Engrossments
Introduction		Posted on 03/31/2005
1st Engrossment		Posted on 05/25/2005

Section 1.

new text begin [270C.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of this
chapter only, the following words, terms, and phrases have the
meanings given them in this section unless the language or
context clearly indicates that a different meaning is intended.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the
commissioner of revenue or a person to whom the commissioner has
delegated functions.
new text end

new text begin Subd. 3. new text end

new text begin Department. new text end

new text begin "Department" means the Department
of Revenue.
new text end

new text begin Subd. 4. new text end

new text begin Electronic means; electronically. new text end

new text begin "Electronic
means" and "electronically" mean a method that is electronic, as
defined in section 325L.02, paragraph (e), and that is
prescribed by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Law administered by the commissioner. new text end

new text begin "Law
administered by the commissioner" means a law or rule that vests
or imposes a power, duty, responsibility, or authority in the
commissioner, except the following laws: (1) the property tax
laws, and (2) Minnesota Statutes, chapter 16D.
new text end

new text begin Subd. 6. new text end

new text begin Person. new text end

new text begin "Person" means an individual, trust,
estate, fiduciary, partnership, company, corporation, limited
liability company, association, governmental unit or agency,
public or private organization of any kind, or other legal
entity.
new text end

new text begin Subd. 7. new text end

new text begin Property tax laws. new text end

new text begin "Property tax laws" means
all laws and rules related to the administration of the tax on
property referred to in section 272.01, subdivision 1, and all
laws related to the administration of the tax on wind energy
production imposed under section 272.029, subdivision 1.
new text end

new text begin Subd. 8. new text end

new text begin Return. new text end

new text begin "Return" means a return, information
return, or report, required by a law administered by the
commissioner.
new text end

new text begin Subd. 9. new text end

new text begin State revenue laws. new text end

new text begin "State revenue laws" means
all laws administered by the commissioner and the property tax
laws.
new text end

new text begin Subd. 10. new text end

new text begin Tax. new text end

new text begin "Tax" means a tax or fee imposed by a law
administered by the commissioner.
new text end

new text begin Subd. 11.new text end

new text begin Taxpayer.new text end

new text begin "Taxpayer" means a person subject
to, or liable for, a tax or fee imposed by a law administered by
the commissioner; a person required to file a return,
information return, or report, with respect to, or to pay, or
withhold or collect and remit, a tax or fee imposed by a law
administered by the commissioner; a person required to obtain a
license or a permit under a law administered by the
commissioner; or a person required to keep records regarding a
tax or fee imposed by a law administered by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 2.

new text begin [270C.02] DEPARTMENT OF REVENUE; COMMISSIONER.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner; supervision of department
and appointment. new text end

new text begin The Department of Revenue is under the
supervision and control of the commissioner. The commissioner
shall be appointed by the governor under the provisions of
section 15.06. The commissioner shall be selected on the basis
of ability and experience in the field of tax administration and
without regard to political affiliations.new text end [270.01; 270.02,
subd. 8]

new text begin Subd. 2. new text end

new text begin Power to appoint staff. new text end

new text begin (a) The commissioner
may organize the department as the commissioner deems necessary,
and appoint one deputy commissioner, a department secretary,
directors of divisions, and such other officers, employees, and
agents, as the commissioner deems necessary to carry out the
duties, responsibilities, and authority entrusted to the
commissioner. The commissioner may define the duties of such
officers, employees, and agents, and delegate to them any of the
commissioner's powers or duties, subject to the commissioner's
control and under such conditions as the commissioner may
prescribe. Appointments to exercise delegated power to sign
documents which require the signature of the commissioner or a
delegate by law shall be by written order filed with the
secretary of state.new text end [270.02, subd. 3]

new text begin (b) The commissioner may appoint agents as the commissioner
considers necessary to make examinations and determinations.
The agents have the rights and powers conferred on the
commissioner to subpoena, examine, and copy books, records,
papers, or memoranda, subpoena witnesses, administer oaths and
affirmations, and take testimony.new text end [270.06, clause (17)]

new text begin Subd. 3. new text end

new text begin Salaries. new text end

new text begin The commissioner shall appoint and
employ additional employees and other agents, purchase supplies
or materials, or incur other expenditures in the administration
and enforcement of state revenue laws as considered necessary.
The salaries of all agents and employees provided for in this
chapter shall be fixed by the appointing authority, subject to
the approval of the commissioner of employee relations.
new text end [270.06, clause (18)]

new text begin Subd. 4. new text end

new text begin Office and supplies furnished; expenses. new text end

new text begin The
commissioner shall be provided with suitable and necessary
office furniture, supplies, stationery, books, periodicals,
newspapers, maps, and financial and commercial reports; and all
necessary expenses therefor shall be audited and paid as other
expenses are audited and paid. The actual necessary expenses of
the commissioner, the commissioner's employees and agents, and
such experts and assistants as may be employed by the
commissioner while traveling on the business of the department,
shall be paid by the state. The expenditures must be sworn to
by the party who incurred the expense and approved by the
commissioner.new text end [270.04]

new text begin Subd. 5. new text end

new text begin Filing officers. new text end

new text begin The commissioner is the filing
officer and custodian of the books, files, and records of the
department. The commissioner may certify copies of the books,
files, and records in the custody of the commissioner for all
purposes in the same manner as other custodians of public
records. The commissioner may authorize other employees of the
department to certify books, files, and records in the custody
of the commissioner. The authorization must be made by a
written order stating the documents that may be certified and
must be filed with the secretary of state.new text end [270.022]

new text begin Subd. 6.new text end

new text begin Department seal.new text end

new text begin The department shall have a
seal engraved with the words, "State of Minnesota, Department of
Revenue." Such seal may be used to authenticate the official
acts of the commissioner or any other employees of the
department, but the failure to use the seal shall not invalidate
any such acts. Duplicate seals may be provided for the use of
directors of divisions or other employees of the department.
new text end [270.02, subd. 4]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 3.

new text begin [270C.03] POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Powers and duties. new text end

new text begin The commissioner shall
have and exercise the following powers and duties:
new text end

new text begin (1) administer and enforce the assessment and collection of
taxes;new text end [270.06, clause (14)]

new text begin (2) make determinations, corrections, and assessments with
respect to taxes, including interest, additions to taxes, and
assessable penalties;new text end [289A.35, first sentence]

new text begin (3) use statistical or other sampling techniques consistent
with generally accepted auditing standards in examining returns
or records and making assessments;new text end [289A.35, last sentence]

new text begin (4) investigate the tax laws of other states and countries,
and formulate and submit to the legislature such legislation as
the commissioner may deem expedient to prevent evasions of state
revenue laws and to secure just and equal taxation and
improvement in the system of state revenue laws;new text end [270.06, clause
(10)]

new text begin (5) consult and confer with the governor upon the subject
of taxation, the administration of the laws in regard thereto,
and the progress of the work of the department, and furnish the
governor, from time to time, such assistance and information as
the governor may require relating to tax matters;new text end [270.06,
clause (11)]

new text begin (6) execute and administer any agreement with the secretary
of the treasury of the United States or a representative of
another state regarding the exchange of information and
administration of the state revenue laws;new text end [270.06, clause (19)]

new text begin (7) require town, city, county, and other public officers
to report information as to the collection of taxes received
from licenses and other sources, and such other information as
may be needful in the work of the commissioner, in such form as
the commissioner may prescribe;new text end [270.06, clause (5)]

new text begin (8) authorize the use of unmarked motor vehicles to conduct
seizures or criminal investigations pursuant to the
commissioner's authority; and new text end [270.06, clause (20)]

new text begin (9) exercise other powers and authority and perform other
duties required of or imposed upon the commissioner by law.
new text end [270.06, clause (21)]

new text begin Subd. 2.new text end

new text begin Mission; efficiency.new text end

new text begin It is part of the
department's mission that within the department's resources the
commissioner shall endeavor to:
new text end

new text begin (1) prevent the waste or unnecessary spending of public
money;
new text end

new text begin (2) use innovative fiscal and human resource practices to
manage the state's resources and operate the department as
efficiently as possible;
new text end

new text begin (3) coordinate the department's activities wherever
appropriate with the activities of other governmental agencies;
new text end

new text begin (4) use technology where appropriate to increase agency
productivity, improve customer service, increase public access
to information about government, and increase public
participation in the business of government;
new text end

new text begin (5) utilize constructive and cooperative labor-management
practices to the extent otherwise required by chapters 43A and
179A;
new text end

new text begin (6) report to the legislature on the performance of agency
operations and the accomplishment of agency goals in the
agency's biennial budget according to section 16A.10,
subdivision 1; and
new text end

new text begin (7) recommend to the legislature appropriate changes in law
necessary to carry out the mission and improve the performance
of the department.new text end [270.02, subd. 3a]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 4.

new text begin [270C.04] USE OF INFORMATION.
new text end

new text begin Notwithstanding the provisions of any other law, the
commissioner may use any and all information in the
commissioner's possession, or to which the commissioner has
access, to insure equal and consistent application and
enforcement of all state revenue laws. This section shall not
be construed as granting to the commissioner any power to
release any information outside the department.new text end [270.065]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 5.

new text begin [270C.05] ACCESS TO CRIMINAL JUSTICE DATA.
new text end

new text begin The commissioner may enter into an agreement with the
commissioner of public safety to allow designated employees of
the Department of Revenue to have access to the criminal justice
data communications network provided in section 299C.46. For
purposes of that section, the criminal investigation unit of the
Department of Revenue is considered a criminal justice agency.
new text end [270.062]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 6.

new text begin [270C.055] CRIMINAL INVESTIGATIONS, REFERRAL, AND
INFORMATION DISCLOSURE.
new text end

new text begin Subdivision 1. new text end

new text begin Requesting assistance. new text end

new text begin If the
commissioner has reason to believe that a criminal violation of
the state revenue laws or chapter 349 has occurred, the
commissioner may request the attorney general or the prosecuting
authority of any county to assist in a criminal investigation.
new text end [270.064]

new text begin Subd. 2. new text end

new text begin Referral for prosecution. new text end

new text begin If a proceeding is
referred to a prosecuting authority, and the prosecuting
authority fails to issue or cause to be issued an indictment or
criminal complaint within 30 days after the referral by the
commissioner, the attorney general may conduct the proceeding.
new text end

new text begin Subd. 3.new text end

new text begin Authority to disclose information.new text end

new text begin The
commissioner may disclose information to the prosecuting
authority and attorney general pursuant to section 270B.05,
subdivision 2, clause (1).new text end [270.68, subd. 1, paragraph (c)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 7.

new text begin [270C.06] RULEMAKING AUTHORITY.
new text end

new text begin The commissioner shall, from time to time, make, publish,
and distribute rules for the administration and enforcement of
state revenue laws. The rules have the force of law.new text end [270.06,
clause (14)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 8.

new text begin [270C.07] REVENUE NOTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The commissioner may make,
adopt, and publish interpretive revenue notices. A "revenue
notice" is a policy statement that has been published pursuant
to subdivision 5 and that provides interpretation, details, or
supplementary information concerning the application of state
revenue laws or rules promulgated by the commissioner. Revenue
notices are published for the information and guidance of
taxpayers, local government officials, the department, and
others concerned.
new text end

new text begin Subd. 2. new text end

new text begin Effect. new text end

new text begin Revenue notices do not have the force
and effect of law and have no precedential effect, but may be
relied on by taxpayers until revoked or modified. A notice may
be expressly revoked or modified by the commissioner, by the
issuance of a revenue notice, but may not be revoked or modified
retroactively to the detriment of the taxpayers. A change in
the law or an interpretation of the law occurring after the
revenue notice is issued, whether in the form of a statute,
court decision, administrative rule, or revenue notice, results
in revocation or modification of the notice to the extent that
the change affects the notice.
new text end

new text begin Subd. 3. new text end

new text begin Retroactivity. new text end

new text begin Revenue notices are generally
interpretive of existing law and therefore are retroactive to
the effective date of the applicable law provision unless
otherwise stated in the notice.
new text end

new text begin Subd. 4. new text end

new text begin Issuance. new text end

new text begin The issuance of revenue notices is at
the discretion of the commissioner. The commissioner shall
establish procedures governing the issuance of revenue notices
and tax information bulletins. At least one week before
publication of a revenue notice in the State Register, the
commissioner shall provide a copy of the notice to the chairs of
the Taxes Committee of the house of representatives and the
Taxes and Tax Laws Committee of the senate.
new text end

new text begin Subd. 5.new text end

new text begin Publication.new text end

new text begin The commissioner shall publish the
revenue notices in the State Register and in any other manner
that makes them accessible to the general public. The
commissioner may charge a reasonable fee for publications.
new text end [270.0604]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 9.

new text begin [270C.08] TAX INFORMATION BULLETINS.
new text end

new text begin The commissioner may issue tax information bulletins. "Tax
information bulletins" are informational guides to enable
taxpayers and local governmental officials to become more
familiar with state revenue laws and their rights and
responsibilities under these laws. Nothing contained in the tax
information bulletins supersedes, alters, or otherwise changes
any provisions of the state revenue laws, administrative rules,
court decisions, or revenue notices.new text end [270.0605]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 10.

new text begin [270C.09] OPINION OF ATTORNEY GENERAL; EFFECT.
new text end

new text begin The commissioner may in writing request the opinion of the
attorney general upon any matter regarding the state revenue
laws. Any written opinion of the attorney general upon any such
matter rendered in response to such request shall have the force
and effect of law unless and until overruled by a decision of
the Tax Court or a court of competent jurisdiction.new text end [270.09]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 11.

new text begin [270C.10] EX-EMPLOYEES NOT TO REPRESENT
TAXPAYERS; PENALTY.
new text end

new text begin An employee of the department may not, for a period of one
year after the employee's employment has terminated, act as
counsel, attorney, or agent for a taxpayer in connection with a
claim or proceeding pending in the department. An employee of
the department may not act as counsel, attorney, or agent for a
taxpayer at any time after termination of employment in
connection with a claim or proceeding of which the person has
knowledge that was acquired during the term of employment. A
violation of this section is a gross misdemeanor.new text end [270.021]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 12.

new text begin [270C.105] BASIS FOR EVALUATION OF DEPARTMENT OF
REVENUE EMPLOYEES.
new text end

new text begin The department must not use tax enforcement results to
impose individual revenue quotas with respect to employees or
their immediate supervisors who are directly involved in
assessment or collection activities. The department may,
however, use individual performance with regard to number of
cases completed and, in the case of collections employees,
dollars collected, as factors in evaluating an employee and not
be considered as failing to comply with this section.
new text end [270.0602]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 13.

new text begin [270C.11] TAX EXPENDITURE BUDGET.
new text end

new text begin Subdivision 1. new text end

new text begin Statement of purpose. new text end

new text begin State governmental
policy objectives are sought to be achieved both by direct
expenditure of governmental funds and by the granting of special
and selective tax relief or tax expenditures. Both direct
expenditures of governmental funds and tax expenditures have an
effect on the ability of the state and local governments to
lower tax rates or to increase expenditures. As a result, tax
expenditures should receive a regular and comprehensive review
by the legislature as to (1) their total cost, (2) their
effectiveness in achieving their objectives, (3) their effect on
the fairness and equity of the distribution of the tax burden,
and (4) the public and private cost of administering tax
expenditure financed programs. This section is intended to
facilitate a regular review of the state and local tax
expenditure budget by the legislature by providing for the
preparation of a regular biennial tax expenditure budget.
new text end

new text begin Subd. 2. new text end

new text begin Preparation; submission. new text end

new text begin The commissioner shall
prepare a tax expenditure budget for the state. The tax
expenditure budget report shall be submitted to the legislature
by February 1 of each even-numbered year.
new text end

new text begin Subd. 3. new text end

new text begin Period covered. new text end

new text begin The report shall include
estimates of annual tax expenditures for, at a minimum, a
three-year period including the two-year period covered in the
governor's budget submitted in the preceding January pursuant to
section 16A.11.
new text end

new text begin Subd. 4. new text end

new text begin Contents. new text end

new text begin The report shall detail for each tax
expenditure item the amount of tax revenue foregone, a citation
of the statutory or other legal authority for the expenditure,
and the year in which it was enacted or the tax year in which it
became effective. The report may contain additional information
which the commissioner considers relevant to the legislature's
consideration and review of individual tax expenditure items.
This may include, but is not limited to, statements of the
intended purpose of the tax expenditure, analysis of whether the
expenditure is achieving that objective, and the effect of the
expenditure device on the distribution of the tax burden and
administration of the tax system.
new text end

new text begin Subd. 5. new text end

new text begin Revenue estimates; legislative bills. new text end

new text begin Upon
reasonable notice from the chair of the house or senate tax
committee that a bill is scheduled for hearing, the commissioner
shall prepare an estimate of the effect on the state's tax
revenues which would result from the passage of a legislative
bill establishing, extending, or restricting a tax expenditure.
These revenue estimates shall contain the same information as
provided in subdivision 4 for expenditure items contained in the
tax expenditure budget, as appropriate.
new text end

new text begin Subd. 6.new text end

new text begin Definitions.new text end

new text begin For purposes of this section, the
following terms have the meanings given:
new text end

new text begin (1) "tax expenditure" means a tax provision which provides
a gross income definition, deduction, exemption, credit, or rate
for certain persons, types of income, transactions, or property
that results in reduced tax revenue; and
new text end

new text begin (2) "tax" means any tax of statewide application or any tax
authorized by state law to be levied by local governments
generally. It does not include a special local tax levied
pursuant to special law or to a special local tax levied
pursuant to general authority that is no longer applicable to
local governments generally.new text end [270.067]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 14.

new text begin [270C.12] TAX INFORMATION SAMPLE DATA.
new text end

new text begin Subdivision 1. new text end

new text begin Preparation of samples. new text end

new text begin The commissioner
shall prepare microdata samples of income tax returns and other
information useful for purposes of:
new text end

new text begin (1) estimating state revenues;
new text end

new text begin (2) simulating the effect of changes or proposed changes in
state and federal tax law on the amount of state revenues; and
new text end

new text begin (3) analyzing the incidence of present or proposed taxes.
new text end

new text begin Subd. 2. new text end

new text begin Coordinating committee. new text end

new text begin A coordinating
committee is established to oversee and coordinate preparation
of the microdata samples. The committee consists of:
new text end

new text begin (1) the director of the Research Division of the department
who shall serve as chair of the committee;
new text end

new text begin (2) the state economist;
new text end

new text begin (3) the chair of the Committee on Taxes of the house of
representatives or the chair's designee; and
new text end

new text begin (4) the chair of the Committee on Taxes and Tax Laws of the
senate or the chair's designee. The committee shall consider
the analysis needs and use of the microdata samples by the
finance and revenue departments and the legislature in designing
and preparing the samples, including the type of data to be
included, the structure of the samples, size of the samples, and
other relevant factors.
new text end

new text begin Subd. 3. new text end

new text begin Contents of samples. new text end

new text begin The samples must consist
of information derived from a random sample of federal and
Minnesota individual income tax returns. The samples prepared
in odd numbered years must be augmented by additional
information from other sources as the coordinating committee
determines is feasible and appropriate. The coordinating
committee shall consider inclusion of:
new text end

new text begin (1) information derived from property tax refund returns;
new text end

new text begin (2) the estimated market value of the taxpayer's home from
the homestead declaration; and
new text end

new text begin (3) information from other sources, such as the surveys
conducted by the United States Departments of Commerce and Labor.
new text end

new text begin Subd. 4.new text end

new text begin Consultation on analysis models.new text end

new text begin The
coordinating committee shall facilitate regular consultation
among the Department of Revenue, the Department of Finance, and
house and senate staffs in development and maintenance of their
respective computer models used to analyze the microdata
samples. The committee shall encourage efforts to attain more
commonality in the models, greater sharing of program
development efforts and programming tasks, and more consistency
in the resulting analyses.new text end [270.0681]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 15.

new text begin [270C.13] TAX INCIDENCE REPORTS.
new text end

new text begin Subdivision 1. new text end

new text begin Biennial report. new text end

new text begin The commissioner shall
report to the legislature by March 1 of each odd-numbered year
on the overall incidence of the income tax, sales and excise
taxes, and property tax. The report shall present information
on the distribution of the tax burden as follows: (1) for the
overall income distribution, using a systemwide incidence
measure such as the Suits index or other appropriate measures of
equality and inequality; (2) by income classes, including at a
minimum deciles of the income distribution; and (3) by other
appropriate taxpayer characteristics.
new text end

new text begin Subd. 2. new text end

new text begin Bill analyses. new text end

new text begin At the request of the chair of
the house Tax Committee or the senate Committee on Taxes and Tax
Laws, the commissioner shall prepare an incidence impact
analysis of a bill or a proposal to change the tax system which
increases, decreases, or redistributes taxes by more than
$20,000,000. To the extent data is available on the changes in
the distribution of the tax burden that are affected by the bill
or proposal, the analysis shall report on the incidence effects
that would result if the bill were enacted. The report may
present information using systemwide measures, such as Suits or
other similar indexes, by income classes, taxpayer
characteristics, or other relevant categories. The report may
include analyses of the effect of the bill or proposal on
representative taxpayers. The analysis must include a statement
of the incidence assumptions that were used in computing the
burdens.
new text end

new text begin Subd. 3.new text end

new text begin Income measure.new text end

new text begin The incidence analyses shall
use the broadest measure of economic income for which reliable
data is available.new text end [270.0682]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 16.

new text begin [270C.14] AUTHORITY TO PAY LOCAL TAXES;
APPROPRIATION.
new text end

new text begin The commissioner may pay to any local government unit, any
locally imposed sales taxes that may be assessed against the
department. There is appropriated to the commissioner from the
general fund the amount needed to make the payments.new text end [270.058]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 17.

new text begin [270C.15] REVENUE DEPARTMENT SERVICE AND
RECOVERY SPECIAL REVENUE FUND.
new text end

new text begin A Revenue Department service and recovery special revenue
fund is created for the purpose of recovering the costs of
furnishing government data and related services or products, as
well as recovering costs associated with collecting local taxes
on sales. All money collected under this section is deposited
in the Revenue Department service and recovery special revenue
fund. Money in the fund is appropriated to the commissioner to
reimburse the department for the costs incurred in administering
the tax law or providing the data, service, or product. Any
money paid to the department as a criminal fine for a violation
of state revenue law that is designated by the court to fund
enforcement of state revenue law is appropriated to this fund.
new text end [270.059]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 18.

new text begin [270C.16] COLLECTION OF DELINQUENT LIABILITIES;
COSTS.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin For the purpose of
collecting delinquent tax liabilities or debts as defined in
section 16D.02, subdivision 3, there is appropriated to the
commissioner an amount representing the cost of collection by
contract with collection agencies, revenue departments of other
states, or attorneys to enable the commissioner to reimburse
these agencies, departments, or attorneys for this service. The
commissioner shall report quarterly on the status of this
program to the chair of the house Tax and Appropriation
Committees and senate Tax and Finance Committees.new text end [270.063,
subd. 1]

new text begin Subd. 2.new text end

new text begin Prepayment.new text end

new text begin Notwithstanding section 16A.15,
subdivision 3, the commissioner may authorize the prepayment of
sheriff's fees, attorney fees, fees charged by revenue
departments of other states, or court costs to be incurred in
connection with the collection of delinquent tax liabilities
owed to the commissioner.new text end [270.063, subd. 2]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 19.

new text begin [270C.17] COMMISSIONER TO COLLECT CERTAIN LOCAL
TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Costs deducted; appropriation. new text end

new text begin If the
commissioner agrees to collect a local tax, the local unit of
government must agree that all the direct and indirect costs of
the department for collecting the tax and any other statewide
indirect costs will be deducted from the amounts collected and
paid to the local unit of government.
new text end

new text begin Subd. 2.new text end

new text begin Development costs.new text end

new text begin If the commissioner
determines that a new computer system will be required to
collect the local taxes, the costs of development of the system
will be charged to the first local units of government to be
included in the system. Any additional local units of
government that by agreement are added to the system will be
charged for a share of the development costs. The charge will
be determined by the commissioner who shall then refund to the
original local units of government their portion of the
development costs recovered from the additional users.
new text end [270.069]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 20.

new text begin [270C.18] SETOFF OF POLITICAL SUBDIVISION
DEBTS.
new text end

new text begin (a) As used in this section, "political subdivision" means
counties and home rule charter or statutory cities, and "debts"
means a legal obligation to pay a fixed amount of money, which
equals or exceeds $100 and which is due and payable to the
claimant political subdivision.
new text end

new text begin (b) If one political subdivision owes a debt to another
political subdivision, and the debt has not been paid within six
months of the date when payment was due, the creditor political
subdivision may notify the commissioner of the debt, and shall
provide the commissioner with information sufficient to verify
the claim. If the commissioner has reason to believe that the
claim is valid, and the debt has not been paid, the commissioner
shall initiate setoff procedures under this section.
new text end

new text begin (c) Within ten days of receipt of the notification from the
creditor political subdivision, the commissioner shall send a
written notice to the debtor political subdivision, advising it
of the nature and amount of the claim. This written notice
shall advise the debtor of the creditor political subdivision's
intention to request setoff of the refund against the debt.
new text end

new text begin The notice will also advise the debtor that the debt can be
setoff against a state aid payment, and will advise the debtor
of the right to contest the validity of the claim at a hearing.
The debtor must assert this right by written request to the
commissioner, which request the commissioner must receive within
45 days of the mailing date of the notice.
new text end

new text begin (d) If the commissioner receives written notice of a debtor
political subdivision's intention to contest at hearing the
claim upon which the intended setoff is based, the commissioner
shall initiate a hearing according to contested case procedures
established in the state Administrative Procedure Act not later
than 30 days after receipt of the debtor's request for a
hearing. The costs of the hearing shall be paid equally by the
political subdivisions that are parties to the hearing. The
Office of Administrative Hearings shall separately bill each
political subdivision for one-half of the costs.
new text end

new text begin (e) If the debtor political subdivision does not object to
the claim, or does not prevail in an objection to the claim or
at a hearing on the claim, the commissioner shall deduct the
amount of the debt from the next payment scheduled to be made to
the debtor under section 273.1398 or chapter 477A. The
commissioner shall remit the amount deducted to the claimant
political subdivision.new text end [270.66, subd. 4]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 21.

