84.33 	interest, and costs.  The commissioner can proceed under this
84.34 	section only if the tax is uncontested or if the time for appeal
84.35 	of the tax has expired.  The commissioner shall not proceed
84.36 	under this section until the expiration of 30 days after mailing
85.1 	to the taxpayer, at the taxpayer's last known address, a written
85.2 	notice of (1) the amount of taxes, interest, and penalties due
85.3 	from the taxpayer and demand for their payment, and (2) the
85.4 	commissioner's intention to require additional withholding by
85.5 	the taxpayer's employer pursuant to this section.  The effect of
85.6 	the notice shall expire one year after it has been mailed to the
85.7 	taxpayer provided that the notice may be renewed by mailing a
85.8 	new notice which is in accordance with this section.  The
85.9 	renewed notice shall have the effect of reinstating the priority
85.10 	of the original claim.  The notice to the taxpayer shall be in
85.11 	substantially the same form as that provided in section 571.72.
85.12 	The notice shall further inform the taxpayer of the wage
85.13 	exemptions contained in section 550.37, subdivision 14.  If no
85.14 	statement of exemption is received by the commissioner within 30
85.15 	days from the mailing of the notice, the commissioner may
85.16 	proceed under this section.  The notice to the taxpayer's
85.17 	employer may be served by mail or by delivery by an agent of the
85.18 	department and shall be in substantially the same form as
85.19 	provided in section 571.75.  Upon receipt of notice, the
85.20 	employer shall withhold from compensation due or to become due
85.21 	to the employee, the total amount shown by the notice, subject
85.22 	to the provisions of section 571.922.  The employer shall
85.23 	continue to withhold each pay period until the notice is
85.24 	released by the commissioner under section 270C.7109.  Upon
85.25 	receipt of notice by the employer, the claim of the state of
85.26 	Minnesota shall have priority over any subsequent garnishments
85.27 	or wage assignments.  The commissioner may arrange between the
85.28 	employer and the employee for withholding a portion of the total
85.29 	amount due the employee each pay period, until the total amount
85.30 	shown by the notice plus accrued interest has been withheld.
85.31 	(b) The "compensation due" any employee is defined in
85.32 	accordance with the provisions of section 571.921.  The maximum
85.33 	withholding allowed under this section for any one pay period
85.34 	shall be decreased by any amounts payable pursuant to a
85.35 	garnishment action with respect to which the employer was served
85.36 	prior to being served with the notice of delinquency and any
86.1 	amounts covered by any irrevocable and previously effective
86.2 	assignment of wages; the employer shall give notice to the
86.3 	commissioner of the amounts and the facts relating to such
86.4 	assignments within ten days after the service of the notice of
86.5 	delinquency on the form provided by the commissioner as noted in
86.6 	this section.
86.7 	(c) Within ten days after the expiration of such pay
86.8 	period, the employer shall remit to the commissioner, on a form
86.9 	and in the manner prescribed by the commissioner, the amount
86.10 	withheld during each pay period under this section.
86.11 		Subd. 2.Termination of employment. If the employee
86.12 	ceases to be employed by the employer before the full amount set
86.13 	forth in a notice of delinquency plus accrued interest has been
86.14 	withheld, the employer shall immediately notify the commissioner
86.15 	in writing of the termination date of the employee and the total
86.16 	amount withheld.  No employer may discharge any employee by
86.17 	reason of the fact that the commissioner has proceeded under
86.18 	subdivision 1.  If an employer discharges an employee in
86.19 	violation of this provision, the employee shall have the same
86.20 	remedy as provided in section 571.927, subdivision 2.
86.21 		Subd. 3.Application to government
86.22 	employer. Subdivisions 1 and 2 apply to cases in which the
86.23 	employer is the United States or any instrumentality thereof or
86.24 	this state or any municipality or other subordinate unit
86.25 	thereof.  The provisions imposing liability on the employer for
86.26 	failure to withhold or remit under section 270C.70 do not apply
86.27 	to such government employers.
86.28 		Subd. 4.Refund to employee. The commissioner shall
86.29 	refund to the employee excess amounts withheld from the employee
86.30 	under this section.  If any excess results from payments by the
86.31 	employer because of payments made under section 270C.70, the
86.32 	excess attributable to the employer's payment shall be refunded
86.33 	to the employer.
86.34 		Subd. 5.Additional interest, costs, charges. Employers
86.35 	required to withhold delinquent taxes, penalties, interest, and
86.36 	costs under this section shall not be required to compute any
87.1 	additional interest, costs or other charges to be withheld.
87.2 		Subd. 6.Legal effect. The collection remedy provided to
87.3 	the commissioner by this section shall have the same legal
87.4 	effect as if it were a levy made pursuant to section 270C.67.
87.5 	[290.92, subd. 23]
87.6 	
EFFECTIVE DATE. This section is effective August 1, 2005.

87.7 	Sec. 76. [270C.70] PERSONAL LIABILITY FOR FAILURE TO
87.8 	HONOR A LEVY.
87.9 		Subdivision 1.Surrender of property subject to levy. A
87.10 	person who fails or refuses to surrender property or rights to
87.11 	property subject to a levy served on the person under section
87.12 	270C.67, 270C.68, or 270C.69 is liable in an amount equal to the
87.13 	value of the property or rights not surrendered, or the amount
87.14 	of taxes, penalties, and interest for the collection of which
87.15 	the levy was made, whichever is less.  A financial institution
87.16 	need not surrender funds on deposit until ten days after service
87.17 	of the levy.
87.18 		Subd. 2.Penalty. In addition to the personal liability
87.19 	imposed by subdivision 1, if a person required to surrender
87.20 	property or rights to property fails to do so without reasonable
87.21 	cause, the person is liable for a penalty equal to 25 percent of
87.22 	the amount under subdivision 1.
87.23 		Subd. 3.Person defined. The term "person" as used in
87.24 	this section includes an officer or employee of a corporation,
87.25 	or a member or employee of a partnership, who as such officer,
87.26 	employee, or member is under a duty to surrender the property or
87.27 	rights to property or to respond to the levy.
87.28 		Subd. 4.Order assessing liability. The liability
87.29 	imposed by this section may, after demand to honor a levy has
87.30 	been made, be assessed by the commissioner within 60 days after
87.31 	service of the demand.  The assessment may be based on
87.32 	information available to the commissioner.  The assessment is
87.33 	presumed to be valid, and the burden is on the person assessed
87.34 	to show it is incorrect or invalid.  An order assessing
87.35 	liability for failure to honor a levy is reviewable
87.36 	administratively under section 270C.35, and is appealable to Tax
88.1 	Court under chapter 271.  The amount assessed, plus interest at
88.2 	the rate specified in section 270C.40, may be collected by any
88.3 	remedy available to the commissioner for the collection of
88.4 	taxes.  The proceeds collected are applied first to the
88.5 	liability of the original taxpayer to the extent of the
88.6 	liability under subdivision 1 plus interest, and then to the
88.7 	penalty under subdivision 2.[270.7002]
88.8 	
EFFECTIVE DATE. This section is effective August 1, 2005.

88.9 	Sec. 77. [270C.7101] SALE OF SEIZED PROPERTY.
88.10 		Subdivision 1.Notice of seizure. As soon as practicable
88.11 	after seizure of property, notice in writing shall be given by
88.12 	the commissioner to the owner of the property (or, in the case
88.13 	of personal property, the possessor thereof), and shall be
88.14 	served in like manner as a summons in a civil action in the
88.15 	district court.  If the owner cannot be readily located, or has
88.16 	no dwelling or place of business within this state, the notice
88.17 	may be mailed to the last known address.  The notice shall
88.18 	specify the sum demanded and shall contain, in the case of
88.19 	personal property, an account of the property seized and, in the
88.20 	case of real property, a description with reasonable certainty
88.21 	of the property seized.
88.22 		Subd. 2.Notice of sale. The commissioner shall as soon
88.23 	as practicable after the seizure of the property give notice of
88.24 	sale of the property to the owner, in the manner of service
88.25 	prescribed in subdivision 1.  In the case of personal property,
88.26 	the notice shall be served at least ten days prior to the sale.
88.27 	In the case of real property, the notice shall be served at
88.28 	least four weeks prior to the sale.  The commissioner shall also
88.29 	cause public notice of each sale to be made.  In the case of
88.30 	personal property, notice shall be posted at least ten days
88.31 	prior to the sale at the county courthouse for the county where
88.32 	the seizure is made, and in not less than two other public
88.33 	places.  For purposes of this requirement, the Internet is a
88.34 	public place for posting the information.  In the case of real
88.35 	property, six weeks' published notice shall be given prior to
88.36 	the sale, in a newspaper published or generally circulated in
89.1 	the county.  The notice of sale provided in this subdivision
89.2 	shall specify the property to be sold, and the time, place,
89.3 	manner, and conditions of the sale.  Whenever levy is made
89.4 	without regard to the 30-day period provided in section 270C.67,
89.5 	subdivision 3, public notice of sale of the property seized
89.6 	shall not be made within the 30-day period unless section
89.7 	270C.7102 (relating to sale of perishable goods) is applicable.
89.8 		Subd. 3.Sale of indivisible property. If any property
89.9 	liable to levy is not divisible, so as to enable the
89.10 	commissioner by sale of a part thereof to raise the whole amount
89.11 	of the tax and expenses, the whole of the property shall be sold.
89.12 		Subd. 4.Time and place of sale. The time of sale shall
89.13 	be after the expiration of the notice periods prescribed in
89.14 	subdivision 2.  The place of sale shall be within the county in
89.15 	which the property is seized, except by special order of the
89.16 	commissioner.
89.17 		Subd. 5.Manner and conditions of sale. (a) Before the
89.18 	sale the commissioner shall determine a minimum price for which
89.19 	the property shall be sold, and if no person offers for the
89.20 	property at the sale the amount of the minimum price, the
89.21 	property shall be declared to be purchased at the minimum price
89.22 	for the state of Minnesota; otherwise the property shall be
89.23 	declared to be sold to the highest bidder.  In determining the
89.24 	minimum price, the commissioner shall take into account the
89.25 	expense of making the levy and sale.  The announcement of the
89.26 	minimum price determined by the commissioner may be delayed
89.27 	until the receipt of the highest bid.
89.28 	(b) The sale shall not be conducted in any manner other
89.29 	than:
89.30 	(1) by public auction;
89.31 	(2) by public sale under sealed bids; or 
89.32 	(3) in the case of items which individually or in usually
89.33 	marketable units have a value of $50 or less, by public or
89.34 	private proceedings as a unit or in parcels at any time and
89.35 	place and on any terms, but every aspect of the disposition
89.36 	including the method, manner, time, place, and terms must be
90.1 	commercially reasonable.
90.2 	(c) In the case of seizure of several items of property,
90.3 	the items may be offered separately, in groups, or in the
90.4 	aggregate, and shall be sold under whichever method produces the
90.5 	highest aggregate amount, except that sales under paragraph (b),
90.6 	clause (3), must produce a reasonable amount under the
90.7 	circumstances.
90.8 	(d) Payment in full shall be required at the time of
90.9 	acceptance of a bid, except that a part of the payment may be
90.10 	deferred by the commissioner for a period not to exceed 30 days.
90.11 	(e) Other methods (including advertising) in addition to
90.12 	those prescribed in subdivision 2 may be used in giving notice
90.13 	of the sale.
90.14 	(f) The commissioner may adjourn the sale from time to time
90.15 	for a period not to exceed 30 days.
90.16 	(g) If payment in full is required at the time of
90.17 	acceptance of a bid and is not then and there paid, the
90.18 	commissioner shall forthwith proceed to again sell the property
90.19 	in the manner provided in this section.  If the conditions of
90.20 	the sale permit part of the payment to be deferred, and if the
90.21 	part is not paid within the prescribed period, suit may be
90.22 	instituted against the purchaser for the purchase price or that
90.23 	part thereof as has not been paid, together with interest at the
90.24 	rate specified in section 549.09 from the date of the sale; or,
90.25 	in the discretion of the commissioner, the sale may be declared
90.26 	by the commissioner to be null and void for failure to make full
90.27 	payment of the purchase price and the property may again be
90.28 	advertised and sold as provided in this section.  In the event
90.29 	of a readvertisement and sale, any new purchaser shall receive
90.30 	the property or rights to property free and clear of any claim
90.31 	or right of the former defaulting purchaser, of any nature
90.32 	whatsoever, and the amount paid upon the bid price by the
90.33 	defaulting purchaser shall be forfeited.
90.34 		Subd. 6.Right to request sale of seized property within
90.35 	60 days. The owner of property seized by levy may request that
90.36 	the commissioner offer to sell the property within 60 days after
91.1 	the request, or within a longer period requested by the owner.
91.2 	The request must be complied with unless the commissioner
91.3 	determines and notifies the owner within that period that
91.4 	compliance is not in the best interests of the state of
91.5 	Minnesota.  A determination by the commissioner not to comply
91.6 	with the request is appealable to the Tax Court in the manner
91.7 	provided by law.
91.8 		Subd. 7.Sale of seized securities. (a) At the time of
91.9 	levy on securities, the commissioner shall provide notice to the
91.10 	taxpayer that the securities may be sold after ten days from the
91.11 	date of seizure.
91.12 	(b) If the commissioner levies upon nonexempt publicly
91.13 	traded securities and the value of the securities is less than
91.14 	or equal to the total obligation for which the levy is done,
91.15 	after ten days the person who possesses or controls the
91.16 	securities shall liquidate the securities in a commercially
91.17 	reasonable manner.  After liquidation, the person shall transfer
91.18 	the proceeds to the commissioner, less any applicable
91.19 	commissions or fees, or both, which are charged in the normal
91.20 	course of business.
91.21 	(c) If the commissioner levies upon nonexempt publicly
91.22 	traded securities and the value of the securities exceeds the
91.23 	total amount of the levy, the owner of the securities may,
91.24 	within seven days after receipt of the commissioner's notice of
91.25 	levy given pursuant to subdivision 1, instruct the person who
91.26 	possesses or controls the securities which securities are to be
91.27 	sold to satisfy the obligation.  If the owner does not provide
91.28 	instructions for liquidation, the person who possesses or
91.29 	controls the securities shall liquidate the securities in an
91.30 	amount sufficient to pay the obligation, plus any applicable
91.31 	commissions or fees, or both, which are charged in the normal
91.32 	course of business, beginning with the nonexempt securities
91.33 	purchased most recently.  After liquidation, the person who
91.34 	possesses or controls the securities shall transfer to the
91.35 	commissioner the amount of money needed to satisfy the levy.
91.36 	[270.701]
92.1 	
EFFECTIVE DATE. This section is effective for levies made
92.2 	on or after August 1, 2005.

