HF 341

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

  1.1                          A bill for an act 
  1.2             relating to taxation; recodifying taxes on liquor; 
  1.3             providing civil and criminal penalties; appropriating 
  1.4             money; amending Minnesota Statutes 1996, sections 
  1.5             16A.26; 340A.301, subdivision 8; 340A.302, subdivision 
  1.6             1; 340A.414, subdivision 7; 340A.417; and 340A.7035; 
  1.7             proposing coding for new law as Minnesota Statutes, 
  1.8             chapter 297G; repealing Minnesota Statutes 1996, 
  1.9             sections 297C.01; 297C.02; 297C.03; 297C.04; 297C.045; 
  1.10            297C.05; 297C.06; 297C.07; 297C.08; 297C.09; 297C.10; 
  1.11            297C.11; 297C.12; 297C.13; 297C.14; 297C.16; and 
  1.12            297C.17. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14                             ARTICLE 1 
  1.15                           RECODIFICATION 
  1.16     Section 1.  [297G.01] [DEFINITIONS.] 
  1.17     Subdivision 1.  [TERMS.] For purposes of this chapter, the 
  1.18  following terms have the meaning given them unless the language 
  1.19  or context clearly indicates that a different meaning is 
  1.20  intended. 
  1.21     Subd. 2.  [ALCOHOLIC BEVERAGE.] "Alcoholic beverage" is any 
  1.22  beverage containing more than one-half of one percent alcohol by 
  1.23  volume. 
  1.24     Subd. 3.  [BREWER.] "Brewer" is a person who manufactures 
  1.25  malt liquor for sale. 
  1.26     Subd. 4.  [COLLECTOR.] "Collector" is a person who collects 
  1.27  commemorative bottles for their use and enjoyment as collector's 
  1.28  items and not for the consumption of the beverage contained in 
  1.29  them.  The term does not include licensed wholesalers or 
  2.1   retailers of alcoholic beverages. 
  2.2      Subd. 5.  [COMMEMORATIVE BOTTLES.] "Commemorative bottles" 
  2.3   are ceramic commemorative bottles or other specially designed 
  2.4   decanters which have value as collector's items and which 
  2.5   contain an alcoholic beverage. 
  2.6      Subd. 6.  [COMMISSIONER.] "Commissioner" is the 
  2.7   commissioner of revenue. 
  2.8      Subd. 7.  [DISTILLED SPIRITS.] "Distilled spirits" is 
  2.9   intoxicating liquors, including ethyl alcohol, hydrated oxide of 
  2.10  ethyl, spirits of wine, whiskey, rum, brandy, gin, and other 
  2.11  distilled spirits, including all dilutions and mixtures, for 
  2.12  nonindustrial use. 
  2.13     Subd. 8.  [FERMENTED MALT BEVERAGES.] "Fermented malt 
  2.14  beverages" is any beer, ale, or other beverage made from malt by 
  2.15  fermentation and containing not less than one-half of one 
  2.16  percent alcohol by volume. 
  2.17     Subd. 9.  [INTERNAL REVENUE CODE.] Unless specifically 
  2.18  defined otherwise, "Internal Revenue Code" means the Internal 
  2.19  Revenue Code of 1986, as amended through December 31, 1996. 
  2.20     Subd. 10.  [INTOXICATING LIQUOR.] "Intoxicating liquor" is 
  2.21  ethyl alcohol, distilled spirits, fermented, spirituous, vinous, 
  2.22  and fermented malt beverages containing more than 3.2 percent of 
  2.23  alcohol by weight. 
  2.24     Subd. 11.  [LIQUEUR-FILLED CANDY.] "Liqueur-filled candy" 
  2.25  is any confectionery containing more than one-half of one 
  2.26  percent alcohol by volume in liquid form that is intended for or 
  2.27  capable of beverage use. 
  2.28     Subd. 12.  [LIQUOR ACT.] For purposes of this chapter, the 
  2.29  terms defined in section 340A.101, have the meanings given them 
  2.30  in that section except as provided in this section. 
  2.31     Subd. 13.  [MANUFACTURER.] "Manufacturer" is a person who, 
  2.32  by a process of manufacturing, fermenting, brewing, distilling, 
  2.33  refining, rectifying, blending, or by the combination of 
  2.34  different materials, prepares or produces intoxicating liquor 
  2.35  for sale. 
  2.36     Subd. 14.  [MINIATURES.] "Miniatures" are containers of 
  3.1   distilled spirits of two fluid ounces or less or 50 milliliters 
  3.2   or less. 
  3.3      Subd. 15.  [PERSON.] "Person" means an individual or any 
  3.4   entity engaged in the sale of distilled spirits, wine, or 
  3.5   fermented malt beverages. 
  3.6      Subd. 16.  [RETAILER.] "Retailer" means a person engaged in 
  3.7   this state in the business of selling, or offering to sell, 
  3.8   distilled spirits, wine, or fermented malt beverages. 
  3.9      Subd. 17.  [TABLE OR SPARKLING WINE.] "Table or sparkling 
  3.10  wine" is a beverage made without rectification or fortification 
  3.11  and containing not more than 25 percent alcohol by volume and 
  3.12  made by the fermentation of grapes, grape juice, other fruits, 
  3.13  or honey. 
  3.14     Subd. 18.  [3.2 PERCENT MALT LIQUOR.] "3.2 percent malt 
  3.15  liquor" is a fermented malt beverage containing not less than 
  3.16  one-half of one percent alcohol by volume nor more than 3.2 
  3.17  percent alcohol by weight. 
  3.18     Subd. 19.  [WHOLESALER.] "Wholesaler" is a person who sells 
  3.19  alcoholic beverages to persons to whom sale is permitted under 
  3.20  section 340A.310, from a stock maintained in a warehouse in the 
  3.21  state. 
  3.22     Subd. 20.  [WINE.] "Wine" is the product made from the 
  3.23  normal alcoholic fermentation of grapes, including still wine, 
  3.24  sparkling and carbonated wine, wine made from condensed grape 
  3.25  must, wine made from other agricultural products than sound ripe 
  3.26  grapes, imitation wine, compounds sold as wine, vermouth, cider, 
  3.27  perry, and sake, in each instance containing not less than 
  3.28  one-half of one percent nor more than 24 percent alcohol by 
  3.29  volume for nonindustrial use.  Wine does not include distilled 
  3.30  spirits as defined in subdivision 7. 
  3.31     Sec. 2.  [297G.02] [ADMINISTRATION.] 
  3.32     Subdivision 1.  [ENFORCEMENT RESPONSIBILITY.] The 
  3.33  commissioners of public safety and revenue shall enforce and 
  3.34  administer the provisions of this chapter. 
  3.35     Subd. 2.  [NONAPPLICABILITY.] This chapter does not apply 
  3.36  to: 
  4.1      (1) medicines intended for therapeutic purposes and not 
  4.2   intended as a beverage; 
  4.3      (2) industrial alcohol designed for mechanical, chemical, 
  4.4   scientific, pharmaceutical, or industrial purposes; or 
  4.5      (3) nonpotable compounds or preparations containing alcohol.
