HF 1838

as introduced - 90th Legislature (2017 - 2018) Posted on 03/15/2017 12:35pm

A bill for an act
relating to taxation; modifying certain notice provisions; amending Minnesota
Statutes 2016, sections 270C.33, subdivisions 5, 8; 270C.34, subdivision 2;
270C.35, subdivision 3; 270C.38, subdivision 1; 271.06, subdivisions 2, 7; 289A.50,
subdivision 7; 296A.22, subdivision 9; 296A.26; 297F.23; 297G.22; 297I.60,
subdivision 2; 469.319, subdivision 5; Laws 2016, chapter 187, section 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:

Subd. 5.

Prohibition against collection during appeal period of an order.

No collection
action can be taken on an order of assessment, or any other order imposing a liability,
including the filing of liens under section 270C.63, and no late payment penalties may be
imposed when a return has been filed for the tax type and period upon which the order is
based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days
after the deleted text begin order has been mailed to the taxpayer deleted text end new text begin notice date designated new text end by the commissioner new text begin
on the order new text end ; (2) if an administrative appeal is filed under section 270C.35, 60 days after new text begin
the notice date designated by the commissioner on the written new text end determination of the
administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the
decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal
is based upon a constitutional challenge to the tax, 60 days after final determination of the
appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36,
or a jeopardy collection under section 270C.36.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:

Subd. 8.

Sufficiency of notice.

An assessment of tax made by the commissioner, sent
postage prepaid by United States mail to the taxpayer at the taxpayer's last known address,
or sent by electronic mail to the taxpayer's last known electronic mailing address as provided
for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal
disability, or, in the case of a corporation, has terminated its existence, unless the
commissioner has been provided with a new address by a party authorized to receive notices
of assessment. new text begin Notice of an assessment is sufficient if it is sent on or before the notice date
designated by the commissioner on the assessment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments dated after December
31, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:

Subd. 2.

Procedure.

(a) A request for abatement of penalty under subdivision 1 or
section 289A.60, subdivision 4, or a request for abatement of interest or additional tax
charge, must be filed with the commissioner within 60 days of the new text begin notice new text end date new text begin of new text end the deleted text begin notice
was mailed to the taxpayer's last known address, stating that a deleted text end penalty deleted text begin has been imposed deleted text end new text begin or
additional tax charge. For purposes of this section, "notice date" means the notice date
designated by the commissioner on the order or other notice that a penalty or additional tax
charge has been imposed new text end .

(b) If the commissioner issues an order denying a request for abatement of penalty,
interest, or additional tax charge, the taxpayer may file an administrative appeal as provided
in section 270C.35 or appeal to Tax Court as provided in section 271.06.

(c) If the commissioner does not issue an order on the abatement request within 60 days
from the date the request is received, the taxpayer may appeal to Tax Court as provided in
section 271.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:

Subd. 3.

Notice date.

For purposes of this section, deleted text begin the term deleted text end "notice date" means the new text begin
notice new text end date deleted text begin of deleted text end new text begin designated by the commissioner on new text end the order adjusting the tax or order denying
a request for abatement, or, in the case of a denied refund, the new text begin notice new text end date deleted text begin of deleted text end new text begin designated by
the commissioner on new text end the notice of denial.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:

Subdivision 1.

Sufficient notice.

(a) If no method of notification of a written
determination or action of the commissioner is otherwise specifically provided for by law,
notice of the determination or action sent postage prepaid by United States mail to the
taxpayer or other person affected by the determination or action at the taxpayer's or person's
last known address, is sufficient. If the taxpayer or person being notified is deceased or is
under a legal disability, or, in the case of a corporation being notified that has terminated
its existence, notice to the last known address of the taxpayer, person, or corporation is
sufficient, unless the department has been provided with a new address by a party authorized
to receive notices from the commissioner.

(b) If a taxpayer or other person agrees to accept notification by electronic means, notice
of a determination or action of the commissioner sent by electronic mail to the taxpayer's
or person's last known electronic mailing address as provided for in section 325L.08 is
sufficient.

new text begin (c) Notice of a determination or action of the commissioner is sufficient if it is sent on
or before the notice date designated by the commissioner on the notice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices dated after December 31,
2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:

Subd. 2.

