HF 1357

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; authorizing the commissioner of 
  1.3             revenue to reissue checks or warrants for refunds; 
  1.4             requiring certain uncashed tax refunds to be listed as 
  1.5             unclaimed property; amending Minnesota Statutes 2000, 
  1.6             sections 270.07, subdivision 3; 345.41; and 345.42, by 
  1.7             adding a subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 270.07, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [ADDITIONAL POWERS OF COMMISSIONER.] 
  1.12  Notwithstanding any other provision of law the commissioner of 
  1.13  revenue may, 
  1.14     (a) based upon the administrative costs of processing, 
  1.15  determine minimum standards for the determination of additional 
  1.16  tax for which an order shall be issued, and 
  1.17     (b) based upon collection costs as compared to the amount 
  1.18  of tax involved, determine minimum standards of collection, and 
  1.19     (c) based upon the administrative costs of processing, 
  1.20  determine the minimum amount of refunds for which an order shall 
  1.21  be issued and refund made where no claim therefor has been 
  1.22  filed, and 
  1.23     (d) cancel any amounts below these minimum standards 
  1.24  determined under (a) and (b) hereof, and 
  1.25     (e) based upon the inability of a taxpayer to pay a 
  1.26  delinquent tax liability, abate the liability if the taxpayer 
  2.1   agrees to perform uncompensated public service work for a state 
  2.2   agency, a political subdivision or public corporation of this 
  2.3   state, or a nonprofit educational, medical, or social service 
  2.4   agency.  The department of corrections shall administer the work 
  2.5   program.  No benefits under chapter 176 or 268 shall be 
  2.6   available, but a claim authorized under section 3.739 may be 
  2.7   made by the taxpayer.  The state may not enter into any 
  2.8   agreement that has the purpose of or results in the displacement 
  2.9   of public employees by a delinquent taxpayer under this 
  2.10  section.  The state must certify to the appropriate bargaining 
  2.11  agent or employees, as applicable, that the work performed by a 
  2.12  delinquent taxpayer will not result in the displacement of 
  2.13  currently employed workers or layoff from a substantially 
  2.14  equivalent position, including partial displacement such as 
  2.15  reduction in hours of nonovertime work, wages, or other 
  2.16  employment benefits, and 
  2.17     (f) based upon the disability or diminished capacity of the 
  2.18  taxpayer, extreme hardship, or other good cause, issue a refund 
  2.19  check or warrant that has canceled, lapsed, or is presumed 
  2.20  abandoned under section 16A.45 or 345.38 or any other law.  The 
  2.21  commissioner's authority to reissue warrants or checks for 
  2.22  refunds is limited to five years after the date of the issuance 
  2.23  of the original check or warrant. 
  2.24     [EFFECTIVE DATE.] This section is effective the day 
  2.25  following final enactment. 
  2.26     Sec. 2.  Minnesota Statutes 2000, section 345.41, is 
  2.27  amended to read: 
  2.28     345.41 [REPORT OF ABANDONED PROPERTY.] 
  2.29     (a) Every person holding funds or other property, tangible 
  2.30  or intangible, presumed abandoned under sections 345.31 to 
  2.31  345.60 shall report annually to the commissioner with respect to 
  2.32  the property as hereinafter provided. 
  2.33     (b) The report shall be verified and shall include: 
  2.34     (1) except with respect to traveler's checks and money 
  2.35  orders, the name, if known, and last known address, if any, of 
  2.36  each person appearing from the records of the holder to be the 
  3.1   owner of any property of the value of $100 or more presumed 
  3.2   abandoned under sections 345.31 to 345.60; 
  3.3      (2) in case of unclaimed funds of life insurance 
  3.4   corporations, the full name of the policyholder, insured or 
  3.5   annuitant and that person's last known address according to the 
  3.6   life insurance corporation's records; 
  3.7      (3) the nature and identifying number, if any, or 
  3.8   description of the property and the amount appearing from the 
  3.9   records to be due, except that items of value under $100 each 
  3.10  may be reported in aggregate; 
  3.11     (4) the date when the property became payable, demandable 
  3.12  or returnable, and the date of the last transaction with the 
  3.13  owner with respect to the property; and 
  3.14     (5) other information which the commissioner prescribes by 
  3.15  rule as necessary for the administration of sections 345.31 to 
  3.16  345.60. 
  3.17     (c) If the person holding property presumed abandoned is a 
  3.18  successor to other persons who previously held the property for 
  3.19  the owner, or if the holder has changed a name while holding the 
  3.20  property, the holder shall file with the report all prior known 
  3.21  names and addresses of each holder of the property. 
  3.22     (d) The report shall be filed before November 1 of each 
  3.23  year as of June 30 next preceding, but the report of life 
  3.24  insurance corporations shall be filed before October 1 of each 
  3.25  year as of December 31 next preceding.  The commissioner may 
  3.26  postpone the reporting date upon written request by any person 
  3.27  required to file a report. 
  3.28     (e) Not more than 120 days before filing the report 
  3.29  required by this section, the holder in possession of property 
  3.30  abandoned and subject to custody as unclaimed property under 
  3.31  this chapter shall send written notice to the presumed owner at 
  3.32  that owner's last known address informing the owner that the 
  3.33  holder is in possession of property subject to this chapter and 
  3.34  advising the owner of the steps necessary to prevent abandonment 
  3.35  if: 
  3.36     (1) the holder has in its records an address for the 
  4.1   presumed owner that the holder's records do not disclose to be 
  4.2   inaccurate; 
  4.3      (2) the claim of the apparent owner is not barred by the 
  4.4   statute of limitations; and 
  4.5      (3) the property has a value of $100 or more. 
  4.6      (f) Verification, if made by a partnership, shall be 
  4.7   executed by a partner; if made by an unincorporated association 
  4.8   or private corporation, by an officer, and if made by a public 
  4.9   corporation, by its chief fiscal officer. 
  4.10     (g) Holders of property described in section 345.32 shall 
  4.11  not impose any charges against property which is described in 
  4.12  section 345.32, clause (a), (b) or (c). 
  4.13     (h) Any person who has possession of property which the 
  4.14  person has reason to believe will be reportable in the future as 
  4.15  unclaimed property may, with the permission of the commissioner, 
  4.16  report and deliver such property prior to the date required for 
  4.17  reporting in accordance with this section. 
  4.18     (i) Before the 30th day of each calendar quarter, the 
  4.19  commissioner of revenue shall report to the commissioner as 
  4.20  unclaimed property under this section any uncashed checks or 
  4.21  warrants for overpayments of taxes that were issued more than 
  4.22  one year before the end of the immediately previous quarter. 
  4.23     [EFFECTIVE DATE.] This section is effective August 1, 2001. 
  4.24     Sec. 3.  Minnesota Statutes 2000, section 345.42, is 
  4.25  amended by adding a subdivision to read: 
  4.26     Subd. 5.  [UNCASHED TAX REFUNDS.] The commissioner of 
  4.27  revenue shall notify the commissioner of any checks or warrants 
  4.28  reported under section 345.41 that the commissioner of revenue 
  4.29  has reissued under section 270.07, subdivision 3, clause (f).  
  4.30  The commissioner shall remove the item from any future 
  4.31  publication of lists or notifications of owners of abandoned 
  4.32  property. 
  4.33     [EFFECTIVE DATE.] This section is effective August 1, 2001.