  4.6      Subd. 3.  [POWERS OF COMMISSIONER OF REVENUE.] The 
  4.7   commissioner, or duly authorized agents, may conduct 
  4.8   investigations, inquiries, and hearings under this chapter and, 
  4.9   in connection with such investigations, inquiries, and hearings, 
  4.10  the commissioner and the duly authorized agents shall have all 
  4.11  the powers conferred upon the commissioner and the 
  4.12  commissioner's examiners by section 270.06, and the provisions 
  4.13  of that section shall apply to all such investigations, 
  4.14  inquiries, and hearings. 
  4.15     Subd. 4.  [EXPENSES OF ADMINISTRATION.] Expenses for the 
  4.16  administration of this chapter shall be paid out of 
  4.17  appropriations to the commissioner for the administration of 
  4.18  this chapter and shall include fees and expenses incurred by the 
  4.19  attorney general and any county attorney in litigation in 
  4.20  connection with the enforcement of this chapter.  Expenses also 
  4.21  include all court costs and expenses. 
  4.22     Sec. 3.  [297G.03] [DISTILLED SPIRITS AND WINE; RATE OF 
  4.23  TAX.] 
  4.24     Subdivision 1.  [GENERAL RATE; DISTILLED SPIRITS AND WINE.] 
  4.25  The following excise tax is imposed on all distilled spirits and 
  4.26  wine manufactured, imported, sold, or possessed in this state: 
  4.27                                  Standard             Metric
  4.28  (a) Distilled spirits,      $5.03 per gallon   $1.33 per liter
  4.29  liqueurs, cordials, 
  4.30  and specialties regardless 
  4.31  of alcohol content 
  4.32  (excluding ethyl alcohol) 
  4.33  (b) Wine containing         $ .30 per gallon   $ .08 per liter 
  4.34  14 percent or less
  4.35  alcohol by volume 
  4.36  (c) Wine containing         $ .95 per gallon   $ .25 per liter
  5.1   more than 14 percent 
  5.2   but not more than 21
  5.3   percent alcohol by volume 
  5.4   (d) Wine containing more    $1.82 per gallon   $ .48 per liter
  5.5   than 21 percent but not 
  5.6   more than 24 percent
  5.7   alcohol by volume 
  5.8   (e) Wine containing more    $3.52 per gallon   $ .93 per liter
  5.9   than 24 percent alcohol
  5.10  by volume
  5.11  (f) Natural and             $1.82 per gallon   $ .48 per liter
  5.12  artificial sparkling wines
  5.13  containing alcohol 
  5.14     In computing the tax on a package of distilled spirits or 
  5.15  wine, a proportional tax at a like rate on all fractional parts 
  5.16  of a gallon or liter must be paid, except that the tax on a 
  5.17  fractional part of a gallon less than 1/16 of a gallon is the 
  5.18  same as for 1/16 of a gallon. 
  5.19     Subd. 2.  [TAX ON MINIATURES; DISTILLED SPIRITS.] The tax 
  5.20  on miniatures is 14 cents per bottle. 
  5.21     Subd. 3.  [TAX IS METRIC.] The metric tax is imposed on all 
  5.22  products taxable under this section when the net contents are 
  5.23  stated in metric units of measure.  The commissioner may 
  5.24  establish by rule a date and procedure for the conversion of 
  5.25  excise tax computation and reporting from rates expressed in 
  5.26  gallons to rates expressed in metric volumes.  The official 
  5.27  conversion factor is one liter equals 0.264172 United States 
  5.28  gallons. 
  5.29     Subd. 4.  [BOTTLE TAX.] A tax of one cent is imposed on 
  5.30  each bottle or container of distilled spirits and wine except as 
  5.31  provided in 297G.07, subdivision 3.  The wholesaler is 
  5.32  responsible for the payment of this tax when the bottles of 
  5.33  distilled spirits and wine are removed from inventory for sale, 
  5.34  delivery, or shipment. 
  5.35     Sec. 4.  [297G.04] [FERMENTED MALT BEVERAGES; RATE OF TAX.] 
  5.36     Subdivision 1.  [TAX IMPOSED.] The following excise tax is 
  6.1   imposed on all fermented malt beverages that are imported, 
  6.2   directly or indirectly sold, or possessed in this state: 
  6.3      (1) on fermented malt beverages containing not more than 
  6.4   3.2 percent alcohol by weight, $2.40 per 31-gallon barrel; 
  6.5      (2) on fermented malt beverages containing more than 3.2 
  6.6   percent alcohol by weight, $4.60 per 31-gallon barrel. 
  6.7      For fractions of a 31-gallon barrel, the tax rate is 
  6.8   calculated proportionally. 
  6.9      Subd. 2.  [TAX CREDIT.] A qualified brewer producing 
  6.10  fermented malt beverages is entitled to a tax credit of $4.60 
  6.11  per barrel on 25,000 barrels sold in any fiscal year beginning 
  6.12  July 1, regardless of the alcohol content of the product.  
  6.13  Qualified brewers may take the credit on the 18th day of each 
  6.14  month, but the total credit allowed may not exceed in any fiscal 
  6.15  year the lesser of: 
  6.16     (1) the liability for tax; or 
  6.17     (2) $115,000. 
  6.18     For purposes of this subdivision, a "qualified brewer" 
  6.19  means a brewer, whether or not located in this state, 
  6.20  manufacturing less than 100,000 barrels of fermented malt 
  6.21  beverages in the calendar year immediately preceding the 
  6.22  calendar year for which the credit under this subdivision is 
  6.23  claimed.  In determining the number of barrels, all brands or 
  6.24  labels of a brewer must be combined.  All facilities for the 
  6.25  manufacture of fermented malt beverages owned or controlled by 
  6.26  the same person, corporation, or other entity must be treated as 
  6.27  a single brewer. 
  6.28     Sec. 5.  [297G.05] [USE TAX; RATE OF TAX.] 
  6.29     Subdivision 1.  [WINE AND DISTILLED SPIRITS.] A tax is 
  6.30  imposed on the use or storage by consumers of wine and distilled 
  6.31  spirits in this state, and on such consumers, at the rates 
  6.32  specified in section 297G.03, subdivision 1. 
  6.33     Subd. 2.  [FERMENTED MALT BEVERAGES.] A tax is imposed on 
  6.34  the use or storage by consumers of fermented malt beverages in 
  6.35  this state, and on such consumers, at the rates specified in 
  6.36  section 297G.04, subdivision 1. 
  7.1      Subd. 3.  [TAX PROVISIONS APPLICABLE TO CONSUMERS.] All of 
  7.2   the provisions of this chapter relating to the correction of 
  7.3   returns, deficiency assessments, protests, hearings, interest 
  7.4   and penalties, and collection of taxes, apply to consumers. 