new text begin [270C.19] TAXES AND FEES; REFUND AND SHARING
AGREEMENTS WITH INDIANS.
new text end

new text begin Subdivision 1. new text end

new text begin Taxes paid by indians. new text end

new text begin The commissioner
is authorized to enter into a tax refund agreement with the
governing body of any federally recognized Indian reservation in
Minnesota. The agreement may provide for a mutually agreed upon
amount as a refund to the governing body of any sales or excise
tax paid by the total resident Indian population on or adjacent
to a reservation into the state treasury, or for an amount which
measures the economic value of an agreement by the tribal
government to pay the equivalent of the state sales tax on items
included in the sales tax base but exempt on the reservation,
notwithstanding any other law which limits the refundment of
taxes. The total resident Indian population on or adjacent to a
reservation shall be defined according to the United States
Department of the Interior, Bureau of Indian Affairs, as
determined and stated in its Report on Service Population and
Labor Force.
new text end

new text begin Subd. 2. new text end

new text begin Sales, use, and excise taxes. new text end

new text begin (a) The
commissioner is authorized to enter into a tax agreement with
the governing body of any federally recognized Indian
reservation in Minnesota, that provides for the state and the
tribal government to share sales, use, and excise tax revenues
generated from on reservation activities of non-Indians and off
reservation activities of members of the reservation. Every
agreement entered into pursuant to this subdivision must require
the commissioner to collect all state and tribal taxes covered
by the agreement.
new text end

new text begin (b) The commissioner is authorized to collect any tribal
taxes imposed pursuant to any agreement entered into pursuant to
this subdivision and to make payments authorized by the
agreement to the tribal government from the funds collected.
new text end

new text begin (c) The commissioner shall pay to the tribal government its
share of the taxes collected pursuant to the agreement, as
indicated in the agreement, and grant the taxpayer a credit for
the taxpayer's share of the amount paid to the tribal government
against the taxpayer's Minnesota tax.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin There is annually appropriated
from the general fund to the commissioner the amounts necessary
to make the refunds provided in this section.
new text end

new text begin Subd. 4. new text end

new text begin Payments to counties. new text end

new text begin (a) The commissioner
shall pay to a county in which an Indian gaming casino is
located:
new text end

new text begin (1) ten percent of the state share of all taxes generated
from activities on reservations and collected under a tax
agreement under this section with the tribal government for the
reservation located in the county; or
new text end

new text begin (2) five percent of excise taxes collected by the state
that are determined by the department to have been generated
from activities on a reservation located in the county, the
tribal government of which does not have a tax agreement under
this section and did not have a tax agreement on June 30, 2003.
new text end

new text begin If the tribe has casinos located in more than one county,
the payment must be divided equally among the counties in which
the casinos are located.
new text end

new text begin (b) The commissioner shall make the payments required under
this subdivision by February 28 of the year following the year
the taxes are collected.
new text end

new text begin (c) An amount sufficient to make the payments authorized by
this subdivision is annually appropriated from the general fund
to the commissioner.
new text end

new text begin Subd. 5.new text end

new text begin Fees; appropriation.new text end

new text begin (a) The commissioner may
enter into an agreement with the governing body of any federally
recognized Indian reservation in Minnesota concerning fees
administered by the commissioner that are paid by the tribe,
members of the tribe, or persons who conduct business with the
tribe, or otherwise imposed on on-reservation activities. The
agreement may provide for the refund or sharing of the fee. The
commissioner may make any payments required by the agreement
from the fees collected.
new text end

new text begin (b) Each head of an agency, board, or other governmental
entity that administers a program that is funded by fees
administered by the commissioner may sign an agreement entered
into by the commissioner under this subdivision. An agreement
is not valid until signed by the head of each agency, board, or
other governmental entity that administers a program funded by
the particular fee covered in an agreement and by the
commissioner.
new text end

new text begin (c) There is annually appropriated to the commissioner from
the funds for which the fees are collected the amounts necessary
to make payments as provided in this subdivision.new text end [270.60]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end TAX ADMINISTRATION

Sec. 22.

new text begin [270C.25] PROHIBITION OF SUITS TO RESTRAIN
ASSESSMENT OR COLLECTION.
new text end

new text begin Subdivision 1. new text end

new text begin General rule. new text end

new text begin No suit to restrain
assessment or collection of a tax, fee, penalty, or interest,
imposed by a law administered by the commissioner, including a
declaratory judgment action, can be maintained in any court by
any person except pursuant to the express procedures in (1) this
chapter, (2) chapter 271, (3) chapter 289A, and (4) any other
law administered by the commissioner for contesting the
assessment or collection of taxes, fees, penalties, or interest.
new text end

new text begin Subd. 2.new text end

new text begin Facial challenge to constitutionality.new text end

new text begin An
action, otherwise prohibited under subdivision 1, that asserts a
facial challenge to the constitutionality of a tax or fee
imposed by a law administered by the commissioner may be
maintained only if it is demonstrated to the court by clear and
convincing evidence that under no circumstances could the
commissioner ultimately prevail and that the taxpayer or fee
payer will suffer irreparable harm if the relief sought is not
granted.new text end [289A.43]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 23.

new text begin [270C.26] PENALTY FOR FILING CERTAIN DOCUMENTS
AGAINST DEPARTMENT OF REVENUE EMPLOYEES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Recording office" means
a county recorder, registrar of titles, or secretary of state in
this state or another state.
new text end

new text begin (b) "Filing party" means the person or persons requesting
or causing another person to request that the recording office
accept documents or instruments for recording or filing.
new text end

new text begin Subd. 2. new text end

new text begin Invalid documents naming commissioner or
department employees. new text end

new text begin Filing a document, including a
nonconsensual common law lien under section 514.99, that
purports to create a claim against the commissioner or an
employee of the department based on performance or
nonperformance of duties by the commissioner or employee is
invalid unless accompanied by a specific order from a court of
competent jurisdiction authorizing the filing of the document or
unless a specific statute authorizes the filing of the document.
new text end

new text begin Subd. 3.new text end

new text begin Civil penalty.new text end

new text begin If a filing party causes a
document described in subdivision 2 to be recorded in a
recording office, the commissioner may assess a penalty against
the filing party of $1,000 per document filed, payable to the
general fund. An order assessing a penalty under this section
is reviewable administratively under section 270C.35 and is
appealable to Tax Court under chapter 271. The penalty is
collected and paid in the same manner as a tax collected by the
commissioner. The penalty is in addition to any other remedy
available to the commissioner or to an employee of the
department against whom the document has been filed.new text end [270.278]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 24.

new text begin [270C.27] CIVIL DAMAGES FOR FAILURE TO RELEASE
LIEN.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin (a) A taxpayer may bring a
civil action for damages against the commissioner in district
court when an employee or the department has knowingly or
negligently:
new text end

new text begin (1) failed to release a lien as required by section
270C.63, subdivision 11; or
new text end

new text begin (2) failed to release a lien within 30 days after
satisfaction of the liability on which the lien is based.
new text end

new text begin (b) An action under paragraph (a), clause (2), must be
preceded by 30 days' written notice by the taxpayer to the
commissioner and the taxpayer's rights advocate that the lien
has not been released. An action under paragraph (a) must be
commenced within two years after the date the right of action
accrued.
new text end

new text begin Subd. 2. new text end

new text begin Damages. new text end

new text begin On a finding of liability on the part
of the defendant in an action brought under subdivision 1, the
defendant is liable to the plaintiff in an amount equal to the
sum of actual, direct economic damages sustained by the
plaintiff due to the actions of the defendant, plus the costs of
the action. Damages must be paid in accordance with section
3.736, subdivision 7.
new text end

new text begin Subd. 3.new text end

new text begin Mitigation of damages.new text end

new text begin Damages awarded must be
reduced by the amount of the damages that could reasonably have
been mitigated by the plaintiff.new text end [270.275]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 25.

new text begin [270C.275] CIVIL DAMAGES FOR CERTAIN
UNAUTHORIZED COLLECTION ACTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin If in connection with the
collection of delinquent taxes, an employee of the department
recklessly or intentionally disregards a law administered by the
commissioner, the taxpayer may bring a civil action for damages
against the commissioner in district court within two years
after the date the right of action accrues.
new text end

new text begin Subd. 2. new text end

new text begin Damages. new text end

new text begin On a finding of liability on the part
of the defendant in an action brought under subdivision 1, the
defendant is liable to the plaintiff in an amount equal to the
lesser of $200,000, or the sum of (1) actual, direct economic
damages sustained by the plaintiff as a proximate result of the
reckless or intentional actions of the employee and (2) the
costs of the action. Damages must be paid in accordance with
section 3.736, subdivision 7.
new text end

new text begin Subd. 3. new text end

new text begin Limitations. new text end

new text begin A judgment for damages must not be
awarded under subdivision 2 unless the court determines that the
plaintiff has exhausted the administrative remedies available to
the plaintiff within the department. Damages awarded must be
reduced by the amount of the damages that could reasonably have
been mitigated by the plaintiff.
new text end

new text begin Subd. 4.new text end

new text begin Penalties for procedures instituted primarily
for delay.new text end

new text begin When it appears to the district court that:
new text end

new text begin (1) proceedings before it under this section have been
instituted or maintained by the taxpayer primarily for delay;
new text end

new text begin (2) the taxpayer's position in such proceeding is frivolous
or groundless; or
new text end

new text begin (3) the taxpayer unreasonably failed to pursue available
administrative remedies,
new text end

new text begin the district court, in its decision, may require the taxpayer to
pay to the department a penalty not in excess of $25,000. The
penalty may be collected and paid in the same manner as a tax
collected by the commissioner.new text end [270.276]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 26.

new text begin [270C.28] DISCLOSURE OF RIGHTS OF TAXPAYERS.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin The commissioner shall
prepare statements that set forth in simple and nontechnical
terms:
new text end

new text begin (1) the rights and obligations of the department and the
taxpayer during an audit;
new text end

new text begin (2) the procedures by which a taxpayer may appeal an
adverse decision of the department, including administrative and
judicial appeals;
new text end

new text begin (3) the procedures for filing refund claims and filing of
taxpayer complaints; and
new text end

new text begin (4) the procedures that the department may use in enforcing
a law administered by the commissioner, including assessment,
jeopardy assessment, levy and distraint, and the filing of liens.
new text end

new text begin Subd. 2.new text end

new text begin Distribution.new text end

new text begin The appropriate statement
prepared in accordance with subdivision 1 must be distributed by
the commissioner to all taxpayers contacted with respect to the
determination or collection of a tax, other than the providing
of tax forms. Failure to receive the statement does not
invalidate the determination or collection action.new text end [270.0603]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 27.

new text begin [270C.285] PROCEDURES INVOLVING IN-PERSON
TAXPAYER INTERVIEWS.
new text end

new text begin Subdivision 1. new text end

new text begin Recording of interviews. new text end

new text begin (a) Upon
reasonable advance notice from the taxpayer, a taxpayer shall be
allowed to make an audio recording, with the taxpayer's
equipment and at the taxpayer's expense, of an interview of the
taxpayer by the department regarding the audit or collection of
a tax.
new text end

new text begin (b) An employee of the department may record an interview
described in paragraph (a) if the taxpayer is informed of the
recording before the interview and a transcript or copy of the
recording is made available to the taxpayer on the taxpayer's
request, provided the department is reimbursed by the taxpayer
for the cost of transcribing or copying the recording.
new text end

new text begin Subd. 2. new text end

new text begin Safeguards. new text end

new text begin (a) Before or at the start of an
initial interview, an employee of the department shall provide
to the taxpayer in the case of an audit interview an explanation
of the audit process and the taxpayer's rights under that
process and, in the case of a collection interview, an
explanation of the collection process and the taxpayer's rights
under that process.
new text end

new text begin (b) If a taxpayer requests to consult with an attorney,
accountant, agent, preparer, or any other person permitted to
represent the taxpayer before the department at any time during
an interview, except an interview initiated by an administrative
subpoena, the interview must be suspended for no more than 30
days.
new text end

new text begin Subd. 3. new text end

new text begin Representatives holding power of attorney. new text end

new text begin An
attorney, accountant, agent, preparer, or any other person
permitted to represent the taxpayer before the department who
has a written power of attorney executed by the taxpayer may
represent the taxpayer in an interview described in subdivision
1. The taxpayer may be required to accompany the representative
only if a subpoena is issued. In this instance, with the
consent of an immediate supervisor and after ten days' notice to
the representative, the department employee may notify the
taxpayer directly that the employee believes the representative
is unreasonably delaying the examination or investigation
process.
new text end

new text begin Subd. 4.new text end

new text begin Not to apply to certain investigations.new text end

new text begin This
section does not apply to criminal investigations or
investigations relating to the conduct of an employee of the
department.new text end [270.272]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 28.

new text begin [270C.29] NOTICES TO HOLDERS OF POWERS OF
ATTORNEY.
new text end

new text begin If a taxpayer has executed a written power of attorney, in
a form prescribed by the commissioner, the commissioner shall
allow the taxpayer to elect, in writing, that all notices and
correspondence between the department and the taxpayer will be
sent to the holder of the power of attorney.new text end [270.277]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 29.

new text begin [270C.30] RETURNS; FORMAT; FURNISHING.
new text end

new text begin The commissioner shall prescribe the content and format of
all returns, and may furnish them subject to charge on
application.new text end [270.07, subd. 1, paragraph (a); 270.06, clause
(15)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 30.

new text begin [270C.302] RETURNS, OTHER FORMS; WHERE FILED.
new text end

new text begin Returns and other forms required to be filed under a law
administered by the commissioner must be filed at the
commissioner's office in St. Paul, or such other place as the
commissioner may designate.new text end [289A.13]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 31.

new text begin [270C.304] ELECTRONICALLY FILED RETURNS;
SIGNATURES.
new text end

new text begin For purposes of a law administered by the commissioner, the
name of the taxpayer, the name of the taxpayer's authorized
agent, or the taxpayer's identification number, will constitute
a signature when transmitted as part of the return information
on returns filed by electronic means by the taxpayer or at the
taxpayer's direction. "Electronic means" includes, but is not
limited to, the use of a touch-tone telephone to transmit return
information in a manner prescribed by the commissioner.
new text end [289A.07]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns
filed on or after August 1, 2005.
new text end

Sec. 32.

new text begin [270C.306] COMMISSIONER MAY REQUIRE SOCIAL
SECURITY OR IDENTIFYING NUMBERS ON FORMS.
new text end

new text begin Notwithstanding the provisions of any other law, the
commissioner may require that a form required to be filed with
the commissioner include the Social Security number, federal
employer identification number, or Minnesota taxpayer
identification number of the taxpayer or applicant.new text end [270.066]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 33.

new text begin [270C.308] PROHIBITION OF DISPLAY OF SOCIAL
SECURITY NUMBERS.
new text end

new text begin No label, envelope, or other material printed by the
department may include the Social Security number of the
taxpayer in a place that will be visible to a third party when
delivered or mailed to the taxpayer.new text end [270.0665]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 34.

new text begin [270C.31] EXAMINATIONS AND INVESTIGATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin To determine the accuracy of a
return, to fix liability under state revenue law, to administer
state revenue law, when conducting an investigation or an audit
of a taxpayer, for the purpose of collection, and in any matter
which the commissioner has the power to investigate or
determine, the commissioner has authority to take the actions
allowed in this section.new text end [270.06, clauses (6) and (9); 289A.36,
subd. 1]

new text begin Subd. 2. new text end

new text begin Reasonable examinations or investigations of
taxpayer. new text end

new text begin The commissioner may make reasonable examinations or
investigations of a taxpayer's place of business, tangible
personal property, equipment, computer systems, and facilities.
The commissioner may inspect and copy the taxpayer's relevant
books, records, papers, documents, and other data, in whatever
form.new text end [289A.36, subds. 1 and 3, clause (1), regarding
taxpayers]

new text begin Subd. 3. new text end

new text begin Access to records. new text end

new text begin The commissioner may
examine, except where privileged by law, the relevant records
and files of any person, business, institution, financial
institution, state agency, agency of the United States
government, or agency of any other state where permitted by
statute, agreement, or reciprocity.new text end [289A.36, subd. 2]

new text begin Subd. 4. new text end

new text begin Examinations under oath. new text end

new text begin The commissioner may
administer oaths and affirmations and examine taxpayers and
other persons under oath or affirmation.new text end [270.15; 289A.36,
subd. 3, clauses (1) and (2)]

new text begin Subd. 5. new text end

new text begin Depositions. new text end

new text begin The commissioner may depose
witnesses who reside inside or outside the state, or who are
absent from the state. Depositions are to be taken, upon notice
to the interested party, if any, in the same manner that
depositions of witnesses are taken in civil actions in the
district court.new text end [270.06, clause (9)]

new text begin Subd. 6. new text end

new text begin Witness fees. new text end

new text begin The fees of witnesses required by
the commissioner to appear are equal to those allowed to
witnesses appearing before courts of this state. The fees must
be paid in the manner provided for the payment of other expenses
incident to the administration of state revenue law.new text end [289A.36,
subd. 3, clause (2)]

new text begin Subd. 7.new text end

new text begin Limitation of authority.new text end

new text begin The authority granted
in this section to the commissioner does not apply to a matter
that has been appealed to Tax Court.new text end [270.0601]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 35.

new text begin [270C.32] SUBPOENAS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to issue subpoenas. new text end

new text begin In addition
to the authority to examine and investigate granted under
section 270C.31, and to carry out that authority, the
commissioner may issue subpoenas to compel a person, at a time
and place reasonable under the circumstances, to appear and give
testimony, and to produce relevant books, records, papers,
documents, and other data, in whatever form, for inspection and
copying.new text end [289A.36, subds. 2 and 3, clause (1); 270.06, clause
(7)]

new text begin Subd. 2. new text end

new text begin Request by taxpayer for subpoena. new text end

new text begin When the
commissioner has the authority to issue a subpoena, the
commissioner shall honor a reasonable request by a taxpayer to
issue a subpoena.new text end [289A.36, subd. 6]

new text begin Subd. 3.new text end [THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY
IS KNOWN.] new text begin (a) An examination or investigation may extend to a
person that the commissioner determines has access to
information that may be relevant to the examination or
investigation. When a subpoena requiring the production of
records as described in subdivision 1 is served on a third-party
record keeper, written notice of the subpoena must be mailed to
the taxpayer and to any other person who is identified in the
subpoena. The notices must be given within three days of the
day on which the subpoena is served. The notice required by
this subdivision is sufficient if it is mailed to the last known
address of the addressee.
new text end

new text begin (b) The provisions of this subdivision regarding notice to
the taxpayer or other parties identified in the subpoena do not
apply if there is reasonable cause to believe that the giving of
notice may lead to attempts to conceal, destroy, or alter
records or assets relevant to the examination, to prevent the
communication of information from other persons through
intimidation, bribery, or collusion, or to flee to avoid
prosecution, testifying, or production of records.new text end [289A.36,
subd. 4]

new text begin Subd. 4.new text end [THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY
IS NOT KNOWN.] new text begin (a) The commissioner may issue a subpoena that
does not identify the person or persons with respect to whose
liability the subpoena is issued, but only if:
new text end

new text begin (1) the subpoena relates to the investigation of a
particular person or ascertainable group or class of persons;
new text end

new text begin (2) there is a reasonable basis to believe that the person
or group or class of persons may fail or may have failed to
comply with a state revenue law;
new text end

new text begin (3) the information sought to be obtained from the
examination of the records, and the identity of the person or
persons with respect to whose liability the subpoena is issued,
is not readily available from other sources;
new text end

new text begin (4) the subpoena is clear and specific as to the
information sought to be obtained; and
new text end

new text begin (5) the information sought to be obtained is limited solely
to the scope of the investigation.
new text end

new text begin (b) The party served with a subpoena that does not identify
the person or persons with respect to whose tax liability the
subpoena is issued shall, within 20 days after service of the
subpoena, petition the district court for the judicial district
of the county in which that party is located for a determination
as to whether the commissioner has complied with all the
requirements in paragraph (a), clauses (1) to (5), and thus,
whether the subpoena is enforceable. If no petition is made by
the party served within the time prescribed, the subpoena shall
have the force and effect of a court order.new text end [270.06, clause
(8); 289A.36, subd. 5]

new text begin Subd. 5. new text end

new text begin Access to records in connection with examination
of businesses located outside the state. new text end

new text begin (a) In order to
determine whether a business located outside the state of
Minnesota is required to file a return under a law administered
by the commissioner, the commissioner may examine the relevant
records and files of the business. To the full extent permitted
by the Minnesota and United States Constitutions, the
commissioner may compel production of those relevant records and
files by subpoena. The subpoena may be served on the secretary
of state along with the address to which service of the subpoena
is to be sent and a fee of $50. The secretary of state shall
forward a copy of the subpoena to the business using the
procedures for service of process in section 5.25, subdivision 6.
new text end

new text begin (b) The commissioner shall pay the reasonable cost of
producing records subject to subpoena under this subdivision if:
new text end

new text begin (1) the subpoenaed party cannot produce the records without
undue burden; and
new text end

new text begin (2) the examination made pursuant to paragraph (a) shows
that the subpoenaed party is not required to file a return under
a law administered by the commissioner.new text end [289A.36, subd.9]

new text begin Subd. 6.new text end [DEMAND FOR COURT ADMINISTRATOR'S SUBPOENA.] new text begin In
addition to administrative subpoenas of the commissioner, upon
demand of the commissioner or an agent of the commissioner, the
court administrator of any district court shall issue a subpoena
for a witness to appear before the agent, or for the production
of relevant books, records, papers, documents, and other data,
in whatever form, to the agent for inspection and copying.
new text end [270.06, clause (17)]

new text begin Subd. 7. new text end

new text begin Enforcement of subpoenas. new text end

new text begin Failure to comply
with a subpoena shall be punished in the same manner as contempt
of the district court in the following venues:
new text end

new text begin (1) the district court of the district in which a court
administrator's subpoena is issued under subdivision 6;new text end [270.06,
clause (17)]

new text begin (2) the district court of the district in which the party
served with a subpoena is located, when the subpoena is issued
by the commissioner or the commissioner's agent; and new text end [270.06,
clause (17); 289A.36, subd. 7, paragraph (a)]

new text begin (3) the District Court for Ramsey County, when a subpoena
is issued under subdivision 5. In addition to contempt
remedies, the court may issue any order it deems reasonable to
enforce compliance with a subpoena issued under subdivision 5.
new text end [289A.36, subd. 7, paragraph (b)]

new text begin Subd. 8. new text end

new text begin Penalty for violating court order to comply with
subpoena. new text end

new text begin In addition to sanctions imposed under subdivision 7,
a penalty of $250 per day is imposed on any business that is in
violation of a court order to comply with a subpoena that is
seeking information necessary for the commissioner to be able to
determine whether the business is required to file a return or
pay a tax. The maximum penalty is $25,000. Upon the request of
the commissioner, the court shall determine the amount of the
penalty and enter it as a judgment in favor of the
commissioner. The penalty is not payable until the judgment is
entered.new text end [289A.36, subd. 10]

new text begin Subd. 9. new text end

new text begin Cost of production of records. new text end

new text begin The cost of
producing records of a third party required by a subpoena must
be paid by the taxpayer, if the taxpayer requests the subpoena
to be issued, or if the taxpayer has the records available but
has refused to provide them to the commissioner. In other cases
where the taxpayer cannot produce records and the commissioner
then issues a subpoena for third-party records, the commissioner
shall pay the reasonable cost of producing the records. The
commissioner may later assess the reasonable costs against the
taxpayer if the records contribute to the determination of an
assessment of tax against the taxpayer.new text end [289A.36, subd. 8]

new text begin Subd. 10.new text end

new text begin Limitation of authority.new text end

new text begin The authority granted
in this section to the commissioner and the commissioner's
agents does not apply to a matter that has been appealed to Tax
Court.new text end [270.0601]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 36.

new text begin [270C.33] COMMISSIONER ASSESSMENT PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Orders and decisions. new text end

new text begin All orders and
decisions of the commissioner, or any subordinates, respecting
any tax, assessment, or other obligation, must be in writing and
entered into the records of the commissioner.new text end [270.10, subd. 1]

new text begin Subd. 2. new text end

new text begin Notices. new text end

new text begin (a) At the same time that notice of an
assessment, determination, or order, of the commissioner is
given to a taxpayer, the taxpayer must be given a written notice
that:
new text end

new text begin (1) describes the taxpayer's appeal rights;
new text end

new text begin (2) lists the amounts of tax, interest, additions to tax,
and penalties due; and
new text end

new text begin (3) explains the basis for the assessment.
new text end

new text begin (b) Failure to provide all the required information does
not invalidate the assessment, determination, or order for
purposes of satisfying statutory notice requirements if the
assessment, determination, or order contains sufficient
information to advise the taxpayer that an assessment has been
made.new text end [270.10, subd. 1a; 289A.37, subd. 1, paragraph (a)]

new text begin Subd. 3. new text end

new text begin Commissioner filed returns. new text end

new text begin If a taxpayer fails
to file a return, the commissioner, from information in the
commissioner's possession or obtainable by the commissioner, may
make and file a return for the taxpayer, or may issue an order
of assessment under subdivision 4.new text end [289A.35]

new text begin Subd. 4. new text end

new text begin Orders of assessment. new text end

new text begin (a) The commissioner may
issue an order of assessment in any of the following
circumstances:
new text end

new text begin (1) the commissioner determines that the correct amount of
tax is different than that assessed on a return filed with the
commissioner;new text end [289A.37, subd. 1]

new text begin (2) no return has been filed and the commissioner
determines the amount of tax that should have been assessed;
new text end [289A.37, subd. 1]

new text begin (3) the commissioner determines that the correct amount of
a refundable credit is different than the amount claimed by a
taxpayer. For purposes of this subdivision, "refundable credit"
means a refund benefit or credit due a person that is unrelated
to the person's liability for a tax. "Refundable credit" does
not include estimated tax payments or withholding taxes. An
assessment for an overpayment of a refundable credit may be
collected in the same manner as a tax collected by the
commissioner; and
new text end

new text begin (4) the commissioner determines the correct amount of a tax
that the taxpayer is not required to assess by a return filed
with the commissioner.
new text end

new text begin (b) An order of assessment must be in writing.new text end [270.10,
subd. 1]

new text begin (c) An order of assessment must be signed by the
commissioner or a delegate, or have their facsimile signature,
if the change in tax, excluding penalties and interest, exceeds
$1,000.new text end [270.10, subd. 1]

new text begin (d) An order of assessment is final when made but, as
applicable, is reviewable administratively under section
270C.35, or appealable to Tax Court under chapter 271.new text end [289A.37,
subd. 1, paragraph (a)]

new text begin Subd. 5. new text end

new text begin Prohibition against collection during appeal
period of an order. new text end

new text begin No collection action can be taken on an
order of assessment, 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 order has
been mailed to the taxpayer by the commissioner; (2) if an
administrative appeal is filed under section 270C.35, 60 days
after 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 end [289A.37, subd. 1, paragraph (b); 270.10,
subd. 5]

new text begin Subd. 6. new text end

new text begin Assessment presumed valid. new text end

new text begin A return or
assessment of tax made by the commissioner is prima facie
correct and valid. The taxpayer has the burden of establishing
its incorrectness or invalidity in any related action or
proceeding.new text end [289A.37, subd. 3]

new text begin Subd. 7. new text end

new text begin Aggregate refund or assessment. new text end

new text begin The
commissioner, on examining returns for more than one year or
period, may issue one order covering the period under
examination that reflects the aggregate refund or additional tax
due.new text end [289A.37, subd. 4]

new text begin Subd. 8. new text end

new text begin Sufficiency of notice. new text end

new text begin 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, 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 end [289A.37, subd. 5]

new text begin Subd. 9.new text end

new text begin Consent agreement.new text end

new text begin A taxpayer shall have the
right at any time, whether or not an order has been issued, to
sign and deliver to the commissioner a written consent to a
change in tax liability that waives the requirement of any
additional notice and all rights to an administrative appeal and
appeal to Tax Court concerning the assessment and collection of
any part or all of the tax liability.new text end [270.67, subd. 3]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments
made on or after August 1, 2005.
new text end