Time; notice; intervention.

Except as otherwise provided by law, within 60
days after new text begin the new text end notice deleted text begin of the making and filing deleted text end new text begin date new text end of an order of the commissioner of revenue,
the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner
and file the original, with proof of such service, with the Tax Court administrator or with
the court administrator of district court acting as court administrator of the Tax Court;
provided, that the Tax Court, for cause shown, may by written order extend the time for
appealing for an additional period not exceeding 30 days. new text begin For purposes of this section,
"notice date" means the notice date designated by the commissioner on the order. new text end The notice
of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt,
the commissioner shall transmit a copy of the notice of appeal to the attorney general. The
attorney general shall represent the commissioner, if requested, upon all such appeals except
in cases where the attorney general has appealed in behalf of the state, or in other cases
where the attorney general deems it against the interests of the state to represent the
commissioner, in which event the attorney general may intervene or be substituted as an
appellant in behalf of the state at any stage of the proceedings.

Upon a final determination of any other matter over which the court is granted jurisdiction
under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a
petition or notice of appeal as provided by law with the court administrator of district court,
acting in the capacity of court administrator of the Tax Court, with proof of service of the
petition or notice of appeal as required by law and within the time required by law. As used
in this subdivision, "final determination" includes a notice of assessment and equalization
for the year in question received from the local assessor, an order of the local board of
equalization, or an order of a county board of equalization.

The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed
with the district court administrator acting as court administrator of the Tax Court is
forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
property valuation for which the assessor, a local board of equalization, a county board of
equalization or the commissioner of revenue has issued an order, the officer issuing the
order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
in the form prescribed by the Tax Court.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:

Subd. 7.

Rules.

Except as provided in section 278.05, subdivision 6, the Rules of
Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures
in the Tax Court, where practicable. new text begin The Rules of Civil Procedure do not apply to alter the
60-day period of time to file a notice of appeal provided in subdivision 2. new text end The Tax Court
may adopt rules under chapter 14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:

Subd. 7.

Remedies.

(a) If the taxpayer is notified by the commissioner that the refund
claim is denied in whole or in part, the taxpayer may:

(1) file an administrative appeal as provided in section 270C.35, or an appeal with the
Tax Court, within 60 days after deleted text begin issuance deleted text end new text begin the notice date new text end of the commissioner's notice of
denial; or

(2) file an action in the district court to recover the refund.

(b) An action in the district court on a denied claim for refund must be brought within
18 months of the new text begin notice new text end date of the denial of the claim by the commissioner. new text begin For the purposes
of this section, "notice date" has the meaning given in section 270C.35, subdivision 3.
new text end

(c) No action in the district court or the Tax Court shall be brought within six months
of the filing of the refund claim unless the commissioner denies the claim within that period.

(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
time after the expiration of six months from the time the claim was filed.

(e) The commissioner and the taxpayer may agree to extend the period for bringing an
action in the district court.

(f) An action for refund of tax by the taxpayer must be brought in the district court of
the district in which lies the county of the taxpayer's residence or principal place of business.
In the case of an estate or trust, the action must be brought at the principal place of its
administration. Any action may be brought in the district court for Ramsey County.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund denied after
December 31, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:

Subd. 9.

Abatement of penalty.

(a) The commissioner may by written order abate any
penalty imposed under this section, if in the commissioner's opinion there is reasonable
cause to do so.

(b) A request for abatement of penalty must be filed with the commissioner within 60
days of the new text begin notice new text end date new text begin of new text end the deleted text begin notice stating that a deleted text end penalty deleted text begin has been imposed was mailed to
the taxpayer's last known address deleted text end . new text begin For purposes of this section, "notice date" means the
notice date designated by the commissioner on the order or other notice that a penalty has
been imposed.
new text end

(c) If the commissioner issues an order denying a request for abatement of penalty, the
taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax
Court as provided in section 271.06. If the commissioner does not issue an order on the
abatement request within 60 days from the date the request is received, the taxpayer may
appeal to Tax Court as provided in section 271.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 296A.26, is amended to read:

296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.