  7.5      Sec. 6.  [297G.06] [TAX AS PERSONAL DEBT.] 
  7.6      The tax imposed by this chapter, and interest and penalties 
  7.7   imposed with respect to it, is a personal debt of the person 
  7.8   required to file a return from the time the liability for it 
  7.9   arises, regardless of when the time for payment of the liability 
  7.10  occurs.  In the case of the executor or administrator of the 
  7.11  estate of a decedent and in the case of any fiduciary, the debt 
  7.12  is that of the person in the person's official or fiduciary 
  7.13  capacity only, unless the person has voluntarily distributed the 
  7.14  assets held in that capacity without reserving sufficient assets 
  7.15  to pay the tax, interest, and penalties.  In that case, the 
  7.16  person is personally liable for the deficiency. 
  7.17     Sec. 7.  [297G.07] [EXEMPTIONS FROM TAX.] 
  7.18     Subdivision 1.  [EXEMPTIONS.] The following are not subject 
  7.19  to the excise tax: 
  7.20     (1) Sales by a manufacturer, brewer, or wholesaler for 
  7.21  shipment outside the state in interstate commerce. 
  7.22     (2) Alcoholic beverages sold or transferred between 
  7.23  Minnesota wholesalers. 
  7.24     (3) Sales to common carriers engaged in interstate 
  7.25  transportation of passengers, except as provided in this chapter.
  7.26     (4) Malt beverages served by a brewery for on-premise 
  7.27  consumption at no charge, or distributed to brewery employees 
  7.28  for on-premise consumption under a labor contract. 
  7.29     (5) Shipments of wine to Minnesota residents under section 
  7.30  340A.417. 
  7.31     (6) Fruit juices naturally fermented or beer naturally 
  7.32  brewed in the home for family use. 
  7.33     (7) Sales of wine for sacramental purposes under section 
  7.34  340A.316. 
  7.35     (8) Alcoholic beverages sold to authorized manufacturers of 
  7.36  food products or pharmaceutical firms.  The alcoholic beverage 
  8.1   must be used exclusively in the manufacture of food products or 
  8.2   medicines.  For purposes of this clause, "manufacturer" means a 
  8.3   person who manufactures food products intended for sale to 
  8.4   wholesalers or retailers for ultimate sale to the consumer. 
  8.5      (9) Liqueur-filled candy. 
  8.6      (10) Sales to a federal agency, that the state of Minnesota 
  8.7   is prohibited from taxing under the constitution or laws of the 
  8.8   United States or under the constitution of Minnesota. 
  8.9      (11) Sales to Indian tribes as defined in section 297G.08. 
  8.10     Subd. 2.  [IMPORTATION BY INDIVIDUALS.] (a) A person, other 
  8.11  than a person under the age of 21 years, entering Minnesota from 
  8.12  another state may have in possession one liter of intoxicating 
  8.13  liquor or 288 ounces of fermented malt beverages without the 
  8.14  required payment of the Minnesota excise tax, provided the 
  8.15  alcoholic beverages accompany the person into this state and 
  8.16  will not be offered for sale or used for any commercial purposes.
  8.17     (b) A person, other than a person under the age of 21 
  8.18  years, entering Minnesota from a foreign country may have in 
  8.19  possession four liters of intoxicating liquor or ten quarts (320 
  8.20  ounces) of fermented malt beverages without the required payment 
  8.21  of the Minnesota excise tax, provided the alcoholic beverages 
  8.22  accompany the person into this state and will not be offered for 
  8.23  sale or used for any commercial purposes. 
  8.24     (c) A collector of commemorative bottles, other than a 
  8.25  person under the age of 21 years, entering Minnesota from 
  8.26  another state may have in possession 12 or fewer commemorative 
  8.27  bottles without the required payment of the Minnesota excise tax.
  8.28     (d) This subdivision does not apply to consignments of 
  8.29  alcoholic beverages shipped into this state by holders of 
  8.30  Minnesota import licenses or Minnesota manufacturers and 
  8.31  wholesalers when licensed by the commissioner of public safety 
  8.32  or to common carriers with licenses to sell intoxicating liquor 
  8.33  in more than one state. 
  8.34     Subd. 3.  [EXEMPTIONS FROM BOTTLE TAX.] The following are 
  8.35  exempt from the bottle tax: 
  8.36     (1) miniatures of distilled spirits and wines; 
  9.1      (2) containers of fermented malt beverage; 
  9.2      (3) containers of intoxicating liquor or wine holding less 
  9.3   than 200 milliliters; 
  9.4      (4) containers of alcoholic beverages sold and shipped to 
  9.5   dealers, wineries, or distillers in other states; 
  9.6      (5) containers of alcoholic beverages sold to other 
  9.7   Minnesota wholesalers; 
  9.8      (6) containers of alcoholic beverages sold to common 
  9.9   carriers engaged in interstate commerce; 
  9.10     (7) containers of wine intended exclusively for sacramental 
  9.11  purposes; 
  9.12     (8) containers of alcoholic beverages sold to authorized 
  9.13  food processors or pharmaceutical firms for use exclusively in 
  9.14  the manufacturing of food products or medicines; and 
  9.15     (9) sales to a federal agency, that the state of Minnesota 
  9.16  is prohibited from taxing under the constitution or laws of the 
  9.17  United States or under the constitution of Minnesota. 
  9.18     Sec. 8.  [297G.08] [SALES TO INDIAN TRIBES.] 
  9.19     Subdivision 1.  [WHOLESALERS.] A wholesaler may set aside 
  9.20  stock necessary to make sales to a qualified Indian retailer 
  9.21  without paying the tax required by this chapter. 
  9.22     Subd. 2.  [QUALIFIED INDIAN RETAILER.] A qualified Indian 
  9.23  retailer is the tribal government of a federally recognized 
  9.24  Indian tribe or any retail establishment located on a federally 
  9.25  recognized Indian reservation which is authorized to sell liquor 
  9.26  on that reservation.  A qualified Indian retailer may keep 
  9.27  untaxed liquor in quantities reasonably necessary to meet the 
  9.28  estimated personal consumption needs of qualified purchasers.  
  9.29     Subd. 3.  [QUALIFIED PURCHASERS.] A qualified purchaser of 
  9.30  untaxed liquor means an enrolled member of the reservation on 
  9.31  which the liquor is being offered for sale. 
  9.32     Subd. 4.  [QUANTITY OF UNTAXED LIQUOR ALLOWED TO BE 
  9.33  DELIVERED ONTO A RESERVATION.] (a) The aggregate quantity of 
  9.34  untaxed liquor that can be delivered onto a reservation is 
  9.35  limited to an amount reasonably necessary to meet the personal 
  9.36  consumption needs of qualified purchasers.  This amount shall be 
 10.1   presumed to be an amount equal to the average statewide per 
 10.2   capita consumption of liquor times the number of qualified 
 10.3   purchasers.  A tribal government, qualified Indian retailer, or 
 10.4   wholesaler may request that greater quantities of untaxed liquor 
 10.5   be delivered onto the reservation by presenting evidence of 
 10.6   higher per capita consumption of qualified purchasers on the 
 10.7   reservation.  The request shall be made through petition to the 
 10.8   commissioner. 