92.3 	Sec. 78. [270C.7102] SALE OF PERISHABLE GOODS.
92.4 	If the commissioner determines that any property seized is
92.5 	liable to perish or become greatly reduced in price or value by
92.6 	keeping, or that the property cannot be kept without great
92.7 	expense, the commissioner shall appraise the value of the
92.8 	property, and if the owner of the property can be readily found,
92.9 	the commissioner shall give the owner notice of the
92.10 	determination of the appraised value of the property.  The
92.11 	property shall be returned to the owner if, within the time
92.12 	specified in the notice, the owner (a) pays to the commissioner
92.13 	an amount equal to the appraised value, or (b) gives bond in the
92.14 	form, with the sureties, and in the amount as the commissioner
92.15 	prescribes to pay the appraised amount at the time the
92.16 	commissioner determines to be appropriate in the circumstances.
92.17 	If the owner does not pay the amount or furnish the bond in
92.18 	accordance with this section, the commissioner shall as soon as
92.19 	practicable make public sale of the property in accordance with
92.20 	section 270C.7101.[270.702]

92.21 	EFFECTIVE DATE. This section is effective for levies made
92.22 	on or after August 1, 2005.

92.23 	Sec. 79. [270C.7103] REDEMPTION OF PROPERTY.
92.24 		Subdivision 1.Before sale. Any person whose property
92.25 	has been levied upon shall have the right to pay the amount due,
92.26 	together with the expenses of the proceeding, if any, to the
92.27 	commissioner at any time prior to the sale thereof, and upon
92.28 	payment the commissioner shall restore the property to the
92.29 	person, and all further proceedings in connection with the levy
92.30 	on the property shall cease from the time of payment.
92.31 		Subd. 2.Redemption of real estate after sale. The
92.32 	owners of any real property sold as provided in this section,
92.33 	their heirs, executors, or administrators, or any person having
92.34 	any interest therein, or a lien thereon, or any person in their
92.35 	behalf, shall be permitted to redeem the property sold, or any
92.36 	particular tract of the property, at any time within six months,
93.1 	or in case the real property sold exceeds ten acres in size, at
93.2 	any time within 12 months, after the sale thereof.  The property
93.3 	or tract of property shall be permitted to be redeemed upon
93.4 	payment to the purchaser (or if not found in the county in which
93.5 	the property to be redeemed is situated, then to the
93.6 	commissioner, for the use of the purchaser, or the purchaser's
93.7 	heirs or assigns) of the amount paid by the purchaser together
93.8 	with interest at the rate of 20 percent per annum.
93.9 		Subd. 3.Record. When any lands sold are redeemed as
93.10 	provided in this section, the commissioner shall cause entry of
93.11 	the fact to be made upon the record required by section
93.12 	270C.7106 and the entry shall be evidence of the redemption.
93.13 	[270.703]
93.14 	
EFFECTIVE DATE. This section is effective for levies made
93.15 	on or after August 1, 2005.

93.16 	Sec. 80. [270C.7104] CERTIFICATE OF SALE.
93.17 	In the case of property sold as provided in section
93.18 	270C.7101, the commissioner shall give to the purchaser a
93.19 	certificate of sale upon payment in full of the purchase price.
93.20 	In the case of real property the certificate shall set forth the
93.21 	real property purchased, for whose taxes the property was sold,
93.22 	the name of the purchaser, and the price paid.  If real property
93.23 	is declared purchased by the state of Minnesota, the
93.24 	commissioner shall within ten days from the sale cause the
93.25 	certificate of sale to be duly recorded by the county recorder
93.26 	of the county in which the real property is located.[270.704]

93.27 	EFFECTIVE DATE. This section is effective for levies made
93.28 	on or after August 1, 2005.

93.29 	Sec. 81. [270C.7105] EFFECT OF CERTIFICATE OF SALE.
93.30 		Subdivision 1.Personal property. (a) In all cases of
93.31 	sale pursuant to section 270C.7101 of personal property, the
93.32 	certificate of sale given pursuant to section 270C.7104 shall be
93.33 	prima facie evidence of the right of the commissioner to make
93.34 	the sale, and conclusive evidence of the regularity of the
93.35 	proceedings in making the sale.  The certificate shall transfer
93.36 	to the purchaser all right, title, and interest of the party
94.1 	delinquent in and to the property sold.
94.2 	(b) If the property consists of stocks, the certificate of
94.3 	sale shall be notice, when received, to any corporation,
94.4 	company, or association of the transfer, and shall be authority
94.5 	to the corporation, company, or association to record the
94.6 	transfer on its books and records in the same manner as if the
94.7 	stocks were transferred or assigned by the party holding the
94.8 	same, in lieu of any original or prior certificate, which shall
94.9 	be void, whether canceled or not.
94.10 	(c) If the subject of sale is securities or other evidences
94.11 	of debt, the certificate of sale shall be a good and valid
94.12 	receipt to the person holding the same, as against any person
94.13 	holding or claiming to hold possession of the securities or
94.14 	other evidences of debt.
94.15 	(d) If the property consists of a motor vehicle, the
94.16 	certificate of sale shall be notice, when received, to the
94.17 	registrar of motor vehicles of this state of the transfer, and
94.18 	shall be authority to the registrar to record the transfer on
94.19 	the books and records in the same manner as if the certificate
94.20 	of title to the motor vehicle were transferred or assigned by
94.21 	the party holding the same, in lieu of any original or prior
94.22 	certificate, which shall be void, whether canceled or not.
94.23 		Subd. 2.Real property. In the case of the sale of real
94.24 	property pursuant to section 270C.7101, the certificate of sale
94.25 	given pursuant to section 270C.7104 shall be prima facie
94.26 	evidence of the facts therein stated, and shall be considered
94.27 	and operate as a conveyance of all the right, title, and
94.28 	interest the party delinquent had in and to the real property
94.29 	thus sold at the time the lien of the state of Minnesota
94.30 	attached thereto.
94.31 		Subd. 3.Junior encumbrances. A certificate of sale of
94.32 	personal property or real property given pursuant to section
94.33 	270C.7104 shall discharge the property from all liens,
94.34 	encumbrances, and titles over which the lien of the state of
94.35 	Minnesota with respect to which the levy was made had priority.
94.36 	[270.705]
95.1 	
EFFECTIVE DATE. This section is effective for levies made
95.2 	on or after August 1, 2005.

95.3 	Sec. 82. [270C.7106] RECORDS OF SALE.
95.4 	The commissioner shall maintain a record of all sales of
95.5 	property under section 270C.7101 and of redemptions of real
95.6 	property.  The record shall set forth the tax for which the sale
95.7 	was made, the dates of seizure and sale, the name of the party
95.8 	assessed and all proceedings in making the sale, the amount of
95.9 	expenses, the names of the purchasers, and the date of the
95.10 	certificate of sale.  A copy of the record, or any part thereof,
95.11 	certified by the commissioner shall be evidence in any court of
95.12 	the truth of the facts therein stated.[270.706]

95.13 	EFFECTIVE DATE. This section is effective for levies made
95.14 	on or after August 1, 2005.

95.15 	Sec. 83. [270C.7107] EXPENSE OF LEVY AND SALE.
95.16 	The commissioner shall determine the expenses to be allowed
95.17 	in all cases of levy and sale.[270.707]

95.18 	EFFECTIVE DATE. This section is effective for levies made
95.19 	on or after August 1, 2005.

95.20 	Sec. 84. [270C.7108] APPLICATION OF PROCEEDS OF LEVY.
95.21 		Subdivision 1.Collection of liability. Any money
95.22 	realized by proceedings under this chapter, whether by seizure,
95.23 	by surrender under section 270C.67, by sale of seized property,
95.24 	by sale of property redeemed by the state of Minnesota (if the
95.25 	interest of the state of Minnesota in the property was a lien
95.26 	arising under the provisions of section 270C.63), or by
95.27 	agreement, arrangement, or any other means shall be applied as
95.28 	follows:
95.29 	(a) First, against the expenses of the proceedings; then 
95.30 	(b) If the property seized and sold is subject to a tax
95.31 	that has not been paid, the amount remaining after applying
95.32 	clause (a) shall next be applied against the tax liability (and,
95.33 	if the tax was not previously assessed, it shall then be
95.34 	assessed); and 
95.35 	(c) The amount, if any, remaining after applying clauses
95.36 	(a) and (b) shall be applied against the tax liability in
96.1 	respect of which the levy was made or the sale was conducted.
96.2 		Subd. 2.Surplus proceeds. Any surplus proceeds
96.3 	remaining after the application of subdivision 1 shall, upon
96.4 	application and satisfactory proof in support thereof, be
96.5 	credited or refunded by the commissioner to the person or
96.6 	persons legally entitled thereto.[270.708]
96.7 	
EFFECTIVE DATE. This section is effective for levies made
96.8 	on or after August 1, 2005.

96.9 	Sec. 85. [270C.7109] AUTHORITY TO RELEASE LEVY AND RETURN
96.10 	PROPERTY.
96.11 		Subdivision 1.Release of levy. The commissioner shall
96.12 	release a levy on all or part of the property or rights to
96.13 	property levied on and shall promptly notify the person on whom
96.14 	the levy was made that the levy has been released if:  (1) the
96.15 	liability for which the levy was made is satisfied or has become
96.16 	unenforceable by lapse of time; (2) release of the levy will
96.17 	facilitate collection of the liability; (3) the taxpayer has
96.18 	entered into an installment payment agreement under section
96.19 	270C.52, subdivision 2, unless the agreement provides otherwise,
96.20 	or unless release of the levy will jeopardize the status of the
96.21 	department as a secured creditor; or (4) the fair market value
96.22 	of the property exceeds the liability, and release of the levy
96.23 	on a part of the property can be made without hindering
96.24 	collection.  In the case of tangible personal property essential
96.25 	in carrying on the trade or business of the taxpayer, the
96.26 	commissioner shall provide for an expedited determination under
96.27 	this subdivision.  A release of levy under this subdivision does
96.28 	not prevent a subsequent levy on the property released.
96.29 		Subd. 2.Return of property. If the commissioner
96.30 	determines that property has been wrongfully levied upon, it
96.31 	shall be lawful for the commissioner to return:
96.32 	(a) The specific property levied upon, at any time;
96.33 	(b) An amount of money equal to the amount of money levied
96.34 	upon, at any time before the expiration of nine months from the
96.35 	date of the levy; or 
96.36 	(c) An amount of money equal to the amount of money
97.1 	received by the state of Minnesota from a sale of the property,
97.2 	at any time before the expiration of nine months from the date
97.3 	of the sale.
97.4 	For purposes of clause (c), if property is declared
97.5 	purchased by the state of Minnesota at a sale pursuant to
97.6 	section 270C.7101, subdivision 5 (relating to manner and
97.7 	conditions of sale), the state of Minnesota shall be treated as
97.8 	having received an amount of money equal to the minimum price
97.9 	determined pursuant to section 270C.7101, subdivision 5, or, if
97.10 	larger, the amount received by the state of Minnesota from the
97.11 	resale of the property.[270.709]
97.12 	
EFFECTIVE DATE. This section is effective for levies made
97.13 	on or after August 1, 2005.

97.14 	Sec. 86. [270C.711] ACQUISITION AND RESALE OF SEIZED
97.15 	PROPERTY.
97.16 	For the purpose of enabling the commissioner to purchase or
97.17 	redeem seized property in which the state of Minnesota has an
97.18 	interest arising from a lien for unpaid taxes, or to provide for
97.19 	the operating costs of collection activities of the department,
97.20 	there is appropriated to the commissioner an amount representing
97.21 	the cost of such purchases, redemptions, or collection
97.22 	activities.  Seized property acquired by the state of Minnesota
97.23 	to satisfy unpaid taxes shall be resold by the commissioner.
97.24 	The commissioner shall preserve the value of seized property
97.25 	while controlling it, including but not limited to the
97.26 	procurement of insurance.  For the purpose of refunding the
97.27 	proceeds from the sale of levied or redeemed property which are
97.28 	in excess of the actual tax liability plus costs of acquiring
97.29 	the property, there is hereby created a levied and redeemed
97.30 	property refund account in the agency fund.  All amounts
97.31 	deposited into this account are appropriated to the
97.32 	commissioner.  The commissioner shall report quarterly on the
97.33 	status of this program to the chairs of the house Taxes and Ways
97.34 	and Means Committees and senate Taxes and Tax Laws and Finance
97.35 	Committees.[270.71]