Sec. 37.

new text begin [270C.34] ABATEMENT OF PENALTY, INTEREST, AND
ADDITIONAL TAX CHARGE.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin (a) The commissioner may
abate, reduce, or refund any penalty or interest that is imposed
by a law administered by the commissioner as a result of the
late payment of tax or late filing of a return, if the failure
to timely pay the tax or failure to timely file the return is
due to reasonable cause, or if the taxpayer is located in a
presidentially declared disaster area.new text end [270.07, subd. 1,
paragraph (e)]

new text begin (b) The commissioner shall abate any part of a penalty or
additional tax charge under section 289A.25, subdivision 2, or
289A.26, subdivision 4, attributable to erroneous advice given
to the taxpayer in writing by an employee of the department
acting in an official capacity, if the advice:
new text end

new text begin (1) was reasonably relied on and was in response to a
specific written request of the taxpayer; and
new text end

new text begin (2) was not the result of failure by the taxpayer to
provide adequate or accurate information.new text end [270.07, subd. 6,
paragraph (c)]

new text begin Subd. 2.new text end

new text begin Procedure.new text end

new text begin (a) A request for abatement of
penalty under subdivision 1 or section 289A.60, subdivision 4,
must be filed with the commissioner within 60 days of the date
the notice was mailed to the taxpayer's last known address,
stating that a penalty has been imposed.
new text end

new text begin (b) 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.
new text end

new text begin (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 end [270.07, subd. 6, paragraphs (a) and (b)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 38.

new text begin [270C.345] DETERMINATION OF MINIMUMS AND
CANCELLATION; ADDITIONAL TAX, COLLECTION, REFUNDS.
new text end

new text begin Notwithstanding any other provision of law, the
commissioner may:
new text end

new text begin (1) based upon the administrative costs of processing,
determine minimum standards for the determination of additional
tax for which an order shall be issued;
new text end

new text begin (2) based upon collection costs as compared to the amount
of tax involved, determine minimum standards of collection;
new text end

new text begin (3) based upon the administrative costs of processing,
determine the minimum amount of a refund to be made where no
claim has been filed; and
new text end

new text begin (4) cancel any amounts below these minimum standards
determined under clauses (1) and (2).new text end [270.07, subd. 3]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 39.

new text begin [270C.346] ERRONEOUS REMITTANCES.
new text end

new text begin If a remittance is erroneously made payable to the
commissioner and the commissioner had knowledge that the proper
payee is a state or local official of this state, the
commissioner may endorse such remittance to the proper state or
local official. The commissioner is also authorized to return a
remittance if the records indicate that it has been erroneously
submitted.new text end [270.07, subd. 4]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 40.

new text begin [270C.347] REBATE CHECKS AND WARRANTS; AUTHORITY
TO REISSUE; APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Checks and warrants, authority to
reissue. new text end

new text begin Notwithstanding any other provision of law, the
commissioner may, based on a showing of reasonable cause,
reissue an uncashed rebate or property tax refund warrant or
check that has lapsed under any provision of law relating to
rebates or under section 290A.18, subdivision 2. The authority
to reissue warrants or checks under this paragraph is limited to
five years after the date of issuance of the original warrant or
check.new text end [270.07, subd. 3, paragraph (f)]

new text begin Subd. 2.new text end

new text begin Appropriation.new text end

new text begin An amount sufficient for the
reissuance of rebate warrants authorized under subdivision 1 is
appropriated to the commissioner from the general fund.
new text end [270.07, subd. 3a]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 41.

new text begin [270C.35] ADMINISTRATIVE REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Taxpayer right to reconsideration. new text end

new text begin A
taxpayer may obtain reconsideration by the commissioner of an
order assessing tax, a denial of a request for abatement of
penalty or interest imposed by a law administered by the
commissioner, or a denial of a claim for refund by filing an
administrative appeal under subdivision 4. A taxpayer cannot
obtain reconsideration under this section if the action taken by
the commissioner is the outcome of an administrative appeal.
new text end

new text begin Subd. 2. new text end

new text begin Appeal by taxpayer. new text end

new text begin A taxpayer who wishes to
seek administrative review must follow the procedures in
subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Notice date. new text end

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

new text begin Subd. 4. new text end

new text begin Time and content for administrative appeal.
new text end

new text begin Within 60 days after the notice date, the taxpayer must file a
written appeal with the commissioner. The appeal need not be in
any particular form but must contain the following information:
new text end

new text begin (1) name and address of the taxpayer;
new text end

new text begin (2) if a corporation, the state of incorporation of the
taxpayer, and the principal place of business of the
corporation;
new text end

new text begin (3) the Minnesota identification number or Social Security
number of the taxpayer;
new text end

new text begin (4) the type of tax involved;
new text end

new text begin (5) the date;
new text end

new text begin (6) the tax years or periods involved and the amount of tax
involved for each year or period;
new text end

new text begin (7) the findings in the notice that the taxpayer disputes;
new text end

new text begin (8) a summary statement that the taxpayer relies on for
each exception; and
new text end

new text begin (9) the taxpayer's signature or signature of the taxpayer's
duly authorized agent.
new text end

new text begin Subd. 5. new text end

new text begin Extensions. new text end

new text begin When requested in writing and
within the time allowed for filing an administrative appeal, the
commissioner may extend the time for filing an appeal for a
period not more than 30 days from the expiration of the 60 days
from the notice date.
new text end

new text begin Subd. 6. new text end

new text begin Determination of appeal. new text end

new text begin On the basis of
applicable law and available information, the commissioner shall
determine the validity, if any, in whole or part of the appeal
and notify the taxpayer of the decision. This notice must be in
writing and contain the basis for the determination.
new text end

new text begin Subd. 7. new text end

new text begin Agreement determining tax liability. new text end

new text begin When it
appears to be in the best interests of the state, the
commissioner may settle any taxes, penalties, or interest that
the commissioner has under consideration by virtue of an appeal
filed under this section. An agreement must be in writing and
signed by the commissioner and the taxpayer, or the taxpayer's
representative authorized by the taxpayer to enter into an
agreement. The agreement shall be final and conclusive and,
except upon a showing of fraud or malfeasance, or
misrepresentation of a material fact, the case shall not be
reopened as to the matters agreed upon.
new text end

new text begin Subd. 8. new text end

new text begin Order and appeal of an administrative
determination. new text end

new text begin Following the determination of an appeal and
notwithstanding any period of limitations for making assessments
or other determinations to the contrary, the commissioner must
issue an order reflecting that disposition. If the statute of
limitations for making assessments or other determinations would
have expired before the issuance of this order, except for this
section, the order is limited to issues or matters contained in
the appealed determination. The order is appealable to the
Minnesota Tax Court under section 271.06.
new text end

new text begin Subd. 9. new text end

new text begin Appeal where no determination. new text end

new text begin If the
commissioner does not make a determination within six months of
the filing of an administrative appeal, the taxpayer may elect
to appeal to Tax Court.
new text end

new text begin Subd. 10.new text end

new text begin Exemption from administrative procedure act.
new text end

new text begin This section is not subject to chapter 14.new text end [289A.65]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 42.

new text begin [270C.36] JEOPARDY ASSESSMENT AND COLLECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Assessment. new text end

new text begin If the commissioner has
reasonable grounds to believe that a taxpayer is about to leave,
or take property from, this state with the purpose of evading a
tax, or that the collection of the tax will be jeopardized by
delays incident to other methods of collection, the commissioner
may immediately declare the taxpayer's reporting period to be at
an end and assess the tax due by issuing an order under section
270C.33, subdivision 4. The commissioner may make the
assessment on the basis of knowledge or information available to
the commissioner, and notwithstanding the prohibition against
collection under section 270C.33, subdivision 5, demand
immediate payment of the amount due shown in the assessment.
new text end [290.48, subd. 4; 290.92, subd. 6b; 297A.93, paragraph (a)]

new text begin Subd. 2. new text end

new text begin Collection. new text end

new text begin Notwithstanding the prohibition
against collection in section 270C.33, subdivision 5, and the
notice provisions in section 270C.67, subdivision 3, if the
commissioner has reason to believe that collection of a tax is
in jeopardy, notice and demand for immediate payment of the tax
may be made. If the tax is not paid, the commissioner may
proceed to collect by levy or by filing a lien under section
270C.63. For this purpose, "tax" includes any penalty,
interest, and costs, properly payable.new text end [270.70, subds. 1 and 2,
paragraph (b)]

new text begin Subd. 3. new text end

new text begin Administrative review. new text end

new text begin Within five days after a
jeopardy assessment or jeopardy collection is made to assess or
collect a tax, the commissioner shall provide the taxpayer with
a written statement of the information relied on in making the
assessment or levy. Within 30 days after the written statement
is provided or, if not provided, within 35 days after the
assessment or levy, the taxpayer may request the commissioner to
review the action taken. After a request for review, the
commissioner shall determine whether the assessment or levy is
reasonable and whether the amount assessed or demanded as a
result of the action is appropriate under the circumstances.
new text end

new text begin Subd. 4. new text end

new text begin Judicial review. new text end

new text begin A determination by the
commissioner under subdivision 3 is appealable to the Tax Court
in the manner provided by law, and the appeal must be
expeditiously heard by the court. If the court determines that
the making of the assessment or levy is unreasonable, or that
the amount assessed or demanded is inappropriate, the court may
order the commissioner to release the levy, abate the
assessment, redetermine in whole or in part the amount assessed
or demanded, or take other action. A determination by the court
under this subdivision is final and may not be appealed by
either party.
new text end

new text begin Subd. 5. new text end

new text begin Burden of proof. new text end

new text begin In a proceeding under
subdivision 4, the burden of proving that the assessment or
collection of the tax was jeopardized by delay is on the
commissioner. Regarding the issue of whether the amount
assessed or demanded as a result of the action is appropriate,
the commissioner shall provide a written statement explaining
the basis for determining the amount, and the burden is on the
taxpayer to show that the statement is incorrect or invalid.
new text end [270.274]

new text begin Subd. 6.new text end

new text begin Defenses.new text end

new text begin It is not a defense to an assessment
or demand made under this section that the tax period has not
terminated, that the time otherwise allowed by law to file a
return has not expired, that the notices otherwise required by
law for making an assessment or demand have not been given, or
that the time otherwise allowed by law to appeal or pay the tax
has not expired.new text end [297A.93, paragraph (b)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments
made and collection action taken on or after August 1, 2005.
new text end

Sec. 43.

new text begin [270C.37] TAXPAYER ASSISTANCE ORDERS; TAXPAYER'S
RIGHTS ADVOCATE.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to issue. new text end

new text begin On application filed
by a taxpayer with the Department of Revenue taxpayer's rights
advocate, in the form, manner, and in the time prescribed by the
commissioner, and after thorough investigation, the taxpayer's
rights advocate may issue a taxpayer assistance order if, in the
determination of the taxpayer's rights advocate, the manner in
which a law administered by the commissioner is being carried
out is creating or will create an unjust and inequitable result
for the taxpayer.
new text end

new text begin Subd. 2. new text end

new text begin Terms of a taxpayer assistance order. new text end

new text begin A
taxpayer assistance order may require the department within a
specified time period to release property of the taxpayer levied
on, cease any action, take any action as permitted by law, or
refrain from taking any action to enforce a law administered by
the commissioner against the taxpayer, until the issue or issues
giving rise to the order have been resolved.
new text end

new text begin Subd. 3. new text end

new text begin Authority to modify or rescind. new text end

new text begin A taxpayer
assistance order issued by the taxpayer's rights advocate under
this section may be modified or rescinded by the commissioner.
new text end

new text begin Subd. 4.new text end

new text begin Suspension of running of period of limitation.
new text end

new text begin The running of the period of limitation with respect to an
action described in subdivision 2 is suspended from the date of
the taxpayer assistance order until the expiration date of the
order or, if modified, the expiration date of the modified order
or, if rescinded, the date of the rescission.
new text end

new text begin Subd. 5.new text end [INDEPENDENT ACTION OF TAXPAYER'S RIGHTS
ADVOCATE.] new text begin This section does not prevent the taxpayer's rights
advocate from taking action in the absence of an application
under subdivision 1.
new text end

new text begin Subd. 6.new text end [TAXPAYER'S RIGHTS ADVOCATE.] new text begin For purposes of
this section, the term "taxpayer's rights advocate" includes a
designee of the taxpayer's rights advocate. The taxpayer's
rights advocate shall represent the interests of taxpayers who
have grievances against the department in connection with an
audit or collection activity, and shall report directly to the
commissioner. A determination of the taxpayer's rights advocate
under this section to issue or to not issue a taxpayer
assistance order is final and cannot be appealed to the Tax
Court or any other court.new text end [270.273]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 44.

new text begin [270C.38] NOTICE OF DETERMINATION OR ACTION OF
THE COMMISSIONER.
new text end

new text begin Subdivision 1. new text end

new text begin Sufficient notice. new text end

new text begin 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.
new text end

new text begin Subd. 2.new text end

new text begin Service of notice by mail.new text end

new text begin Notwithstanding any
other law to the contrary, the commissioner, if required to
serve notices by registered or certified mail, may choose to
make such service by regular mail, retaining a record of
adequate proof of such service.new text end [270.061]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices
issued on or after August 1, 2005.
new text end

Sec. 45.

new text begin [270C.39] DUE DATE ON SATURDAY, SUNDAY, OR
HOLIDAY.
new text end

new text begin When the last day prescribed by law for the payment of any
tax to or the filing of any return, statement, or document with
the commissioner or the department falls on Saturday, Sunday, or
a legal holiday, the performance of such act shall be considered
timely if it is performed on the next succeeding day which is
not a Saturday, Sunday, or legal holiday. For purposes of this
section, the last day for the performance of the prescribed act
shall be determined by including any authorized extension of
time; the term "legal holiday" shall mean any day made a holiday
in Minnesota by section 645.44, subdivision 5, or by the laws of
the United States.new text end [270.27]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 46.

new text begin [270C.395] TIMELY MAILING TREATED AS TIMELY
FILING AND PAYING.
new text end

new text begin Subdivision 1. new text end

new text begin Date of delivery. new text end

new text begin When a document,
including a return, claim, or statement, is required to be
filed, or a payment is required to be made to the commissioner
within a prescribed period, or on or before a prescribed date,
and if the document or payment is delivered by electronic means
or by United States mail after the period or the date to the
place prescribed for filing or payment, then the date of
delivery or of payment is the date of the confirmation
time-and-date stamp of the transaction, if delivered by
electronic means, or the date of the United States postmark
stamped on the cover in which the document or payment is mailed,
if delivered by United States mail, as the case may be.
new text end

new text begin Subd. 2. new text end

new text begin Mailing requirements. new text end

new text begin Subdivision 1 applies
only if:
new text end

new text begin (1) the postmark date falls within the prescribed period or
on or before the prescribed date,
new text end

new text begin (i) for filing (including any extension granted for the
filing) of the document, or
new text end

new text begin (ii) for making the payment (including any extension
granted for making the payment); and
new text end

new text begin (2) the document or payment was within the time prescribed
in clause (1), deposited in the mail in the United States in an
envelope or other appropriate wrapper, postage prepaid, properly
addressed to the office of the Department of Revenue with which
the document is required to be filed or to which payment is
required to be made.
new text end

new text begin Subd. 3. new text end

new text begin Confirmation of electronic filing and payment
and united states postal service postmark. new text end

new text begin The confirmation
numbers and confirmation time-and-date stamps received by the
taxpayer following electronic payment or filing are proof of the
payment authorization and filing dates. Only the postmark of
the United States Postal Service, rather than those of private
postage meters, qualifies as proof of timely mailing under this
section. If the document or payment is sent by United States
registered mail, the date of registration shall be treated as
the postmark date. If the document or payment is sent by United
States certified mail and the sender's receipt is postmarked by
the postal employee to whom the envelope containing such
document or payment is presented, the date of the United States
postmark on the receipt shall be treated as the postmark date of
the document or payment.
new text end

new text begin Subd. 4. new text end

new text begin Receipt date otherwise governs. new text end

new text begin In any case in
which the document or payment is not treated as timely filed or
paid under this section, the date of receipt by the
commissioner, and not the postmark date, shall govern for
purposes of determining the amount of any penalties for late
filing or payment.
new text end

new text begin Subd. 5.new text end

new text begin Private delivery services.new text end

new text begin A reference in this
section to the United States mail shall be treated as including
a reference to any designated delivery service, and any
reference in this section to a postmark by the United States
Postal Service shall be treated as including a reference to any
date recorded or marked by any designated delivery service in
accordance with section 7502(f) of the Internal Revenue Code.
new text end [270.271]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 47.

new text begin [270C.40] INTEREST PAYABLE TO COMMISSIONER.
new text end

new text begin Subdivision 1. new text end

new text begin Interest; rate. new text end

new text begin If any tax payable to the
commissioner or to the department is not paid within the time
specified by law for payment, the unpaid tax shall bear interest
at the rate for each year determined in subdivision 5 from the
date such tax should have been paid until the date that the tax
was paid, unless otherwise provided by law.
new text end

new text begin Subd. 2. new text end

new text begin Extension of time. new text end

new text begin When an extension of time
has been granted by the commissioner, interest shall be paid at
the rate for each year determined in subdivision 5 from the date
such payment should have been made, if no extension had been
granted, until the date of payment of such tax.
new text end

new text begin Subd. 3. new text end

new text begin Penalty. new text end

new text begin If any penalty payable to the
commissioner shall by law bear interest, such penalty shall bear
interest at the rate for each year determined in subdivision 5
from the date the penalty was assessable until the date that
such penalty was paid, unless a different rate of interest is
otherwise provided by law.
new text end

new text begin Subd. 4. new text end

new text begin Underpayment of estimated tax. new text end

new text begin There shall be
added to the amount of any underpayment of estimated tax,
computed pursuant to chapter 289A, an amount in lieu of
interest. The amount in lieu of interest for that taxable year
shall be the amount determined in subdivision 5 for January 1 on
which begins the taxable year or precedes the beginning of the
taxable year. The amount in lieu of interest does not bear
interest after the due date of the return for that taxable year.
new text end

new text begin Subd. 5. new text end

new text begin Annual interest rate. new text end

new text begin The rate of interest or
amount in lieu of interest contained in subdivisions 1 to 4
shall be determined by the commissioner not later than October
15 of each year and shall be equal to the prime rate charged by
banks during the six-month period ending on September 30 of that
year, rounded to the nearest full percent. The rate of interest
or amount in lieu of interest becomes effective on January 1 of
the immediately succeeding year except as provided in
subdivision 4. For purposes of this subdivision, the term
"prime rate charged by banks" means the average predominant
prime rate quoted by commercial banks to large businesses, as
determined by the Board of Governors of the Federal Reserve
System. The determination of the commissioner pursuant to this
subdivision shall not be considered a "rule" and shall not be
subject to the Administrative Procedure Act contained in chapter
14.
new text end

new text begin Subd. 6.new text end

new text begin Unpaid judgment.new text end

new text begin Notwithstanding section
549.09, if judgment is entered upon any tax payable to the
commissioner which has not been paid within the time specified
by law for payment, the unpaid judgment shall bear interest at
the rate specified in this section from the date judgment is
entered until the date of payment.new text end [270.75]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 48.

new text begin [270C.405] INTEREST ON REFUNDS.
new text end

new text begin When any tax payable to the commissioner or to the
department is overpaid and an amount is due the taxpayer as a
refund of the overpayment, the overpayment shall bear interest
from the date of payment of the tax until the date the refund is
paid or credit is made, unless another period for computing
interest is provided by law. The interest rate per annum on
overpayments shall be the interest rate contained in section
270C.40, subdivision 5; the rate shall be adjusted annually and
become effective as provided in section 270C.40, subdivision 5.
The determination of the commissioner pursuant to this
subdivision is not a "rule" and is not subject to the
Administrative Procedure Act contained in chapter 14.new text end [270.76]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 49.

new text begin [270C.41] AGREEMENT WITH INTERNAL REVENUE
SERVICE.
new text end

new text begin Pursuant to section 270B.12, the commissioner may enter
into an agreement with the Internal Revenue Service to identify
taxpayers who have refunds due from the department and
liabilities owing to the Internal Revenue Service. In
accordance with the procedures established in the agreement, the
Internal Revenue Service may levy against the refunds to be paid
by the department. For each refund levied upon, the
commissioner shall first deduct from the refund a fee of $20,
and then remit the refund or the amount of the levy, whichever
is less, to the Internal Revenue Service. The proceeds of fees
shall be deposited into the Department of Revenue recapture
revolving fund under section 270A.07, subdivision 1.new text end [270.052]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 50.

new text begin [270C.42] ELECTRONIC PAYMENTS; PENALTY.
new text end

new text begin Subdivision 1. new text end

new text begin Payments required to be made
electronically. new text end

new text begin (a) If a taxpayer is required to make payment
of a tax to the commissioner by electronic means, the taxpayer
shall make all payments of all taxes and fees paid to the
commissioner by electronic means.
new text end

new text begin (b) Paragraph (a) does not apply to payments required to be
made for individual income taxes under section 289A.20,
subdivision 1, paragraph (a), or 289A.25.new text end [270.771]

new text begin Subd. 2.new text end

new text begin Penalty for failure to pay electronically.new text end

new text begin In
addition to other applicable penalties imposed by law, after
notification from the commissioner to the taxpayer that payments
for a tax payable to the commissioner are required to be made by
electronic means, and the payments are remitted by some other
means, there is a penalty in the amount of five percent of each
payment that should have been remitted electronically. After
the commissioner's initial notification to the taxpayer that
payments are required to be made by electronic means, the
commissioner is not required to notify the taxpayer in
subsequent periods if the initial notification specified the
amount of tax liability at which a taxpayer is required to remit
payments by electronic means. The penalty can be abated under
the abatement procedures prescribed in section 270C.34 if the
failure to remit the payment electronically is due to reasonable
cause. The penalty bears interest at the rate specified in
section 270C.40 from the due date of the payment of the tax to
the date of payment of the penalty.new text end [270.78]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 51.

new text begin [270C.425] FINANCIAL TRANSACTION CARDS; PAYMENT
OF TAXES; APPROPRIATION.
new text end

new text begin (a) The commissioner may allow taxpayers to use financial
transaction cards, as defined in section 325G.02, subdivision 2,
to pay any of the following which are payable to the
commissioner:
new text end

new text begin (1) taxes;
new text end

new text begin (2) estimated tax deposits;
new text end

new text begin (3) penalties;
new text end

new text begin (4) interest;
new text end

new text begin (5) additions to taxes; and
new text end

new text begin (6) fees.
new text end

new text begin (b) The commissioner may impose a fee on each transaction
under paragraph (a). The fee is equal to the fee the
commissioner is required to pay for the taxpayer's use of the
financial transaction card. This fee must be deposited in the
general fund and is appropriated to the commissioner for the
purpose of paying the transaction card fee.
new text end

new text begin (c) The types of financial transaction cards that will be
accepted shall be determined solely by the commissioner. The
selection of transaction card vendors shall be made through a
request for proposals process. Before issuing a request for
proposals, the commissioner shall review the request for
proposals and any specifications with the commissioner of
finance. The commissioner shall select the transaction card
vendors from among those which meet the operational and cost
requirements of the department. The commissioner may limit the
number of different types of financial transaction cards that
will be accepted.
new text end

new text begin (d) If the commissioner allows taxpayers to pay taxes with
financial transaction cards, the commissioner shall report
quarterly on the status of this program to the chairs of the
house tax and appropriations committees and the chairs of the
senate tax and finance committees.new text end [270.74]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 52.

new text begin [270C.43] REFUNDS PAYABLE IN INSTALLMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Law held unconstitutional. new text end

new text begin Where there is
(1) a final judicial determination that a law administered by
the commissioner is unconstitutional, is in violation of state
or federal law, or that a regulation or statute has been
misinterpreted by the department; and (2) the determination is
not limited to prospective application, the procedures in this
section relating to refunds attributable to that determination
apply.
new text end

new text begin Subd. 2. new text end

new text begin Estimate of cumulative refunds. new text end

new text begin The
commissioner shall estimate the cumulative refunds due resulting
from the judicial determination.
new text end

new text begin Subd. 3. new text end

new text begin General refund provisions. new text end

new text begin If the commissioner
determines that the cumulative refunds due all affected
taxpayers will not exceed $50,000,000, the general provisions
for refunding for the particular tax type apply.
new text end

new text begin Subd. 4.new text end

new text begin Refund procedures.new text end

new text begin (a) If the commissioner
determines that the cumulative refunds due all affected
taxpayers will exceed $50,000,000, the refund procedures in this
subdivision apply.
new text end

new text begin (b) The refunds due shall be paid in five installments.
The first installment will be paid during the calendar year
following the later of the filing of the refund claim or the
final judicial determination and subsequent installments will be
paid at any time during each of the four succeeding calendar
years.
new text end

new text begin (c) The commissioner shall compute the annual refund
installment due under this subdivision, and notify the taxpayer
of the total amount of the claim for refund which has been
allowed.
new text end

new text begin (d) The installment paid each year equals 20 percent of the
refund allowed unless the commissioner determines that the
cumulative refunds due for a particular year under this section
will exceed $150,000,000. If the refunds payable will exceed
that amount, they will be reduced pro rata with any balance
remaining due payable with the final refund installment.
new text end

new text begin (e) Unless contrary to the provisions in this section, the
provisions for refunds in the various tax types, including
provisions related to the payment of interest, apply to the
refunds subject to these provisions.
new text end

new text begin (f) The commissioner may establish a de minimis individual
refund amount below which the installment provisions do not
apply. The amount established under this paragraph is not
subject to the provisions of chapter 14.
new text end

new text begin (g) If the commissioner of finance determines that it is in
the best interest of the state, refunds payable under this
section may be paid in fewer than five installments.new text end [270.79]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds
payable on or after August 1, 2005.
new text end