 10.9      (b) Prior to shipping any untaxed liquor to a qualified 
 10.10  Indian retailer, the wholesaler must notify the commissioner.  
 10.11  The commissioner shall promptly notify the wholesaler of the 
 10.12  quantity of untaxed liquor that the wholesaler may deliver to 
 10.13  the qualified Indian retailer.  
 10.14     (c) If more than one wholesaler makes a request to deliver 
 10.15  untaxed liquor onto a reservation, the commissioner shall 
 10.16  allocate the aggregate amount of liquor allowed to be delivered 
 10.17  to qualified Indian retailers on the reservation among the 
 10.18  competing wholesalers.  The commissioner shall use location of 
 10.19  the outlets serviced by the wholesalers, the likely amount of 
 10.20  liquor purchased by qualified purchasers at those outlets, 
 10.21  product mix of the competing wholesalers, and other appropriate 
 10.22  factors so that qualified purchasers have a reasonably 
 10.23  convenient opportunity to exercise their right to purchase 
 10.24  untaxed liquor.  The commissioner may seek the opinion of the 
 10.25  tribal government prior to making an allocation. 
 10.26     (d) If there is more than one qualified Indian retailer who 
 10.27  wants to sell untaxed liquor on a reservation, the commissioner 
 10.28  shall allocate the aggregate amount of untaxed liquor allowed to 
 10.29  be delivered to qualified Indian retailers on the reservation 
 10.30  among the competing qualified Indian retailers.  The 
 10.31  commissioner shall use location of the qualified Indian 
 10.32  retailers, the likely amount of liquor purchased by qualified 
 10.33  purchasers from those retailers, product mix of the competing 
 10.34  retailers, and other appropriate factors so that qualified 
 10.35  purchasers will have a reasonably convenient opportunity to 
 10.36  exercise their right to purchase untaxed liquor.  The 
 11.1   commissioner may seek the opinion of the tribal government prior 
 11.2   to making an allocation. 
 11.3      Subd. 5.  [RECORDKEEPING.] (a) When shipping or delivering 
 11.4   untaxed liquor to a qualified Indian retailer, the wholesaler 
 11.5   shall make a true duplicate invoice.  The invoice must show the 
 11.6   complete details of the sale or delivery.  The wholesaler must 
 11.7   send the duplicate to the commissioner not later than the 18th 
 11.8   day of the following calendar month.  If the wholesaler fails to 
 11.9   comply with this section, the commissioner shall revoke the 
 11.10  permission granted to the wholesaler to keep a stock of untaxed 
 11.11  goods. 
 11.12     (b) A qualified Indian retailer must keep a log book of 
 11.13  exempt sales which contains the following information: 
 11.14     (1) date of sale; 
 11.15     (2) name and address of purchaser; 
 11.16     (3) quantity of liquor sold; 
 11.17     (4) total sales price; and 
 11.18     (5) any other information necessary to substantiate the 
 11.19  exempt sale.  This may include a properly completed exemption 
 11.20  certificate or other evidence of membership in the reservation 
 11.21  on which the sale occurs. 
 11.22     (c) Qualified Indian retailers must retain required records 
 11.23  of exempt sales for 3-1/2 years.  Upon written request, the 
 11.24  commissioner may inspect these records to the extent necessary 
 11.25  to verify compliance with the provisions of this section.  If a 
 11.26  qualified Indian retailer does not provide to the commissioner 
 11.27  adequate proof of entitlement to exemption, the sale of liquor 
 11.28  shall be presumed to be a sale made to a nonqualified purchaser. 
 11.29     Subd. 6.  [SALES TO NONQUALIFIED PURCHASERS.] A qualified 
 11.30  Indian retailer who sells or otherwise disposes of untaxed 
 11.31  liquor other than to a qualified purchaser shall collect from 
 11.32  the purchaser or transferee the tax imposed by this chapter and 
 11.33  remit the tax to the department of revenue on a form prescribed 
 11.34  by the commissioner by the 18th day of the month following the 
 11.35  month of sale.  If the retailer fails to collect the tax from 
 11.36  the purchaser or transferee, or fails to remit the tax, the 
 12.1   retailer is personally responsible for the tax, and the 
 12.2   commissioner may seize any liquor destined to be delivered to 
 12.3   the retailer.  The procedures for seized contraband outlined in 
 12.4   section 297G.20 apply to the seized liquor.  The proceeds of the 
 12.5   sale of the liquor may be applied to any liquor liability owed 
 12.6   by the retailer after deducting all costs and expenses. 
 12.7      Nothing in this section relieves any person other than a 
 12.8   qualified purchaser or possessor of untaxed liquor from personal 
 12.9   liability for the tax.  
 12.10     Subd. 7.  [TAX AGREEMENTS.] This section does not apply to 
 12.11  the sale or delivery of liquor to a reservation that has entered 
 12.12  into a tax agreement covering liquor as authorized by section 
 12.13  270.60.  
 12.14     Sec. 9.  [297G.09] [RETURNS; PAYMENT OF TAX.] 
 12.15     Subdivision 1.  [MONTHLY RETURNS; MANUFACTURERS, 
 12.16  WHOLESALERS, BREWERS, OR IMPORTERS.] On or before the 18th day 
 12.17  of each calendar month following the month in which a licensed 
 12.18  manufacturer or wholesaler first sells wine and distilled 
 12.19  spirits within the state, or a brewer or importer first sells or 
 12.20  imports fermented malt beverages, or a wholesaler knowingly 
 12.21  acquires title to or possession of untaxed fermented malt 
 12.22  beverages, the licensed manufacturer, wholesaler, brewer, or 
 12.23  importer liable for the excise tax must file a return with the 
 12.24  commissioner, and in addition must keep records and render 
 12.25  reports as required by the commissioner.  Returns must be made 
 12.26  in a form and manner prescribed by the commissioner, and must 
 12.27  contain any other information required by the commissioner.  
 12.28  Returns must be accompanied by a remittance for the full unpaid 
 12.29  tax liability.  Returns must be filed regardless of whether a 
 12.30  tax is due. 
 12.31     Subd. 2.  [MONTHLY USE TAX RETURNS; CONSUMERS.] On or 
 12.32  before the 18th day of each calendar month, a consumer who has 
 12.33  acquired title to or possession of wine, distilled spirits, or 
 12.34  fermented malt beverages for use or storage in this state, upon 
 12.35  which wine, distilled spirits, or fermented malt beverages the 
 12.36  tax imposed by this chapter has not been paid, shall file a 
 13.1   return with the commissioner in the month following the month in 
 13.2   which the consumer obtains title to or possession of the wine, 
 13.3   distilled spirits, or fermented malt beverages.  Returns must be 
 13.4   made in a form and manner prescribed by the commissioner and 
 13.5   must contain any other information required by the commissioner. 