97.36 	EFFECTIVE DATE. This section is effective August 1, 2005.

98.1 	Sec. 87. [270C.72] TAX CLEARANCE; ISSUANCE OF LICENSES.
98.2 		Subdivision 1.Tax clearance required. The state or a
98.3 	political subdivision of the state may not issue, transfer, or
98.4 	renew, and must revoke, a license for the conduct of a
98.5 	profession, occupation, trade, or business, if the commissioner
98.6 	notifies the licensing authority that the applicant owes the
98.7 	state delinquent taxes payable to the commissioner, penalties,
98.8 	or interest.  The commissioner may not notify the licensing
98.9 	authority unless the applicant taxpayer owes $500 or more in
98.10 	delinquent taxes, penalties, or interest, or has not filed
98.11 	returns.  If the applicant taxpayer does not owe delinquent
98.12 	taxes, penalties, or interest, but has not filed returns, the
98.13 	commissioner may not notify the licensing authority unless the
98.14 	taxpayer has been given 90 days' written notice to file the
98.15 	returns or show that the returns are not required to be filed.
98.16 	A licensing authority that has received a notice from the
98.17 	commissioner may issue, transfer, renew, or not revoke the
98.18 	applicant's license only if (a) the commissioner issues a tax
98.19 	clearance certificate and (b) the commissioner or the applicant
98.20 	forwards a copy of the clearance to the authority.  The
98.21 	commissioner may issue a clearance certificate only if the
98.22 	applicant does not owe the state any uncontested delinquent
98.23 	taxes, penalties, or interest and has filed all required returns.
98.24 		Subd. 2.Definitions. For purposes of this section, the
98.25 	following terms have the meanings given.
98.26 	(a) "Delinquent taxes" do not include a tax liability if
98.27 	(i) an administrative or court action which contests the amount
98.28 	or validity of the liability has been filed or served, (ii) the
98.29 	appeal period to contest the tax liability has not expired, or
98.30 	(iii) the applicant has entered into a payment agreement and is
98.31 	current with the payments.
98.32 	(b) "Applicant" means an individual, if the license is
98.33 	issued to or in the name of an individual, or the corporation or
98.34 	partnership, if the license is issued to or in the name of a
98.35 	corporation or partnership.  "Applicant" also means an officer
98.36 	of a corporation, a member of a partnership, or an individual
99.1 	who is liable for delinquent taxes, either for the entity for
99.2 	which the license is at issue or for another entity for which
99.3 	the liability was incurred, or personally as a licensee.  In the
99.4 	case of a license transfer, "applicant" also means both the
99.5 	transferor and the transferee of the license.  "Applicant" also
99.6 	means any holder of a license.
99.7 	(c) "License" means any permit, registration,
99.8 	certification, or other form of approval authorized by statute
99.9 	or rule to be issued by the state or a political subdivision of
99.10 	the state as a condition of doing business or conducting a
99.11 	trade, profession, or occupation in Minnesota, specifically
99.12 	including, but not limited to, a contract for space rental at
99.13 	the Minnesota state fair and authorization to operate
99.14 	concessions or rides at county and local fairs, festivals, or
99.15 	events.
99.16 	(d) "Licensing authority" includes the Minnesota State Fair
99.17 	Board and county and local boards or governing bodies.
99.18 		Subd. 3.Notice and hearing. (a) The commissioner, on
99.19 	notifying a licensing authority pursuant to subdivision 1 not to
99.20 	issue, transfer, or renew a license, must send a copy of the
99.21 	notice to the applicant.  If the applicant requests, in writing,
99.22 	within 30 days of the date of the notice a hearing, a contested
99.23 	case hearing must be held.  The hearing must be held within 45
99.24 	days of the date the commissioner refers the case to the Office
99.25 	of Administrative Hearings.  Notwithstanding any law to the
99.26 	contrary, the applicant must be served with 20 days' notice in
99.27 	writing specifying the time and place of the hearing and the
99.28 	allegations against the applicant.  The notice may be served
99.29 	personally or by mail.
99.30 	(b) Prior to notifying a licensing authority pursuant to
99.31 	subdivision 1 to revoke a license, the commissioner must send a
99.32 	notice to the applicant of the commissioner's intent to require
99.33 	revocation of the license and of the applicant's right to a
99.34 	hearing under paragraph (a).  A license is subject to revocation
99.35 	when 30 days have passed following the date of the notice in
99.36 	this paragraph without the applicant requesting a hearing, or,
100.1 	if a hearing is timely requested, upon final determination of
100.2 	the hearing under section 14.62, subdivision 1.  A license shall
100.3 	be revoked by the licensing authority within 30 days after
100.4 	receiving notice from the commissioner to revoke.
100.5 	(c) A hearing under this subdivision is in lieu of any
100.6 	other hearing or proceeding provided by law arising from any
100.7 	action taken under subdivision 1.
100.8 		Subd. 4.Licensing authority; duties. All licensing
100.9 	authorities must require the applicant to provide the
100.10 	applicant's Social Security number and Minnesota business
100.11 	identification number on all license applications.  Upon request
100.12 	of the commissioner, the licensing authority must provide the
100.13 	commissioner with a list of all applicants, including the name,
100.14 	address, business name and address, Social Security number, and
100.15 	business identification number of each applicant.  The
100.16 	commissioner may request from a licensing authority a list of
100.17 	the applicants no more than once each calendar year.[270.72]
100.18 	
EFFECTIVE DATE. This section is effective August 1, 2005.

100.19 	Sec. 88. [270C.721] REVOCATION OF CERTIFICATES OF
100.20 	AUTHORITY TO DO BUSINESS IN THIS STATE.
100.21 	When a foreign corporation authorized to do business in
100.22 	this state under chapter 303, or a foreign limited liability
100.23 	company or partnership authorized to do business in this state
100.24 	under chapter 322B, fails to comply with a law administered by
100.25 	the commissioner that imposes a tax, the commissioner may serve
100.26 	the secretary of state with a certified copy of an order finding
100.27 	such failure to comply.  The secretary of state, upon receipt of
100.28 	the order, shall revoke the certificate of authority to do
100.29 	business in this state, and shall reinstate the certificate
100.30 	under section 303.19 or 322B.960, subdivision 6, only when the
100.31 	corporation or limited liability company or partnership has
100.32 	obtained from the commissioner an order finding that the
100.33 	corporation or limited liability company or partnership is in
100.34 	compliance with such law.  An order requiring revocation of a
100.35 	certificate shall not be issued unless the commissioner gives
100.36 	the corporation or limited liability company or partnership 30
101.1 	days' written notice of the proposed order, specifying the
101.2 	violations of law, and affording an opportunity to request a
101.3 	contested case hearing under chapter 14.[270.721]

101.4 	EFFECTIVE DATE. This section is effective August 1, 2005.

101.5 	Sec. 89. [270C.722] REVOCATION OF SALES TAX PERMITS.
101.6 		Subdivision 1.Notice of revocation; hearings. (a) If:
101.7 	(1) a person fails to comply with chapter 297A or the sales and
101.8 	use tax provisions of chapter 289A or the rules related to sales
101.9 	tax, or (2) any retailer purchases for resale from an unlicensed
101.10 	seller more than 20,000 cigarettes or $500 or more worth of
101.11 	tobacco products, without reasonable cause, the commissioner may
101.12 	give the person 30 days' notice in writing, specifying the
101.13 	violations, and stating that based on the violations the
101.14 	commissioner intends to revoke the person's permit issued under
101.15 	section 297A.84.  The notice must also advise the person of the
101.16 	right to contest the revocation under this subdivision.  It must
101.17 	also explain the general procedures for a contested case hearing
101.18 	under chapter 14.  The notice may be served personally or by
101.19 	mail in the manner prescribed for service of an order of
101.20 	assessment.
101.21 	(b) If the person does not request a hearing within 30 days
101.22 	after the date of the notice of intent, the commissioner may
101.23 	serve a notice of revocation of permit upon the person, and the
101.24 	permit is revoked.  If a hearing is timely requested, and held,
101.25 	the permit is revoked after the commissioner serves an order of
101.26 	revocation of permit under section 14.62, subdivision 1.
101.27 		Subd. 2.New permits after revocation. (a) The
101.28 	commissioner shall not issue a new permit after revocation or
101.29 	reinstate a revoked permit unless the taxpayer applies for a
101.30 	permit and provides reasonable evidence of intention to comply
101.31 	with the sales and use tax laws and rules.  The commissioner may
101.32 	require the applicant to provide security, in addition to that
101.33 	authorized by section 297A.92, in an amount reasonably necessary
101.34 	to ensure compliance with the sales and use tax laws and rules.
101.35 	If the commissioner issues or reinstates a permit not in
101.36 	conformance with the requirements of this subdivision or
102.1 	applicable rules, the commissioner may cancel the permit upon
102.2 	notice to the permit holder.  The notice must be served by first
102.3 	class and certified mail at the permit holder's last known
102.4 	address.  The cancellation shall be effective immediately,
102.5 	subject to the right of the permit holder to show that the
102.6 	permit was issued in conformance with the requirements of this
102.7 	subdivision and applicable rules.  Upon such showing, the permit
102.8 	must be reissued.
102.9 	(b) If a taxpayer has had a permit or permits revoked three
102.10 	times in a five-year period, the commissioner shall not issue a
102.11 	new permit or reinstate the revoked permit until 24 months have
102.12 	elapsed after revocation and the taxpayer has satisfied the
102.13 	conditions for reinstatement of a revoked permit or issuance of
102.14 	a new permit imposed by this section and rules adopted under
102.15 	this section.
102.16 	(c) For purposes of this subdivision, "taxpayer" means:
102.17 	(1) an individual, if a revoked permit was issued to or in
102.18 	the name of an individual, or a corporation or partnership, if a
102.19 	revoked permit was issued to or in the name of a corporation or
102.20 	partnership; and 
102.21 	(2) an officer of a corporation, a member of a partnership,
102.22 	or an individual who is liable for delinquent sales taxes,
102.23 	either for the entity for which the new or reinstated permit is
102.24 	at issue, or for another entity for which a permit was
102.25 	previously revoked, or personally as a permit holder.[297A.86]
102.26 	
EFFECTIVE DATE. This section is effective August 1, 2005.

102.27 	Sec. 90. [270C.725] POSTING OF TAX DELINQUENCY; SALE OF
102.28 	LIQUOR OR BEER.
102.29 		Subdivision 1.Posting, notice. Pursuant to the
102.30 	authority to disclose under section 270B.12, subdivision 4, the
102.31 	commissioner shall, by the 15th of each month, submit to the
102.32 	commissioner of public safety a list of all taxpayers who are
102.33 	required to pay, withhold, or collect the tax imposed by section
102.34 	290.02, 290.0922, 290.92, 290.9727, 290.9728, 290.9729, or
102.35 	297A.62, or local sales and use tax payable to the commissioner,
102.36 	or a local option tax administered and collected by the
103.1 	commissioner, and who are ten days or more delinquent in either
103.2 	filing a tax return or paying the tax.
103.3 	The commissioner is under no obligation to list a taxpayer
103.4 	whose business is inactive.  At least ten days before notifying
103.5 	the commissioner of public safety, the commissioner shall notify
103.6 	the taxpayer of the intended action.
103.7 	The commissioner of public safety shall post the list in
103.8 	the same manner as provided in section 340A.318, subdivision 3.
103.9 	The list will prominently show the date of posting.  If a
103.10 	taxpayer previously listed files all returns and pays all taxes
103.11 	specified in this subdivision then due, the commissioner shall
103.12 	notify the commissioner of public safety within two business
103.13 	days.
103.14 		Subd. 2.Sales prohibited. Beginning the third business
103.15 	day after the list is posted, no wholesaler, manufacturer, or
103.16 	brewer may sell or deliver any product to a taxpayer included on
103.17 	the posted list.
103.18 		Subd. 3.Penalty. A wholesaler, manufacturer, or brewer
103.19 	of intoxicating liquor or 3.2 percent malt liquor who violates
103.20 	subdivision 2 is subject to the penalties provided in section
103.21 	340A.304.[270.73]
103.22 	
EFFECTIVE DATE. This section is effective August 1, 2005.

103.23 	Sec. 91. [270C.728] PUBLICATION OF NAMES OF DELINQUENT
103.24 	TAXPAYERS.
103.25 		Subdivision 1.Commissioner may publish. (a)
103.26 	Notwithstanding any other law, the commissioner may publish a
103.27 	list or lists of taxpayers who owe delinquent taxes, and who
103.28 	meet the requirements of paragraph (b).
103.29 	(b) For purposes of this section, a taxpayer may be
103.30 	included on a list if:
103.31 	(1) the taxes owed remain unpaid at least 180 days after
103.32 	the dates they were due;
103.33 	(2) the taxpayer's total liability for the taxes, including
103.34 	penalties, interest, and other charges, is at least $5,000; and 
103.35 	(3) a tax lien has been filed or a judgment for the
103.36 	liability has been entered against the taxpayer before notice is
104.1 	given under subdivision 3.
104.2 	(c) In the case of listed taxpayers that are business
104.3 	entities, the commissioner may also list the names of
104.4 	responsible persons assessed pursuant to section 270C.56 for
104.5 	listed liabilities, who are not protected from publication by
104.6 	subdivision 2, and for whom the requirements of paragraph (b)
104.7 	are satisfied with regard to the personal assessment.
104.8 	(d) Before any list is published under this section, the
104.9 	commissioner must certify in writing that each of the conditions
104.10 	for publication as provided in this section has been satisfied,
104.11 	and that procedures were followed to ensure the accuracy of the
104.12 	list and notice was given to the affected taxpayers.
104.13 		Subd. 2.Required and excluded taxpayers. (a) The
104.14 	commissioner may publish lists of some or all of the taxpayers
104.15 	described in subdivision 1.  A list must include the taxpayers
104.16 	with the largest unpaid liabilities of the kind used to define
104.17 	the list, subject to the limitations of paragraphs (b) and (c).
104.18 	(b) For the purposes of this section, a tax is not
104.19 	delinquent if:
104.20 	(1) an administrative or court action contesting the amount
104.21 	or validity of the taxpayer's liability has been filed or served
104.22 	and is unresolved at the time when notice would be given under
104.23 	subdivision 3;
104.24 	(2) an appeal period to contest the liability has not
104.25 	expired; or 
104.26 	(3) the liability is subject to a payment agreement and
104.27 	there is no delinquency in the payments required under the
104.28 	agreement.
104.29 	(c) Unpaid liabilities are not subject to publication if:
104.30 	(1) the commissioner is in the process of reviewing or
104.31 	adjusting the liability;
104.32 	(2) the taxpayer is a debtor in a bankruptcy proceeding and
104.33 	the automatic stay is in effect;
104.34 	(3) the commissioner has been notified that the taxpayer is
104.35 	deceased; or 
104.36 	(4) the time period for collecting the taxes has expired.
105.1 		Subd. 3.Notice to taxpayer. (a) At least 30 days before
105.2 	publishing the name of a delinquent taxpayer, the commissioner
105.3 	shall mail a written notice to the taxpayer, detailing the
105.4 	amount and nature of each liability and the intended publication
105.5 	of the information listed in subdivision 4 related to the
105.6 	liability.  The notice must be mailed by first class and
105.7 	certified mail addressed to the last known address of the
105.8 	taxpayer.  The notice must include information regarding the
105.9 	exceptions listed in subdivision 2 and must state that the
105.10 	taxpayer's information will not be published if the taxpayer
105.11 	pays the delinquent obligation, enters into an agreement to pay,
105.12 	or provides information establishing that subdivision 2
105.13 	prohibits publication of the taxpayer's name.
105.14 	(b) After at least 30 days has elapsed since the notice was
105.15 	mailed and the delinquent tax has not been paid and the taxpayer
105.16 	has not proved to the commissioner that subdivision 2 prohibits
105.17 	publication, the commissioner may publish in a list of
105.18 	delinquent taxpayers the information about the taxpayer that is
105.19 	listed in subdivision 4.
105.20 		Subd. 4.Form of list. The list may be published by any
105.21 	medium or method.  The list must contain the name, address, type
105.22 	of tax, and period for which payment is due for each liability,
105.23 	including penalties, interest, and other charges owed by each
105.24 	listed delinquent taxpayer.
105.25 		Subd. 5.Removal from list. The commissioner shall
105.26 	remove the name of a taxpayer from the list of delinquent
105.27 	taxpayers after the commissioner receives written notice of and
105.28 	verifies any of the following facts about the liability in
105.29 	question:
105.30 	(1) the taxpayer has contacted the commissioner and
105.31 	arranged resolution of the liability;
105.32 	(2) an active bankruptcy proceeding has been initiated for
105.33 	the liability;
105.34 	(3) a bankruptcy proceeding concerning the liability has
105.35 	resulted in discharge of the liability; or 
105.36 	(4) the commissioner has written off the liability.
106.1 		Subd. 6.Names published in error. If the commissioner
106.2 	publishes a name under subdivision 1 in error, the taxpayer
106.3 	whose name was erroneously published has a right to request a
106.4 	retraction and apology.  If the taxpayer so requests, the
106.5 	commissioner shall publish a retraction and apology
106.6 	acknowledging that the taxpayer's name was published in error.
106.7 	The retraction and apology must appear in the same medium and
106.8 	the same format as the original list that contained the name
106.9 	listed in error.
106.10 		Subd. 7.Payment of damages. Actions against the
106.11 	commissioner or the state of Minnesota arising out of the
106.12 	implementation of this program must be brought under section
106.13 	270C.275.  If an action results in damages awarded to a
106.14 	taxpayer, the damages must be paid out of the department's
106.15 	operating budget rather than in accordance with section 3.736,
106.16 	subdivision 7.[270.691]
106.17 	
EFFECTIVE DATE. This section is effective August 1, 2005.
106.18 	OVERSIGHT AND ADMINISTRATION OF PROPERTY TAX SYSTEM