Sec. 53.

new text begin [270C.44] PRACTICE BEFORE THE COMMISSIONER.
new text end

new text begin The commissioner shall prescribe rules governing the
qualification and practice of agents, attorneys, or other
persons representing taxpayers before the commissioner. The
rules may require that those persons, agents, and attorneys show
that they are of good character and in good repute, have the
necessary qualifications to give taxpayers valuable services,
and are otherwise competent to advise and assist taxpayers in
the presentation of their case before being recognized as
representatives of taxpayers. After due notice and opportunity
for hearing, the commissioner may suspend and bar from further
practice before the commissioner any person, agent, or attorney
who is shown to be incompetent or disreputable, who refuses to
comply with the rules, or who with intent to defraud, willfully
or knowingly deceives, misleads, or threatens a taxpayer or
prospective taxpayer, by words, circular, letter, or by
advertisement. This section does not curtail the rights of
individuals to appear in their own behalf or partners or
corporations' officers to appear in behalf of their respective
partnerships or corporations.new text end [270.06, clause (16)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 54.

new text begin [270C.445] TAX PREPARATION SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin (a) This section applies to a
person who offers, provides, or facilitates the provision of
refund anticipation loans, as part of or in connection with the
provision of tax preparation services.
new text end

new text begin (b) This section does not apply to:
new text end

new text begin (1) a tax preparer who provides tax preparation services
for fewer than six clients in a calendar year;
new text end

new text begin (2) the provision by a person of tax preparation services
to a spouse, parent, grandparent, child, or sibling; and
new text end

new text begin (3) the provision of services by an employee for an
employer.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section,
the following terms have the meanings given.
new text end

new text begin (b) "Client" means an individual for whom a tax preparer
performs or agrees to perform tax preparation services.
new text end

new text begin (c) "Person" means an individual, corporation, partnership,
limited liability company, association, trustee, or other legal
entity.
new text end

new text begin (d) "Refund anticipation loan" means a loan, whether
provided by the tax preparer or another entity such as a
financial institution, in anticipation of, and whose payment is
secured by, a client's federal or state income tax refund or
both.
new text end

new text begin (e) "Tax preparation services" means services provided for
a fee or other consideration to a client to:
new text end

new text begin (1) assist with preparing or filing state or federal
individual income tax returns;
new text end

new text begin (2) assume final responsibility for completed work on an
individual income tax return on which preliminary work has been
done by another; or
new text end

new text begin (3) offer or facilitate the provision of refund
anticipation loans.
new text end

new text begin (f) "Tax preparer" or "preparer" means a person providing
tax preparation services subject to this section.
new text end

new text begin Subd. 3. new text end

new text begin Standards of conduct. new text end

new text begin No tax preparer shall:
new text end

new text begin (1) without good cause fail to promptly, diligently, and
without unreasonable delay complete a client's tax return;
new text end

new text begin (2) obtain the signature of a client to a tax return or
authorizing document that contains blank spaces to be filled in
after it has been signed;
new text end

new text begin (3) fail to sign a client's tax return when payment for
services rendered has been made;
new text end

new text begin (4) fail or refuse to give a client a copy of any document
requiring the client's signature within a reasonable time after
the client signs the document;
new text end

new text begin (5) fail to retain for at least four years a copy of
individual income tax returns;
new text end

new text begin (6) fail to maintain a confidential relationship between
themselves and their clients or former clients;
new text end

new text begin (7) fail to take commercially reasonable measures to
safeguard a client's nonpublic personal information;
new text end

new text begin (8) make, authorize, publish, disseminate, circulate, or
cause to make, either directly or indirectly, any false,
deceptive, or misleading statement or representation relating to
or in connection with the offering or provision of tax
preparation services;
new text end

new text begin (9) require a client to enter into a loan arrangement in
order to complete a tax return;
new text end

new text begin (10) claim credits or deductions on a client's tax return
for which the tax preparer knows or reasonably should know the
taxpayer does not qualify;
new text end

new text begin (11) charge, offer to accept, or accept a fee based upon a
percentage of an anticipated refund for tax preparation
services;
new text end

new text begin (12) under any circumstances, withhold or fail to return to
a client a document provided by the client for use in preparing
the client's tax return.
new text end

new text begin Subd. 4. new text end

new text begin Required disclosures; refund anticipation
loans. new text end

new text begin (a) If a tax preparer offers to make or facilitate a
refund anticipation loan to the client, the preparer must make
the disclosures in this subdivision. The disclosures must be
made before or at the same time the preparer offers the refund
anticipation loan to the client.
new text end

new text begin (b) The tax preparer must provide to a client a written
notice on a single sheet of paper, separate from any other
document or writing, containing:
new text end

new text begin (1) a legend, centered at the top on the single sheet of
paper, in bold, capital letters, and in 28-point type stating
"NOTICE";
new text end

new text begin (2) the following verbatim statements:
new text end

new text begin (i) "This is a loan. The annual percentage rate (APR),
based on the estimated payment period, is (fill in the estimated
APR)."
new text end

new text begin (ii) "Your refund will be used to repay the loan. As a
result, the amount of your refund will be reduced by (fill in
appropriate dollar amount) for fees, interest, and other
charges."
new text end

new text begin (iii) "You can get your refund in about two weeks if you
file your return electronically and have the Internal Revenue
Service send your refund to your own bank account." and
new text end

new text begin (3) if the client is subject to additional interest when a
refund is delayed, the following verbatim statement must also be
included in the notice: "If you choose to take this loan and
your refund is delayed, you may have to pay additional interest."
new text end

new text begin (c) All required statements must be in capital and small
font type fonts, in a minimum of 14-point type, with at least a
double space between each line in the statement and four spaces
between each statement.
new text end

new text begin (d) The notice must be signed and dated by the tax preparer
and the client.
new text end

new text begin Subd. 5. new text end

new text begin Itemized bill required. new text end

new text begin A tax preparer must
provide an itemized statement of the charges for services, at
least separately stating the charges for:
new text end

new text begin (1) return preparation;
new text end

new text begin (2) electronic filing; and
new text end

new text begin (3) providing or facilitating a refund anticipation loan.
new text end

new text begin Subd. 6. new text end

new text begin Enforcement; penalties. new text end

new text begin The commissioner may
impose an administrative penalty of not more than $1,000 per
violation of subdivision 3, 4, or 5. The commissioner may
terminate a tax preparer's authority to transmit returns
electronically to the state, if the commissioner determines the
tax preparer engaged in a pattern and practice of violating this
section. Imposition of a penalty under this subdivision is
subject to the contested case procedure under chapter 14. The
commissioner shall collect the penalty in the same manner as a
tax collected by the commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Enforcement; civil actions. new text end

new text begin (a) Any violation
of this section is an unfair, deceptive, and unlawful trade
practice within the meaning of section 8.31.
new text end

new text begin (b) A client may bring a civil action seeking redress for a
violation of this section in the conciliation or the district
court of the county in which unlawful action is alleged to have
been committed or where the respondent resides or has a
principal place of business.
new text end

new text begin (c) A district court finding for the plaintiff must award
actual damages, including incidental and consequential damages,
reasonable attorney fees, court costs, and any other equitable
relief as the court considers appropriate.
new text end

new text begin Subd. 8.new text end

new text begin Exemptions; enforcement provisions.new text end

new text begin The
provisions of subdivisions 6 and 7 do not apply to:
new text end

new text begin (1) an attorney admitted to practice under section 481.01;
new text end

new text begin (2) a certified public accountant holding a certificate
under section 326A.04 or a person issued a permit to practice
under section 326A.05;
new text end

new text begin (3) a person designated as a registered accounting
practitioner under Minnesota Rules, part 1105.6600, or a
registered accounting practitioner firm issued a permit under
Minnesota Rules, part 1105.7100;
new text end

new text begin (4) an enrolled agent who has passed the special enrollment
examination administered by the Internal Revenue Service; and
new text end

new text begin (5) any fiduciary, or the regular employees of a fiduciary,
while acting on behalf of the fiduciary estate, the testator,
trustor, grantor, or beneficiaries of them.new text end [270.30]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 55.

new text begin [270C.447] LEGAL ACTION TO ENJOIN TAX RETURN
PREPARER.
new text end

new text begin Subdivision 1. new text end

new text begin Commencement of action. new text end

new text begin A civil action in
the name of the state of Minnesota may be commenced to enjoin
any person who is a tax return preparer doing business in this
state from further engaging in any conduct described in
subdivision 2. An action under this subdivision must be brought
by the attorney general in the district court for the judicial
district of the tax return preparer's residence or principal
place of business, or in which the taxpayer with respect to
whose tax return the action is brought resides. The court may
exercise its jurisdiction over the action separate and apart
from any other action brought by the state of Minnesota against
the tax return preparer or any taxpayer.
new text end

new text begin Subd. 2. new text end

new text begin Injunction prohibiting specific conduct. new text end

new text begin In an
action under subdivision 1, if the court finds that a tax return
preparer has:
new text end

new text begin (1) engaged in any conduct subject to a civil penalty under
section 289A.60 or a criminal penalty under section 289A.63;
new text end

new text begin (2) misrepresented the preparer's eligibility to practice
before the Department of Revenue, or otherwise misrepresented
the preparer's experience or education as a tax return preparer;
new text end

new text begin (3) guaranteed the payment of any tax refund or the
allowance of any tax credit; or
new text end

new text begin (4) engaged in any other fraudulent or deceptive conduct
that substantially interferes with the proper administration of
a law administered by the commissioner, and injunctive relief is
appropriate to prevent the recurrence of that conduct,
new text end

new text begin the court may enjoin the person from further engaging in that
conduct.
new text end

new text begin Subd. 3. new text end

new text begin Injunction prohibiting all business activities.
new text end

new text begin If the court finds that a tax return preparer has continually or
repeatedly engaged in conduct described in subdivision 2, and
that an injunction prohibiting that conduct would not be
sufficient to prevent the person's interference with the proper
administration of a law administered by the commissioner, the
court may enjoin the person from acting as a tax return
preparer. The court may not enjoin the employer of a tax return
preparer for conduct described in subdivision 2 engaged in by
one or more of the employer's employees unless the employer was
also actively involved in that conduct.new text end [289A.60, subd. 13,
paragraphs (b), (c), and (d)]

new text begin Subd. 4.new text end

new text begin Tax return preparer.new text end

new text begin For purposes of this
section, the term "tax return preparer" means an individual who
prepares for compensation, or who employs one or more
individuals to prepare for compensation, a return of tax or a
claim for refund of tax. The preparation of a substantial part
of a return or claim for refund is treated as if it were the
preparation of the entire return or claim for refund. An
individual is not considered a tax return preparer merely
because the individual:
new text end

new text begin (1) gives typing, reproducing, or other mechanical
assistance;
new text end

new text begin (2) prepares a return or claim for refund of the employer,
or an officer or employee of the employer, by whom the
individual is regularly and continuously employed;
new text end

new text begin (3) prepares a return or claim for refund of any person as
a fiduciary for that person; or
new text end

new text begin (4) prepares a claim for refund for a taxpayer in response
to a tax order issued to the taxpayer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end COLLECTION

Sec. 56.

new text begin [270C.50] USE OF COLLECTION REMEDIES.
new text end

new text begin In addition to the remedies provided in the state revenue
laws, the commissioner may use any remedy available to
nongovernmental creditors to collect taxes.new text end [270.06, clause
(14)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 57.

new text begin [270C.51] ALLOCATION OF PAYMENT.
new text end

new text begin In the discretion of the commissioner, payments received
for taxes may be credited first to the oldest liability not
secured by a judgment or lien. For liabilities to which
payments are applied, the commissioner may credit payments first
to penalties, next to interest, and then to the tax due.
new text end [270.652; 297E.12, subd. 10]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 58.

new text begin [270C.52] SETTLEMENT AGREEMENTS, PAYMENT
AGREEMENTS, AND OFFERS IN COMPROMISE.
new text end

new text begin Subdivision 1. new text end

new text begin Liability agreements. new text end

new text begin The commissioner,
or any employee of the department authorized in writing by the
commissioner, is authorized to enter into an agreement in
writing with any taxpayer, or duly authorized agent or
representative of the taxpayer, relating to the liability of the
taxpayer in respect of any tax for any tax period ending prior
to the date of the agreement. The agreement shall be final and
conclusive and, except upon a showing of fraud or malfeasance,
or misrepresentation of a material fact, the case shall not be
reopened as to the matters agreed upon, or the agreement
modified, by any employee or agent of the state; and, in any
suit, action, or proceeding, the agreement, or any
determination, assessment, collection, payment, abatement,
refund, or credit, made in accordance with the agreement, shall
not be annulled, modified, set aside, or disregarded.new text end [270.67,
subd. 1]

new text begin Subd. 2. new text end

new text begin Payment agreements. new text end

new text begin (a) When any portion of any
tax payable to the commissioner together with interest and
penalty thereon, if any, has not been paid, the commissioner may
extend the time for payment for a further period. When the
authority of this section is invoked, the extension shall be
evidenced by written agreement signed by the taxpayer and the
commissioner, stating the amount of the tax with penalty and
interest, if any, and providing for the payment of the amount in
installments.
new text end

new text begin (b) The agreement may contain a confession of judgment for
the amount and for any unpaid portion thereof. If the agreement
contains a confession of judgment, the confession of judgment
must provide that the commissioner may enter judgment against
the taxpayer in the district court of the county of residence as
shown upon the taxpayer's tax return for the unpaid portion of
the amount specified in the extension agreement.
new text end

new text begin (c) The agreement shall provide that it can be terminated,
after notice by the commissioner, if information provided by the
taxpayer prior to the agreement was inaccurate or incomplete,
collection of the tax covered by the agreement is in jeopardy,
there is a subsequent change in the taxpayer's financial
condition, the taxpayer has failed to make a payment due under
the agreement, or the taxpayer has failed to pay any other tax
or file a tax return coming due after the agreement.
new text end

new text begin (d) The notice must be given at least 14 calendar days
prior to termination, and shall advise the taxpayer of the right
to request a reconsideration from the commissioner of whether
termination is reasonable and appropriate under the
circumstances. A request for reconsideration does not stay
collection action beyond the 14-day notice period. If the
commissioner has reason to believe that collection of the tax
covered by the agreement is in jeopardy, the commissioner may
proceed under section 270C.36 and terminate the agreement
without regard to the 14-day period.
new text end

new text begin (e) The commissioner may accept other collateral the
commissioner considers appropriate to secure satisfaction of the
tax liability. The principal sum specified in the agreement
shall bear interest at the rate specified in section 270C.40 on
all unpaid portions thereof until the same has been fully paid
or the unpaid portion thereof has been entered as a judgment.
The judgment shall bear interest at the rate specified in
section 270C.40.
new text end

new text begin (f) If it appears to the commissioner that the tax reported
by the taxpayer is in excess of the amount actually owing by the
taxpayer, the extension agreement or the judgment entered
pursuant thereto shall be corrected. If after making the
extension agreement or entering judgment with respect thereto,
the commissioner determines that the tax as reported by the
taxpayer is less than the amount actually due, the commissioner
shall assess a further tax in accordance with the provisions of
law applicable to the tax.
new text end

new text begin (g) The authority granted to the commissioner by this
section is in addition to any other authority granted to the
commissioner by law to extend the time of payment or the time
for filing a return and shall not be construed in limitation
thereof.new text end [270.67, subd. 2]

new text begin Subd. 3.new text end

new text begin Offer-in-compromise and installment payment
program.new text end

new text begin (a) In implementing the authority provided in
subdivision 2 or in sections 8.30 and 16D.15 to accept offers of
installment payments or offers-in-compromise of tax liabilities,
the commissioner shall prescribe guidelines for employees of the
department to determine whether an offer-in-compromise or an
offer to make installment payments is adequate and should be
accepted to resolve a dispute. In prescribing the guidelines,
the commissioner shall develop and publish schedules of national
and local allowances designed to provide that taxpayers entering
into a compromise or payment agreement have an adequate means to
provide for basic living expenses. The guidelines must provide
that the taxpayer's ownership interest in a motor vehicle, to
the extent of the value allowed in section 550.37, will not be
considered as an asset; in the case of an offer related to a
joint tax liability of spouses, that value of two motor vehicles
must be excluded. The guidelines must provide that employees of
the department shall determine, on the basis of the facts and
circumstances of each taxpayer, whether the use of the schedules
is appropriate and that employees must not use the schedules to
the extent the use would result in the taxpayer not having
adequate means to provide for basic living expenses. The
guidelines must provide that:
new text end

new text begin (1) an employee of the department shall not reject an
offer-in-compromise or an offer to make installment payments
from a low-income taxpayer solely on the basis of the amount of
the offer; and
new text end

new text begin (2) in the case of an offer-in-compromise which relates
only to issues of liability of the taxpayer:
new text end

new text begin (i) the offer must not be rejected solely because the
commissioner is unable to locate the taxpayer's return or return
information for verification of the liability; and
new text end

new text begin (ii) the taxpayer shall not be required to provide an
audited, reviewed, or compiled financial statement.
new text end

new text begin (b) The commissioner shall establish procedures:
new text end

new text begin (1) that require presentation of a counteroffer or a
written rejection of the offer by the commissioner if the amount
offered by the taxpayer in an offer-in-compromise or an offer to
make installment payments is not accepted by the commissioner;
new text end

new text begin (2) for an administrative review of any written rejection
of a proposed offer-in-compromise or installment agreement made
by a taxpayer under this section before the rejection is
communicated to the taxpayer;
new text end

new text begin (3) that allow a taxpayer to request reconsideration of any
written rejection of the offer or agreement to the commissioner
to determine whether the rejection is reasonable and appropriate
under the circumstances; and
new text end

new text begin (4) that provide for notification to the taxpayer when an
offer-in-compromise has been accepted, and issuance of
certificates of release of any liens imposed under section
270C.63 related to the liability which is the subject of the
compromise.new text end [270.67, subd. 4]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 59.

new text begin [270C.53] COLLECTION; TAXPAYER INABILITY TO
PAY.
new text end

new text begin Notwithstanding any other provision of law, the
commissioner may, based upon the inability of a taxpayer to pay
a delinquent tax liability, abate the liability if the taxpayer
agrees to perform uncompensated public service work for a state
agency, a political subdivision or public corporation of this
state, or a nonprofit educational, medical, or social service
agency. The Department of Corrections shall administer the work
program. No benefits under chapter 176 or 268 shall be
available, but a claim authorized under section 3.739 may be
made by the taxpayer. The state may not enter into any
agreement that has the purpose of or results in the displacement
of public employees by a delinquent taxpayer under this
section. The state must certify to the appropriate bargaining
agent or employees, as applicable, that the work performed by a
delinquent taxpayer will not result in the displacement of
currently employed workers or layoff from a substantially
equivalent position, including partial displacement such as
reduction in hours of nonovertime work, wages, or other
employment benefits.new text end [270.07, subd. 3, clause (e)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 60.

new text begin [270C.54] COLLECTION OF FINANCIAL INSTITUTION
FEES.
new text end

new text begin The commissioner shall collect from a taxpayer any
collection fees or costs charged by financial institutions and
incurred by the commissioner.new text end [270.063, subd. 3]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 61.

new text begin [270C.545] FEDERAL TAX REFUND OFFSET FEES; TIME
LIMIT FOR SUBMITTING CLAIMS FOR OFFSET.
new text end

new text begin For fees charged by the Department of the Treasury of the
United States for the offset of federal tax refunds that are
deducted from the refund amounts remitted to the commissioner,
the unpaid debts of the taxpayers whose refunds are being offset
to satisfy the debts are reduced only by the actual amount of
the refund payments received by the commissioner.
Notwithstanding any other provision of law to the contrary, a
claim for the offset of a federal tax refund must be submitted
to the Department of the Treasury of the United States within
ten years after the date of the assessment of the tax owed by
the taxpayer whose refund is to be offset to satisfy the debt.
new text end [270.063, subd. 4]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 62.

new text begin [270C.56] PERSONAL LIABILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Liability imposed. new text end

new text begin A person who, either
singly or jointly with others, has the control of, supervision
of, or responsibility for filing returns or reports, paying
taxes, or collecting or withholding and remitting taxes and who
fails to do so, or a person who is liable under any other law,
is liable for the payment of taxes, penalties, and interest
arising under chapters 295, 296A, 297F, 297A, and 297G, or
sections 290.92 and 297E.02.
new text end

new text begin Subd. 2. new text end

new text begin Person defined. new text end

new text begin The term "person" includes, but
is not limited to, a corporation, estate, trust, organization,
or association, whether organized for profit or not, an officer
or director of a corporation, a member of a partnership, an
employee, a third party (including, but not limited to, a
financial institution, lender, or surety), and any other
individual or entity. "Person" does not include an unpaid,
volunteer member of a board of trustees or directors of an
organization exempt from taxation under section 290.05, if the
member is solely serving in an honorary capacity, does not
participate in the day-to-day or financial operations of the
organization, and has no actual knowledge of the failure to file
returns or remit taxes.
new text end

new text begin Subd. 3. new text end

new text begin Procedure for assessment. new text end

new text begin The commissioner may
assess liability for the taxes described in subdivision 1
against a person liable under this section. The assessment may
be based upon information available to the commissioner. It
must be made within the prescribed period of limitations for
assessing the underlying tax, or within one year after the date
of an order assessing underlying tax, whichever period expires
later. An order assessing personal liability under this section
is reviewable under section 270C.35 and is appealable to Tax
Court.
new text end

new text begin If a person has been assessed under this section for an
amount for a given period and the time for appeal has expired or
there has been a final determination that the person is liable,
collection action is not stayed pursuant to section 270C.33,
subdivision 5, for subsequent assessments of additional amounts
for the same person for the same period and tax type.
new text end

new text begin Subd. 4.new text end

new text begin Right of contribution.new text end

new text begin A person who has paid
all or part of a liability assessed under this section has a
cause of action against other liable persons to recover the
amount paid in excess of that person's share of the liability.
A claim for recovery of contribution may be made only in a
proceeding which is separate from, and cannot be joined or
consolidated with, an administrative or judicial proceeding or
investigation involving the commissioner's administration or
enforcement of this section. An order assessing liability under
this section against the person from whom contribution is being
sought is not a prerequisite for bringing an action for recovery
of contribution, nor is the issuance of an order binding on the
court in which the proceeding is brought. The court can
determine whether each person would be liable under this section
and the share of liability. The commissioner cannot be made a
party to any proceeding for recovery of contribution, nor is a
determination in such a proceeding binding on the commissioner
for the purpose of administering or enforcing this section. An
action for contribution arises when the liability under this
section is paid in full, or the liability of the person seeking
contribution has been determined by agreement between the
commissioner and such person and paid, and must be brought
within the time period prescribed in section 541.05.new text end [270.101]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 63.

new text begin [270C.57] SUCCESSOR LIABILITY OF BUSINESSES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The following terms used
in this section have the following meanings.
new text end

new text begin (b) "Successor" means a person who directly or indirectly
purchases, acquires, is gifted, or succeeds to the business or
stock of goods of any person quitting, selling, or otherwise
disposing of a business or stock of goods. Successor does not
include a personal representative or beneficiary of an estate, a
trustee in bankruptcy, a debtor in possession, a receiver, a
secured party, a mortgagee, an assignee of rents, or any other
lienholder.
new text end

new text begin (c) "Person" means an individual, partnership, corporation,
sole proprietorship, joint venture, limited liability company,
or any other type of business entity or association.
new text end

new text begin (d) "Withhold" means setting aside money or dealing with
the payment of consideration in a manner that denies a
transferring business the benefit of the transfer in an amount
equal to the sales and withholding tax liability of the
transferring business.
new text end

new text begin (e) "Purchase price" means the consideration paid or to be
paid for the transfer by the successor to the transferring
business, and includes amounts paid for tangible property or
intangibles such as leases, licenses, or goodwill. Purchase
price also includes debts assumed or forgiven by the successor,
or real or personal property conveyed or to be conveyed by the
successor to the transferring business.
new text end

new text begin (f) "Arm's-length transaction" means a transfer for
adequate consideration between independent parties both acting
in their own best interests. If the parties are related to each
other, a rebuttable presumption arises that the transaction is
not at arm's length.
new text end

new text begin (g) "Transfer" means every mode, direct or indirect,
absolute or conditional, voluntary or involuntary, of disposing
of or parting with a business or an interest in a business, or a
stock of goods, whether by gift or for consideration. Transfer
includes a change in the type of business entity or the name of
the business, where one business is discontinued and a new one
started. Transfer also includes the acquisition by a new
corporation of the assets of a prior business in exchange for
the stock of the new corporation. Transfer does not include an
assignment for the benefit of creditors, foreclosure or
enforcement of a mortgage, assignment of rents, security
interest or lien, sale or disposition in a bankruptcy
proceeding, or sale or disposition by a receiver.
new text end

new text begin (h) "Transfer in bulk" means a transfer, other than in the
ordinary course of the transferor's trade or business, of more
than one-half of all the property of a business at all locations
combined, as measured by the value of the property at the time
of the transfer.
new text end

new text begin Subd. 2. new text end

new text begin Bulk transfers; liability of successor; lien.
new text end

new text begin (a) Whenever a business transfers in bulk to a successor the
business assets, and an enforceable lien for unpaid sales and
withholding taxes has been filed against the business by the
commissioner under section 270C.63, at least 20 days before
taking possession of the assets or paying the purchase price,
the successor shall notify the commissioner of the transfer and
the terms and conditions related to it. The notice must include
the tax identification number of the transferring business. If
an agreement to transfer has been entered into, this notice
requirement only applies: (1) if a lien described under this
paragraph has been filed prior to the date of the agreement; or
(2) if the date of the transfer is more than 30 days after the
date of the agreement, and a lien described under this paragraph
is filed at least 30 days prior to the date of transfer.
new text end

new text begin (b) If the successor fails to give the notice required in
paragraph (a), the successor is liable for any unpaid sales and
withholding taxes, interest, and penalties due from the
transferring business to the extent of the purchase price. If
the successor provides the notice required in paragraph (a) and,
within 20 days after receipt of the notice, the commissioner
notifies the successor that tax liabilities exist in addition to
those included on the lien or there are sales and withholding
tax returns due but not filed, the successor is, in addition to
being liable for the amounts included on the lien, liable for
all other uncontested sales and withholding taxes, interest, and
penalties as stated in the commissioner's notice from the
transferring business to the extent of the purchase price if the
successor pays the purchase price or takes possession of the
assets without withholding and remitting the liability to the
commissioner. The successor is liable whether the purchase
price is paid or the assets are transferred prior to or after
notification from the commissioner. The commissioner may also
notify the successor that there are no sales or withholding tax
liabilities or returns due from the transferring business other
than the liabilities included on the lien, and of the current
balance due to satisfy the lien.
new text end

new text begin (c) If, based upon the information available, the
commissioner determines that a transfer was not at arm's length
or was a gift, the successor's liability under this section
equals the value of the assets transferred. For purposes of
imposing the liability, the value of the property transferred is
presumed, subject to rebuttal, to equal the unpaid sales and
withholding taxes, interest, and penalties of the transferring
business.
new text end

new text begin (d) In the case of a gift resulting in successor liability
under this section, return of the gifted property by the donee
to the donor releases the donee's successor liability.
new text end

new text begin (e) A successor who complies with the requirements of
paragraphs (a) and (b) is not liable for any assessments of
sales and withholding taxes of the transferring business made
after the commissioner provides notice to the successor under
paragraph (b), except for taxes assessed on returns filed to
comply with the notice. If the commissioner fails to provide
the notice and the 20-day period expires, the successor is not
liable for any sales and withholding taxes of the transferring
business other than those included on the lien.
new text end

new text begin Subd. 3. new text end

new text begin Assessment abatement; review. new text end

new text begin The commissioner
may assess liability under this section within the time
prescribed for collecting the underlying sales and withholding
taxes, interest, and penalties. The assessment is presumed to
be valid, and the burden is upon the successor to show it is
incorrect or invalid. An order assessing successor liability is
reviewable administratively under section 270C.35 and is
appealable to Tax Court under chapter 271. The commissioner may
abate an assessment if the successor's failure to give the
notice required under this section is due to reasonable cause.
The procedural and appeal provisions under section 270C.34 apply
to abatement requests under this subdivision. Collection
remedies available against the transferring business are
available against the successor from the date of assessment of
successor liability.
new text end

new text begin Subd. 4.new text end

new text begin Disclosure.new text end

new text begin Notification by the commissioner to
the successor under subdivision 2, paragraph (b), that the
transferring business owes sales and withholding taxes,
interest, and penalties or has returns that are due, or that
there are no outstanding liabilities or returns other than the
liabilities included on the lien, or of the current balance due
to satisfy the lien, is not a disclosure violation under chapter
270B.new text end [270.102]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 64.