 13.6   Returns must be accompanied by a remittance for the full unpaid 
 13.7   tax liability. 
 13.8      Subd. 3.  [COMMON CARRIER RETURNS.] A common carrier 
 13.9   engaged in interstate transportation of passengers must file 
 13.10  monthly reports together with the tax payment on the sale of 
 13.11  alcoholic beverages sold in Minnesota.  The report and payment 
 13.12  must be filed by the 18th day of the month following the month 
 13.13  in which the sale took place.  A common carrier is permitted to 
 13.14  use a formula for the allocation of the total sales of alcoholic 
 13.15  beverages among states on the basis of passenger miles in each 
 13.16  state or some other method of allocation if written approval is 
 13.17  received from the commissioner. 
 13.18     Subd. 4.  [EXTENSIONS.] When in the commissioner's 
 13.19  judgment, good cause exists, the commissioner may extend the 
 13.20  time for filing liquor tax returns for not more than six 
 13.21  months.  The commissioner may require the taxpayer to file a 
 13.22  tentative return when the regularly required return is due, and 
 13.23  pay a tax on the basis of the tentative return at the times 
 13.24  required for the payment of taxes on the basis of the regularly 
 13.25  required return. 
 13.26     Subd. 5.  [ACCELERATED TAX PAYMENT; PENALTY.] A person 
 13.27  liable for tax under this chapter having a liability of $120,000 
 13.28  or more during a fiscal year ending June 30, shall remit the 
 13.29  June liability for the next year in the following manner: 
 13.30     (a) Two business days before June 30 of the year, the 
 13.31  taxpayer shall remit the actual May liability and 75 percent of 
 13.32  the estimated June liability to the commissioner and file the 
 13.33  return in the form and manner prescribed by the commissioner. 
 13.34     (b) On or before August 18 of the year, the taxpayer shall 
 13.35  submit a return showing the actual June liability and pay any 
 13.36  additional amount of tax not remitted in June.  A penalty is 
 14.1   imposed equal to ten percent of the amount of June liability 
 14.2   required to be paid in June less the amount remitted in June.  
 14.3   However, the penalty is not imposed if the amount remitted in 
 14.4   June equals the lesser of: 
 14.5      (1) 70 percent of the actual June liability; or 
 14.6      (2) 75 percent of the preceding May liability. 
 14.7      Subd. 6.  [ELECTRONIC FUNDS TRANSFER.] A licensed brewer, 
 14.8   importer, or wholesaler having an excise tax liability of 
 14.9   $120,000 or more during a fiscal year ending June 30 must remit 
 14.10  all excise tax liabilities in the subsequent calendar year by 
 14.11  means of a funds transfer as defined in section 336.4A-104, 
 14.12  paragraph (a).  The funds transfer payment date, as defined in 
 14.13  section 336.4A-401, must be on or before the date the excise tax 
 14.14  is due.  If the date the excise tax is due is not a funds 
 14.15  transfer business day, as defined in section 336.4A-105, 
 14.16  paragraph (a), clause (4), the payment date must be on or before 
 14.17  the funds transfer business day next following the date the 
 14.18  excise tax is due. 
 14.19     Subd. 7.  [ORDER PAYMENTS CREDITED.] All payments received 
 14.20  may, in the discretion of the commissioner, be credited first to 
 14.21  the oldest liability not secured by a judgment or lien, but in 
 14.22  all cases must be credited first to penalties, next to interest, 
 14.23  and then to the tax due. 
 14.24     Subd. 8.  [INTEREST.] The amount of tax not timely paid, 
 14.25  together with any penalty imposed by this chapter, bears 
 14.26  interest at the rate specified in section 270.75 from the time 
 14.27  the tax should have been paid until paid.  Any interest and 
 14.28  penalty is added to the tax and collected as a part of it. 
 14.29     Sec. 10.  [297G.10] [DEPOSIT OF PROCEEDS.] 
 14.30     All tax revenues and other receipts payable to the state 
 14.31  under this chapter must be paid into the state treasury and 
 14.32  credited to the general fund. 
 14.33     Sec. 11.  [297G.11] [INFORMATIONAL REPORTS.] 
 14.34     The following persons shall file with the commissioner a 
 14.35  monthly informational report in the form and manner prescribed 
 14.36  by the commissioner: 
 15.1      (1) a manufacturer, wholesaler, and importer licensed to 
 15.2   ship distilled spirits or wine into Minnesota; 
 15.3      (2) a person who manufactures distilled spirits or wine in 
 15.4   Minnesota; 
 15.5      (3) any other person who imports distilled spirits or wine 
 15.6   into Minnesota; 
 15.7      (4) a person who possesses, receives, stores, or warehouses 
 15.8   distilled spirits or wine in Minnesota, upon which the tax 
 15.9   imposed by this chapter has not been paid; and 
 15.10     (5) a person who possesses, receives, stores, or warehouses 
 15.11  distilled spirits or wine in Minnesota, which are required to 
 15.12  give bond as required by the Internal Revenue Code, subtitle E, 
 15.13  chapter 51. 
 15.14     No payment of any tax is required to be remitted with this 
 15.15  report.  The report must be filed on or before the tenth day 
 15.16  following the end of each calendar month, regardless of whether 
 15.17  or not the person shipped, manufactured, possessed, received, 
 15.18  stored, or warehoused any distilled spirits or wine into or 
 15.19  within Minnesota during the previous month, unless the 
 15.20  commissioner determines that a longer filing period is 
 15.21  appropriate for a particular person.  A person failing to file 
 15.22  this report is subject to the civil or criminal penalties 
 15.23  imposed by this chapter. 
 15.24     This section does not apply to the lawful importation of 
 15.25  wine and distilled spirits under section 297G.07, subdivision 2, 
 15.26  nor to any lawful manufacture of wine or distilled spirits 
 15.27  within the state for personal consumption. 
 15.28     Sec. 12.  [297G.12] [REFUNDS.] 
 15.29     Subdivision 1.  [OVERPAYMENT OF TAX.] An overpayment of the 
 15.30  tax imposed under this chapter may be refunded to the taxpayer, 
 15.31  provided that the claim for refund is filed within the time 
 15.32  prescribed under section 297G.16. 
 15.33     Subd. 2.  [PRODUCTS DESTROYED.] The commissioner may refund 
 15.34  to a taxpayer the amount of tax paid under this chapter on 
 15.35  intoxicating liquor or fermented malt beverages which become 
 15.36  unfit for human consumption and are destroyed under an order by 
 16.1   a federal, state, or local agency while being held for sale by a 
 16.2   licensed retailer.  The destruction must meet the requirements 
 16.3   of the environmental laws of this state. 