106.19 	Sec. 92. [270C.85] ADMINISTRATION OF PROPERTY TAX LAWS;
106.20 	POWERS AND DUTIES.
106.21 		Subdivision 1.General supervision. The commissioner
106.22 	shall have and exercise general supervision over the
106.23 	administration of the property tax laws, assessors, town,
106.24 	county, and city boards of review and equalization, and all
106.25 	other assessing officers in the performance of their duties, to
106.26 	the end that all assessments of property be made relatively just
106.27 	and equal in compliance with the laws of the state.[270.06(1)]
106.28 		Subd. 2.Powers and duties. The commissioner shall have
106.29 	and exercise the following powers and duties in administering
106.30 	the property tax laws.
106.31 	(a) Confer with, advise, and give the necessary
106.32 	instructions and directions to local assessors and local boards
106.33 	of review throughout the state as to their duties under the laws
106.34 	of the state.[270.06(2)]
106.35 	(b) Direct proceedings, actions, and prosecutions to be
106.36 	instituted to enforce the laws relating to the liability and
107.1 	punishment of public officers and officers and agents of
107.2 	corporations for failure or negligence to comply with the
107.3 	provisions of the property tax laws, and cause complaints to be
107.4 	made against local assessors, members of boards of equalization,
107.5 	members of boards of review, or any other assessing or taxing
107.6 	officer, to the proper authority, for their removal from office
107.7 	for misconduct or negligence of duty.[270.06(3)]
107.8 	(c) Require county attorneys to assist in the commencement
107.9 	of prosecutions in actions or proceedings for removal,
107.10 	forfeiture, and punishment, for violation of the property tax
107.11 	laws in their respective districts or counties.[270.06(4)]
107.12 	(d) Require town, city, county, and other public officers
107.13 	to report information as to the assessment of property, and such
107.14 	other information as may be needful in the work of the
107.15 	commissioner, in such form as the commissioner may prescribe.
107.16 	[270.06(5)]
107.17 	(e) Transmit to the governor, on or before the third Monday
107.18 	in December of each even-numbered year, and to each member of
107.19 	the legislature, on or before November 15 of each even-numbered
107.20 	year, the report of the department for the preceding years,
107.21 	showing all the taxable property subject to the property tax
107.22 	laws and the value of the same, in tabulated form.[270.06(12)]
107.23 	(f) Inquire into the methods of assessment and taxation and
107.24 	ascertain whether the assessors faithfully discharge their
107.25 	duties.[270.06(13)]
107.26 	
EFFECTIVE DATE. This section is effective August 1, 2005.

107.27 	Sec. 93. [270C.86] POWER TO ABATE; CORRECTION OF ERRORS.
107.28 		Subdivision 1.Powers of commissioner; application for
107.29 	abatement; orders. (a) Except for matters delegated to the
107.30 	various boards of county commissioners under section 375.192,
107.31 	and except as otherwise provided by law, the commissioner shall
107.32 	have power to grant such reduction or abatement of net tax
107.33 	capacities, taxes imposed by the property tax laws, or special
107.34 	assessments, and of any costs, penalties, or interest thereon as
107.35 	the commissioner may deem just and equitable, and to order the
107.36 	refundment, in whole or in part, of any taxes or special
108.1 	assessments, and costs, penalties, or interest thereon which
108.2 	have been erroneously or unjustly paid.  Application therefor
108.3 	shall be submitted with a statement of facts in the case and the
108.4 	favorable recommendation of the county board or of the board of
108.5 	abatement of any city where any such board exists, and the
108.6 	county auditor of the county wherein such tax was levied or
108.7 	paid.  No reduction, abatement, or refundment of any special
108.8 	assessments made or levied by any municipality for local
108.9 	improvements shall be made unless it is also approved by the
108.10 	board of review or similar taxing authority of such municipality.
108.11 	(b) The commissioner shall forward to the county auditor a
108.12 	copy of the order made by the commissioner in all cases in which
108.13 	the approval of the county board is required.[270.07, subd.
108.14 	1(c)]
108.15 	(c) An appeal may not be taken to the Tax Court from any
108.16 	order of the commissioner made in the exercise of the
108.17 	discretionary authority granted in paragraph (a) with respect to
108.18 	the reduction or abatement of real or personal property taxes in
108.19 	response to an application for an abatement, reduction, or
108.20 	refund of taxes, net tax capacities, costs, penalties, or
108.21 	interest.[270.07, subd. 1(f)]
108.22 		Subd. 2.Examination of application; reductions;
108.23 	appeals. (a) The commissioner shall examine all applications
108.24 	submitted by a county board pursuant to section 375.192,
108.25 	subdivision 3.  If the applicant has previously submitted a
108.26 	claim for property tax relief pursuant to chapter 290A based on
108.27 	the property taxes payable prior to receiving the abatement, the
108.28 	commissioner may approve the application in an amount reduced by
108.29 	the relief provided pursuant to chapter 290A.
108.30 	(b) An appeal may be taken to the Tax Court from an order
108.31 	of the commissioner made pursuant to this subdivision.[270.07,
108.32 	subd. 1a]
108.33 		Subd. 3.Correction of errors. On application of the
108.34 	county auditor with the approval of the county board, the
108.35 	commissioner may order the correction of any administrative and
108.36 	clerical errors in the assessment, levy, and extension of taxes
109.1 	under the property tax laws, other than valuation.[270.07,
109.2 	subd. 2]
109.3 	
EFFECTIVE DATE. This section is effective August 1, 2005.

109.4 	Sec. 94. [270C.87] REVISION OF MINNESOTA ASSESSORS'
109.5 	MANUAL.
109.6 	In accordance with the provisions of section 270C.06, the
109.7 	commissioner shall periodically revise the Minnesota assessors'
109.8 	manual.[270.068]

109.9 	EFFECTIVE DATE. This section is effective August 1, 2005.

109.10 	Sec. 95. [270C.88] ORDERS; DECISIONS.
109.11 		Subdivision 1.In writing. Any order or decision of the
109.12 	commissioner increasing or decreasing any tax, assessment, or
109.13 	other obligation by a sum exceeding $1,000 on real or personal
109.14 	property, or the net tax capacity thereof, or other obligation
109.15 	relating thereto, the result of which is to increase or decrease
109.16 	the total amount payable under the property tax laws, including
109.17 	penalties and interest, by a sum exceeding $1,000, must bear the
109.18 	written signature or facsimile signature of the commissioner or
109.19 	the commissioner's delegate.  Written approval of the
109.20 	commissioner or a delegate shall not be required with respect to
109.21 	orders reducing net tax capacity of property by reason of its
109.22 	classification as a homestead.
109.23 		Subd. 2.Only official actions of county board or other
109.24 	agency acted upon. No action requiring the recommendation or
109.25 	approval of any county board or other public agency shall be
109.26 	taken by the commissioner, or any other employees or agents of
109.27 	the department, unless such recommendation or approval shall
109.28 	have been made upon official action by such county board or
109.29 	other agency, entered upon the minutes or record of its
109.30 	proceedings as a public record, showing the names of the
109.31 	taxpayers and other persons concerned and the amounts involved,
109.32 	and so certified by the recording officer of such board or
109.33 	agency.[270.10]
109.34 	
EFFECTIVE DATE. This section is effective August 1, 2005.

109.35 	Sec. 96. [270C.89] COUNTY ASSESSOR'S REPORTS OF
109.36 	ASSESSMENT FILED WITH COMMISSIONER.
110.1 		Subdivision 1.Initial report. Each county assessor
110.2 	shall file by April 1 with the commissioner a copy of the
110.3 	abstract that will be acted upon by the local and county boards
110.4 	of review. The abstract must list the real and personal property
110.5 	in the county itemized by assessment districts.  The assessor of
110.6 	each county in the state shall file with the commissioner,
110.7 	within ten working days following final action of the local
110.8 	board of review or equalization and within five days following
110.9 	final action of the county board of equalization, any changes
110.10 	made by the local or county board.  The information must be
110.11 	filed in the manner prescribed by the commissioner.  It must be
110.12 	accompanied by a printed or typewritten copy of the proceedings
110.13 	of the appropriate board.[270.11, subd. 2]
110.14 		Subd. 2.Final report. The final abstract of assessments
110.15 	after adjustments by the State Board of Equalization and
110.16 	inclusion of any omitted property shall be submitted to the
110.17 	commissioner on or before September 1 of each calendar year.
110.18 	The final abstract must separately report the captured tax
110.19 	capacity of tax increment financing districts under section
110.20 	469.177, subdivision 2, the metropolitan revenue contribution
110.21 	value under section 473F.07, and the value subject to the power
110.22 	line credit under section 273.42.[270.11, subd. 2]
110.23 	
EFFECTIVE DATE. This section is effective August 1, 2005.

110.24 	Sec. 97. [270C.90] COUNTY AUDITOR TO CALCULATE TAX RATE.
110.25 	The county auditor shall calculate the tax rate necessary
110.26 	to raise the required amount of the various taxes on the net tax
110.27 	capacity of all property as returned by the commissioner and the
110.28 	State Board of Equalization.[270.14]

110.29 	EFFECTIVE DATE. This section is effective August 1, 2005.

110.30 	Sec. 98. [270C.91] RECORD OF PROCEEDINGS CHANGING NET TAX
110.31 	CAPACITY; DUTIES OF COUNTY AUDITOR.
110.32 	A record of all proceedings of the commissioner affecting
110.33 	any change in the net tax capacity of any property, as revised
110.34 	by the State Board of Equalization, shall be kept by the
110.35 	commissioner and a copy thereof, duly certified, shall be mailed
110.36 	each year to the auditor of each county wherein such property is
111.1 	situated, on or before June 30 or 30 days after submission of
111.2 	the abstract required by section 270C.89, whichever is later.
111.3 	This record shall specify the amounts or amount, or both, added
111.4 	to or deducted from the net tax capacity of the real property of
111.5 	each of the several towns and cities, and of the real property
111.6 	not in towns or cities, also the percent or amount of both,
111.7 	added to or deducted from the several classes of personal
111.8 	property in each of the towns and cities, and also the amount
111.9 	added to or deducted from the assessment of any person.  The
111.10 	county auditor shall add to or deduct from such tract or lot, or
111.11 	portion thereof, of any real property in the county the required
111.12 	percent or amount, or both, on the net tax capacity thereof as
111.13 	it stood after equalized by the county board, adding in each
111.14 	case a fractional sum of 50 cents or more, and deducting in each
111.15 	case any fractional sum of less than 50 cents, so that no net
111.16 	tax capacity of any separate tract or lot shall contain any
111.17 	fraction of a dollar; and add to, or deduct from, the several
111.18 	classes of personal property in the county the required percent
111.19 	or amount, or both, on the net tax capacity thereof as it stood
111.20 	after equalized by the county board, adding or deducting in
111.21 	manner aforesaid any fractional sum so that no net tax capacity
111.22 	of any separate class of personal property shall contain a
111.23 	fraction of a dollar, and add to or deduct from assessment of
111.24 	any person, as they stood after equalization by the county
111.25 	board, the required amounts to agree with the assessments as
111.26 	returned by the commissioner.[270.13]

111.27 	EFFECTIVE DATE. This section is effective August 1, 2005.

111.28 	Sec. 99. [270C.92] IMPROPER OR NEGLIGENT ADMINISTRATION
111.29 	OF PROPERTY TAX LAWS.
111.30 		Subdivision 1.Examination of complaints;
111.31 	proceedings. The commissioner shall receive complaints and
111.32 	examine all cases where it is alleged that property subject to
111.33 	taxation has not been assessed or has been fraudulently or for
111.34 	any reason improperly or unequally assessed, or the law in any
111.35 	manner evaded or violated, and cause to be instituted such
111.36 	proceedings as will remedy improper or negligent administration
112.1 	of the property tax laws.[270.11, subd. 5]
112.2 		Subd. 2.Change of market values. In administering the
112.3 	property tax laws, the commissioner shall raise or lower the
112.4 	market value of any real or personal property, including the
112.5 	power to raise or lower the market value of the real or personal
112.6 	property of any person; provided, that before any such
112.7 	assessment against the property of any person is so raised,
112.8 	notice of an intention to raise such market value and of the
112.9 	time and place at which a hearing thereon will be held shall be
112.10 	given to such person, by mail, addressed to the person at the
112.11 	place of residence listed upon the assessment book, at least
112.12 	five days before the day of such hearing.
112.13 	All relevant and material evidence concerning the market
112.14 	value of the real or personal property shall be submitted at the
112.15 	hearing, and the hearing shall not be a "contested case" within
112.16 	the meaning of section 14.02, subdivision 3.  The person
112.17 	notified of the hearing, or any other person having an interest
112.18 	in the property, may present evidence and argument bearing upon
112.19 	the market value of the property.[270.11, subd. 6]
112.20 		Subd. 3.Appearances before the commissioner. A property
112.21 	owner, other than a public utility or mining company, for which
112.22 	the original assessments are determined by the commissioner, may
112.23 	not appear before the commissioner for the purposes provided in
112.24 	subdivision 1 or 2 unless a timely appearance in person, by
112.25 	counsel, or by written communication has been made before the
112.26 	county board of equalization as provided in section 274.13, to
112.27 	appeal the assessment of the property, or that the property
112.28 	owner can establish not receiving notice of market value at
112.29 	least five days before the local board of review meeting.
112.30 	The commissioner may refuse to hear an appeal that is
112.31 	within the jurisdiction of the Small Claims Division of the Tax
112.32 	Court as stated in section 271.21, subdivision 2.  The property
112.33 	owner shall be notified by the commissioner of the right to
112.34 	appeal to the Small Claims Division whenever an appeal to the
112.35 	commissioner is denied.[270.11, subd. 7]
112.36 	
EFFECTIVE DATE. This section is effective August 1, 2005.