new text begin [270C.58] LIABILITY OF TRANSFEREES AND
FIDUCIARIES.
new text end

new text begin Subdivision 1. new text end

new text begin Transferees and fiduciaries. new text end

new text begin The amounts
of the following liabilities are, except as otherwise provided
in subdivision 3, assessed, collected, and paid in the same
manner and subject to the same provisions and limitations as a
deficiency in a tax imposed by chapter 290, including any
provisions of law for the collection of taxes:
new text end

new text begin (1) the liability, at law or in equity, of a transferee of
property of a taxpayer for tax or overpayment of a refund,
including interest, additional amounts, and additions to the tax
or overpayment provided by law, imposed upon the taxpayer by
chapter 290 or provided for in chapter 290A; and
new text end

new text begin (2) the liability of a fiduciary under subdivision 2, for
the payment of tax from the estate of the taxpayer. The
liability may reflect the amount of tax shown on the return or
any deficiency in tax.new text end [289A.31, subd. 3]

new text begin Subd. 2. new text end

new text begin Tax as a personal debt of a fiduciary. new text end

new text begin A tax
imposed by chapter 290 and an overpayment of a refund provided
for in chapter 290A, and interest and penalties, is a personal
debt of the taxpayer from the time the liability arises,
regardless of when the time for discharging the liability by
payment occurs. The debt is, in the case of the personal
representative of the estate of a decedent and in the case of
any fiduciary, that of the individual in the individual's
official or fiduciary capacity only, unless the individual has
voluntarily distributed the assets held in that capacity without
reserving sufficient assets to pay the tax, interest, and
penalties, in which event the individual is personally liable
for the deficiency.new text end [289A.31, subd. 4]

new text begin Subd. 3.new text end

new text begin Time limit for assessment and collection for
transferee or fiduciary.new text end

new text begin The period of limitation for
assessment and collection of any liability of a transferee or
fiduciary is as follows:
new text end

new text begin (1) In the case of the liability of an initial transferee
of the property of the taxpayer, the tax may be assessed within
one year after the expiration of the period of limitation of
assessment against the taxpayer. The tax may be collected by
action brought within one year after the expiration of the
period of limitation for the starting of an action against the
taxpayer.
new text end

new text begin (2) In the case of the liability of the transferee of a
transferee of the property of the taxpayer, the tax may be
assessed within one year after the expiration of the period of
limitation for assessment against the preceding transferee, but
only if within 3-1/2 years after the expiration of the period of
limitation for assessment against the taxpayer. The tax may be
collected by action brought within one year after the expiration
of the period of limitation for the starting of an action
against the preceding transferee, but only if within four years
after the expiration of the period of limitation for bringing an
action against the taxpayer; except that if before the
expiration of the period of limitation for the assessment of the
liability of the transferee a court proceeding for the
collection of the tax or liability has been begun against the
taxpayer or last preceding transferee, liability of the
transferee expires one year after the return of execution in the
court proceeding and the period of limitation for collection by
action will expire one year after the liability is assessed.
new text end

new text begin (3) In the case of the liability of a fiduciary, the tax
may be assessed up to one year after the liability arises or not
later than the expiration of the period for collection of the
tax for which the liability arises, whichever is later, and may
be collected by action brought within one year after assessment.
new text end

new text begin (4) For the purposes of this subdivision, if the taxpayer
is deceased, or in the case of a corporation, has ended its
existence, the period of limitation for assessment against the
taxpayer will be the period that would be in effect had death or
termination of existence not occurred.
new text end

new text begin As used in this subdivision, the term "transferee" includes
heir, legatee, devisee, and distributee.new text end [289A.38, subd. 13]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 65.

new text begin [270C.585] TRANSFEREE LIABILITY FOR ESTATE TAX.
new text end

new text begin The personal representative and person to whom property
that is subject to taxation under chapter 291 is transferred,
other than a bona fide purchaser, mortgagee, or lessee, is
personally liable for that tax, until its payment, to the extent
of the value of the property at the time of the transfer.
Personal liability also does not extend to subsequent
transferees from bona fide purchasers, mortgagees, and lessees.
new text end [289A.31, subd. 6]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 66.

new text begin [270C.59] LIABILITY OF THIRD PARTIES PAYING OR
PROVIDING FOR WAGES.
new text end

new text begin (a) For purposes of section 290.92, if a lender, surety, or
other person, who is not an employer with respect to an employee
or group of employees, pays wages directly to such an employee
or group of employees, employed by one or more employers, or to
an agent on behalf of such employee or employees, such lender,
surety, or other person shall be liable to the commissioner in a
sum equal to the taxes required to be deducted and withheld from
such wages by such employer.
new text end

new text begin (b) If a lender, surety, or other person supplies funds to
or for the account of an employer for the specific purpose of
paying wages of the employees of such employer, with actual
notice or knowledge that such employer does not intend to or
will not be able to make timely payment or deposit of the
amounts of tax required by section 290.92 to be deducted and
withheld by such employer from such wages, such lender, surety,
or other person shall be liable personally to the commissioner
in a sum equal to the taxes which are not paid over to the
commissioner by such employer with respect to such wages.
new text end

new text begin (c) For purposes of this section, a person shall be deemed
for purposes of a particular transaction to have actual notice
or knowledge of any fact from the time such fact is brought to
the attention of the individual conducting such transaction, and
in any event from the time such fact would have been brought to
such individual's attention if the person had exercised due
diligence. A person exercises due diligence by maintaining
reasonable routines for communicating significant information to
the person conducting the transaction and there is reasonable
compliance with the routines. Due diligence does not require an
individual acting for the person to communicate information
unless such communication is part of the individual's regular
duties or unless the individual has reason to know of the
transaction and that the transaction would be materially
affected by the information.
new text end

new text begin (d) Any amounts paid to the commissioner pursuant to this
section shall be credited to the liability of the employer.
new text end [290.92, subd. 22]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 67.

new text begin [270C.61] LEGAL ACTION; CONFESSION OF JUDGMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Legal action. new text end

new text begin (a) In addition to all
other methods authorized by law for the collection of tax, if
any tax payable to the commissioner or to the department,
including penalties and interest thereon, is not paid within 60
days after it is required by law to be paid, the commissioner
may proceed under this subdivision. Within five years after the
date of assessment of the tax or at any time a lien filed under
section 270C.63 is enforceable, or, if the action is to renew or
enforce a judgment, at any time before the judgment's
expiration, the commissioner may bring an action in court
against the person liable for the payment or collection of the
tax, in the name of the state, for the recovery of the tax and
interest and penalties due in respect thereof. The action may
be commenced by the commissioner in the same manner as any other
civil action.
new text end

new text begin (b) The commissioner may also serve the summons and
complaint by mailing a copy to the taxpayer's last known address
by certified mail. Service by certified mail is complete when
mailed in acceptable form with the United States Postal Service
or with the central mail system of the state of Minnesota.
new text end [270.68, subd. 1]

new text begin Subd. 2. new text end

new text begin Court-ordered returns. new text end

new text begin In addition to other
remedies that may be available, the commissioner may bring an
action in equity by the state against a taxpayer for an
injunction ordering the taxpayer to file a complete and proper
return or amended return. The district courts of this state
have jurisdiction over the action and disobedience of an
injunction issued under this subdivision will be punished as a
contempt of district court. The action may be commenced by the
commissioner in the same manner as any other civil action.
new text end [289A.36, subd. 3, clause (3)]

new text begin Subd. 3. new text end

new text begin Prosecuting authority. new text end

new text begin The commissioner may
request the county attorney or the attorney general to conduct
the proceedings on behalf of the state.new text end [270.68, subd. 1,
paragraph (c)]

new text begin Subd. 4. new text end

new text begin Appeals. new text end

new text begin Either party to an action or a
judgment for the recovery of any taxes, interest, or penalties
under subdivision 1 may appeal the judgment as in other civil
cases.new text end [270.68, subd. 2]

new text begin Subd. 5. new text end

new text begin Tax presumed valid. new text end

new text begin The tax, as assessed by the
commissioner, with any penalties included therein, shall be
presumed to be valid and correctly determined and assessed, and
the burden shall be upon the taxpayer to show its incorrectness
or invalidity. A statement filed by the commissioner showing
the amount of the tax and penalties as determined or assessed by
the commissioner, is admissible in evidence and shall establish
prima facie the facts set forth therein.new text end [270.68, subd. 3]

new text begin Subd. 6.new text end

new text begin Confession of judgment.new text end

new text begin (a) The commissioner
may, within 3-1/2 years after any return is filed,
notwithstanding section 541.09, enter judgment on any confession
of judgment contained in the return after ten days' notice
served upon the taxpayer by mail at the address shown in the
return. The judgment shall be entered by the court
administrator of district court upon the filing of a photocopy
or similar reproduction of that part of the return containing
the confession of judgment along with a statement of the
commissioner or an agent that the tax has not been paid. The
commissioner may prescribe the words for the confession of
judgment statement contained on the return.
new text end

new text begin (b) Notwithstanding any other provision of the law to the
contrary, the commissioner may, within five years after a
written agreement is signed by the taxpayer and the commissioner
under the provisions of section 270C.52, subdivision 2, enter
judgment on the confession of judgment contained within the
agreement after ten days' notice served upon the taxpayer at the
address shown in the agreement. Such judgment shall be entered
by the court administrator of district court upon the filing of
the agreement or a certified copy thereof along with a statement
of the commissioner or an agent that the tax has not been paid.
new text end [270.68, subd. 4]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 68.

new text begin [270C.62] DATE OF ASSESSMENT; DEFINITION.
new text end

new text begin For purposes of taxes, the term "date of assessment" means
the date a liability reported on a return was entered into the
records of the commissioner or the date a return should have
been filed, whichever is later; or, in the case of taxes
assessed by the commissioner, "date of assessment" means the
date of the order assessing taxes or date of the return made by
the commissioner; or, in the case of an amended return filed by
the taxpayer, the assessment date is the date additional
liability reported on the return, if any, was entered into the
records of the commissioner; or, in the case of a check from a
taxpayer that is dishonored and results in an erroneous refund
being given to the taxpayer, remittance of the check is deemed
to be an assessment and the "date of assessment" is the date the
check was received by the commissioner.new text end [270.65]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments
made on or after August 1, 2005.
new text end

Sec. 69.

new text begin [270C.63] LIEN FOR TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of lien. new text end

new text begin Tax, and interest and
penalties imposed with respect thereto, including any recording
fees, sheriff fees, or court costs that may accrue, shall become
a lien upon all the property within this state, both real and
personal, of the person liable for the payment or collection of
the tax, except property exempt under subdivision 8, from and
after the date of assessment of the tax.
new text end

new text begin Subd. 2. new text end

new text begin Filing of liens necessary for enforceability
against certain persons. new text end

new text begin The lien imposed by subdivision 1 is
not enforceable against any purchaser, mortgagee, pledgee,
holder of a Uniform Commercial Code security interest,
mechanic's lienor, or judgment lien creditor whose interest has
been duly perfected or is a conveyance or interest entitled to
protection against judgments and attachments under section
507.34 or under any other applicable provisions of state law,
until a notice of lien has been filed by the commissioner in the
office of the county recorder of the county in which real
property is situated, or in the case of personal property in the
Office of the Secretary of State.
new text end

new text begin Subd. 3. new text end

new text begin Method of filing. new text end

new text begin Notices of liens, and lien
releases, transcriptions, and renewals, in a form prescribed by
the commissioner, may be filed with the county recorder or the
secretary of state by mail, personal delivery, or by electronic
transmission by the commissioner or an agent of the department
into the computerized filing system of the secretary of state.
The secretary of state shall transmit the notice electronically
to the office of the county recorder, if that is the place of
filing, in the county or counties shown on the computer entry.
The filing officer, whether the county recorder or the secretary
of state, shall endorse and index a printout of the notice in
the same manner as if the notice had been mailed or delivered.
new text end

new text begin Subd. 4. new text end

new text begin Entry of information into central
database. new text end

new text begin County recorders and the secretary of state shall
enter information relative to lien notices, transcriptions,
renewals, and releases filed in their offices into the central
database of the secretary of state. For notices filed
electronically with the county recorders, the date and time of
receipt of the notice and county recorder's file number, and for
notices filed electronically with the secretary of state, the
secretary of state's recording information, must be entered by
the filing officer into the central database before the close of
the working day following the day of the original data entry by
the department.
new text end

new text begin Subd. 5. new text end

new text begin Conformity with federal lien registration
act. new text end

new text begin The filing and indexing of all notices must be in
accordance with the filing and indexing of notices of federal
liens, certificates of release, and refiled notices under
section 272.483.
new text end

new text begin Subd. 6. new text end

new text begin Payment of recording fees. new text end

new text begin Notwithstanding any
other law to the contrary, the department is exempt from payment
of fees when a lien, lien renewal, or lien transcription is
offered for recording. The recording fees must be paid along
with the release fee at the end of the month in which the
release of lien is recorded, after receipt of a monthly
statement from a county recorder or the secretary of state. The
department shall add the recording fees to the delinquent tax
liability of the taxpayer. Notwithstanding any other law to the
contrary, the fee for filing or recording a notice of lien, or
lien release, transcription, or renewal is $15.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation. new text end

new text begin There is appropriated to the
commissioner an amount representing the cost of payment of
recording fees to the county recorders and the secretary of
state. The commissioner shall keep a separate accounting of the
costs and of payments for recording fees remitted by taxpayers,
and make the records available to the legislature upon request.
new text end

new text begin Subd. 8. new text end

new text begin Exempt property. new text end

new text begin The lien imposed on personal
property by this section, even though properly filed, is not
enforceable: (1) against a purchaser with respect to tangible
personal property purchased at retail in the ordinary course of
the seller's trade or business, unless at the time of purchase
the purchaser intends the purchase to or knows the purchase will
hinder, evade, or defeat the collection of a tax; or (2) against
the personal property listed as exempt in sections 550.37,
550.38, and 550.39.
new text end

new text begin Subd. 9. new text end

new text begin Period of limitations. new text end

new text begin The lien imposed by this
section shall, notwithstanding any other provision of law to the
contrary, be enforceable from the time the lien arises and for
ten years from the date of filing the notice of lien, which must
be filed by the commissioner within five years after the date of
assessment of the tax or final administrative or judicial
determination of the assessment. A notice of lien filed in one
county may be transcribed to any other county within ten years
after the date of its filing, but the transcription shall not
extend the period during which the lien is enforceable. A
notice of lien may be renewed by the commissioner before the
expiration of the ten-year period for an additional ten years.
The taxpayer must receive written notice of the renewal.
new text end

new text begin Subd. 10. new text end

new text begin Enforceability of lien. new text end

new text begin The lien imposed by
this section shall be enforceable by levy as authorized in
section 270C.67, or by judgment lien foreclosure as authorized
in chapter 550.
new text end

new text begin Subd. 11. new text end

new text begin Notice of mortgage foreclosure or contract
termination. new text end

new text begin In the case of a mortgage foreclosure upon real
property commenced under chapter 580, or a termination of
contract of sale of real property commenced under section
559.21, if the commissioner has filed a lien under this section
before the foreclosure sale or date of termination, notice of
the mortgage foreclosure or termination of contract of sale
shall be mailed to the commissioner not less than 25 days prior
to the foreclosure sale or date of termination. Provided,
notice need not be given pursuant to this subdivision if the
lien of the commissioner has been filed within 30 days or less
prior to the foreclosure sale or date of termination. The
notice must contain the following information: (1) the name and
address of the taxpayer; (2) a copy of the notice of mortgage
foreclosure or contract for deed cancellation; (3) a copy of the
lien filed by the commissioner; (4) the total unpaid balance of
the mortgage or contract for deed; (5) a legal description of
the property; and (6) the fair market value of the property.
new text end

new text begin Subd. 12. new text end

new text begin Filing entitlement. new text end

new text begin Execution of notices of
liens or of other notices affecting state tax liens by the
original or facsimile signature of the commissioner entitles
them to be filed, and no other attestation, certification, or
acknowledgment is necessary. For purposes of this subdivision,
transmission of notices under subdivision 3 constitutes
execution.
new text end

new text begin Subd. 13. new text end

new text begin Lien search fees. new text end

new text begin Upon request of any person,
the filing officer shall issue a certificate showing whether
there is recorded in that filing office, on the date and hour
stated in the certificate, any notice of lien or certificate or
notice affecting any lien filed on or after ten years before the
date of the search certificate, naming a particular person, and
giving the date and hour of filing of each notice or certificate
naming the person. The fee for a certificate shall be as
provided by section 336.9-525 or 357.18, subdivision 1, clause
(3). Upon request, the filing officer shall furnish a copy of
any notice of state lien, or notice or certificate affecting a
state lien, for a fee of 50 cents per page.
new text end

new text begin Subd. 14. new text end

new text begin Limitation for homestead property. new text end

new text begin A lien
imposed under this section upon property defined as homestead
property in sections 510.01 and 510.02 may not be enforced
against homestead property by levy under section 270C.67, or by
judgment lien foreclosure under chapter 550, but notwithstanding
section 510.07, is enforceable against the proceeds from the
sale, conveyance, or transfer of the homestead.
new text end

new text begin Subd. 15. new text end

new text begin Erroneous liens. new text end

new text begin After the filing of a notice
of lien under this section on the property or rights to property
of a person, the person may appeal to the commissioner, in the
form and at the time prescribed by the commissioner, alleging an
error in the filing of the lien and requesting its release. If
the commissioner determines that the filing of the notice of any
lien was erroneous, within 14 days after the determination, the
commissioner must issue a certificate of release of the lien.
The certificate must include a statement that the filing of the
lien was erroneous. In the event that the lien is erroneous and
is not released within the 14-day period, reasonable attorney
fees shall be paid. Damages must be paid in accordance with
section 3.736, subdivision 7. Even if a lien is not erroneous,
the commissioner may withdraw the lien if the filing of the lien
was premature or not in accordance with administrative
procedures of the commissioner, or withdrawal of the lien will
facilitate the collection of the tax liability.
new text end

new text begin Subd. 16. new text end

new text begin Lien release fee. new text end

new text begin A fee of $25 must be paid to
the commissioner for each duplicate of an original release of
lien.
new text end

new text begin Subd. 17. new text end

new text begin Forty-five day rule. new text end

new text begin A notice of tax lien
filed under this section has priority over a security interest
arising under article 9 of the Uniform Commercial Code that is
perfected before the date of filing of the lien imposed by this
section, but only if:
new text end

new text begin (1) the perfected security interest secures property
acquired by the taxpayer or advances made by the secured party
after the notice of tax lien is filed; and
new text end

new text begin (2) the property is acquired or the advance is made after
the 45th day following the day on which the notice of tax lien
is filed, or after the secured party has actual notice or
knowledge of the tax lien filing, whichever is earlier.
new text end

new text begin Subd. 18. new text end

new text begin Registered land. new text end

new text begin When a lien is filed with a
county recorder under subdivisions 2 to 5, the county recorder
shall search the registered land records in that county and
cause the lien to be memorialized on every certificate of title
or certificate of possessory title of registered land in that
county which can be reasonably identified as owned by the
taxpayer who is named on the lien. The fees for memorializing
the lien shall be paid in the manner prescribed by subdivision
6. The county recorders, and their employees and agents, shall
not be liable for any loss or damages arising from failure to
identify a parcel of registered land owned by the taxpayer who
is named on the lien.
new text end

new text begin Subd. 19. new text end

new text begin Assignment of liens. new text end

new text begin The commissioner may sell
and assign to a third party the right of redemption in specific
real property for liens filed under this section. The
redemption in the hands of the assignee shall not be enforceable
by any of the collection remedies provided to the commissioner
by law. The assignee is limited to the same rights of
redemption the commissioner would have in any mortgage
foreclosure proceeding, but in any bankruptcy proceeding does
not obtain the priority of the commissioner as a tax claimant.
Should the taxpayer or its assigns exercise the right of
redemption the assignment by the commissioner is extinguished.
new text end

new text begin Subd. 20.new text end

new text begin Attachment to proceeds of property.new text end

new text begin Any lien
imposed under this section attaches to the proceeds of property
with the same priority that the lien has with respect to the
property itself. "Proceeds of property" means proceeds from the
sale, lease, license, exchange, or other disposition of the
property, including insurance proceeds arising from the loss or
destruction of the property.new text end [270.69]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 70.

new text begin [270C.64] CREDIT OF OVERPAYMENT TO DELINQUENT
TAX LIABILITIES.
new text end

new text begin Notwithstanding any other provision of law to the contrary,
in the case of an overpayment of any tax collected by the
commissioner, the commissioner may credit the amount of such
overpayment against any uncontested delinquent tax liability on
the part of the taxpayer who made the overpayment. An
overpayment may be credited under this subdivision only if the
uncontested delinquent liability has been assessed within ten
years of the date on which the overpayment is credited.
However, this limitation shall not be applicable if the
delinquent liability has been entered into judgment or if legal
action is pending for collection of the liability or for renewal
of the judgment. An amount paid as tax shall constitute an
overpayment even if in fact there was no tax liability with
respect to which such amount was paid.new text end [270.07, subd. 5]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 71.

new text begin [270C.65] RIGHT OF SETOFF.
new text end

new text begin Subdivision 1. new text end

new text begin Certification by commissioner. new text end

new text begin The
commissioner of revenue is authorized to certify to the
commissioner of finance, or to any state agency described in
subdivision 3 which disburses its own funds, that a taxpayer has
an uncontested delinquent tax liability owed to the commissioner
of revenue. The certification must be made within ten years
after the date of assessment of the tax. Once certification is
made, the commissioner of finance or the state agency shall
apply to the delinquent tax liability funds sufficient to
satisfy the unpaid tax liability from funds appropriated for
payment of an obligation of the state or any of its agencies
that are due and owing the taxpayer. No setoff shall be made
against any funds exempt under section 550.37 or those funds
owed an individual taxpayer who receives assistance under the
provisions of chapter 256.
new text end

new text begin Subd. 2. new text end

new text begin Setoff satisfies state obligation. new text end

new text begin All funds,
whether general or dedicated, shall be subject to setoff in the
manner herein provided. Transfer of funds as herein provided is
payment of the obligation of the state or any of its agencies to
such taxpayer and any actions for said funds, if any, shall be
had against the Department of Revenue on the issue of such tax
liability. Nothing in this section shall be construed to limit
the previously existing right of the state or any of its
agencies to setoff.
new text end

new text begin Subd. 3.new text end

new text begin Agencies shall maintain records.
new text end

new text begin Notwithstanding any provision to the contrary, every person,
organization, or corporation doing business (hereafter called
vendor) with the state of Minnesota or any of its departments,
agencies, or educational institutions including the University
of Minnesota (all hereafter called agency) shall provide that
agency with either their Social Security number, federal
taxpayer identification number, or Minnesota tax identification
number. The commissioner may verify to the agency the
identifying information provided by a vendor. The agency shall
maintain records of this information, and shall make these
records available, on request, to the commissioner for the sole
purpose of identifying people who have not filed state tax
returns or who have not paid uncontested tax liabilities
(hereafter called delinquent taxpayer). When an agency is
notified by the commissioner that a vendor is a delinquent
taxpayer, payments shall not be made by the agency to the vendor
until the commissioner notifies the agency that the vendor no
longer is a delinquent taxpayer. Furthermore, if the vendor has
an uncontested delinquent tax liability, the setoff provided in
subdivision 1 may be implemented. The commissioner shall
determine that a vendor no longer is a delinquent taxpayer when
the vendor has filed all delinquent returns and (1) paid all
uncontested tax liabilities or (2) entered into an agreement
with the commissioner which provides for the payment of these
liabilities.new text end [270.66]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 72.

new text begin [270C.66] CONTRACTS WITH STATE; WITHHOLDING.
new text end

new text begin No department of the state of Minnesota, nor any political
or governmental subdivision of the state shall make final
settlement with any contractor under a contract requiring the
employment of employees for wages by said contractor and by
subcontractors until satisfactory showing is made that said
contractor or subcontractor has complied with the provisions of
section 290.92. A certificate by the commissioner shall satisfy
this requirement with respect to the contractor or
subcontractor. If, at the time of final settlement, there are
any unpaid withholding taxes, penalties, or interest arising
from the government contract, the commissioner shall issue a
certification to the contractor or subcontractor upon payment,
with certified funds, of any unpaid withholding taxes,
penalties, and interest. Payment is received by the
commissioner upon delivery of the certified funds to the central
office located in St. Paul, or any district or subdistrict
office located throughout the state.new text end [290.97]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 73.