 16.4      Subd. 3.  [WHOLESALER REFUND FOR BREAKAGE OF 
 16.5   INVENTORY.] The commissioner may refund to a wholesaler the 
 16.6   amount of tax paid under this chapter for the breakage of 
 16.7   inventory not subject to reimbursement from any insurance 
 16.8   proceeds.  The commissioner may prescribe the method of proof 
 16.9   for obtaining the refund. 
 16.10     Subd. 4.  [RETAILER REFUND FOR BREAKAGE OF INVENTORY.] 
 16.11  Refunds for breakage of inventory may be made to retailers only 
 16.12  if satisfactory proof is presented to the commissioner by the 
 16.13  wholesaler and the licensed retailer that the retailer was not 
 16.14  indemnified by insurance for the tax.  The commissioner may 
 16.15  prescribe the method of proof required for obtaining the refund. 
 16.16     Subd. 5.  [BAD DEBTS.] The commissioner may adopt rules 
 16.17  providing a refund of the tax paid under this chapter on 
 16.18  intoxicating liquor or wine if the tax paid qualifies as a bad 
 16.19  debt under section 166(a) of the Internal Revenue Code. 
 16.20     Subd. 6.  [CREDIT AGAINST TAX.] The commissioner may credit 
 16.21  the amount determined under this section against taxes otherwise 
 16.22  payable under this chapter by the taxpayer. 
 16.23     Subd. 7.  [SOURCE OF REFUND.] There is appropriated 
 16.24  annually from the general fund to the commissioner the sums 
 16.25  necessary to make the refunds provided by this section. 
 16.26     Sec. 13.  [297G.13] [INSPECTION RIGHTS.] 
 16.27     The commissioner of public safety or the commissioner of 
 16.28  revenue, or their duly authorized employees, may, at any 
 16.29  reasonable time, without notice and without a search warrant, 
 16.30  enter in and upon a licensed premises, and examine the books, 
 16.31  papers, and records of a brewer, manufacturer, wholesaler, or 
 16.32  retailer for the purpose of determining whether the excise tax 
 16.33  has been paid, and may in addition inspect any premises where 
 16.34  fermented malt beverages are manufactured, sold, offered for 
 16.35  sale, possessed, or stored for the purpose of determining 
 16.36  whether the party is in full compliance with the provisions of 
 17.1   this chapter. 
 17.2      Sec. 14.  [297G.14] [EXAMINATIONS AND AUDITS.] 
 17.3      Subdivision 1.  [EXAMINATION OF THE TAXPAYER.] To determine 
 17.4   the accuracy of a return or report, or for the purpose of 
 17.5   collection, or in fixing liability or verifying information 
 17.6   regarding any tax under this chapter, the commissioner may make 
 17.7   reasonable examinations or investigations of a taxpayer's place 
 17.8   of business, tangible personal property, equipment, computer 
 17.9   systems and facilities, pertinent books, records, papers, 
 17.10  vouchers, computer printouts, accounts, and documents. 
 17.11     Subd. 2.  [ACCESS TO RECORDS OF OTHER PERSONS IN CONNECTION 
 17.12  WITH THE EXAMINATION OF TAXPAYER.] When conducting an 
 17.13  investigation or an audit of a taxpayer, or for the purpose of 
 17.14  collection, or in fixing liability or verifying information 
 17.15  regarding any tax under this chapter, the commissioner may 
 17.16  examine, except where privileged by law, the relevant records 
 17.17  and files of a person, business, institution, financial 
 17.18  institution, state agency, agency of the United States 
 17.19  government, or agency of any other state where permitted by 
 17.20  statute, agreement, or reciprocity.  The commissioner may compel 
 17.21  production of these records by subpoena. A subpoena may be 
 17.22  served directly by the commissioner. 
 17.23     Subd. 3.  [POWER TO COMPEL TESTIMONY.] In the 
 17.24  administration of any tax under this chapter, the commissioner 
 17.25  may: 
 17.26     (1) administer oaths or affirmations and compel by subpoena 
 17.27  the attendance of witnesses, testimony, and the production of a 
 17.28  person's pertinent books, records, papers, and other data for 
 17.29  inspection and copying; 
 17.30     (2) examine under oath or affirmation any person regarding 
 17.31  the business of a taxpayer concerning any relevant matter 
 17.32  incident to the administration of any tax under this chapter.  
 17.33  The fees of witnesses required by the commissioner to attend a 
 17.34  hearing are equal to those allowed to witnesses appearing before 
 17.35  courts of this state.  The fees must be paid in the manner 
 17.36  provided for the payment of other expenses incident to the 
 18.1   administration of any tax under this chapter; and 
 18.2      (3) in addition to other remedies that may be available, 
 18.3   bring an action in equity by the state against a taxpayer for an 
 18.4   injunction ordering the taxpayer to file a complete and proper 
 18.5   return or amended return.  The district courts of this state 
 18.6   have jurisdiction over the action and disobedience of an 
 18.7   injunction issued under this clause may be punished as a 
 18.8   contempt of district court. 
 18.9      Subd. 4.  [THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY 
 18.10  IS KNOWN.] An investigation may extend to a person that the 
 18.11  commissioner determines has access to information that may be 
 18.12  relevant to the examination or investigation.  When a subpoena 
 18.13  requiring the production of records as described in subdivision 
 18.14  4 is served on a third-party recordkeeper, written notice of the 
 18.15  subpoena must be mailed to the taxpayer and to any other person 
 18.16  who is identified in the subpoena.  The notices must be given 
 18.17  within three days of the day on which the subpoena is served.  
 18.18  Notice to the taxpayer required by this section is sufficient if 
 18.19  it is mailed to the last address on record with the commissioner.
 18.20     The provisions of this subdivision relating to notice to 
 18.21  the taxpayer or other parties identified in the subpoena do not 
 18.22  apply if there is reasonable cause to believe that the giving of 
 18.23  notice may lead to attempts to conceal, destroy, or alter 
 18.24  records relevant to the examination, to prevent the 
 18.25  communication of information from other persons through 
 18.26  intimidation, bribery, or collusion, or to flee to avoid 
 18.27  prosecution, testifying, or production of records. 
 18.28     Subd. 5.  [THIRD-PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY 
 18.29  IS NOT KNOWN.] A subpoena that does not identify the person or 
 18.30  persons whose tax liability is investigated may be served only 
 18.31  if: 
 18.32     (1) the subpoena relates to the investigation of a 
 18.33  particular person or an ascertainable group or class of persons; 
 18.34     (2) there is reasonable basis for believing that the person 
 18.35  or group or class of persons may fail or may have failed to 
 18.36  comply with the tax laws administered by the commissioner; 
 19.1      (3) the information sought to be obtained from the 
 19.2   examination of the records, and the identity of the person or 
 19.3   persons with respect to whose liability the subpoena is issued, 
 19.4   is not readily available from other sources; 
 19.5      (4) the subpoena is clear and specific concerning the 
 19.6   information sought to be obtained; and 
 19.7      (5) the information sought to be obtained is limited solely 
 19.8   to the scope of the investigation. 