113.1 	Sec. 100. [270C.921] MUNICIPALITY MAY BE PARTY TO TAX
113.2 	HEARING.
113.3 	Any city, town, school district, or county (all of which
113.4 	governmental subdivisions shall be embraced in the word
113.5 	"municipality" as used in sections 270C.921 to 270C.928) may
113.6 	appear at and become a party to any proceedings before the
113.7 	commissioner under section 270C.92 held for the purpose of
113.8 	equalizing or assessing any real or personal property in the
113.9 	municipality, or reducing the net tax capacity of any such
113.10 	property.  For that purpose the municipality may employ counsel
113.11 	and disburse money for other expenses in connection with the
113.12 	proceedings, on duly itemized, verified claims, which shall be
113.13 	audited and allowed as now provided by law for the allowance of
113.14 	claims against a municipality.  It shall be the duty of the
113.15 	commissioner, at the time of a hearing, to grant the
113.16 	municipality, at its request, any further reasonable time as may
113.17 	be necessary for the municipality to prepare for further
113.18 	hearing.  Before granting any reduction in net tax capacity
113.19 	exceeding $100,000, it shall be the duty of the commissioner,
113.20 	when any taxpayer or property owner has applied to the
113.21 	commissioner after June 30, 1983, for a reduction of the net tax
113.22 	capacity of any real or personal property in an amount exceeding
113.23 	$100,000, to give written notice to the officials of the
113.24 	municipality where the property is located and to permit the
113.25 	municipality to have reasonable opportunity to be heard at any
113.26 	proceedings concerning such reduction.[270.19]

113.27 	Sec. 101. [270C.922] MUNICIPALITY MAY REQUEST TAX
113.28 	HEARING.
113.29 	Any municipality may, at any time within ten days after the
113.30 	final adjournment of the county board of equalization of the
113.31 	county in which the municipality is located or within ten days
113.32 	after the filing with the auditor of such county of any order of
113.33 	the commissioner reducing the net tax capacity of any property
113.34 	in the municipality, file a written request with the
113.35 	commissioner for a hearing under section 270C.92 upon the
113.36 	equalization or assessment of any property within the
114.1 	municipality, specifying the property and the name and address
114.2 	of the owner thereof, as they appear from the assessment books.
114.3 	The commissioner shall then order a hearing and mail a notice
114.4 	stating the time and place of the hearing to the municipality
114.5 	and to the owner of the property.  It shall be the duty of the
114.6 	commissioner, at the time of a hearing, to grant the
114.7 	municipality, at its request, such further reasonable time as
114.8 	may be necessary for the municipality to prepare for further
114.9 	hearing.[270.20]

114.10 	EFFECTIVE DATE. This section is effective August 1, 2005.

114.11 	Sec. 102. [270C.923] WITNESSES SUMMONED.
114.12 	In any hearing before the commissioner under section
114.13 	270C.92, the commissioner shall, upon the request of a
114.14 	municipality or any other party to the proceedings, issue
114.15 	subpoenas and summon witnesses to appear and give testimony, and
114.16 	to produce books, records, papers, and documents.  For the
114.17 	purpose of preparing for and participating in a hearing the
114.18 	municipality shall have access to, and use of, all the data,
114.19 	records, and files of the commissioner pertaining to the
114.20 	property in question.  Upon demand of any party a record shall
114.21 	be kept by the commissioner of all evidence offered or received
114.22 	at a hearing, the cost thereof to be paid by the party making
114.23 	such demand.[270.21]

114.24 	EFFECTIVE DATE. This section is effective August 1, 2005.

114.25 	Sec. 103. [270C.924] FINDINGS OF FACT AND ORDER;
114.26 	APPEALS.
114.27 		Subdivision 1.Findings of fact. For hearings held under
114.28 	section 270C.92, the commissioner shall determine the
114.29 	controversy upon the evidence produced at the hearing and shall
114.30 	make and file written findings of fact and an order determining
114.31 	the controversy.  In the equalization and determination of net
114.32 	tax capacities, the findings and net tax capacities as given by
114.33 	the assessor of the local assessment district shall be
114.34 	considered as prima facie correct.  Copies of the order and
114.35 	findings shall be mailed to all parties appearing at the hearing
114.36 	and to the auditor of the county in which the property is
115.1 	located.
115.2 		Subd. 2.Appeal by municipality. Any municipality which
115.3 	has appeared in the proceedings, and which is aggrieved by the
115.4 	order of the commissioner reducing the net tax capacity of any
115.5 	of the property, or failing to increase the net tax capacity,
115.6 	may have the order of the commissioner reviewed by appeal to the
115.7 	Court of Appeals, on either of the following grounds:  (1) that
115.8 	the determination of the commissioner was not in accordance with
115.9 	the property tax laws, or that the commissioner committed any
115.10 	other error of law; or (2) that the findings of fact and
115.11 	determination of net tax capacity were unwarranted by or were
115.12 	contrary to the weight of the evidence.
115.13 		Subd. 3.Appeal by property owner. Any owner of property
115.14 	who has appeared in the proceedings and who is aggrieved by the
115.15 	order of the commissioner raising the net tax capacity of the
115.16 	property, or failing to reduce the net tax capacity, may have
115.17 	the order of the commissioner reviewed on appeal to the Court of
115.18 	Appeals in like manner and upon the same grounds as provided for
115.19 	review on the appeal of any municipality.[270.22]
115.20 	
EFFECTIVE DATE. This section is effective August 1, 2005.

115.21 	Sec. 104. [270C.925] NOTICE OF APPEAL.
115.22 	To secure review of a determination made by the
115.23 	commissioner under section 270C.924, the municipality shall,
115.24 	within 30 days after mailing of notice of the determination,
115.25 	serve upon the commissioner a notice of appeal to the Court of
115.26 	Appeals from the order of the commissioner and file the
115.27 	original, with proof of service, with the clerk of the appellate
115.28 	courts, paying the filing fee provided by law for appeals in
115.29 	civil actions.  The filing of the notice of appeal shall vest
115.30 	the court with jurisdiction and the appeal shall be heard and
115.31 	disposed of as in other civil cases.
115.32 	The court shall reverse or affirm the order of the
115.33 	commissioner or remand the cause to the commissioner for a new
115.34 	hearing or further proceedings or for other disposition, with
115.35 	further directions as the court deems proper.[270.23]

115.36 	EFFECTIVE DATE. This section is effective August 1, 2005.

116.1 	Sec. 105. [270C.926] APPEAL DOES NOT STAY COLLECTION.
116.2 	The institution of any appeal under sections 270C.924 and
116.3 	270C.925 from the order of the commissioner does not stay any
116.4 	proceedings for the assessment or collection of taxes against
116.5 	the property involved therein.  Notwithstanding such appeal, the
116.6 	commissioner shall file with the auditor of the county in which
116.7 	such property is situated an order confirming, increasing,
116.8 	decreasing, or determining the net tax capacity thereof, and the
116.9 	county auditor shall extend and levy against such property, or
116.10 	the owner thereof, the taxes thereupon for such year according
116.11 	to such assessment, and all subsequent proceedings for the
116.12 	determination of the taxes and the collection thereof shall be
116.13 	taken as if no appeal from such order were pending.  When the
116.14 	matter is finally determined on review a properly authenticated
116.15 	copy of the findings, order, or judgment shall be filed with the
116.16 	auditor of the county in which the land or property referred to
116.17 	in the proceedings is situated.  If such order or judgment
116.18 	lowers the net tax capacity of the land or property referred to
116.19 	in the proceedings, the commissioner, upon petition of the
116.20 	owner, approved by the county board, shall abate so much of the
116.21 	taxes against such property as is attributable to the excessive
116.22 	net tax capacity thereof.  If such tax has been paid, the county
116.23 	auditor, upon petition of the owner, approved by the county
116.24 	board and the commissioner, shall refund so much of such payment
116.25 	as is attributable to such excess net tax capacity.  Upon such
116.26 	refund being made the county auditor shall charge the same to
116.27 	the state and the various governmental subdivisions thereof that
116.28 	participated in such excessive payment, in proportion to their
116.29 	respective shares therein, and deduct the same in the next tax
116.30 	apportionment.[270.24]

116.31 	EFFECTIVE DATE. This section is effective August 1, 2005.

116.32 	Sec. 106. [270C.927] INCREASE IN NET TAX CAPACITY;
116.33 	ADDITIONAL TAXES.
116.34 	If the final order and judgment in a hearing before the
116.35 	commissioner under section 270C.92, or any appeal thereof,
116.36 	result in raising the net tax capacity of the property affected
117.1 	by the proceedings, the county officers shall, for the next
117.2 	ensuing year, in addition to the regular taxes levied for such
117.3 	ensuing year, levy, extend, and spread against such property, if
117.4 	real property, or against the owner thereof, if personal
117.5 	property, a tax equal to the difference between the taxes
117.6 	actually levied and extended against such property, or owner,
117.7 	for the year in question and the taxes which should have been
117.8 	levied or extended against such property, or owner, at the
117.9 	increased net tax capacity as finally determined.[270.25]

117.10 	EFFECTIVE DATE. This section is effective August 1, 2005.

117.11 	Sec. 107. [270C.928] PROCEEDINGS TO DETERMINE NET TAX
117.12 	CAPACITY.
117.13 	The proceedings provided in sections 270C.92 to 270C.927
117.14 	are for determining the net tax capacity upon the basis of which
117.15 	taxes are spread against property, or its owner, in the first
117.16 	instance.  The order of the commissioner, or the final order for
117.17 	judgment of the Court of Appeals on it, shall not be a bar to
117.18 	any defense against the taxes interposed at the time of the
117.19 	proceedings for judgment on them.  All defenses which may be set
117.20 	up against the proceedings for judgment upon the taxes may be
117.21 	asserted notwithstanding the determination of the commissioner
117.22 	or the court.  If the taxes are levied or extended pending
117.23 	review of the order of the commissioner by the court, a judgment
117.24 	entered upon the taxes in the tax delinquency proceedings shall
117.25 	not be a bar to the spreading of further taxes against the
117.26 	property for that year, in the event the net tax capacity of the
117.27 	property is raised as herein provided.  In the proceedings for
117.28 	the collection of any taxes which include an additional levy
117.29 	because of the raising of the net tax capacity of any property,
117.30 	the owner may answer separately to the proceedings to obtain
117.31 	judgment for the excess levy.[270.26]

117.32 	EFFECTIVE DATE. This section is effective August 1, 2005.
117.33 	REASSESSMENT OF OMITTED OR UNDERVALUED PROPERTIES

117.34 	Sec. 108. [270C.94] PROPERTY OMITTED OR UNDERVALUED;
117.35 	REASSESSMENT; APPOINTMENT OF SPECIAL ASSESSOR.
117.36 		Subdivision 1.Property omitted or undervalued. When it
118.1 	shall be made to appear to the commissioner, by complaint or by
118.2 	the finding of a court or of the legislature, or either body of
118.3 	the legislature, or any committee of the legislature, or any
118.4 	city council or county board, that any considerable amount of
118.5 	property has been improperly omitted from the tax list or
118.6 	assessment roll of any district or county for any year, or, if
118.7 	assessed, that the same has been undervalued or overvalued, as
118.8 	compared with like property in the same county or in the state
118.9 	so that the assessment for such year in such district or county
118.10 	is grossly unfair and inequitable, whether or not the same has
118.11 	been equalized by the county board of equalization or the
118.12 	commissioner, the commissioner shall examine into the facts in
118.13 	the matter and, if satisfied that it would be for the best
118.14 	interests of the state that a reassessment of such property be
118.15 	made, the commissioner shall appoint a special assessor and such
118.16 	deputy assessors as may be necessary and cause a reassessment to
118.17 	be made of all or any of the real and personal property, or
118.18 	either, in any such district or county as the commissioner may
118.19 	deem best, to the end that all property in such district or
118.20 	county shall be assessed equitably as compared with like
118.21 	property in such district or county.[270.16, subd. 1]
118.22 		Subd. 2.Special assessors, deputies; reassessments. The
118.23 	commissioner shall appoint a special assessor and deputies and
118.24 	cause to be made, in any year, a reassessment of all or any real
118.25 	and personal property, or either, in any assessment district,
118.26 	when in the commissioner's judgment such reassessment is
118.27 	desirable or necessary, to the end that any and all property in
118.28 	such district shall be assessed equitably as compared with like
118.29 	property in the county wherein such district is situated.
118.30 	[270.11, subd. 3]
118.31 		Subd. 3.Failure to appraise. When an assessor has
118.32 	failed to properly appraise at least one-quarter of the parcels
118.33 	of property in a district or county as provided in section
118.34 	273.01, the commissioner shall appoint a special assessor and
118.35 	deputy assessor as necessary and cause a reappraisal to be made
118.36 	of the property due for reassessment in accordance with law.
119.1 	[270.16, subd. 2]
119.2 	
EFFECTIVE DATE. This section is effective August 1, 2005.