In lieu of an administrative appeal under section 270C.35, any person aggrieved by an
order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
60 days from the new text begin notice new text end date of deleted text begin the notice of deleted text end the order, appeal to the Tax Court in the manner
provided under section 271.06. new text begin For purposes of this section, "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 297F.23, is amended to read:

297F.23 JUDICIAL REVIEW.

In lieu of an administrative appeal under section 270C.35, a person aggrieved by an
order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
60 days from the new text begin notice new text end date of deleted text begin the notice of deleted text end the order, appeal to the Tax Court in the manner
provided under section 271.06. new text begin For purposes of this section, "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 12.

Minnesota Statutes 2016, section 297G.22, is amended to read:

297G.22 JUDICIAL REVIEW.

In lieu of an administrative appeal under this chapter, a person aggrieved by an order of
the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
from deleted text begin the date of deleted text end the notice new text begin date new text end of the order, appeal to the Tax Court in the manner provided
under section 271.06. new text begin For purposes of this section, "notice date" means the notice date
designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 13.

Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:

Subd. 2.

Remedies.

(a) If the taxpayer is notified that the refund claim is denied in whole
or in part, the taxpayer may contest the denial by:

(1) filing an administrative appeal with the commissioner under section 270C.35;

(2) filing an appeal in Tax Court within 60 days of the new text begin notice new text end date of the deleted text begin notice of deleted text end denial;
or

(3) filing an action in the district court to recover the refund.

(b) An action in the district court must be brought within 18 months deleted text begin following deleted text end new text begin of new text end the
new text begin notice new text end date of the deleted text begin notice of deleted text end denial. new text begin For purposes of this section, "notice date" has the meaning
given in section 270C.35, subdivision 3. new text end An action for refund of tax or surcharge must be
brought in the district court of the district in which lies the taxpayer's principal place of
business or in the District Court for Ramsey County. If a taxpayer files a claim for refund
and the commissioner has not issued a denial of the claim, the taxpayer may bring an action
in the district court or the Tax Court at any time after the expiration of six months from the
time the claim was filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund denied after
December 31, 2017.
new text end

Sec. 14.

Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:

Subd. 5.

Waiver authority.

(a) The commissioner may waive all or part of a repayment
required under subdivision 1, if the commissioner, in consultation with the commissioner
of employment and economic development and appropriate officials from the local
government units in which the qualified business is located, determines that requiring
repayment of the tax is not in the best interest of the state or the local government units and
the business ceased operating as a result of circumstances beyond its control including, but
not limited to:

(1) a natural disaster;

(2) unforeseen industry trends; or

(3) loss of a major supplier or customer.

(b)(1) The commissioner shall waive repayment required under subdivision 1a if the
commissioner has waived repayment by the operating business under subdivision 1, unless
the person that received benefits without having to operate a business in the zone was a
contributing factor in the qualified business becoming subject to repayment under subdivision
1;

(2) the commissioner shall waive the repayment required under subdivision 1a, even if
the repayment has not been waived for the operating business if:

(i) the person that received benefits without having to operate a business in the zone and
the business that operated in the zone are not related parties as defined in section 267(b) of
the Internal Revenue Code of 1986, as amended through December 31, 2007; and

(ii) actions of the person were not a contributing factor in the qualified business becoming
subject to repayment under subdivision 1.

(c) Requests for waiver must be made no later than 60 days after the earlier of the notice
date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
issued under subdivision 4, paragraph (c). new text begin For purposes of this section, "notice date" means
the notice date designated by the commissioner on the order.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders of the commissioner of revenue
dated after December 31, 2017.
new text end

Sec. 15.

Laws 2016, chapter 187, section 5, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective for orders and notices dated after
deleted text begin September 30, 2015 deleted text end new text begin December 31, 2017 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from September 30, 2015.
new text end