 19.9      The party served with a subpoena that does not identify the 
 19.10  person or persons with respect to whose tax liability the 
 19.11  subpoena is issued may, within 20 days after service of the 
 19.12  subpoena, petition the district court in the judicial district 
 19.13  in which that party is located for a determination concerning 
 19.14  whether the commissioner has complied with all the requirements 
 19.15  in clauses (1) to (5), and thus, whether the subpoena is 
 19.16  enforceable.  If no petition is made by the party served within 
 19.17  the time prescribed, the subpoena has the effect of a court 
 19.18  order. 
 19.19     Subd. 6.  [REQUEST BY TAXPAYER FOR SUBPOENA.] When the 
 19.20  commissioner has the power to issue a subpoena for investigative 
 19.21  or auditing purposes, the commissioner shall honor a reasonable 
 19.22  request by the taxpayer to issue a subpoena on the taxpayer's 
 19.23  behalf, if in connection with the investigation or audit. 
 19.24     Subd. 7.  [APPLICATION TO COURT FOR ENFORCEMENT OF 
 19.25  SUBPOENA.] Disobedience of subpoenas issued under this section 
 19.26  shall be punished by the district court of the district in which 
 19.27  the party served with the subpoena is located, in the same 
 19.28  manner as contempt of the district court. 
 19.29     Subd. 8.  [COST OF PRODUCTION OF RECORDS.] The cost of 
 19.30  producing records of a third party required by a subpoena must 
 19.31  be paid by the taxpayer, if the taxpayer requests the subpoena 
 19.32  to be issued, or if the taxpayer has the records available but 
 19.33  has refused to provide them to the commissioner.  In other cases 
 19.34  when the taxpayer cannot produce records and the commissioner 
 19.35  then initiates a subpoena for third-party records, the 
 19.36  commissioner shall pay the reasonable cost of producing the 
 20.1   records.  The commissioner may later assess the reasonable costs 
 20.2   against the taxpayer if the records contribute to the 
 20.3   determination of an assessment of tax against the taxpayer. 
 20.4      Subd. 9.  [PHYSICAL INVENTORY.] The commissioner or the 
 20.5   commissioner's authorized agents may, as considered necessary, 
 20.6   require a manufacturer, wholesaler, or retailer to furnish a 
 20.7   physical inventory of all wine and distilled spirits in stock.  
 20.8   The inventory must contain the information that the commissioner 
 20.9   requests and must be certified by an officer of the corporation. 
 20.10     Sec. 15.  [297G.15] [ASSESSMENTS.] 
 20.11     Subdivision 1.  [GENERAL RULE.] The commissioner shall make 
 20.12  determinations, corrections, and assessments with respect to any 
 20.13  tax under this chapter, including interest, additions to taxes, 
 20.14  and assessable penalties.  The commissioner may use statistical 
 20.15  or other sampling techniques consistent with generally accepted 
 20.16  auditing standards in examining returns or records and making 
 20.17  assessments. 
 20.18     Subd. 2.  [COMMISSIONER FILED RETURNS.] If a taxpayer fails 
 20.19  to file a required return, the commissioner, from information in 
 20.20  the commissioner's possession or obtainable by the commissioner, 
 20.21  may make a return for the taxpayer.  The return is prima facie 
 20.22  correct and valid. 
 20.23     Subd. 3.  [ORDER OF ASSESSMENT; NOTICE AND DEMAND TO 
 20.24  TAXPAYER.] (a) When a return has been filed and the commissioner 
 20.25  determines that the tax disclosed by the return is different 
 20.26  than the tax determined by the examination, the commissioner 
 20.27  shall send an order of assessment to the taxpayer.  When no 
 20.28  return has been filed, the commissioner may make a return for 
 20.29  the taxpayer under subdivision 2 or may send an order of 
 20.30  assessment under this subdivision.  The order must explain the 
 20.31  basis for the assessment and must explain the taxpayer's appeal 
 20.32  rights.  An order of assessment is final when made but may be 
 20.33  reconsidered by the commissioner under this chapter. 
 20.34     (b) The taxes are considered assessed when the commissioner 
 20.35  has prepared a notice of tax assessment and mailed it to the 
 20.36  person required to file a return to the post office address 
 21.1   given in the return.  The notice of tax assessment must be sent 
 21.2   by mail to the post office address given in the return and the 
 21.3   record of the mailing is presumptive evidence of the giving of 
 21.4   notice, and such records must be preserved by the commissioner. 
 21.5      (c) No collection action can be taken, including the filing 
 21.6   of liens under section 270.69, and no late payment penalty under 
 21.7   this chapter is imposed when a return has been filed for the 
 21.8   taxable period upon which the order is based, if the amount 
 21.9   shown on the order is paid to the commissioner: 
 21.10     (1) within 60 days after the order has been mailed to the 
 21.11  taxpayer by the commissioner; or 
 21.12     (2) if an administrative appeal is filed under this 
 21.13  chapter, or a tax court appeal is filed under chapter 271, 
 21.14  within 60 days following final determination of the appeal if 
 21.15  the appeal is based upon a constitutional challenge to the tax, 
 21.16  and if not, when the decision of the tax court is made. 
 21.17     Subd. 4.  [ERRONEOUS REFUNDS OR CREDITS.] An erroneous 
 21.18  refund or credit is considered an underpayment of tax on the 
 21.19  date made.  An assessment of a deficiency arising out of an 
 21.20  erroneous refund or credit must be made within 3-1/2 years from 
 21.21  the date prescribed for filing the return, plus any extension of 
 21.22  time granted for filing the return, but only if filed within the 
 21.23  extended time, or two years from the time the tax is paid in 
 21.24  full, whichever period expires later. 
 21.25     Subd. 5.  [ASSESSMENT PRESUMED VALID.] A return or 
 21.26  assessment of tax made by the commissioner is prima facie 
 21.27  correct and valid.  The taxpayer has the burden of establishing 
 21.28  its incorrectness or invalidity in any related action or 
 21.29  proceeding. 
 21.30     Subd. 6.  [AGGREGATE REFUND OR ASSESSMENT.] The 
 21.31  commissioner, on examining returns of a taxpayer for more than 
 21.32  one year or period, may issue one order covering the period 
 21.33  under examination that reflects the aggregate refund or 
 21.34  additional tax due. 
 21.35     Subd. 7.  [SUFFICIENCY OF NOTICE.] An order of assessment, 
 21.36  sent postage prepaid by United States mail to the taxpayer at 
 22.1   the taxpayer's last known address, is sufficient even if the 
 22.2   taxpayer is deceased or is under a legal disability, or, in the 
 22.3   case of a corporation, has terminated its existence, unless the 
 22.4   department has been provided with a new address by a party 
 22.5   authorized to receive notices of assessment. 