119.3 	Sec. 109. [270C.95] QUALIFICATION OF ASSESSORS;
119.4 	REASSESSMENT, HOW MADE.
119.5 	Every special assessor and deputy appointed under the
119.6 	provisions of section 270C.94 shall subscribe and file with the
119.7 	commissioner an oath to faithfully and fairly perform the duties
119.8 	of office.  Such special assessor, assisted by deputies, shall
119.9 	thereupon proceed to carefully examine and reassess the property
119.10 	so to be reassessed and prepare duplicate lists of such
119.11 	reassessment in such form as the commissioner may prescribe,
119.12 	showing the property or person so reassessed, the amount of the
119.13 	original assessment thereof made in such year, and opposite the
119.14 	same the reassessment so made by such special assessor.  The
119.15 	special assessor shall file both copies of such list with the
119.16 	commissioner; and the commissioner shall thereupon examine,
119.17 	equalize, and correct such reassessment so as to substantially
119.18 	conform with the assessment of like property throughout the
119.19 	state and transmit to the auditor of the county wherein such
119.20 	reassessment was so made one copy of such reassessment by the
119.21 	commissioner so corrected and equalized.  Such list shall for
119.22 	all purposes supersede and be in place of the original
119.23 	assessment made for such year upon such property and the county
119.24 	auditor, upon receipt thereof, shall extend and levy against
119.25 	such property so reassessed the taxes thereon for such year
119.26 	according to such reassessment in the same manner as though such
119.27 	list was the original assessment list of such property.  Any
119.28 	person feeling aggrieved by an assessment so made against the
119.29 	person, or upon any property at that time owned by the person,
119.30 	may appeal therefrom to the district court of the county in
119.31 	which such assessment is made.  To render the appeal effective
119.32 	for any purpose, the appellant shall file a notice of the appeal
119.33 	with the auditor of such county within 30 days after the making
119.34 	of the assessment, which notice shall specify the ground upon
119.35 	which the appeal was taken, and no other or different service
119.36 	shall be required to perfect it.  Upon the filing of the notice
120.1 	the county auditor shall make and file in the office of the
120.2 	court administrator of the district court a certified copy of
120.3 	the notice and of the particular assessment appealed from and
120.4 	notify the county attorney of such county of the pendency of the
120.5 	appeal.  Thereupon the district court shall be deemed to have
120.6 	acquired jurisdiction of the matter and proceed to hear and
120.7 	determine it in like manner as other tax matters are tried and
120.8 	determined in the district courts of this state.  The county
120.9 	attorney of such county shall appear for and defend the
120.10 	interests of the state in such matter.[270.17]

120.11 	EFFECTIVE DATE. This section is effective August 1, 2005.

120.12 	Sec. 110. [270C.96] REASSESSMENT; COMPENSATION;
120.13 	REIMBURSEMENT BY COUNTIES.
120.14 	The compensation of each special assessor and deputies,
120.15 	appointed under the provisions of section 270C.94 and the
120.16 	expenses as such, shall be fixed by the commissioner and paid
120.17 	out of money appropriated for operation of the department.  The
120.18 	commissioner on August 1 shall notify the auditor of each
120.19 	affected county of the amount thereof paid on behalf of such
120.20 	county since August 1 of the preceding year, whereupon the
120.21 	county auditor shall levy a tax upon the taxable property in the
120.22 	assessment district or districts wherein such reassessment was
120.23 	made sufficient to pay the same.  One-half of such tax shall be
120.24 	levied in the year in which the commissioner so notifies the
120.25 	county auditor and the remaining one-half shall be levied in the
120.26 	following year.  The respective counties shall reimburse the
120.27 	state by paying one-half of the tax so assessed on or before
120.28 	July 1 and the remaining one-half on or before December 1 in the
120.29 	year in which the tax is payable by owner, whether or not the
120.30 	tax was collected by the county.  The reimbursement shall be
120.31 	credited to the general fund.  If any county fails to reimburse
120.32 	the state within the time specified herein, the commissioner is
120.33 	empowered to order withholding of state aids or distributions to
120.34 	such county equal to the amount delinquent.[270.18]

120.35 	EFFECTIVE DATE. This section is effective August 1, 2005.

120.36 	Sec. 111. [270C.97] OMITTED PROPERTY.
121.1 	The commissioner shall require the county auditor to place
121.2 	upon the assessment rolls omitted property which may be
121.3 	discovered to have escaped assessment and taxation in previous
121.4 	years.[270.11, subd. 4]

121.5 	EFFECTIVE DATE. This section is effective August 1, 2005.

121.6 	Sec. 112. [270C.98] SENIOR ACCREDITATION.
121.7 	The legislature finds that the property tax system would be
121.8 	enhanced by requiring that every senior appraiser in the
121.9 	Property Tax Division of the department obtain senior
121.10 	accreditation from the State Board of Assessors.  Every senior
121.11 	appraiser, including the department's regional representatives,
121.12 	and every county assessor within two years of the first
121.13 	appointment under section 273.061, must obtain senior
121.14 	accreditation from the state Board of Assessors.  The board
121.15 	shall provide the necessary courses or training.  If a
121.16 	department senior appraiser or regional representative fails to
121.17 	obtain or maintain senior accreditation, the failure shall be
121.18 	grounds for dismissal, disciplinary action, or corrective
121.19 	action.  Except as provided in section 273.061, subdivision 2,
121.20 	paragraph (c), the commissioner must not approve the appointment
121.21 	of a county assessor who is not senior accredited by the State
121.22 	Board of Assessors.  No employee hired by the commissioner as a
121.23 	senior appraiser or regional representative shall attain
121.24 	permanent status until the employee obtains senior accreditation.
121.25 	[270.485]

121.26 	EFFECTIVE DATE. This section is effective August 1, 2005.

121.27 	Sec. 113. [270C.99] CERTAIN TOWNSHIPS AND CITIES OPTION
121.28 	TO ELECT TO REINSTATE THE OFFICE OF ASSESSOR.
121.29 	Notwithstanding the provisions of section 273.05,
121.30 	subdivision 1, a city or township in which the office of
121.31 	assessor has been eliminated because of failure to fill a
121.32 	vacancy in the office within 90 days pursuant to section 273.05,
121.33 	subdivision 1, may elect, with the approval of the commissioner,
121.34 	to have the office of assessor reinstated by hiring a certified
121.35 	or accredited assessor.  This section shall not apply to Ramsey
121.36 	county or to cities and townships located in counties which have
122.1 	elected a county assessment system in accordance with section
122.2 	273.055.[270.494]

122.3 	EFFECTIVE DATE. This section is effective August 1, 2005.

122.4 	Sec. 114. RULES; EFFECT OF RECODIFICATION.
 122.5 	Notwithstanding Minnesota Statutes, section 14.05,
122.6 	subdivision 1, Minnesota Rules, chapters 8001, 8002, 8007, 8009,
122.7 	8017, 8019, 8020, 8031, 8034, 8038, 8043, 8050, 8052, 8092,
122.8 	8093, 8100, 8106, 8110, 8120, 8121, 8122, 8125, 8130, 8160,
122.9 	8165, 8170, and 8175, shall continue under the authority granted
122.10 	in Minnesota Statutes, section 270C.06.  Furthermore, Minnesota
122.11 	Statutes, section 14.125, does not apply, and the Department of
122.12 	Revenue may subsequently amend or repeal these rules from time
122.13 	to time without additional legislative authorization.

122.14 	EFFECTIVE DATE. This section is effective August 1, 2005.

122.15 	Sec. 115. PURPOSE AND EFFECT.
 122.16 		Subdivision 1.Purpose. It is the intent of the
122.17 	legislature to simplify Minnesota's tax laws by consolidating
122.18 	and recodifying tax administration and compliance provisions now
122.19 	contained in Minnesota Statutes, chapter 270, and several other
122.20 	chapters of Minnesota Statutes.  The provisions of this act may
122.21 	not be used to determine the law in effect prior to the
122.22 	effective dates in this act.
122.23 		Subd. 2.Effect. Due to the complexity of the
122.24 	recodification, prior provisions are repealed on the effective
122.25 	date of the new provisions.  The repealed provisions, however,
122.26 	continue to remain in effect until superseded by the analogous
122.27 	provision in the new law.
122.28 	
EFFECTIVE DATE. This section is effective August 1, 2005.

122.29 	Sec. 116. REVISOR INSTRUCTION.
 122.30 	(a) To the extent practicable, the revisor shall publish
122.31 	the statutory derivations of the laws repealed and recodified in
122.32 	this article in Laws of Minnesota.
122.33 	(b) The revisor shall correct cross-references in Minnesota
122.34 	Statutes and Minnesota Rules to sections that are repealed and
122.35 	recodified by this article.
122.36 	(c) Notwithstanding any law to the contrary, if a provision
123.1 	of a section of Minnesota Statutes repealed by this article is
123.2 	amended or repealed during the same legislative session, the
123.3 	amendment or repealer shall supersede the provisions of this
123.4 	article, and the revisor shall codify the amendment or repealer
123.5 	consistent with the recodification of the affected section by
123.6 	this article.  In addition, the revisor shall code new sections
123.7 	or subdivisions enacted during the legislative session
123.8 	consistent with the recodification.

123.9 	EFFECTIVE DATE. This section is effective August 1, 2005.

123.10 	Sec. 117. REPEALER.
 123.11 	Minnesota Statutes 2004, sections 270.01; 270.02; 270.021;
123.12 	270.022; 270.04; 270.05; 270.052; 270.058; 270.059; 270.06;
123.13 	270.0601; 270.0602; 270.0603; 270.0604; 270.0605; 270.061;
123.14 	270.062; 270.063; 270.064; 270.065; 270.066; 270.0665; 270.067;
123.15 	270.068; 270.0681; 270.0682; 270.069; 270.07; 270.084; 270.09;
123.16 	270.10; 270.101; 270.102; 270.11, subdivisions 2, 3, 4, 5, 6,
123.17 	and 7; 270.13; 270.14; 270.15; 270.16; 270.17; 270.18; 270.19;
123.18 	270.20; 270.21; 270.22; 270.23; 270.24; 270.25; 270.26; 270.27;
123.19 	270.271; 270.272; 270.273; 270.274; 270.275; 270.276; 270.277;
123.20 	270.278; 270.30; 270.485; 270.494; 270.60; 270.65; 270.652;
123.21 	270.66; 270.67; 270.68; 270.69; 270.691; 270.70; 270.7001;
123.22 	270.7002; 270.701; 270.702; 270.703; 270.704; 270.705; 270.706;
123.23 	270.707; 270.708; 270.709; 270.71; 270.72; 270.721; 270.73;
123.24 	270.74; 270.75; 270.76; 270.771; 270.78; 270.79; 287.39;
123.25 	289A.07; 289A.13; 289A.31, subdivisions 3, 4, and 6; 289A.36;
123.26 	289A.37, subdivisions 1, 3, 4, and 5; 289A.38, subdivision 13;
123.27 	289A.43; 289A.65; 290.48, subdivisions 3 and 4; 290.92,
123.28 	subdivisions 6b, 22, and 23; 290.97; 296A.20; 296A.201; 296A.25;
123.29 	297A.86; 297A.93; 297D.14; 297E.08; 297E.09; 297E.12,
123.30 	subdivision 10; 297E.15; 297F.15, subdivisions 1, 2, 3, 4, 5, 6,
123.31 	7, and 8; 297F.16; 297F.22; 297G.14, subdivisions 1, 2, 3, 4, 5,
123.32 	6, 7, and 8; 297G.15; 297G.21; 297I.45; 297I.50; 297I.55; and
123.33 	297I.95, are repealed.

123.34 	EFFECTIVE DATE. This section is effective August 1, 2005.

123.35 	ARTICLE 2
123.36 	CONFORMING PROVISIONS

124.1 	Section 1. Minnesota Statutes 2004, section 16D.08,
124.2 	subdivision 2, is amended to read:
124.3 		Subd. 2.Powers.  (a) In addition to the collection
124.4 	remedies available to private collection agencies in this state,
124.5 	the commissioner, with legal assistance from the attorney
124.6 	general, may utilize any statutory authority granted to a
124.7 	referring agency for purposes of collecting debt owed to that
124.8 	referring agency.  The commissioner may also use the tax
124.9 	collection remedies in sections 270.06, 270.66, 270.67,
124.10 	subdivisions 2 and 4, 270.69, 270.70, 270.7001 to 270.72, and
124.11 	290.92, subdivision 23 270C.03, subdivision 1, clause (8),
124.12 	270C.31, 270C.32, 270C.52, subdivisions 2 and 3, 270C.63,
124.13 	270C.65, and 270C.67 to 270C.72.  A debtor may take advantage of
124.14 	any administrative or appeal rights contained in the listed
124.15 	sections.  For administrative and appeal rights for nontax
124.16 	debts, references to administrative appeals or to the taxpayer
124.17 	rights advocate shall be construed to be references to the case
124.18 	reviewer, references to Tax Court shall be construed to mean
124.19 	district court, and offers in compromise shall be submitted to
124.20 	the referring agency.  A debtor who qualifies for cancellation
124.21 	of collection costs under section 16D.11, subdivision 3, clause
124.22 	(1), can apply to the commissioner for reduction or release of a
124.23 	continuous wage levy, if the debtor establishes that the debtor
124.24 	needs all or a portion of the wages being levied upon to pay for
124.25 	essential living expenses, such as food, clothing, shelter,
124.26 	medical care, or expenses necessary for maintaining employment.
124.27 	The commissioner's determination not to reduce or release a
124.28 	continuous wage levy is appealable to district court.  The word
124.29 	"tax" or "taxes" when used in the tax collection statutes listed
124.30 	in this subdivision also means debts referred under this chapter.
124.31 	(b) Before using the tax collection remedies listed in this
124.32 	subdivision, notice and demand for payment of the amount due
124.33 	must be given to the person liable for the payment or collection
124.34 	of the debt at least 30 days prior to the use of the remedies.
124.35 	The notice must be sent to the person's last known address and
124.36 	must include a brief statement that sets forth in simple and
125.1 	nontechnical terms the amount and source of the debt, the nature
125.2 	of the available collection remedies, and remedies available to
125.3 	the debtor.