new text begin [270C.67] LEVY AND DISTRAINT.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin If any tax payable to the
commissioner or to the department is not paid when due, such tax
may be collected by the commissioner within five years after the
date of assessment of the tax, or if a lien has been filed,
during the period the lien is enforceable, or if the tax
judgment has been filed, within the statutory period of
enforcement of a valid tax judgment, by a levy upon all property
and rights to property, including any property in the possession
of law enforcement officials, of the person liable for the
payment or collection of such tax (except that which is exempt
from execution pursuant to section 550.37) or property on which
there is a lien provided in section 270C.63. For this purpose,
"tax" includes any penalty, interest, and costs, properly
payable.
new text end

new text begin Subd. 2. new text end

new text begin Writ of entry. new text end

new text begin The term "levy" includes the
power of distraint and seizure by any means; provided, no entry
can be made upon the business premises or residence of a
taxpayer in order to seize property without first obtaining a
writ of entry listing the property to be seized and signed by a
judge of the district court of the district in which the
business premises or residence is located.
new text end

new text begin Subd. 3. new text end

new text begin Notice and demand; collection by levy. new text end

new text begin Before a
levy is made, notice and demand for payment of the amount due
must be given to the person liable for the payment or collection
of the tax at least 30 days prior to the levy. The notice
required under this subdivision must be sent to the taxpayer's
last known address and must include a brief statement that sets
forth in simple and nontechnical terms:
new text end

new text begin (1) the administrative appeals available to the taxpayer
with respect to the levy and sale; and
new text end

new text begin (2) the alternatives available to the taxpayer that can
prevent a levy, including installment payment agreements under
section 270C.52, subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Manner of execution and sale. new text end

new text begin In making the
execution of the levy and in collecting the taxes due, the
commissioner shall have all of the powers provided in chapter
550 and in any other law for purposes of effecting an execution
against property in this state. The sale of property levied
upon, and the time and manner of redemption therefrom, shall, to
the extent not provided in sections 270C.7101 to 270C.7109, be
governed by chapter 550. The seal of the court, subscribed by
the court administrator, as provided in section 550.04, shall
not be required. The levy for collection of taxes may be made
whether or not the commissioner has commenced a legal action for
collection of such taxes.
new text end

new text begin Subd. 5. new text end

new text begin Stay of sale. new text end

new text begin (a) Where a jeopardy assessment
or any other assessment has been made by the commissioner, the
property seized for collection of the tax shall not be sold
until the time has expired for filing an appeal of the
assessment with the Tax Court pursuant to chapter 271. If an
appeal has been filed, no sale shall be made unless the taxes
remain unpaid for a period of more than 30 days after final
determination of the appeal by the Tax Court or by the
appropriate judicial forum.
new text end

new text begin (b) Notwithstanding paragraph (a), seized property may be
sold if:
new text end

new text begin (1) the taxpayer consents in writing to the sale; or
new text end

new text begin (2) the commissioner determines that the property is
perishable or may become greatly reduced in price or value by
keeping, or that such property cannot be kept without great
expense.
new text end

new text begin (c) The Tax Court has jurisdiction to review a
determination made under paragraph (b), clause (2). Review is
commenced by motion of the commissioner or the taxpayer. The
order of the court in response to the motion is reviewable in
the same manner as any other decision of the Tax Court.
new text end

new text begin Subd. 6. new text end

new text begin Probate proceedings. new text end

new text begin Where a levy has been made
to collect taxes pursuant to this section and the property
seized is properly included in a formal proceeding commenced
under sections 524.3-401 to 524.3-505 and maintained under full
supervision of the court, such property shall not be sold until
the probate proceedings are completed or until the court so
orders.
new text end

new text begin Subd. 7. new text end

new text begin Bond or security to release seizure. new text end

new text begin The
property seized shall be returned by the commissioner if the
owner gives a surety bond equal to the appraised value of the
owner's interest in the property, as determined by the
commissioner, or deposits with the commissioner security in such
form and amount as the commissioner deems necessary to insure
payment of the liability, but not more than twice the liability.
new text end

new text begin Subd. 8. new text end

new text begin Injunction. new text end

new text begin Notwithstanding any other provision
to the contrary, if a levy or sale pursuant to this section
would irreparably injure rights in property which the court
determines to be superior to rights of the state in such
property, the district court may grant an injunction to prohibit
the enforcement of such levy or to prohibit such sale.
new text end

new text begin Subd. 9. new text end

new text begin Optional remedy. new text end

new text begin Any action taken by the
commissioner pursuant to this section shall not constitute an
election by the state to pursue a remedy to the exclusion of any
other remedy.
new text end

new text begin Subd. 10. new text end

new text begin Equitable relief. new text end

new text begin After the commissioner has
seized the property of any person, that person may, upon giving
48 hours notice to the commissioner and to the court, bring a
claim for equitable relief before the district court for the
release of the property to the taxpayer upon such terms and
conditions as the court may deem equitable.
new text end

new text begin Subd. 11. new text end

new text begin Levy and sale by sheriff. new text end

new text begin If any tax payable
to the commissioner or to the department is not paid as provided
in subdivision 3, the commissioner may, within the time periods
provided in subdivision 1 for collection of taxes, delegate the
authority granted by subdivision 1, by means of issuing a
warrant to the sheriff of any county of the state commanding the
sheriff, as agent for the commissioner, to levy upon and sell
the real and personal property of the person liable for the
payment or collection of the tax and to levy upon the rights to
property of that person within the county, or to levy upon and
seize any property within the county on which there is a lien
provided in section 270C.63, and to return the warrant to the
commissioner and pay to the commissioner the money collected by
virtue thereof by a time to be therein specified not less than
60 days from the date of the warrant. The sheriff shall proceed
thereunder to levy upon and seize any property of the person and
to levy upon the rights to property of the person within the
county (except the person's homestead or that property which is
exempt from execution pursuant to section 550.37), or to levy
upon and seize any property within the county on which there is
a lien provided in section 270C.63. For purposes of the
preceding sentence, "tax" includes any penalty, interest, and
costs, properly payable. The sheriff shall then sell so much of
the property levied upon as is required to satisfy the taxes,
interest, and penalties, together with the sheriff's costs; but
the sales, and the time and manner of redemption therefrom,
shall, to the extent not provided in sections 270C.7101 to
270C.7109, be governed by chapter 550. The proceeds of the
sales, less the sheriff's costs, shall be turned over to the
commissioner, who shall then apply the proceeds as provided in
section 270C.7108.
new text end

new text begin Subd. 12. new text end

new text begin Priority of levy. new text end

new text begin Notwithstanding section
52.12, a levy by the commissioner made pursuant to the
provisions of this section upon a taxpayer's funds on deposit in
a financial institution located in this state, shall have
priority over any unexercised right of setoff of the financial
institution to apply the levied funds toward the balance of an
outstanding loan or loans owed by the taxpayer to the financial
institution. A claim by the financial institution that it
exercised its right to setoff prior to the levy by the
commissioner must be substantiated by evidence of the date of
the setoff, and shall be verified by the sworn statement of a
responsible corporate officer of the financial institution.
Furthermore, for purposes of determining the priority of any
levy made under this section, the levy shall be treated as if it
were an execution made pursuant to chapter 550.
new text end

new text begin Subd. 13. new text end

new text begin Effect of honoring levy. new text end

new text begin Any person in
possession of (or obligated with respect to) property or rights
to property subject to levy upon which a levy has been made who,
upon demand by the commissioner, surrenders the property or
rights to property (or who pays a liability under section
270C.70, subdivision 1) shall be discharged from any obligation
or liability to the person liable for the payment or collection
of the delinquent tax with respect to the property or rights to
property so surrendered or paid.
new text end

new text begin Subd. 14. new text end

new text begin Notice of levy. new text end

new text begin Notwithstanding any other
provision of law to the contrary, the notice of any levy
authorized by this section may be served by mail or by delivery
by an agent of the department.
new text end

new text begin Subd. 15. new text end

new text begin Uneconomical levy. new text end

new text begin No levy may be made on
property if the amount of the expenses that the commissioner
estimates would be incurred by the department with respect to
the levy and sale of the property exceeds the fair market value
of the property at the anticipated time of levy.
new text end

new text begin Subd. 16.new text end

new text begin Levy on appearance date of subpoena.new text end

new text begin No levy
may be made on the property of a person on the day on which the
person, or an officer or employee of the person, is required to
appear in response to a subpoena issued by the commissioner to
collect unpaid taxes, unless the commissioner determines that
the collection of the tax is in jeopardy.new text end [270.70]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 74.

new text begin [270C.68] CONTINUOUS LEVY.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The commissioner may, within
five years after the date of assessment of the tax, or if a lien
has been filed under section 270C.63, within the statutory
period for enforcement of the lien, give notice to a person to
withhold the amount of any tax, interest, or penalties, due from
a taxpayer. The amounts withheld shall be transmitted to the
commissioner at the times the commissioner designates.
new text end

new text begin Subd. 2. new text end

new text begin Levy continuous. new text end

new text begin The levy made under
subdivision 1 is continuous from the date the notice is received
until the amount due stated on the notice has been withheld or
the notice has been released by the commissioner under section
270C.7109, whichever occurs first.
new text end

new text begin Subd. 3. new text end

new text begin Amount to be withheld. new text end

new text begin The amount required to
be withheld under this section is the least of:
new text end

new text begin (1) the amount stated on the notice;
new text end

new text begin (2) if the taxpayer is not a natural person, 100 percent of
the payment; or
new text end

new text begin (3) if the taxpayer is an individual, 25 percent of the
payment.
new text end

new text begin Subd. 4. new text end

new text begin Payments covered. new text end

new text begin For purposes of this section,
the term "payments" does not include wages as defined in section
290.92 or funds in a deposit account as defined in section
336.9-102(a)(29). The term payments does include the following:
new text end

new text begin (1) payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, and
mineral or other natural resource rights;
new text end

new text begin (2) payments or credits under written or oral contracts for
services or sales whether denominated as wages, salary,
commission, bonus, or otherwise, if the payments are not covered
by section 270C.69; and
new text end

new text begin (3) any other periodic payments or credits resulting from
an enforceable obligation to the taxpayer.
new text end

new text begin Subd. 5.new text end

new text begin Determination of status; effect.new text end

new text begin A
determination of a taxpayer's status as an independent
contractor under this section does not affect the determination
of the taxpayer's status for the purposes of any other law or
rule.new text end [270.7001]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 75.

new text begin [270C.69] WITHHOLDING BY EMPLOYER OF DELINQUENT
TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Notice and procedures. new text end

new text begin (a) The
commissioner may, within five years after the date of assessment
of the tax, or if a lien has been filed under section 270C.63,
within the statutory period for enforcement of the lien, give
notice to any employer deriving income which has a taxable situs
in this state regardless of whether the income is exempt from
taxation, that an employee of that employer is delinquent in a
certain amount with respect to any taxes, including penalties,
interest, and costs. The commissioner can proceed under this
section only if the tax is uncontested or if the time for appeal
of the tax has expired. The commissioner shall not proceed
under this section until the expiration of 30 days after mailing
to the taxpayer, at the taxpayer's last known address, a written
notice of (1) the amount of taxes, interest, and penalties due
from the taxpayer and demand for their payment, and (2) the
commissioner's intention to require additional withholding by
the taxpayer's employer pursuant to this section. The effect of
the notice shall expire one year after it has been mailed to the
taxpayer provided that the notice may be renewed by mailing a
new notice which is in accordance with this section. The
renewed notice shall have the effect of reinstating the priority
of the original claim. The notice to the taxpayer shall be in
substantially the same form as that provided in section 571.72.
The notice shall further inform the taxpayer of the wage
exemptions contained in section 550.37, subdivision 14. If no
statement of exemption is received by the commissioner within 30
days from the mailing of the notice, the commissioner may
proceed under this section. The notice to the taxpayer's
employer may be served by mail or by delivery by an agent of the
department and shall be in substantially the same form as
provided in section 571.75. Upon receipt of notice, the
employer shall withhold from compensation due or to become due
to the employee, the total amount shown by the notice, subject
to the provisions of section 571.922. The employer shall
continue to withhold each pay period until the notice is
released by the commissioner under section 270C.7109. Upon
receipt of notice by the employer, the claim of the state of
Minnesota shall have priority over any subsequent garnishments
or wage assignments. The commissioner may arrange between the
employer and the employee for withholding a portion of the total
amount due the employee each pay period, until the total amount
shown by the notice plus accrued interest has been withheld.
new text end

new text begin (b) The "compensation due" any employee is defined in
accordance with the provisions of section 571.921. The maximum
withholding allowed under this section for any one pay period
shall be decreased by any amounts payable pursuant to a
garnishment action with respect to which the employer was served
prior to being served with the notice of delinquency and any
amounts covered by any irrevocable and previously effective
assignment of wages; the employer shall give notice to the
commissioner of the amounts and the facts relating to such
assignments within ten days after the service of the notice of
delinquency on the form provided by the commissioner as noted in
this section.
new text end

new text begin (c) Within ten days after the expiration of such pay
period, the employer shall remit to the commissioner, on a form
and in the manner prescribed by the commissioner, the amount
withheld during each pay period under this section.
new text end

new text begin Subd. 2. new text end

new text begin Termination of employment. new text end

new text begin If the employee
ceases to be employed by the employer before the full amount set
forth in a notice of delinquency plus accrued interest has been
withheld, the employer shall immediately notify the commissioner
in writing of the termination date of the employee and the total
amount withheld. No employer may discharge any employee by
reason of the fact that the commissioner has proceeded under
subdivision 1. If an employer discharges an employee in
violation of this provision, the employee shall have the same
remedy as provided in section 571.927, subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Application to government
employer. new text end

new text begin Subdivisions 1 and 2 apply to cases in which the
employer is the United States or any instrumentality thereof or
this state or any municipality or other subordinate unit
thereof. The provisions imposing liability on the employer for
failure to withhold or remit under section 270C.70 do not apply
to such government employers.
new text end

new text begin Subd. 4. new text end

new text begin Refund to employee. new text end

new text begin The commissioner shall
refund to the employee excess amounts withheld from the employee
under this section. If any excess results from payments by the
employer because of payments made under section 270C.70, the
excess attributable to the employer's payment shall be refunded
to the employer.
new text end

new text begin Subd. 5. new text end

new text begin Additional interest, costs, charges. new text end

new text begin Employers
required to withhold delinquent taxes, penalties, interest, and
costs under this section shall not be required to compute any
additional interest, costs or other charges to be withheld.
new text end

new text begin Subd. 6.new text end

new text begin Legal effect.new text end

new text begin The collection remedy provided to
the commissioner by this section shall have the same legal
effect as if it were a levy made pursuant to section 270C.67.
new text end [290.92, subd. 23]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 76.

new text begin [270C.70] PERSONAL LIABILITY FOR FAILURE TO
HONOR A LEVY.
new text end

new text begin Subdivision 1. new text end

new text begin Surrender of property subject to levy. new text end

new text begin A
person who fails or refuses to surrender property or rights to
property subject to a levy served on the person under section
270C.67, 270C.68, or 270C.69 is liable in an amount equal to the
value of the property or rights not surrendered, or the amount
of taxes, penalties, and interest for the collection of which
the levy was made, whichever is less. A financial institution
need not surrender funds on deposit until ten days after service
of the levy.
new text end

new text begin Subd. 2. new text end

new text begin Penalty. new text end

new text begin In addition to the personal liability
imposed by subdivision 1, if a person required to surrender
property or rights to property fails to do so without reasonable
cause, the person is liable for a penalty equal to 25 percent of
the amount under subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Person defined. new text end

new text begin The term "person" as used in
this section includes an officer or employee of a corporation,
or a member or employee of a partnership, who as such officer,
employee, or member is under a duty to surrender the property or
rights to property or to respond to the levy.
new text end

new text begin Subd. 4.new text end

new text begin Order assessing liability.new text end

new text begin The liability
imposed by this section may, after demand to honor a levy has
been made, be assessed by the commissioner within 60 days after
service of the demand. The assessment may be based on
information available to the commissioner. The assessment is
presumed to be valid, and the burden is on the person assessed
to show it is incorrect or invalid. An order assessing
liability for failure to honor a levy is reviewable
administratively under section 270C.35, and is appealable to Tax
Court under chapter 271. The amount assessed, plus interest at
the rate specified in section 270C.40, may be collected by any
remedy available to the commissioner for the collection of
taxes. The proceeds collected are applied first to the
liability of the original taxpayer to the extent of the
liability under subdivision 1 plus interest, and then to the
penalty under subdivision 2.new text end [270.7002]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 77.

new text begin [270C.7101] SALE OF SEIZED PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin Notice of seizure. new text end

new text begin As soon as practicable
after seizure of property, notice in writing shall be given by
the commissioner to the owner of the property (or, in the case
of personal property, the possessor thereof), and shall be
served in like manner as a summons in a civil action in the
district court. If the owner cannot be readily located, or has
no dwelling or place of business within this state, the notice
may be mailed to the last known address. The notice shall
specify the sum demanded and shall contain, in the case of
personal property, an account of the property seized and, in the
case of real property, a description with reasonable certainty
of the property seized.
new text end

new text begin Subd. 2. new text end

new text begin Notice of sale. new text end

new text begin The commissioner shall as soon
as practicable after the seizure of the property give notice of
sale of the property to the owner, in the manner of service
prescribed in subdivision 1. In the case of personal property,
the notice shall be served at least ten days prior to the sale.
In the case of real property, the notice shall be served at
least four weeks prior to the sale. The commissioner shall also
cause public notice of each sale to be made. In the case of
personal property, notice shall be posted at least ten days
prior to the sale at the county courthouse for the county where
the seizure is made, and in not less than two other public
places. For purposes of this requirement, the Internet is a
public place for posting the information. In the case of real
property, six weeks' published notice shall be given prior to
the sale, in a newspaper published or generally circulated in
the county. The notice of sale provided in this subdivision
shall specify the property to be sold, and the time, place,
manner, and conditions of the sale. Whenever levy is made
without regard to the 30-day period provided in section 270C.67,
subdivision 3, public notice of sale of the property seized
shall not be made within the 30-day period unless section
270C.7102 (relating to sale of perishable goods) is applicable.
new text end

new text begin Subd. 3. new text end

new text begin Sale of indivisible property. new text end

new text begin If any property
liable to levy is not divisible, so as to enable the
commissioner by sale of a part thereof to raise the whole amount
of the tax and expenses, the whole of the property shall be sold.
new text end

new text begin Subd. 4. new text end

new text begin Time and place of sale. new text end

new text begin The time of sale shall
be after the expiration of the notice periods prescribed in
subdivision 2. The place of sale shall be within the county in
which the property is seized, except by special order of the
commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Manner and conditions of sale. new text end

new text begin (a) Before the
sale the commissioner shall determine a minimum price for which
the property shall be sold, and if no person offers for the
property at the sale the amount of the minimum price, the
property shall be declared to be purchased at the minimum price
for the state of Minnesota; otherwise the property shall be
declared to be sold to the highest bidder. In determining the
minimum price, the commissioner shall take into account the
expense of making the levy and sale. The announcement of the
minimum price determined by the commissioner may be delayed
until the receipt of the highest bid.
new text end

new text begin (b) The sale shall not be conducted in any manner other
than:
new text end

new text begin (1) by public auction;
new text end

new text begin (2) by public sale under sealed bids; or
new text end

new text begin (3) in the case of items which individually or in usually
marketable units have a value of $50 or less, by public or
private proceedings as a unit or in parcels at any time and
place and on any terms, but every aspect of the disposition
including the method, manner, time, place, and terms must be
commercially reasonable.
new text end

new text begin (c) In the case of seizure of several items of property,
the items may be offered separately, in groups, or in the
aggregate, and shall be sold under whichever method produces the
highest aggregate amount, except that sales under paragraph (b),
clause (3), must produce a reasonable amount under the
circumstances.
new text end

new text begin (d) Payment in full shall be required at the time of
acceptance of a bid, except that a part of the payment may be
deferred by the commissioner for a period not to exceed 30 days.
new text end

new text begin (e) Other methods (including advertising) in addition to
those prescribed in subdivision 2 may be used in giving notice
of the sale.
new text end

new text begin (f) The commissioner may adjourn the sale from time to time
for a period not to exceed 30 days.
new text end

new text begin (g) If payment in full is required at the time of
acceptance of a bid and is not then and there paid, the
commissioner shall forthwith proceed to again sell the property
in the manner provided in this section. If the conditions of
the sale permit part of the payment to be deferred, and if the
part is not paid within the prescribed period, suit may be
instituted against the purchaser for the purchase price or that
part thereof as has not been paid, together with interest at the
rate specified in section 549.09 from the date of the sale; or,
in the discretion of the commissioner, the sale may be declared
by the commissioner to be null and void for failure to make full
payment of the purchase price and the property may again be
advertised and sold as provided in this section. In the event
of a readvertisement and sale, any new purchaser shall receive
the property or rights to property free and clear of any claim
or right of the former defaulting purchaser, of any nature
whatsoever, and the amount paid upon the bid price by the
defaulting purchaser shall be forfeited.
new text end

new text begin Subd. 6. new text end

new text begin Right to request sale of seized property within
60 days. new text end

new text begin The owner of property seized by levy may request that
the commissioner offer to sell the property within 60 days after
the request, or within a longer period requested by the owner.
The request must be complied with unless the commissioner
determines and notifies the owner within that period that
compliance is not in the best interests of the state of
Minnesota. A determination by the commissioner not to comply
with the request is appealable to the Tax Court in the manner
provided by law.
new text end

new text begin Subd. 7.new text end

new text begin Sale of seized securities.new text end

new text begin (a) At the time of
levy on securities, the commissioner shall provide notice to the
taxpayer that the securities may be sold after ten days from the
date of seizure.
new text end

new text begin (b) If the commissioner levies upon nonexempt publicly
traded securities and the value of the securities is less than
or equal to the total obligation for which the levy is done,
after ten days the person who possesses or controls the
securities shall liquidate the securities in a commercially
reasonable manner. After liquidation, the person shall transfer
the proceeds to the commissioner, less any applicable
commissions or fees, or both, which are charged in the normal
course of business.
new text end

new text begin (c) If the commissioner levies upon nonexempt publicly
traded securities and the value of the securities exceeds the
total amount of the levy, the owner of the securities may,
within seven days after receipt of the commissioner's notice of
levy given pursuant to subdivision 1, instruct the person who
possesses or controls the securities which securities are to be
sold to satisfy the obligation. If the owner does not provide
instructions for liquidation, the person who possesses or
controls the securities shall liquidate the securities in an
amount sufficient to pay the obligation, plus any applicable
commissions or fees, or both, which are charged in the normal
course of business, beginning with the nonexempt securities
purchased most recently. After liquidation, the person who
possesses or controls the securities shall transfer to the
commissioner the amount of money needed to satisfy the levy.
new text end [270.701]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 78.

new text begin [270C.7102] SALE OF PERISHABLE GOODS.
new text end

new text begin If the commissioner determines that any property seized is
liable to perish or become greatly reduced in price or value by
keeping, or that the property cannot be kept without great
expense, the commissioner shall appraise the value of the
property, and if the owner of the property can be readily found,
the commissioner shall give the owner notice of the
determination of the appraised value of the property. The
property shall be returned to the owner if, within the time
specified in the notice, the owner (a) pays to the commissioner
an amount equal to the appraised value, or (b) gives bond in the
form, with the sureties, and in the amount as the commissioner
prescribes to pay the appraised amount at the time the
commissioner determines to be appropriate in the circumstances.
If the owner does not pay the amount or furnish the bond in
accordance with this section, the commissioner shall as soon as
practicable make public sale of the property in accordance with
section 270C.7101.new text end [270.702]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 79.

new text begin [270C.7103] REDEMPTION OF PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin Before sale. new text end

new text begin Any person whose property
has been levied upon shall have the right to pay the amount due,
together with the expenses of the proceeding, if any, to the
commissioner at any time prior to the sale thereof, and upon
payment the commissioner shall restore the property to the
person, and all further proceedings in connection with the levy
on the property shall cease from the time of payment.
new text end

new text begin Subd. 2. new text end

new text begin Redemption of real estate after sale. new text end

new text begin The
owners of any real property sold as provided in this section,
their heirs, executors, or administrators, or any person having
any interest therein, or a lien thereon, or any person in their
behalf, shall be permitted to redeem the property sold, or any
particular tract of the property, at any time within six months,
or in case the real property sold exceeds ten acres in size, at
any time within 12 months, after the sale thereof. The property
or tract of property shall be permitted to be redeemed upon
payment to the purchaser (or if not found in the county in which
the property to be redeemed is situated, then to the
commissioner, for the use of the purchaser, or the purchaser's
heirs or assigns) of the amount paid by the purchaser together
with interest at the rate of 20 percent per annum.
new text end

new text begin Subd. 3.new text end

new text begin Record.new text end

new text begin When any lands sold are redeemed as
provided in this section, the commissioner shall cause entry of
the fact to be made upon the record required by section
270C.7106 and the entry shall be evidence of the redemption.
new text end [270.703]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 80.

new text begin [270C.7104] CERTIFICATE OF SALE.
new text end

new text begin In the case of property sold as provided in section
270C.7101, the commissioner shall give to the purchaser a
certificate of sale upon payment in full of the purchase price.
In the case of real property the certificate shall set forth the
real property purchased, for whose taxes the property was sold,
the name of the purchaser, and the price paid. If real property
is declared purchased by the state of Minnesota, the
commissioner shall within ten days from the sale cause the
certificate of sale to be duly recorded by the county recorder
of the county in which the real property is located.new text end [270.704]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 81.

new text begin [270C.7105] EFFECT OF CERTIFICATE OF SALE.
new text end

new text begin Subdivision 1. new text end

new text begin Personal property. new text end

new text begin (a) In all cases of
sale pursuant to section 270C.7101 of personal property, the
certificate of sale given pursuant to section 270C.7104 shall be
prima facie evidence of the right of the commissioner to make
the sale, and conclusive evidence of the regularity of the
proceedings in making the sale. The certificate shall transfer
to the purchaser all right, title, and interest of the party
delinquent in and to the property sold.
new text end

new text begin (b) If the property consists of stocks, the certificate of
sale shall be notice, when received, to any corporation,
company, or association of the transfer, and shall be authority
to the corporation, company, or association to record the
transfer on its books and records in the same manner as if the
stocks were transferred or assigned by the party holding the
same, in lieu of any original or prior certificate, which shall
be void, whether canceled or not.
new text end

new text begin (c) If the subject of sale is securities or other evidences
of debt, the certificate of sale shall be a good and valid
receipt to the person holding the same, as against any person
holding or claiming to hold possession of the securities or
other evidences of debt.
new text end

new text begin (d) If the property consists of a motor vehicle, the
certificate of sale shall be notice, when received, to the
registrar of motor vehicles of this state of the transfer, and
shall be authority to the registrar to record the transfer on
the books and records in the same manner as if the certificate
of title to the motor vehicle were transferred or assigned by
the party holding the same, in lieu of any original or prior
certificate, which shall be void, whether canceled or not.
new text end

new text begin Subd. 2. new text end

new text begin Real property. new text end

new text begin In the case of the sale of real
property pursuant to section 270C.7101, the certificate of sale
given pursuant to section 270C.7104 shall be prima facie
evidence of the facts therein stated, and shall be considered
and operate as a conveyance of all the right, title, and
interest the party delinquent had in and to the real property
thus sold at the time the lien of the state of Minnesota
attached thereto.
new text end

new text begin Subd. 3.new text end

new text begin Junior encumbrances.new text end

new text begin A certificate of sale of
personal property or real property given pursuant to section
270C.7104 shall discharge the property from all liens,
encumbrances, and titles over which the lien of the state of
Minnesota with respect to which the levy was made had priority.
new text end [270.705]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 82.

