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Capital IconMinnesota Legislature

Legislative Session number- 84

Bill Name: HF2228

HF 2228

CHAPTER 151
EFFECTIVE DATE: Various

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

ARTICLE 1: RECODIFICATION COMMISSIONER GENERAL POWERS

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

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

COLLECTION

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

ARTICLE 2: CONFORMING PROVISIONS

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

ARTICLE 3: PROPERTY
TAXES

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

ARTICLE 4 PROPERTY TAX AIDS AND
CREDITS

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

ARTICLE 5 DEPARTMENT OF
REVENUE PROPERTY TAXES

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

ARTICLE 6: INCOME, CORPORATE
FRANCHISE, AND ESTATE TAXES

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

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

ARTICLE 8 SPECIAL TAXES

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

ARTICLE 9 MISCELLANEOUS

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

AME
8-23-05