HF 1086

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; changing provisions for costs 
  1.3             and disbursements in certain tax appeals; amending 
  1.4             Minnesota Statutes 1996, sections 271.19; and 278.07. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 271.19, is 
  1.7   amended to read: 
  1.8      271.19 [COSTS AND DISBURSEMENTS.] 
  1.9      Upon the determination of any appeal under this chapter 
  1.10  before the tax court, or of any review hereunder by the supreme 
  1.11  court, the costs and disbursements shall be taxed and allowed in 
  1.12  favor of the prevailing party and against the losing party as in 
  1.13  civil actions or, if there has been an offer of judgment or 
  1.14  settlement by a party prior to ten days before the court hears 
  1.15  the appeal, pursuant to Minnesota Rules of Civil Procedure, rule 
  1.16  68.  In any case where a person liable for a tax or other 
  1.17  obligation has lost an appeal or review instituted by the 
  1.18  person, and the tax court or court shall determine that the 
  1.19  person instituted the same merely for the purposes of delay, or 
  1.20  that the taxpayer's position in the proceedings is frivolous, 
  1.21  additional costs, commensurate with the expense incurred and 
  1.22  services performed by the agencies of the state in connection 
  1.23  with the appeal, but not exceeding $5,000 in any case, may be 
  1.24  allowed against the taxpayer, in the discretion of the tax court 
  1.25  or court.  Costs and disbursements allowed against any such 
  2.1   person shall be added to the tax or other obligation determined 
  2.2   to be due, and shall be payable therewith.  To the extent 
  2.3   described in section 15.471, where an award of costs and 
  2.4   attorney fees is authorized under section 15.472, the costs and 
  2.5   fees shall be allowed against the state, including expenses 
  2.6   incurred by the taxpayer to administratively protest or appeal 
  2.7   to the department of revenue the order, decision, or report of 
  2.8   the commissioner that is the subject of the tax court 
  2.9   proceedings.  Costs and disbursements allowed against the state 
  2.10  or other public agencies shall be paid out of funds received 
  2.11  from taxes or other obligations of the kind involved in the 
  2.12  proceeding, or other funds of the agency concerned appropriated 
  2.13  and available therefor.  Witnesses in proceedings under this 
  2.14  chapter shall receive like fees as in the district court, to be 
  2.15  paid in the first instance by the parties by whom the witnesses 
  2.16  were called, and to be taxed and allowed as herein provided. 
  2.17     Sec. 2.  Minnesota Statutes 1996, section 278.07, is 
  2.18  amended to read: 
  2.19     278.07 [JUDGMENT; AMOUNT; COSTS.] 
  2.20     Judgment shall be for the amount of the taxes for the year 
  2.21  as the court shall determine the same, less the amount paid 
  2.22  thereon, if any.  If the tax is sustained in the full amount 
  2.23  levied or increased, costs and disbursements may, in the 
  2.24  discretion of the court, be taxed and allowed as in delinquent 
  2.25  tax proceedings and shall be included in the judgment.  If the 
  2.26  tax so determined shall be less than is decreased from the 
  2.27  amount thereof as originally levied, the court may, in its 
  2.28  discretion, award disbursements to the petitioner, which shall 
  2.29  be taxed and allowed and be deducted from the amount of the 
  2.30  taxes as determined unless there has been a previous offer of 
  2.31  reduced taxes that was rejected by the petitioner, in which case 
  2.32  the award of costs and disbursements is governed by Minnesota 
  2.33  Rules of Civil Procedure, rule 68.  If there be no judgment for 
  2.34  taxes, a judgment may be entered determining the right of the 
  2.35  parties and for the costs and disbursements as taxed and allowed.