new text begin [270C.7106] RECORDS OF SALE.
new text end

new text begin The commissioner shall maintain a record of all sales of
property under section 270C.7101 and of redemptions of real
property. The record shall set forth the tax for which the sale
was made, the dates of seizure and sale, the name of the party
assessed and all proceedings in making the sale, the amount of
expenses, the names of the purchasers, and the date of the
certificate of sale. A copy of the record, or any part thereof,
certified by the commissioner shall be evidence in any court of
the truth of the facts therein stated.new text end [270.706]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 83.

new text begin [270C.7107] EXPENSE OF LEVY AND SALE.
new text end

new text begin The commissioner shall determine the expenses to be allowed
in all cases of levy and sale.new text end [270.707]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 84.

new text begin [270C.7108] APPLICATION OF PROCEEDS OF LEVY.
new text end

new text begin Subdivision 1. new text end

new text begin Collection of liability. new text end

new text begin Any money
realized by proceedings under this chapter, whether by seizure,
by surrender under section 270C.67, by sale of seized property,
by sale of property redeemed by the state of Minnesota (if the
interest of the state of Minnesota in the property was a lien
arising under the provisions of section 270C.63), or by
agreement, arrangement, or any other means shall be applied as
follows:
new text end

new text begin (a) First, against the expenses of the proceedings; then
new text end

new text begin (b) If the property seized and sold is subject to a tax
that has not been paid, the amount remaining after applying
clause (a) shall next be applied against the tax liability (and,
if the tax was not previously assessed, it shall then be
assessed); and
new text end

new text begin (c) The amount, if any, remaining after applying clauses
(a) and (b) shall be applied against the tax liability in
respect of which the levy was made or the sale was conducted.
new text end

new text begin Subd. 2.new text end

new text begin Surplus proceeds.new text end

new text begin Any surplus proceeds
remaining after the application of subdivision 1 shall, upon
application and satisfactory proof in support thereof, be
credited or refunded by the commissioner to the person or
persons legally entitled thereto.new text end [270.708]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 85.

new text begin [270C.7109] AUTHORITY TO RELEASE LEVY AND RETURN
PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin Release of levy. new text end

new text begin The commissioner shall
release a levy on all or part of the property or rights to
property levied on and shall promptly notify the person on whom
the levy was made that the levy has been released if: (1) the
liability for which the levy was made is satisfied or has become
unenforceable by lapse of time; (2) release of the levy will
facilitate collection of the liability; (3) the taxpayer has
entered into an installment payment agreement under section
270C.52, subdivision 2, unless the agreement provides otherwise,
or unless release of the levy will jeopardize the status of the
department as a secured creditor; or (4) the fair market value
of the property exceeds the liability, and release of the levy
on a part of the property can be made without hindering
collection. In the case of tangible personal property essential
in carrying on the trade or business of the taxpayer, the
commissioner shall provide for an expedited determination under
this subdivision. A release of levy under this subdivision does
not prevent a subsequent levy on the property released.
new text end

new text begin Subd. 2.new text end

new text begin Return of property.new text end

new text begin If the commissioner
determines that property has been wrongfully levied upon, it
shall be lawful for the commissioner to return:
new text end

new text begin (a) The specific property levied upon, at any time;
new text end

new text begin (b) An amount of money equal to the amount of money levied
upon, at any time before the expiration of nine months from the
date of the levy; or
new text end

new text begin (c) An amount of money equal to the amount of money
received by the state of Minnesota from a sale of the property,
at any time before the expiration of nine months from the date
of the sale.
new text end

new text begin For purposes of clause (c), if property is declared
purchased by the state of Minnesota at a sale pursuant to
section 270C.7101, subdivision 5 (relating to manner and
conditions of sale), the state of Minnesota shall be treated as
having received an amount of money equal to the minimum price
determined pursuant to section 270C.7101, subdivision 5, or, if
larger, the amount received by the state of Minnesota from the
resale of the property.new text end [270.709]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies made
on or after August 1, 2005.
new text end

Sec. 86.

new text begin [270C.711] ACQUISITION AND RESALE OF SEIZED
PROPERTY.
new text end

new text begin For the purpose of enabling the commissioner to purchase or
redeem seized property in which the state of Minnesota has an
interest arising from a lien for unpaid taxes, or to provide for
the operating costs of collection activities of the department,
there is appropriated to the commissioner an amount representing
the cost of such purchases, redemptions, or collection
activities. Seized property acquired by the state of Minnesota
to satisfy unpaid taxes shall be resold by the commissioner.
The commissioner shall preserve the value of seized property
while controlling it, including but not limited to the
procurement of insurance. For the purpose of refunding the
proceeds from the sale of levied or redeemed property which are
in excess of the actual tax liability plus costs of acquiring
the property, there is hereby created a levied and redeemed
property refund account in the agency fund. All amounts
deposited into this account are appropriated to the
commissioner. The commissioner shall report quarterly on the
status of this program to the chairs of the house Taxes and Ways
and Means Committees and senate Taxes and Tax Laws and Finance
Committees.new text end [270.71]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 87.

new text begin [270C.72] TAX CLEARANCE; ISSUANCE OF LICENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Tax clearance required. new text end

new text begin The state or a
political subdivision of the state may not issue, transfer, or
renew, and must revoke, a license for the conduct of a
profession, occupation, trade, or business, if the commissioner
notifies the licensing authority that the applicant owes the
state delinquent taxes payable to the commissioner, penalties,
or interest. The commissioner may not notify the licensing
authority unless the applicant taxpayer owes $500 or more in
delinquent taxes, penalties, or interest, or has not filed
returns. If the applicant taxpayer does not owe delinquent
taxes, penalties, or interest, but has not filed returns, the
commissioner may not notify the licensing authority unless the
taxpayer has been given 90 days' written notice to file the
returns or show that the returns are not required to be filed.
A licensing authority that has received a notice from the
commissioner may issue, transfer, renew, or not revoke the
applicant's license only if (a) the commissioner issues a tax
clearance certificate and (b) the commissioner or the applicant
forwards a copy of the clearance to the authority. The
commissioner may issue a clearance certificate only if the
applicant does not owe the state any uncontested delinquent
taxes, penalties, or interest and has filed all required returns.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the
following terms have the meanings given.
new text end

new text begin (a) "Delinquent taxes" do not include a tax liability if
(i) an administrative or court action which contests the amount
or validity of the liability has been filed or served, (ii) the
appeal period to contest the tax liability has not expired, or
(iii) the applicant has entered into a payment agreement and is
current with the payments.
new text end

new text begin (b) "Applicant" means an individual, if the license is
issued to or in the name of an individual, or the corporation or
partnership, if the license is issued to or in the name of a
corporation or partnership. "Applicant" also means an officer
of a corporation, a member of a partnership, or an individual
who is liable for delinquent taxes, either for the entity for
which the license is at issue or for another entity for which
the liability was incurred, or personally as a licensee. In the
case of a license transfer, "applicant" also means both the
transferor and the transferee of the license. "Applicant" also
means any holder of a license.
new text end

new text begin (c) "License" means any permit, registration,
certification, or other form of approval authorized by statute
or rule to be issued by the state or a political subdivision of
the state as a condition of doing business or conducting a
trade, profession, or occupation in Minnesota, specifically
including, but not limited to, a contract for space rental at
the Minnesota state fair and authorization to operate
concessions or rides at county and local fairs, festivals, or
events.
new text end

new text begin (d) "Licensing authority" includes the Minnesota State Fair
Board and county and local boards or governing bodies.
new text end

new text begin Subd. 3. new text end

new text begin Notice and hearing. new text end

new text begin (a) The commissioner, on
notifying a licensing authority pursuant to subdivision 1 not to
issue, transfer, or renew a license, must send a copy of the
notice to the applicant. If the applicant requests, in writing,
within 30 days of the date of the notice a hearing, a contested
case hearing must be held. The hearing must be held within 45
days of the date the commissioner refers the case to the Office
of Administrative Hearings. Notwithstanding any law to the
contrary, the applicant must be served with 20 days' notice in
writing specifying the time and place of the hearing and the
allegations against the applicant. The notice may be served
personally or by mail.
new text end

new text begin (b) Prior to notifying a licensing authority pursuant to
subdivision 1 to revoke a license, the commissioner must send a
notice to the applicant of the commissioner's intent to require
revocation of the license and of the applicant's right to a
hearing under paragraph (a). A license is subject to revocation
when 30 days have passed following the date of the notice in
this paragraph without the applicant requesting a hearing, or,
if a hearing is timely requested, upon final determination of
the hearing under section 14.62, subdivision 1. A license shall
be revoked by the licensing authority within 30 days after
receiving notice from the commissioner to revoke.
new text end

new text begin (c) A hearing under this subdivision is in lieu of any
other hearing or proceeding provided by law arising from any
action taken under subdivision 1.
new text end

new text begin Subd. 4.new text end

new text begin Licensing authority; duties.new text end

new text begin All licensing
authorities must require the applicant to provide the
applicant's Social Security number and Minnesota business
identification number on all license applications. Upon request
of the commissioner, the licensing authority must provide the
commissioner with a list of all applicants, including the name,
address, business name and address, Social Security number, and
business identification number of each applicant. The
commissioner may request from a licensing authority a list of
the applicants no more than once each calendar year.new text end [270.72]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 88.

new text begin [270C.721] REVOCATION OF CERTIFICATES OF
AUTHORITY TO DO BUSINESS IN THIS STATE.
new text end

new text begin When a foreign corporation authorized to do business in
this state under chapter 303, or a foreign limited liability
company or partnership authorized to do business in this state
under chapter 322B, fails to comply with a law administered by
the commissioner that imposes a tax, the commissioner may serve
the secretary of state with a certified copy of an order finding
such failure to comply. The secretary of state, upon receipt of
the order, shall revoke the certificate of authority to do
business in this state, and shall reinstate the certificate
under section 303.19 or 322B.960, subdivision 6, only when the
corporation or limited liability company or partnership has
obtained from the commissioner an order finding that the
corporation or limited liability company or partnership is in
compliance with such law. An order requiring revocation of a
certificate shall not be issued unless the commissioner gives
the corporation or limited liability company or partnership 30
days' written notice of the proposed order, specifying the
violations of law, and affording an opportunity to request a
contested case hearing under chapter 14.new text end [270.721]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 89.

new text begin [270C.722] REVOCATION OF SALES TAX PERMITS.
new text end

new text begin Subdivision 1. new text end

new text begin Notice of revocation; hearings. new text end

new text begin (a) If:
(1) a person fails to comply with chapter 297A or the sales and
use tax provisions of chapter 289A or the rules related to sales
tax, or (2) any retailer purchases for resale from an unlicensed
seller more than 20,000 cigarettes or $500 or more worth of
tobacco products, without reasonable cause, the commissioner may
give the person 30 days' notice in writing, specifying the
violations, and stating that based on the violations the
commissioner intends to revoke the person's permit issued under
section 297A.84. The notice must also advise the person of the
right to contest the revocation under this subdivision. It must
also explain the general procedures for a contested case hearing
under chapter 14. The notice may be served personally or by
mail in the manner prescribed for service of an order of
assessment.
new text end

new text begin (b) If the person does not request a hearing within 30 days
after the date of the notice of intent, the commissioner may
serve a notice of revocation of permit upon the person, and the
permit is revoked. If a hearing is timely requested, and held,
the permit is revoked after the commissioner serves an order of
revocation of permit under section 14.62, subdivision 1.
new text end

new text begin Subd. 2.new text end

new text begin New permits after revocation.new text end

new text begin (a) The
commissioner shall not issue a new permit after revocation or
reinstate a revoked permit unless the taxpayer applies for a
permit and provides reasonable evidence of intention to comply
with the sales and use tax laws and rules. The commissioner may
require the applicant to provide security, in addition to that
authorized by section 297A.92, in an amount reasonably necessary
to ensure compliance with the sales and use tax laws and rules.
If the commissioner issues or reinstates a permit not in
conformance with the requirements of this subdivision or
applicable rules, the commissioner may cancel the permit upon
notice to the permit holder. The notice must be served by first
class and certified mail at the permit holder's last known
address. The cancellation shall be effective immediately,
subject to the right of the permit holder to show that the
permit was issued in conformance with the requirements of this
subdivision and applicable rules. Upon such showing, the permit
must be reissued.
new text end

new text begin (b) If a taxpayer has had a permit or permits revoked three
times in a five-year period, the commissioner shall not issue a
new permit or reinstate the revoked permit until 24 months have
elapsed after revocation and the taxpayer has satisfied the
conditions for reinstatement of a revoked permit or issuance of
a new permit imposed by this section and rules adopted under
this section.
new text end

new text begin (c) For purposes of this subdivision, "taxpayer" means:
new text end

new text begin (1) an individual, if a revoked permit was issued to or in
the name of an individual, or a corporation or partnership, if a
revoked permit was issued to or in the name of a corporation or
partnership; and
new text end

new text begin (2) an officer of a corporation, a member of a partnership,
or an individual who is liable for delinquent sales taxes,
either for the entity for which the new or reinstated permit is
at issue, or for another entity for which a permit was
previously revoked, or personally as a permit holder.new text end [297A.86]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 90.

new text begin [270C.725] POSTING OF TAX DELINQUENCY; SALE OF
LIQUOR OR BEER.
new text end

new text begin Subdivision 1. new text end

new text begin Posting, notice. new text end

new text begin Pursuant to the
authority to disclose under section 270B.12, subdivision 4, the
commissioner shall, by the 15th of each month, submit to the
commissioner of public safety a list of all taxpayers who are
required to pay, withhold, or collect the tax imposed by section
290.02, 290.0922, 290.92, 290.9727, 290.9728, 290.9729, or
297A.62, or local sales and use tax payable to the commissioner,
or a local option tax administered and collected by the
commissioner, and who are ten days or more delinquent in either
filing a tax return or paying the tax.
new text end

new text begin The commissioner is under no obligation to list a taxpayer
whose business is inactive. At least ten days before notifying
the commissioner of public safety, the commissioner shall notify
the taxpayer of the intended action.
new text end

new text begin The commissioner of public safety shall post the list in
the same manner as provided in section 340A.318, subdivision 3.
The list will prominently show the date of posting. If a
taxpayer previously listed files all returns and pays all taxes
specified in this subdivision then due, the commissioner shall
notify the commissioner of public safety within two business
days.
new text end

new text begin Subd. 2. new text end

new text begin Sales prohibited. new text end

new text begin Beginning the third business
day after the list is posted, no wholesaler, manufacturer, or
brewer may sell or deliver any product to a taxpayer included on
the posted list.
new text end

new text begin Subd. 3.new text end

new text begin Penalty.new text end

new text begin A wholesaler, manufacturer, or brewer
of intoxicating liquor or 3.2 percent malt liquor who violates
subdivision 2 is subject to the penalties provided in section
340A.304.new text end [270.73]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 91.

new text begin [270C.728] PUBLICATION OF NAMES OF DELINQUENT
TAXPAYERS.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner may publish. new text end

new text begin (a)
Notwithstanding any other law, the commissioner may publish a
list or lists of taxpayers who owe delinquent taxes, and who
meet the requirements of paragraph (b).
new text end

new text begin (b) For purposes of this section, a taxpayer may be
included on a list if:
new text end

new text begin (1) the taxes owed remain unpaid at least 180 days after
the dates they were due;
new text end

new text begin (2) the taxpayer's total liability for the taxes, including
penalties, interest, and other charges, is at least $5,000; and
new text end

new text begin (3) a tax lien has been filed or a judgment for the
liability has been entered against the taxpayer before notice is
given under subdivision 3.
new text end

new text begin (c) In the case of listed taxpayers that are business
entities, the commissioner may also list the names of
responsible persons assessed pursuant to section 270C.56 for
listed liabilities, who are not protected from publication by
subdivision 2, and for whom the requirements of paragraph (b)
are satisfied with regard to the personal assessment.
new text end

new text begin (d) Before any list is published under this section, the
commissioner must certify in writing that each of the conditions
for publication as provided in this section has been satisfied,
and that procedures were followed to ensure the accuracy of the
list and notice was given to the affected taxpayers.
new text end

new text begin Subd. 2. new text end

new text begin Required and excluded taxpayers. new text end

new text begin (a) The
commissioner may publish lists of some or all of the taxpayers
described in subdivision 1. A list must include the taxpayers
with the largest unpaid liabilities of the kind used to define
the list, subject to the limitations of paragraphs (b) and (c).
new text end

new text begin (b) For the purposes of this section, a tax is not
delinquent if:
new text end

new text begin (1) an administrative or court action contesting the amount
or validity of the taxpayer's liability has been filed or served
and is unresolved at the time when notice would be given under
subdivision 3;
new text end

new text begin (2) an appeal period to contest the liability has not
expired; or
new text end

new text begin (3) the liability is subject to a payment agreement and
there is no delinquency in the payments required under the
agreement.
new text end

new text begin (c) Unpaid liabilities are not subject to publication if:
new text end

new text begin (1) the commissioner is in the process of reviewing or
adjusting the liability;
new text end

new text begin (2) the taxpayer is a debtor in a bankruptcy proceeding and
the automatic stay is in effect;
new text end

new text begin (3) the commissioner has been notified that the taxpayer is
deceased; or
new text end

new text begin (4) the time period for collecting the taxes has expired.
new text end

new text begin Subd. 3. new text end

new text begin Notice to taxpayer. new text end

new text begin (a) At least 30 days before
publishing the name of a delinquent taxpayer, the commissioner
shall mail a written notice to the taxpayer, detailing the
amount and nature of each liability and the intended publication
of the information listed in subdivision 4 related to the
liability. The notice must be mailed by first class and
certified mail addressed to the last known address of the
taxpayer. The notice must include information regarding the
exceptions listed in subdivision 2 and must state that the
taxpayer's information will not be published if the taxpayer
pays the delinquent obligation, enters into an agreement to pay,
or provides information establishing that subdivision 2
prohibits publication of the taxpayer's name.
new text end

new text begin (b) After at least 30 days has elapsed since the notice was
mailed and the delinquent tax has not been paid and the taxpayer
has not proved to the commissioner that subdivision 2 prohibits
publication, the commissioner may publish in a list of
delinquent taxpayers the information about the taxpayer that is
listed in subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Form of list. new text end

new text begin The list may be published by any
medium or method. The list must contain the name, address, type
of tax, and period for which payment is due for each liability,
including penalties, interest, and other charges owed by each
listed delinquent taxpayer.
new text end

new text begin Subd. 5. new text end

new text begin Removal from list. new text end

new text begin The commissioner shall
remove the name of a taxpayer from the list of delinquent
taxpayers after the commissioner receives written notice of and
verifies any of the following facts about the liability in
question:
new text end

new text begin (1) the taxpayer has contacted the commissioner and
arranged resolution of the liability;
new text end

new text begin (2) an active bankruptcy proceeding has been initiated for
the liability;
new text end

new text begin (3) a bankruptcy proceeding concerning the liability has
resulted in discharge of the liability; or
new text end

new text begin (4) the commissioner has written off the liability.
new text end

new text begin Subd. 6. new text end

new text begin Names published in error. new text end

new text begin If the commissioner
publishes a name under subdivision 1 in error, the taxpayer
whose name was erroneously published has a right to request a
retraction and apology. If the taxpayer so requests, the
commissioner shall publish a retraction and apology
acknowledging that the taxpayer's name was published in error.
The retraction and apology must appear in the same medium and
the same format as the original list that contained the name
listed in error.
new text end

new text begin Subd. 7.new text end

new text begin Payment of damages.new text end

new text begin Actions against the
commissioner or the state of Minnesota arising out of the
implementation of this program must be brought under section
270C.275. If an action results in damages awarded to a
taxpayer, the damages must be paid out of the department's
operating budget rather than in accordance with section 3.736,
subdivision 7.new text end [270.691]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end OVERSIGHT AND ADMINISTRATION OF PROPERTY TAX SYSTEM

Sec. 92.

new text begin [270C.85] ADMINISTRATION OF PROPERTY TAX LAWS;
POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin General supervision. new text end

new text begin The commissioner
shall have and exercise general supervision over the
administration of the property tax laws, assessors, town,
county, and city boards of review and equalization, and all
other assessing officers in the performance of their duties, to
the end that all assessments of property be made relatively just
and equal in compliance with the laws of the state.new text end [270.06(1)]

new text begin Subd. 2.new text end

new text begin Powers and duties.new text end

new text begin The commissioner shall have
and exercise the following powers and duties in administering
the property tax laws.
new text end

new text begin (a) Confer with, advise, and give the necessary
instructions and directions to local assessors and local boards
of review throughout the state as to their duties under the laws
of the state.new text end [270.06(2)]

new text begin (b) Direct proceedings, actions, and prosecutions to be
instituted to enforce the laws relating to the liability and
punishment of public officers and officers and agents of
corporations for failure or negligence to comply with the
provisions of the property tax laws, and cause complaints to be
made against local assessors, members of boards of equalization,
members of boards of review, or any other assessing or taxing
officer, to the proper authority, for their removal from office
for misconduct or negligence of duty.new text end [270.06(3)]

new text begin (c) Require county attorneys to assist in the commencement
of prosecutions in actions or proceedings for removal,
forfeiture, and punishment, for violation of the property tax
laws in their respective districts or counties.new text end [270.06(4)]

new text begin (d) Require town, city, county, and other public officers
to report information as to the assessment of property, and such
other information as may be needful in the work of the
commissioner, in such form as the commissioner may prescribe.
new text end [270.06(5)]

new text begin (e) Transmit to the governor, on or before the third Monday
in December of each even-numbered year, and to each member of
the legislature, on or before November 15 of each even-numbered
year, the report of the department for the preceding years,
showing all the taxable property subject to the property tax
laws and the value of the same, in tabulated form.new text end [270.06(12)]

new text begin (f) Inquire into the methods of assessment and taxation and
ascertain whether the assessors faithfully discharge their
duties.new text end [270.06(13)]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 93.

new text begin [270C.86] POWER TO ABATE; CORRECTION OF ERRORS.
new text end

new text begin Subdivision 1. new text end

new text begin Powers of commissioner; application for
abatement; orders. new text end

new text begin (a) Except for matters delegated to the
various boards of county commissioners under section 375.192,
and except as otherwise provided by law, the commissioner shall
have power to grant such reduction or abatement of net tax
capacities, taxes imposed by the property tax laws, or special
assessments, and of any costs, penalties, or interest thereon as
the commissioner may deem just and equitable, and to order the
refundment, in whole or in part, of any taxes or special
assessments, and costs, penalties, or interest thereon which
have been erroneously or unjustly paid. Application therefor
shall be submitted with a statement of facts in the case and the
favorable recommendation of the county board or of the board of
abatement of any city where any such board exists, and the
county auditor of the county wherein such tax was levied or
paid. No reduction, abatement, or refundment of any special
assessments made or levied by any municipality for local
improvements shall be made unless it is also approved by the
board of review or similar taxing authority of such municipality.
new text end

new text begin (b) The commissioner shall forward to the county auditor a
copy of the order made by the commissioner in all cases in which
the approval of the county board is required.new text end [270.07, subd.
1(c)]

new text begin (c) An appeal may not be taken to the Tax Court from any
order of the commissioner made in the exercise of the
discretionary authority granted in paragraph (a) with respect to
the reduction or abatement of real or personal property taxes in
response to an application for an abatement, reduction, or
refund of taxes, net tax capacities, costs, penalties, or
interest.new text end [270.07, subd. 1(f)]

new text begin Subd. 2. new text end

new text begin Examination of application; reductions;
appeals. new text end

new text begin (a) The commissioner shall examine all applications
submitted by a county board pursuant to section 375.192,
subdivision 3. If the applicant has previously submitted a
claim for property tax relief pursuant to chapter 290A based on
the property taxes payable prior to receiving the abatement, the
commissioner may approve the application in an amount reduced by
the relief provided pursuant to chapter 290A.
new text end

new text begin (b) An appeal may be taken to the Tax Court from an order
of the commissioner made pursuant to this subdivision.new text end [270.07,
subd. 1a]

new text begin Subd. 3.new text end

new text begin Correction of errors.new text end

new text begin On application of the
county auditor with the approval of the county board, the
commissioner may order the correction of any administrative and
clerical errors in the assessment, levy, and extension of taxes
under the property tax laws, other than valuation.new text end [270.07,
subd. 2]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 94.

new text begin [270C.87] REVISION OF MINNESOTA ASSESSORS'
MANUAL.
new text end

new text begin In accordance with the provisions of section 270C.06, the
commissioner shall periodically revise the Minnesota assessors'
manual.new text end [270.068]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 95.

new text begin [270C.88] ORDERS; DECISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin In writing. new text end

new text begin Any order or decision of the
commissioner increasing or decreasing any tax, assessment, or
other obligation by a sum exceeding $1,000 on real or personal
property, or the net tax capacity thereof, or other obligation
relating thereto, the result of which is to increase or decrease
the total amount payable under the property tax laws, including
penalties and interest, by a sum exceeding $1,000, must bear the
written signature or facsimile signature of the commissioner or
the commissioner's delegate. Written approval of the
commissioner or a delegate shall not be required with respect to
orders reducing net tax capacity of property by reason of its
classification as a homestead.
new text end

new text begin Subd. 2.new text end

new text begin Only official actions of county board or other
agency acted upon.new text end

new text begin No action requiring the recommendation or
approval of any county board or other public agency shall be
taken by the commissioner, or any other employees or agents of
the department, unless such recommendation or approval shall
have been made upon official action by such county board or
other agency, entered upon the minutes or record of its
proceedings as a public record, showing the names of the
taxpayers and other persons concerned and the amounts involved,
and so certified by the recording officer of such board or
agency.new text end [270.10]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 96.