125.4 	Sec. 2. Minnesota Statutes 2004, section 115B.49,
125.5 	subdivision 4, is amended to read:
125.6 		Subd. 4.Registration; fees.  (a) The owner or operator
125.7 	of a dry cleaning facility shall register on or before October 1
125.8 	of each year with the commissioner of revenue in a manner
125.9 	prescribed by the commissioner of revenue and pay a registration
125.10 	fee for the facility.  The amount of the fee is:
125.11 	(1) $500, for facilities with a full-time equivalence of
125.12 	fewer than five;
125.13 	(2) $1,000, for facilities with a full-time equivalence of
125.14 	five to ten; and
125.15 	(3) $1,500, for facilities with a full-time equivalence of
125.16 	more than ten.
125.17 	(b) A person who sells dry cleaning solvents for use by dry
125.18 	cleaning facilities in the state shall collect and remit to the
125.19 	commissioner of revenue in a manner prescribed by the
125.20 	commissioner of revenue, on or before the 20th day of the month
125.21 	following the month in which the sales of dry cleaning solvents
125.22 	are made, a fee of:
125.23 	(1) $3.50 for each gallon of perchloroethylene sold for use
125.24 	by dry cleaning facilities in the state;
125.25 	(2) 70 cents for each gallon of hydrocarbon-based dry
125.26 	cleaning solvent sold for use by dry cleaning facilities in the
125.27 	state; and
125.28 	(3) 35 cents for each gallon of other nonaqueous solvents
125.29 	sold for use by dry cleaning facilities in the state.
125.30 	(c) The audit, assessment, appeal, collection, enforcement,
125.31 	and administrative provisions of chapters 270C and 289A apply to
125.32 	the fee imposed by this subdivision.To enforce this
125.33 	subdivision, the commissioner of revenue may examine documents,
125.34 	assess and collect fees, conduct investigations, issue
125.35 	subpoenas,grant extensions to file returns and pay fees, impose
125.36 	penalties and interest on the annual registration fee under
126.1 	paragraph (a) and the monthly fee under paragraph (b), and abate
126.2 	penalties and interest, and administer appeals,in the manner
126.3 	provided in chapters 270 270C and 289A.  The penalties and
126.4 	interest imposed on taxes under chapter 297A apply to the fees
126.5 	imposed under this subdivision.  Disclosure of data collected by
126.6 	the commissioner of revenue under this subdivision is governed
126.7 	by chapter 270B.
126.8 	
EFFECTIVE DATE. This section is effective August 1, 2005.

126.9 	Sec. 3. Minnesota Statutes 2004, section 239.785,
126.10 	subdivision 4, is amended to read:
126.11 		Subd. 4.commissioner's authority administration and
126.12 	enforcement.  The provisions of chapter 296A relating to the
126.13 	commissioner's authority to audit, assess, and collect the tax
126.14 	imposed by that chapter assessment, appeal, collection, and
126.15 	administrative provisions of chapters 270C and 296A, that apply
126.16 	to the taxes imposed by chapter 296A,apply to the fee imposed
126.17 	by this section.
126.18 	
EFFECTIVE DATE. This section is effective August 1, 2005.

126.19 	Sec. 4. Minnesota Statutes 2004, section 256.9657,
126.20 	subdivision 7, is amended to read:
126.21 		Subd. 7.Collection; civil penalties.  The provisions of
126.22 	sections 270C.31, except subdivisions 5 and 7; 270C.32, except
126.23 	subdivisions 6 and 10; 270C.33; 270C.61, subdivision 2; and 
126.24 	289A.35 to 289A.50 relating to the authority to audit, assess,
126.25 	collect, and pay refunds of other state taxes may be implemented
126.26 	by the commissioner of human services with respect to the tax,
126.27 	penalty, and interest imposed by this section.  The commissioner
126.28 	of human services shall impose civil penalties for violation of
126.29 	this section as provided in section 289A.60, and the tax and
126.30 	penalties are subject to interest at the rate provided in
126.31 	section 270.75 270C.40.  The commissioner of human services
126.32 	shall have the power to abate penalties and interest when
126.33 	discrepancies occur resulting from, but not limited to,
126.34 	circumstances of error and mail delivery.  The commissioner of
126.35 	human services shall bring appropriate civil actions to collect
126.36 	provider payments due under this section.
127.1 	
EFFECTIVE DATE. This section is effective August 1, 2005.

127.2 	Sec. 5. Minnesota Statutes 2004, section 256.9792,
127.3 	subdivision 8, is amended to read:
127.4 		Subd. 8.Remedies.  (a) The commissioner of revenue is
127.5 	authorized to use the tax collection remedies in sections
127.6 	270.06, clause (7), 270.69 to 270.72, and 290.92, subdivision 23
127.7 	270C.32, subdivision 1, 270C.63, 270C.67, 270C.68, 270C.69,
127.8 	270C.70 to 270C.72, and 270C.728, and tax return information to
127.9 	collect arrearages.
127.10 	(b) Liens arising under paragraph (a) shall be perfected
127.11 	under the provisions of section 270.69 270C.63.  The lien may be
127.12 	filed as long as the time period allowed by law for collecting
127.13 	the arrearages has not expired.  The lien shall attach to all
127.14 	property of the debtor within the state, both real and personal
127.15 	under the provisions of section 270.69 270C.63.  The lien shall
127.16 	be enforced under the provisions in section 270.69 270C.63 
127.17 	relating to state tax liens.
127.18 	
EFFECTIVE DATE. This section is effective August 1, 2005.

127.19 	Sec. 6. Minnesota Statutes 2004, section 273.11,
127.20 	subdivision 5, is amended to read:
127.21 		Subd. 5.Boards of review and equalization.
 127.22 	Notwithstanding any other provision of law to the contrary, the
127.23 	limitation contained in subdivisions 1 and 1a shall also apply
127.24 	to the authority of the local board of review as provided in
127.25 	section 274.01, the county board of equalization as provided in
127.26 	section 274.13, the State Board of Equalization and the
127.27 	commissioner of revenue as provided in sections
127.28 	270.11, subdivision 1,270.12, 270C.92,and 270.16 270C.94.
127.29 	
EFFECTIVE DATE. This section is effective August 1, 2005.

127.30 	Sec. 7. Minnesota Statutes 2004, section 287.37, is
127.31 	amended to read:
127.32 	287.37 INVESTIGATIONS AND ASSESSMENTS.
127.33 	The commissioner of revenue may investigate and examine
127.34 	persons and transactions that are subject to this chapter using
127.35 	the powers and authorities granted in chapters 270 270C and 289A.
127.36 	The commissioner may issue orders of assessment under chapter
128.1 	289A, and enforce collection of unpaid tax or penalty amounts,
128.2 	including interest, under the authority of chapter 270.The
128.3 	audit, assessment, appeal, collection, enforcement, and
128.4 	administrative provisions of chapters 270C and 289A apply to the
128.5 	taxes imposed by this chapter.All tax amounts collected by the
128.6 	commissioner must be apportioned under section 287.12.  The
128.7 	commissioner's expenses under this section are not expenses of
128.8 	administration under section 287.33.  All data and information
128.9 	made available to the commissioner under this section is public
128.10 	except for investigative data covered by section 270B.03,
128.11 	subdivision 6.

128.12 	EFFECTIVE DATE. This section is effective August 1, 2005.

128.13 	Sec. 8. Minnesota Statutes 2004, section 289A.35, is
128.14 	amended to read:
128.15 	289A.35 ASSESSMENTS; COMMISSIONER FILED ON RETURNS.
128.16 	The commissioner has the authority to make determinations,
128.17 	corrections, and assessments with respect to state taxes,
128.18 	including interest, additions to taxes, and assessable
128.19 	penalties.The commissioner may audit and adjust the taxpayer's
128.20 	computation of federal taxable income, items of federal tax
128.21 	preferences, or federal credit amounts to make them conform with
128.22 	the provisions of chapter 290 or section 298.01. If a taxpayer
128.23 	fails to file a required return, the commissioner, from
128.24 	information in the commissioner's possession or obtainable by
128.25 	the commissioner, may make a return for the taxpayer.  The
128.26 	return will be prima facie correct and valid.If a return has
128.27 	been filed, the commissioner shall enter the liability reported
128.28 	on the return and may make any audit or investigation that is
128.29 	considered necessary. The commissioner may use statistical or
128.30 	other sampling techniques consistent with generally accepted
128.31 	auditing standards in examining returns or records and making
128.32 	assessments.

128.33 	EFFECTIVE DATE. This section is effective August 1, 2005.

128.34 	Sec. 9. Minnesota Statutes 2004, section 289A.42,
128.35 	subdivision 1, is amended to read:
128.36 		Subdivision 1.Extension agreement.  If before the
129.1 	expiration of time prescribed in sections 270C.58, subdivision
129.2 	13,289A.38,and 289A.40 for the assessment of tax or the filing
129.3 	of a claim for refund, both the commissioner and the taxpayer
129.4 	have consented in writing to the assessment or filing of a claim
129.5 	for refund after that time, the tax may be assessed or the claim
129.6 	for refund filed at any time before the expiration of the agreed
129.7 	upon period.  The period may be extended by later agreements in
129.8 	writing before the expiration of the period previously agreed
129.9 	upon.  The taxpayer and the commissioner may also agree to
129.10 	extend the period for collection of the tax.

129.11 	Sec. 10. Minnesota Statutes 2004, section 289A.60,
129.12 	subdivision 13, is amended to read:
129.13 		Subd. 13.Penalties for tax return preparers.  (a) If an
129.14 	understatement of liability with respect to a return or claim
129.15 	for refund is due to a willful attempt in any manner to
129.16 	understate the liability for a tax by a person who is a tax
129.17 	return preparer with respect to the return or claim, the person
129.18 	shall pay to the commissioner a penalty of $500.  If a part of a
129.19 	property tax refund claim is excessive due to a willful attempt
129.20 	in any manner to overstate the claim for relief allowed under
129.21 	chapter 290A by a person who is a tax refund or return preparer,
129.22 	the person shall pay to the commissioner a penalty of $500 with
129.23 	respect to the claim.  These penalties may not be assessed
129.24 	against the employer of a tax return preparer unless the
129.25 	employer was actively involved in the willful attempt to
129.26 	understate the liability for a tax or to overstate the claim for
129.27 	refund.  These penalties are income tax liabilities and may be
129.28 	assessed at any time as provided in section 289A.38, subdivision
129.29 	5.
129.30 	(b) A civil action in the name of the state of Minnesota
129.31 	may be commenced to enjoin any person who is a tax return
129.32 	preparer doing business in this state from further engaging in
129.33 	any conduct described in paragraph (c).  An action under this
129.34 	paragraph must be brought by the attorney general in the
129.35 	district court for the judicial district of the tax return
129.36 	preparer's residence or principal place of business, or in which
130.1 	the taxpayer with respect to whose tax return the action is
130.2 	brought resides.  The court may exercise its jurisdiction over
130.3 	the action separate and apart from any other action brought by
130.4 	the state of Minnesota against the tax return preparer or any
130.5 	taxpayer as provided in section 270C.447.
130.6 	(c) In an action under paragraph (b), if the court finds
130.7 	that a tax return preparer has:
130.8 	(1) engaged in any conduct subject to a civil penalty under
130.9 	section 289A.60 or a criminal penalty under section 289A.63;
130.10 	(2) misrepresented the preparer's eligibility to practice
130.11 	before the Department of Revenue, or otherwise misrepresented
130.12 	the preparer's experience or education as a tax return preparer;
130.13 	(3) guaranteed the payment of any tax refund or the
130.14 	allowance of any tax credit; or 
130.15 	(4) engaged in any other fraudulent or deceptive conduct
130.16 	that substantially interferes with the proper administration of
130.17 	state tax law, and injunctive relief is appropriate to prevent
130.18 	the recurrence of that conduct,
130.19 	the court may enjoin the person from further engaging in that
130.20 	conduct.
130.21 	(d) If the court finds that a tax return preparer has
130.22 	continually or repeatedly engaged in conduct described in
130.23 	paragraph (c), and that an injunction prohibiting that conduct
130.24 	would not be sufficient to prevent the person's interference
130.25 	with the proper administration of state tax laws, the court may
130.26 	enjoin the person from acting as a tax return preparer.  The
130.27 	court may not enjoin the employer of a tax return preparer for
130.28 	conduct described in paragraph (c) engaged in by one or more of
130.29 	the employer's employees unless the employer was also actively
130.30 	involved in that conduct.
130.31 	(e) For purposes of this subdivision, the term
130.32 	"understatement of liability" means an understatement of the net
130.33 	amount payable with respect to a tax imposed by state tax law,
130.34 	or an overstatement of the net amount creditable or refundable
130.35 	with respect to a tax.  The determination of whether or not
130.36 	there is an understatement of liability must be made without
131.1 	regard to any administrative or judicial action involving the
131.2 	taxpayer.  For purposes of this subdivision, the amount
131.3 	determined for underpayment of estimated tax under either
131.4 	section 289A.25 or 289A.26 is not considered an understatement
131.5 	of liability.
131.6 	(f) (d) For purposes of this subdivision, the term
131.7 	"overstatement of claim" means an overstatement of the net
131.8 	amount refundable with respect to a claim for property tax
131.9 	relief provided by chapter 290A.  The determination of whether
131.10 	or not there is an overstatement of a claim must be made without
131.11 	regard to administrative or judicial action involving the
131.12 	claimant.
131.13 	(g) (e) For purposes of this section, the term "tax refund
131.14 	or return preparer" means an individual who prepares for
131.15 	compensation, or who employs one or more individuals to prepare
131.16 	for compensation, a return of tax, or a claim for refund of
131.17 	tax.  The preparation of a substantial part of a return or claim
131.18 	for refund is treated as if it were the preparation of the
131.19 	entire return or claim for refund.  An individual is not
131.20 	considered a tax return preparer merely because the individual:
131.21 	(1) gives typing, reproducing, or other mechanical
131.22 	assistance;
131.23 	(2) prepares a return or claim for refund of the employer,
131.24 	or an officer or employee of the employer, by whom the
131.25 	individual is regularly and continuously employed;
131.26 	(3) prepares a return or claim for refund of any person as
131.27 	a fiduciary for that person; or
131.28 	(4) prepares a claim for refund for a taxpayer in response
131.29 	to a tax order issued to the taxpayer.
131.30 	
EFFECTIVE DATE. This section is effective August 1, 2005.

131.31 	Sec. 11. Minnesota Statutes 2004, section 295.57,
131.32 	subdivision 1, is amended to read:
131.33 		Subdivision 1.Application of other chapters.  Unless
131.34 	specifically provided otherwise by sections 295.50 to 295.59,
131.35 	the enforcement,interest, appeal,criminal penalties, and
131.36 	refunds provisions in chapter 289A, the civil penalty provisions
132.1 	applicable to withholding and sales taxes under section 289A.60,
132.2 	and collection and rulemaking provisions under chapter 270 the
132.3 	audit, assessment, appeal, collection, enforcement, and
132.4 	administrative provisions of chapters 270C and 289A, apply to
132.5 	taxes imposed under sections 295.50 to 295.59.
132.6 	
EFFECTIVE DATE. This section is effective August 1, 2005.

132.7 	Sec. 12. Minnesota Statutes 2004, section 295.60,
132.8 	subdivision 7, is amended to read:
132.9 		Subd. 7.Application of other chapters.  Unless
132.10 	specifically provided otherwise by this section, the
132.11 	enforcement,interest, appeal,criminal penalties, and refunds
132.12 	provisions in chapter 289A, the civil penalty provisions
132.13 	applicable to withholding and sales taxes under section 289A.60,
132.14 	and collection and rulemaking provisions under chapter 270 the
132.15 	audit, assessment, appeal, collection, enforcement, and
132.16 	administrative provisions of chapters 270C and 289A, apply to
132.17 	taxes imposed under this section.
132.18 	
EFFECTIVE DATE. This section is effective August 1, 2005.

132.19 	Sec. 13. Minnesota Statutes 2004, section 297A.64,
132.20 	subdivision 3, is amended to read:
132.21 		Subd. 3.Administration.  The retailer shall report and
132.22 	pay the tax imposed in subdivision 1 to the commissioner of
132.23 	revenue with the taxes imposed in this chapter.  The tax imposed
132.24 	in subdivision 1 and the fee imposed in subdivision 2 are
132.25 	subject to the same interest, penalty, and other provisions
132.26 	provided for sales and use taxes under this chapter and chapter
132.27 	289A and this chapter. The commissioner has the same powers to
132.28 	assess and collect the tax and fee that are given the
132.29 	commissioner in chapters 270 and 289A and this chapter to assess
132.30 	and collect sales and use tax.The audit, assessment, appeal,
132.31 	collection, enforcement, and administrative provisions of this
132.32 	chapter and chapters 270C and 289A, that apply to sales and use
132.33 	taxes, apply to the tax and fee.
132.34 	
EFFECTIVE DATE. This section is effective August 1, 2005.

132.35 	Sec. 14. Minnesota Statutes 2004, section 297B.11, is
132.36 	amended to read:
133.1 	297B.11 REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE;
133.2 	POWERS.
133.3 	The state commissioner of revenue is charged with the
133.4 	administration of the sales tax on motor vehicles.  The
133.5 	commissioner may prescribe all rules not inconsistent with the
133.6 	provisions of this chapter, necessary and advisable for the
133.7 	proper and efficient administration of the law.  The collection
133.8 	of this sales tax on motor vehicles shall be carried out by the
133.9 	motor vehicle registrar who shall act as the agent of the
133.10 	commissioner and who shall be subject to all rules not
133.11 	inconsistent with the provisions of this chapter, that may be
133.12 	prescribed by the commissioner.
133.13 	The provisions of chapters 270C,289A,and 297A relating to
133.14 	the commissioner's authority to audit, assess, and collect the
133.15 	tax, and to issue refunds and to hear appeals, are applicable to
133.16 	the sales tax on motor vehicles.  The commissioner may impose
133.17 	civil penalties as provided in chapters 289A and 297A, and the
133.18 	additional tax and penalties are subject to interest at the rate
133.19 	provided in section 270.75 270C.40.

133.20 	EFFECTIVE DATE. This section is effective August 1, 2005.

133.21 	Sec. 15. Minnesota Statutes 2004, section 297H.10,
133.22 	subdivision 1, is amended to read:
133.23 		Subdivision 1.Administration and enforcement.  The
133.24 	audit, assessment, appeal, collection,refund, penalty,
133.25 	interest, enforcement, collection remedies, appeal,and
133.26 	administrative provisions of chapters 270 270C and 289A that are
133.27 	applicable to taxes imposed under by chapter 297A apply to this
133.28 	chapter.
133.29 	
EFFECTIVE DATE. This section is effective August 1, 2005.

133.30 	Sec. 16. Minnesota Statutes 2004, section 297I.10, is
133.31 	amended by adding a subdivision to read:
133.32 		Subd. 4.Collection and administration. The commissioner
133.33 	shall administer the surcharge imposed by this section in the
133.34 	same manner as the taxes imposed by this chapter.
133.35 	
EFFECTIVE DATE. This section is effective August 1, 2005.

133.36 	Sec. 17. REVISOR'S INSTRUCTION.
 134.1 	In each section of Minnesota Statutes referred to in column
134.2 	A, the revisor of statutes shall delete the reference in column
134.3 	B and insert the reference in column C.
134.4 	Column A Column B Column C
134.5 	13.4961, subd 2 270.062 270C.05
134.6 	270.064270C.055, subd 1
134.7 	270.21270C.923
134.8 	16D.11, subd 2 270.06, clause (7) 270C.32
134.9 	270.66270C.65
134.10 	16D.13, subd 2 270.75 270C.40
134.11 	115C.09, subd 1 270.75 270C.40
134.12 	126C.46 270.07 270C.86
134.13 	126C.65, subd 4 270.13 270C.91
134.14 	127A.49, subd 2 270.07 270C.86
134.15 	144.1501, subd 5 270.75 270C.40
134.16 	144.1502, subd 5 270.75 270C.40
134.17 	239.785, subd 5 270.75 270C.40
134.18 	256.9657, subd 7 270.75 270C.40
134.19 	256B.064, subd 1c 270.75 270C.40
134.20 	256B.431, subd 2d 270.75 270C.40
134.21 	270.072, subd 6 270.65 270C.62
134.22 	270.69270C.63
134.23 	270.075, subd 2 270.75 270C.40
134.24 	270A.07, subd 5 270.76 270C.405
134.25 	270B.03, subd 1 270.102 (twice) 270C.57 (twice)
134.26 	289A.31, subd 3 270C.58, subd 1
134.27 	270B.08 297A.86 270C.722
134.28 	270B.085, subd 1 270.70 270C.67
134.29 	270B.085, subd 2 270.69 270C.63
134.30 	270B.07, subd 1 270.72 270C.72
134.31 	270B.09 270.66 (twice) 270C.65 (twice)
134.32 	290.97270C.66
134.33 	270B.12, subd 4 270.73 270C.725
134.34 	270B.12, subd 7 270.72 270C.72
134.35 	270B.12, subd 10 270.60 270C.19
134.36 	271.06, subd 1 270.07, subd 1,270C.86
135.1 	                      para (a)
135.2 	271.09, subd 1 270.07, subd 1 270C.86
135.3 	271.12 270.76 270C.405
135.4 	272.115, subd 1 270.066 270C.306
135.5 	273.124, subd 13 270.0681 270C.12
135.6 	273.16 270.19 to 270.26270C.921 to 270C.928
135.7 	273.372 270.11, subd 6 270C.92, subd 2
135.8 	273.41 270.75 270C.40
135.9 	274.13, subd 1a 270.11, subds 5 270C.92, subds 1
135.10 	                      and 6 and 2
135.11 	274.16 270.11, subd 2 270C.89
135.12 	275.025, subd 1 270.11, subd 2 270C.89
135.13 	275.48 270.07 270C.86
135.14 	277.20, subd 2 270.69 270C.63
135.15 	277.21, subd 3 270.7001, 270.7002,270C.68, 270C.69,
135.16 	                      and 290.92, subd 23 and 270C.70
135.17 	270.70 to 270.709270C.67 to 270C.72
135.18 	277.21, subd 13 270.701 to 270.709270C.7101 to
135.19 	                                             270C.7109
135.20 	270.708270C.7108
135.21 	279.01, subd 2 270.07 270C.86
135.22 	279.03, subd 1a 270.75 (twice) 270C.40 (twice)
135.23 	279.34 270.07 270C.86
135.24 	287.12 270.771 270C.42
135.25 	287.29, subd 1 270.771 270C.42
135.26 	287.385, subd 1 270.75 270C.40
135.27 	287.385, subd 5 270.75 270C.40
135.28 	287.385, subd 6 270.75 270C.40
135.29 	289A.08, subd 1 289A.38, subd 13 270C.58, subd 3
135.30 	289A.19, subd 2 270.75 270C.40
135.31 	289A.25, subd 2 270.75 270C.40
135.32 	289A.26, subd 4 270.75 270C.40
135.33 	289A.31, subd 1 289A.38, subd 13 270C.58, subd 3
135.34 	289A.31, subd 3 289A.38, subd 13 270C.58, subd 3
135.35 	289A.31, subd 5 270.101 270C.56
135.36 	290.92, subd 22 270C.59
136.1 	289A.31, subd. 7 270.101 270C.56
136.2 	289A.38, subd 12 289A.31, subd 4 270C.58, subd 2
136.3 	                     (twice) (twice)
136.4 	289A.40, subd 1 289A.37, subd 1 270C.33
136.5 	289A.65270C.35
136.6 	289A.35270C.33, subd 3
136.7 	289A.50, subd 1 270.10, subd 1 270C.33
136.8 	289A.50, subd 7 289A.65 270C.35
136.9 	289A.50, subd 8 270.07, subd 5 270C.64
136.10 	289A.55, subd 1 270.75 270C.40
136.11 	289A.55, subd 7 270.75 270C.40
136.12 	289A.55, subd 8 270.75 270C.40
136.13 	289A.56, subd 1 270.76 270C.405
136.14 	289A.60, subd 4 270.75 270C.40
136.15 	289A.60, subd 5a 270.07, subds 1,
136.16 	                      para (e), and 6 270C.34
136.17 	289A.60, subd 16 297A.86 270C.722
136.18 	289A.60, subd 21 270.07, subd 6 270C.34, subd 2
136.19 	289A.63, subd 3 297A.86 270C.722
136.20 	290.05, subd 8 289A.65 270C.35
136.21 	290.06, subd 23 270.76 270C.405
136.22 	290.30 289A.31, subd 3 270C.58, subd 1
136.23 	290.92, subd 4b 270.69 270C.63
136.24 	270.70270C.67
136.25 	290.92, subd 30 289A.37 (twice) 270C.33 (twice)
136.26 	289A.65 (twice) 270C.35 (twice)
136.27 	290.9201, subd 7 270.06, para (16) 270C.02, subd 2,
136.28 	                                             para (b)
136.29 	290B.04, subd 5 289A (twice) 270C (twice)
136.30 	290B.07 270.75 270C.40
136.31 	290C.08, subd 1 270.75 270C.40
136.32 	295.55, subd 2 270.75 270C.40
136.33 	295.55, subd 3 270.75 270C.40
136.34 	295.57, subd 1 270 270C
136.35 	295.60, subd 3 270.75 270C.40
136.36 	295.60, subd 7 270 270C
137.1 	296A.02, subd 2 section 270.06chapter 270C
137.2 	                     section chapter
137.3 	296A.13 270.101 270C.56
137.4 	296A.21, subd 2 270.68 270C.61
137.5 	296A.22, subd 1 270.75 270C.40
137.6 	296A.22, subd 2 270 270C
137.7 	296A.22, subd 3 270.75 270C.40
137.8 	297A.72, subd 2 289A.07 270C.304
137.9 	297A.75, subd 4 270.76 270C.405
137.10 	297A.85 297A.86 270C.722
137.11 	297A.92, subd 2 289A.37, subd 5 270C.33, subd 8
137.12 	297D.12, subd 1 270.70 270C.36
137.13 	                     270 (twice) 270C (twice)
137.14 	297E.02, subd 4 270.76 270C.405
137.15 	297E.02, subd 7 270.70 270C.36
137.16 	                     270 (twice) 270C (twice)
137.17 	297E.03, subd 7 270.70 270C.36
137.18 	                     270 (twice) 270C (twice)
137.19 	297E.03, subd 8 270.064 270C.055, subd 1
137.20 	297E.11, subd 4 270.76 270C.405
137.21 	297E.12, subd 6 270.07, subds 1,
137.22 	                      para (e), and 6 270C.34
137.23 	297E.14, subd 1 270.75 270C.40
137.24 	297E.14, subd 6 270.75 270C.40
137.25 	297F.02, subd 2 section 270.06chapter 270C
137.26 	                     section chapter
137.27 	297F.04, subd 2 270.72 270C.72
137.28 	297F.08, subd 4 270.60 270C.19
137.29 	297F.09, subd 5 270.75 270C.40
137.30 	297F.09, subd 9 270.75 270C.40
137.31 	297F.18, subd 1 270.75 270C.40
137.32 	297F.18, subd 6 270.75 270C.40
137.33 	297F.185 297A.86 270C.722
137.34 	297F.19, subd 6 270.07, subds 1,
137.35 	                      para (e), and 6 270C.34
137.36 	297G.02, subd 3 section 270.06chapter 270C
138.1 	                     section chapter
138.2 	297G.09, subd 8 270.75 270C.40
138.3 	297G.17, subd 1 270.75 270C.40
138.4 	297G.17, subd 6 270.75 270C.40
138.5 	297G.18, subd 6 270.07, subds 1,
138.6 	                      para (e), and 6 270C.34
138.7 	297I.40, subd 4 270.75 270C.40
138.8 	297I.60, subd 2 297I.95 270C.35
138.9 	297I.80, subd 1 270.75 270C.40
138.10 	297I.80, subd 2 270.76 270C.405
138.11 	297I.85, subd 7 270.07, subd 6 270C.34, subd 2
138.12 	299L.07, subd 8 270.72 270C.72
138.13 	325D.33, subd 8 270 (three times) 270C (three times)
138.14 	270.75 (three 270C.40 (three
138.15 	                      times) times)
138.16 	336.9-531 270.69, subd 2, para
138.17 	                      (b), clause (2) 270C.63, subd 4
138.18 	349.155, subd 3 270.72 270C.72
138.19 	349A.06, subd 2 270.72 270C.72
138.20 	357.18, subd 2 270.69, subd 2,
138.21 	                      para (c) 270C.63, subd 6
138.22 	559.21, subd 5 270.69, subd 7 270C.63, subd 11
138.23 	469.171, subd 10 270.76 270C.405
138.24 	469.1734, subd 6 270.76 270C.405
138.25 	469.178, subd 7 270.75 (twice) 270C.40 (twice)
138.26 	469.319, subd 4 270 270C
138.27 	270.75270C.40
138.28 	469.340, subd 4 270 270C
138.29 	270.75270C.40
138.30 	580.15 270.69, subd 7 270C.63, subd 11
138.31 	588.21 289A.36, subd 3 270C.61, subd 2