new text begin [270C.89] COUNTY ASSESSOR'S REPORTS OF
ASSESSMENT FILED WITH COMMISSIONER.
new text end

new text begin Subdivision 1. new text end

new text begin Initial report. new text end

new text begin Each county assessor
shall file by April 1 with the commissioner a copy of the
abstract that will be acted upon by the local and county boards
of review. The abstract must list the real and personal property
in the county itemized by assessment districts. The assessor of
each county in the state shall file with the commissioner,
within ten working days following final action of the local
board of review or equalization and within five days following
final action of the county board of equalization, any changes
made by the local or county board. The information must be
filed in the manner prescribed by the commissioner. It must be
accompanied by a printed or typewritten copy of the proceedings
of the appropriate board.new text end [270.11, subd. 2]

new text begin Subd. 2.new text end

new text begin Final report.new text end

new text begin The final abstract of assessments
after adjustments by the State Board of Equalization and
inclusion of any omitted property shall be submitted to the
commissioner on or before September 1 of each calendar year.
The final abstract must separately report the captured tax
capacity of tax increment financing districts under section
469.177, subdivision 2, the metropolitan revenue contribution
value under section 473F.07, and the value subject to the power
line credit under section 273.42.new text end [270.11, subd. 2]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 97.

new text begin [270C.90] COUNTY AUDITOR TO CALCULATE TAX RATE.
new text end

new text begin The county auditor shall calculate the tax rate necessary
to raise the required amount of the various taxes on the net tax
capacity of all property as returned by the commissioner and the
State Board of Equalization.new text end [270.14]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 98.

new text begin [270C.91] RECORD OF PROCEEDINGS CHANGING NET TAX
CAPACITY; DUTIES OF COUNTY AUDITOR.
new text end

new text begin A record of all proceedings of the commissioner affecting
any change in the net tax capacity of any property, as revised
by the State Board of Equalization, shall be kept by the
commissioner and a copy thereof, duly certified, shall be mailed
each year to the auditor of each county wherein such property is
situated, on or before June 30 or 30 days after submission of
the abstract required by section 270C.89, whichever is later.
This record shall specify the amounts or amount, or both, added
to or deducted from the net tax capacity of the real property of
each of the several towns and cities, and of the real property
not in towns or cities, also the percent or amount of both,
added to or deducted from the several classes of personal
property in each of the towns and cities, and also the amount
added to or deducted from the assessment of any person. The
county auditor shall add to or deduct from such tract or lot, or
portion thereof, of any real property in the county the required
percent or amount, or both, on the net tax capacity thereof as
it stood after equalized by the county board, adding in each
case a fractional sum of 50 cents or more, and deducting in each
case any fractional sum of less than 50 cents, so that no net
tax capacity of any separate tract or lot shall contain any
fraction of a dollar; and add to, or deduct from, the several
classes of personal property in the county the required percent
or amount, or both, on the net tax capacity thereof as it stood
after equalized by the county board, adding or deducting in
manner aforesaid any fractional sum so that no net tax capacity
of any separate class of personal property shall contain a
fraction of a dollar, and add to or deduct from assessment of
any person, as they stood after equalization by the county
board, the required amounts to agree with the assessments as
returned by the commissioner.new text end [270.13]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 99.

new text begin [270C.92] IMPROPER OR NEGLIGENT ADMINISTRATION
OF PROPERTY TAX LAWS.
new text end

new text begin Subdivision 1. new text end

new text begin Examination of complaints;
proceedings. new text end

new text begin The commissioner shall receive complaints and
examine all cases where it is alleged that property subject to
taxation has not been assessed or has been fraudulently or for
any reason improperly or unequally assessed, or the law in any
manner evaded or violated, and cause to be instituted such
proceedings as will remedy improper or negligent administration
of the property tax laws.new text end [270.11, subd. 5]

new text begin Subd. 2. new text end

new text begin Change of market values. new text end

new text begin In administering the
property tax laws, the commissioner shall raise or lower the
market value of any real or personal property, including the
power to raise or lower the market value of the real or personal
property of any person; provided, that before any such
assessment against the property of any person is so raised,
notice of an intention to raise such market value and of the
time and place at which a hearing thereon will be held shall be
given to such person, by mail, addressed to the person at the
place of residence listed upon the assessment book, at least
five days before the day of such hearing.
new text end

new text begin All relevant and material evidence concerning the market
value of the real or personal property shall be submitted at the
hearing, and the hearing shall not be a "contested case" within
the meaning of section 14.02, subdivision 3. The person
notified of the hearing, or any other person having an interest
in the property, may present evidence and argument bearing upon
the market value of the property.new text end [270.11, subd. 6]

new text begin Subd. 3.new text end

new text begin Appearances before the commissioner.new text end

new text begin A property
owner, other than a public utility or mining company, for which
the original assessments are determined by the commissioner, may
not appear before the commissioner for the purposes provided in
subdivision 1 or 2 unless a timely appearance in person, by
counsel, or by written communication has been made before the
county board of equalization as provided in section 274.13, to
appeal the assessment of the property, or that the property
owner can establish not receiving notice of market value at
least five days before the local board of review meeting.
new text end

new text begin The commissioner may refuse to hear an appeal that is
within the jurisdiction of the Small Claims Division of the Tax
Court as stated in section 271.21, subdivision 2. The property
owner shall be notified by the commissioner of the right to
appeal to the Small Claims Division whenever an appeal to the
commissioner is denied.new text end [270.11, subd. 7]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 100.

new text begin [270C.921] MUNICIPALITY MAY BE PARTY TO TAX
HEARING.
new text end

new text begin Any city, town, school district, or county (all of which
governmental subdivisions shall be embraced in the word
"municipality" as used in sections 270C.921 to 270C.928) may
appear at and become a party to any proceedings before the
commissioner under section 270C.92 held for the purpose of
equalizing or assessing any real or personal property in the
municipality, or reducing the net tax capacity of any such
property. For that purpose the municipality may employ counsel
and disburse money for other expenses in connection with the
proceedings, on duly itemized, verified claims, which shall be
audited and allowed as now provided by law for the allowance of
claims against a municipality. It shall be the duty of the
commissioner, at the time of a hearing, to grant the
municipality, at its request, any further reasonable time as may
be necessary for the municipality to prepare for further
hearing. Before granting any reduction in net tax capacity
exceeding $100,000, it shall be the duty of the commissioner,
when any taxpayer or property owner has applied to the
commissioner after June 30, 1983, for a reduction of the net tax
capacity of any real or personal property in an amount exceeding
$100,000, to give written notice to the officials of the
municipality where the property is located and to permit the
municipality to have reasonable opportunity to be heard at any
proceedings concerning such reduction.new text end [270.19]

Sec. 101.

new text begin [270C.922] MUNICIPALITY MAY REQUEST TAX
HEARING.
new text end

new text begin Any municipality may, at any time within ten days after the
final adjournment of the county board of equalization of the
county in which the municipality is located or within ten days
after the filing with the auditor of such county of any order of
the commissioner reducing the net tax capacity of any property
in the municipality, file a written request with the
commissioner for a hearing under section 270C.92 upon the
equalization or assessment of any property within the
municipality, specifying the property and the name and address
of the owner thereof, as they appear from the assessment books.
The commissioner shall then order a hearing and mail a notice
stating the time and place of the hearing to the municipality
and to the owner of the property. It shall be the duty of the
commissioner, at the time of a hearing, to grant the
municipality, at its request, such further reasonable time as
may be necessary for the municipality to prepare for further
hearing.new text end [270.20]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 102.

new text begin [270C.923] WITNESSES SUMMONED.
new text end

new text begin In any hearing before the commissioner under section
270C.92, the commissioner shall, upon the request of a
municipality or any other party to the proceedings, issue
subpoenas and summon witnesses to appear and give testimony, and
to produce books, records, papers, and documents. For the
purpose of preparing for and participating in a hearing the
municipality shall have access to, and use of, all the data,
records, and files of the commissioner pertaining to the
property in question. Upon demand of any party a record shall
be kept by the commissioner of all evidence offered or received
at a hearing, the cost thereof to be paid by the party making
such demand.new text end [270.21]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 103.

new text begin [270C.924] FINDINGS OF FACT AND ORDER;
APPEALS.
new text end

new text begin Subdivision 1. new text end

new text begin Findings of fact. new text end

new text begin For hearings held under
section 270C.92, the commissioner shall determine the
controversy upon the evidence produced at the hearing and shall
make and file written findings of fact and an order determining
the controversy. In the equalization and determination of net
tax capacities, the findings and net tax capacities as given by
the assessor of the local assessment district shall be
considered as prima facie correct. Copies of the order and
findings shall be mailed to all parties appearing at the hearing
and to the auditor of the county in which the property is
located.
new text end

new text begin Subd. 2. new text end

new text begin Appeal by municipality. new text end

new text begin Any municipality which
has appeared in the proceedings, and which is aggrieved by the
order of the commissioner reducing the net tax capacity of any
of the property, or failing to increase the net tax capacity,
may have the order of the commissioner reviewed by appeal to the
Court of Appeals, on either of the following grounds: (1) that
the determination of the commissioner was not in accordance with
the property tax laws, or that the commissioner committed any
other error of law; or (2) that the findings of fact and
determination of net tax capacity were unwarranted by or were
contrary to the weight of the evidence.
new text end

new text begin Subd. 3.new text end

new text begin Appeal by property owner.new text end

new text begin Any owner of property
who has appeared in the proceedings and who is aggrieved by the
order of the commissioner raising the net tax capacity of the
property, or failing to reduce the net tax capacity, may have
the order of the commissioner reviewed on appeal to the Court of
Appeals in like manner and upon the same grounds as provided for
review on the appeal of any municipality.new text end [270.22]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 104.

new text begin [270C.925] NOTICE OF APPEAL.
new text end

new text begin To secure review of a determination made by the
commissioner under section 270C.924, the municipality shall,
within 30 days after mailing of notice of the determination,
serve upon the commissioner a notice of appeal to the Court of
Appeals from the order of the commissioner and file the
original, with proof of service, with the clerk of the appellate
courts, paying the filing fee provided by law for appeals in
civil actions. The filing of the notice of appeal shall vest
the court with jurisdiction and the appeal shall be heard and
disposed of as in other civil cases.
new text end

new text begin The court shall reverse or affirm the order of the
commissioner or remand the cause to the commissioner for a new
hearing or further proceedings or for other disposition, with
further directions as the court deems proper.new text end [270.23]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 105.

new text begin [270C.926] APPEAL DOES NOT STAY COLLECTION.
new text end

new text begin The institution of any appeal under sections 270C.924 and
270C.925 from the order of the commissioner does not stay any
proceedings for the assessment or collection of taxes against
the property involved therein. Notwithstanding such appeal, the
commissioner shall file with the auditor of the county in which
such property is situated an order confirming, increasing,
decreasing, or determining the net tax capacity thereof, and the
county auditor shall extend and levy against such property, or
the owner thereof, the taxes thereupon for such year according
to such assessment, and all subsequent proceedings for the
determination of the taxes and the collection thereof shall be
taken as if no appeal from such order were pending. When the
matter is finally determined on review a properly authenticated
copy of the findings, order, or judgment shall be filed with the
auditor of the county in which the land or property referred to
in the proceedings is situated. If such order or judgment
lowers the net tax capacity of the land or property referred to
in the proceedings, the commissioner, upon petition of the
owner, approved by the county board, shall abate so much of the
taxes against such property as is attributable to the excessive
net tax capacity thereof. If such tax has been paid, the county
auditor, upon petition of the owner, approved by the county
board and the commissioner, shall refund so much of such payment
as is attributable to such excess net tax capacity. Upon such
refund being made the county auditor shall charge the same to
the state and the various governmental subdivisions thereof that
participated in such excessive payment, in proportion to their
respective shares therein, and deduct the same in the next tax
apportionment.new text end [270.24]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 106.

new text begin [270C.927] INCREASE IN NET TAX CAPACITY;
ADDITIONAL TAXES.
new text end

new text begin If the final order and judgment in a hearing before the
commissioner under section 270C.92, or any appeal thereof,
result in raising the net tax capacity of the property affected
by the proceedings, the county officers shall, for the next
ensuing year, in addition to the regular taxes levied for such
ensuing year, levy, extend, and spread against such property, if
real property, or against the owner thereof, if personal
property, a tax equal to the difference between the taxes
actually levied and extended against such property, or owner,
for the year in question and the taxes which should have been
levied or extended against such property, or owner, at the
increased net tax capacity as finally determined.new text end [270.25]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 107.

new text begin [270C.928] PROCEEDINGS TO DETERMINE NET TAX
CAPACITY.
new text end

new text begin The proceedings provided in sections 270C.92 to 270C.927
are for determining the net tax capacity upon the basis of which
taxes are spread against property, or its owner, in the first
instance. The order of the commissioner, or the final order for
judgment of the Court of Appeals on it, shall not be a bar to
any defense against the taxes interposed at the time of the
proceedings for judgment on them. All defenses which may be set
up against the proceedings for judgment upon the taxes may be
asserted notwithstanding the determination of the commissioner
or the court. If the taxes are levied or extended pending
review of the order of the commissioner by the court, a judgment
entered upon the taxes in the tax delinquency proceedings shall
not be a bar to the spreading of further taxes against the
property for that year, in the event the net tax capacity of the
property is raised as herein provided. In the proceedings for
the collection of any taxes which include an additional levy
because of the raising of the net tax capacity of any property,
the owner may answer separately to the proceedings to obtain
judgment for the excess levy.new text end [270.26]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 108.

new text begin [270C.94] PROPERTY OMITTED OR UNDERVALUED;
REASSESSMENT; APPOINTMENT OF SPECIAL ASSESSOR.
new text end

new text begin Subdivision 1. new text end

new text begin Property omitted or undervalued. new text end

new text begin When it
shall be made to appear to the commissioner, by complaint or by
the finding of a court or of the legislature, or either body of
the legislature, or any committee of the legislature, or any
city council or county board, that any considerable amount of
property has been improperly omitted from the tax list or
assessment roll of any district or county for any year, or, if
assessed, that the same has been undervalued or overvalued, as
compared with like property in the same county or in the state
so that the assessment for such year in such district or county
is grossly unfair and inequitable, whether or not the same has
been equalized by the county board of equalization or the
commissioner, the commissioner shall examine into the facts in
the matter and, if satisfied that it would be for the best
interests of the state that a reassessment of such property be
made, the commissioner shall appoint a special assessor and such
deputy assessors as may be necessary and cause a reassessment to
be made of all or any of the real and personal property, or
either, in any such district or county as the commissioner may
deem best, to the end that all property in such district or
county shall be assessed equitably as compared with like
property in such district or county.new text end [270.16, subd. 1]

new text begin Subd. 2. new text end

new text begin Special assessors, deputies; reassessments. new text end

new text begin The
commissioner shall appoint a special assessor and deputies and
cause to be made, in any year, a reassessment of all or any real
and personal property, or either, in any assessment district,
when in the commissioner's judgment such reassessment is
desirable or necessary, to the end that any and all property in
such district shall be assessed equitably as compared with like
property in the county wherein such district is situated.
new text end [270.11, subd. 3]

new text begin Subd. 3.new text end

new text begin Failure to appraise.new text end

new text begin When an assessor has
failed to properly appraise at least one-quarter of the parcels
of property in a district or county as provided in section
273.01, the commissioner shall appoint a special assessor and
deputy assessor as necessary and cause a reappraisal to be made
of the property due for reassessment in accordance with law.
new text end [270.16, subd. 2]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 109.

new text begin [270C.95] QUALIFICATION OF ASSESSORS;
REASSESSMENT, HOW MADE.
new text end

new text begin Every special assessor and deputy appointed under the
provisions of section 270C.94 shall subscribe and file with the
commissioner an oath to faithfully and fairly perform the duties
of office. Such special assessor, assisted by deputies, shall
thereupon proceed to carefully examine and reassess the property
so to be reassessed and prepare duplicate lists of such
reassessment in such form as the commissioner may prescribe,
showing the property or person so reassessed, the amount of the
original assessment thereof made in such year, and opposite the
same the reassessment so made by such special assessor. The
special assessor shall file both copies of such list with the
commissioner; and the commissioner shall thereupon examine,
equalize, and correct such reassessment so as to substantially
conform with the assessment of like property throughout the
state and transmit to the auditor of the county wherein such
reassessment was so made one copy of such reassessment by the
commissioner so corrected and equalized. Such list shall for
all purposes supersede and be in place of the original
assessment made for such year upon such property and the county
auditor, upon receipt thereof, shall extend and levy against
such property so reassessed the taxes thereon for such year
according to such reassessment in the same manner as though such
list was the original assessment list of such property. Any
person feeling aggrieved by an assessment so made against the
person, or upon any property at that time owned by the person,
may appeal therefrom to the district court of the county in
which such assessment is made. To render the appeal effective
for any purpose, the appellant shall file a notice of the appeal
with the auditor of such county within 30 days after the making
of the assessment, which notice shall specify the ground upon
which the appeal was taken, and no other or different service
shall be required to perfect it. Upon the filing of the notice
the county auditor shall make and file in the office of the
court administrator of the district court a certified copy of
the notice and of the particular assessment appealed from and
notify the county attorney of such county of the pendency of the
appeal. Thereupon the district court shall be deemed to have
acquired jurisdiction of the matter and proceed to hear and
determine it in like manner as other tax matters are tried and
determined in the district courts of this state. The county
attorney of such county shall appear for and defend the
interests of the state in such matter.new text end [270.17]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 110.

new text begin [270C.96] REASSESSMENT; COMPENSATION;
REIMBURSEMENT BY COUNTIES.
new text end

new text begin The compensation of each special assessor and deputies,
appointed under the provisions of section 270C.94 and the
expenses as such, shall be fixed by the commissioner and paid
out of money appropriated for operation of the department. The
commissioner on August 1 shall notify the auditor of each
affected county of the amount thereof paid on behalf of such
county since August 1 of the preceding year, whereupon the
county auditor shall levy a tax upon the taxable property in the
assessment district or districts wherein such reassessment was
made sufficient to pay the same. One-half of such tax shall be
levied in the year in which the commissioner so notifies the
county auditor and the remaining one-half shall be levied in the
following year. The respective counties shall reimburse the
state by paying one-half of the tax so assessed on or before
July 1 and the remaining one-half on or before December 1 in the
year in which the tax is payable by owner, whether or not the
tax was collected by the county. The reimbursement shall be
credited to the general fund. If any county fails to reimburse
the state within the time specified herein, the commissioner is
empowered to order withholding of state aids or distributions to
such county equal to the amount delinquent.new text end [270.18]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 111.

new text begin [270C.97] OMITTED PROPERTY.
new text end

new text begin The commissioner shall require the county auditor to place
upon the assessment rolls omitted property which may be
discovered to have escaped assessment and taxation in previous
years.new text end [270.11, subd. 4]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 112.

new text begin [270C.98] SENIOR ACCREDITATION.
new text end

new text begin The legislature finds that the property tax system would be
enhanced by requiring that every senior appraiser in the
Property Tax Division of the department obtain senior
accreditation from the State Board of Assessors. Every senior
appraiser, including the department's regional representatives,
and every county assessor within two years of the first
appointment under section 273.061, must obtain senior
accreditation from the state Board of Assessors. The board
shall provide the necessary courses or training. If a
department senior appraiser or regional representative fails to
obtain or maintain senior accreditation, the failure shall be
grounds for dismissal, disciplinary action, or corrective
action. Except as provided in section 273.061, subdivision 2,
paragraph (c), the commissioner must not approve the appointment
of a county assessor who is not senior accredited by the State
Board of Assessors. No employee hired by the commissioner as a
senior appraiser or regional representative shall attain
permanent status until the employee obtains senior accreditation.
new text end [270.485]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 113.

new text begin [270C.99] CERTAIN TOWNSHIPS AND CITIES OPTION
TO ELECT TO REINSTATE THE OFFICE OF ASSESSOR.
new text end

new text begin Notwithstanding the provisions of section 273.05,
subdivision 1, a city or township in which the office of
assessor has been eliminated because of failure to fill a
vacancy in the office within 90 days pursuant to section 273.05,
subdivision 1, may elect, with the approval of the commissioner,
to have the office of assessor reinstated by hiring a certified
or accredited assessor. This section shall not apply to Ramsey
county or to cities and townships located in counties which have
elected a county assessment system in accordance with section
273.055.new text end [270.494]

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 114. new text begin RULES; EFFECT OF RECODIFICATION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 14.05,
subdivision 1, Minnesota Rules, chapters 8001, 8002, 8007, 8009,
8017, 8019, 8020, 8031, 8034, 8038, 8043, 8050, 8052, 8092,
8093, 8100, 8106, 8110, 8120, 8121, 8122, 8125, 8130, 8160,
8165, 8170, and 8175, shall continue under the authority granted
in Minnesota Statutes, section 270C.06. Furthermore, Minnesota
Statutes, section 14.125, does not apply, and the Department of
Revenue may subsequently amend or repeal these rules from time
to time without additional legislative authorization.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 115. new text begin PURPOSE AND EFFECT.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin It is the intent of the
legislature to simplify Minnesota's tax laws by consolidating
and recodifying tax administration and compliance provisions now
contained in Minnesota Statutes, chapter 270, and several other
chapters of Minnesota Statutes. The provisions of this act may
not be used to determine the law in effect prior to the
effective dates in this act.
new text end

new text begin Subd. 2.new text end

new text begin Effect.new text end

new text begin Due to the complexity of the
recodification, prior provisions are repealed on the effective
date of the new provisions. The repealed provisions, however,
continue to remain in effect until superseded by the analogous
provision in the new law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 116. new text begin REVISOR INSTRUCTION.
new text end

new text begin (a) To the extent practicable, the revisor shall publish
the statutory derivations of the laws repealed and recodified in
this article in Laws of Minnesota.
new text end

new text begin (b) The revisor shall correct cross-references in Minnesota
Statutes and Minnesota Rules to sections that are repealed and
recodified by this article.
new text end

new text begin (c) Notwithstanding any law to the contrary, if a provision
of a section of Minnesota Statutes repealed by this article is
amended or repealed during the same legislative session, the
amendment or repealer shall supersede the provisions of this
article, and the revisor shall codify the amendment or repealer
consistent with the recodification of the affected section by
this article. In addition, the revisor shall code new sections
or subdivisions enacted during the legislative session
consistent with the recodification.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 117. new text begin REPEALER.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

HF 2228

Bill Text Versions

ARTICLE 1

RECODIFICATION COMMISSIONER GENERAL POWERS

Section 1.

new text begin [270C.01] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin Subd. 3. new text end

new text begin Department. new text end

new text begin Subd. 4. new text end

new text begin Electronic means; electronically. new text end

new text begin Subd. 5. new text end

new text begin Law administered by the commissioner. new text end

new text begin Subd. 6. new text end

new text begin Person. new text end

new text begin Subd. 7. new text end

new text begin Property tax laws. new text end

new text begin Subd. 8. new text end

new text begin Return. new text end

new text begin Subd. 9. new text end

new text begin State revenue laws. new text end

new text begin Subd. 10. new text end

new text begin Tax. new text end

new text begin Subd. 11.new text end

new text begin Taxpayer.new text end

new text begin EFFECTIVE DATE. new text end

Sec. 2.

new text begin [270C.02] DEPARTMENT OF REVENUE; COMMISSIONER. new text end

new text begin Subdivision 1. new text end

new text begin Commissioner; supervision of department and appointment. new text end

new text begin Subd. 2. new text end

new text begin Power to appoint staff. new text end

new text begin Subd. 3. new text end

new text begin Salaries. new text end

new text begin Subd. 4. new text end

new text begin Office and supplies furnished; expenses. new text end

new text begin Subd. 5. new text end

new text begin Filing officers. new text end

new text begin Subd. 6.new text end

new text begin Department seal.new text end

new text begin EFFECTIVE DATE. new text end

Sec. 3.

new text begin [270C.03] POWERS AND DUTIES. new text end

new text begin Subdivision 1. new text end

new text begin Powers and duties. new text end

new text begin Subd. 2.new text end

new text begin Mission; efficiency.new text end

new text begin EFFECTIVE DATE. new text end

Sec. 4.

new text begin [270C.04] USE OF INFORMATION. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 5.

new text begin [270C.05] ACCESS TO CRIMINAL JUSTICE DATA. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 6.

new text begin [270C.055] CRIMINAL INVESTIGATIONS, REFERRAL, AND INFORMATION DISCLOSURE. new text end

new text begin Subdivision 1. new text end

new text begin Requesting assistance. new text end

new text begin Subd. 2. new text end

new text begin Referral for prosecution. new text end

new text begin Subd. 3.new text end

new text begin Authority to disclose information.new text end

new text begin EFFECTIVE DATE. new text end

Sec. 7.

new text begin [270C.06] RULEMAKING AUTHORITY. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 8.

new text begin [270C.07] REVENUE NOTICES. new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin Subd. 2. new text end

new text begin Effect. new text end

new text begin Subd. 3. new text end

new text begin Retroactivity. new text end

new text begin Subd. 4. new text end

new text begin Issuance. new text end

new text begin Subd. 5.new text end

RECODIFICATION
COMMISSIONER GENERAL POWERS

new text begin [270C.01] DEFINITIONS.
new text end

new text begin [270C.02] DEPARTMENT OF REVENUE; COMMISSIONER.
new text end

new text begin Commissioner; supervision of department
and appointment. new text end

new text begin [270C.03] POWERS AND DUTIES.
new text end

new text begin [270C.04] USE OF INFORMATION.
new text end

new text begin [270C.05] ACCESS TO CRIMINAL JUSTICE DATA.
new text end

new text begin [270C.055] CRIMINAL INVESTIGATIONS, REFERRAL, AND
INFORMATION DISCLOSURE.
new text end

new text begin [270C.06] RULEMAKING AUTHORITY.
new text end

new text begin [270C.07] REVENUE NOTICES.
new text end

new text begin [270C.08] TAX INFORMATION BULLETINS.
new text end

new text begin [270C.09] OPINION OF ATTORNEY GENERAL; EFFECT.
new text end

new text begin [270C.10] EX-EMPLOYEES NOT TO REPRESENT
TAXPAYERS; PENALTY.
new text end

new text begin [270C.105] BASIS FOR EVALUATION OF DEPARTMENT OF
REVENUE EMPLOYEES.
new text end

new text begin [270C.11] TAX EXPENDITURE BUDGET.
new text end

new text begin [270C.12] TAX INFORMATION SAMPLE DATA.
new text end

new text begin [270C.13] TAX INCIDENCE REPORTS.
new text end

new text begin [270C.14] AUTHORITY TO PAY LOCAL TAXES;
APPROPRIATION.
new text end

new text begin [270C.15] REVENUE DEPARTMENT SERVICE AND
RECOVERY SPECIAL REVENUE FUND.
new text end

new text begin [270C.16] COLLECTION OF DELINQUENT LIABILITIES;
COSTS.
new text end

new text begin [270C.17] COMMISSIONER TO COLLECT CERTAIN LOCAL
TAXES.
new text end