 22.6      Sec. 16.  [297G.16] [STATUTES OF LIMITATIONS.] 
 22.7      Subdivision 1.  [GENERAL RULE.] Except as otherwise 
 22.8   provided in this chapter, the amount of any tax due must be 
 22.9   assessed within 3-1/2 years after a return is filed.  
 22.10     Subd. 2.  [DATE OF FILING.] For the purposes of this 
 22.11  section, a return filed before the last day prescribed by law 
 22.12  for filing is considered filed on the last day. 
 22.13     Subd. 3.  [FALSE OR FRAUDULENT RETURN OR CLAIM FOR REFUND; 
 22.14  NO RETURN.] When a person required to file a return under this 
 22.15  chapter files a false or fraudulent return or claim for refund, 
 22.16  or fails to file a return, the tax may be assessed, and a 
 22.17  proceeding in court for the collection of such tax may be begun 
 22.18  at any time. 
 22.19     Subd. 4.  [OMISSION IN EXCESS OF 25 PERCENT.] If a person 
 22.20  required to file a return omits from the return an amount 
 22.21  properly includable in it that is in excess of 25 percent of the 
 22.22  amount of tax reported in the return, the tax may be assessed, 
 22.23  or a proceeding in court for the collection of the tax may be 
 22.24  begun, at any time within 6-1/2 years after the return was filed.
 22.25     Subd. 5.  [TIME LIMIT FOR REFUNDS.] Unless otherwise 
 22.26  provided in this chapter, a claim for a refund of an overpayment 
 22.27  of tax must be filed within 3-1/2 years from the date prescribed 
 22.28  for filing the return, plus any extension of time granted for 
 22.29  filing the return, but only if filed within the extended time, 
 22.30  or two years from the time the tax is paid in full, whichever 
 22.31  period expires later.  Claimants under this section are subject 
 22.32  to the notice requirements of section 289A.38, subdivision 7. 
 22.33     Subd. 6.  [TIME LIMIT FOR A DESTRUCTION ORDER REFUND.] 
 22.34  Claims for refund under section 297G.12, subdivision 2, must be 
 22.35  filed with the commissioner within one year from the date of the 
 22.36  breakage or destruction order. 
 23.1      Subd. 7.  [TIME LIMIT FOR A BAD DEBT DEDUCTION.] Claims for 
 23.2   refund must be filed with the commissioner within one year of 
 23.3   the filing of the taxpayer's income tax return containing the 
 23.4   bad debt deduction that is being claimed. 
 23.5      Subd. 8.  [CONSENT TO EXTEND TIME.] If, before the 
 23.6   expiration of the time prescribed in this chapter for the 
 23.7   assessment of the tax, the commissioner and the person filing 
 23.8   the return consent in writing to an extension of time for the 
 23.9   assessment of the tax, the tax may be assessed at any time 
 23.10  before the expiration of the period agreed upon.  The period so 
 23.11  agreed upon may be extended by subsequent agreements in writing 
 23.12  made before the expiration of the period previously agreed upon. 
 23.13     Subd. 9.  [BANKRUPTCY; SUSPENSION OF TIME.] The running of 
 23.14  the period during which a tax must be assessed or collection 
 23.15  proceedings commenced is suspended during the period from the 
 23.16  date of a filing of a petition in bankruptcy until 30 days after 
 23.17  either notice to the commissioner that the bankruptcy 
 23.18  proceedings have been closed or dismissed, or the automatic stay 
 23.19  has been terminated or has expired, whichever occurs first. 
 23.20     The suspension of the statute of limitations under this 
 23.21  section applies to the person the petition in bankruptcy is 
 23.22  filed against and other persons who may also be wholly or 
 23.23  partially liable for the tax. 
 23.24     Sec. 17.  [297G.17] [INTEREST.] 
 23.25     Subdivision 1.  [INTEREST RATE.] When interest is required 
 23.26  under this section, interest is computed at the rate specified 
 23.27  in section 270.75. 
 23.28     Subd. 2.  [LATE PAYMENT.] If a tax under this chapter is 
 23.29  not paid within the time named by law for payment, the unpaid 
 23.30  tax bears interest from the date the tax should have been paid 
 23.31  until the date the tax is paid. 
 23.32     Subd. 3.  [EXTENSIONS.] When an extension of time for 
 23.33  payment has been granted, interest must be paid from the date 
 23.34  the payment should have been made, if no extension had been 
 23.35  granted, until the date the tax is paid. 
 23.36     Subd. 4.  [ADDITIONAL ASSESSMENTS.] When a taxpayer is 
 24.1   liable for additional taxes because of a redetermination by the 
 24.2   commissioner, or for any other reason, the additional taxes bear 
 24.3   interest from the time the tax should have been paid, without 
 24.4   regard to an extension allowed, until the date the tax is paid. 
 24.5      Subd. 5.  [ERRONEOUS REFUNDS OR CREDITS.] In the case of an 
 24.6   erroneous refund or credit, interest begins to accrue from the 
 24.7   date the refund or credit was paid unless the erroneous refund 
 24.8   or credit results from a mistake of the department, in which 
 24.9   case no interest or penalty is imposed, unless the deficiency 
 24.10  assessment is not satisfied within 60 days of the order. 
 24.11     Subd. 6.  [INTEREST ON JUDGMENTS.] Notwithstanding section 
 24.12  549.09, if judgment is entered in favor of the commissioner with 
 24.13  regard to any tax under this chapter, the judgment bears 
 24.14  interest at the rate given in section 270.75 from the date the 
 24.15  judgment is entered until the date of payment. 
 24.16     Subd. 7.  [INTEREST ON PENALTIES.] (a) A penalty imposed 
 24.17  under section 297G.18, subdivisions 2 to 7, bears interest from 
 24.18  the date the return or payment was required to be filed or paid, 
 24.19  including any extensions, to the date of payment of the penalty. 
 24.20     (b) A penalty not included in paragraph (a) bears interest 
 24.21  only if it is not paid within ten days from the date of the 
 24.22  notice.  In that case interest is imposed from the date of 
 24.23  notice to the date of payment. 
 24.24     Subd. 8.  [INTEREST ON OVERPAYMENTS.] Interest must be paid 
 24.25  on an overpayment refunded or credited to the taxpayer from the 
 24.26  date of payment of the tax until the date the refund is paid or 
 24.27  credited. 
 24.28     Sec. 18.  [297G.18] [CIVIL PENALTIES.] 
 24.29     Subdivision 1.  [GENERAL RULE.] The commissioner may 
 24.30  recover the amount of any tax due under this chapter, as well as 
 24.31  any interest and penalty in a civil action.  The collection of a 
 24.32  tax, interest, or penalty does not bar any prosecution under 
 24.33  this chapter. 
 24.34     Subd. 2.  [PENALTY FOR FAILURE TO PAY TAX.] If a tax 
 24.35  imposed by this chapter is not paid within the time specified 
 24.36  for payment, a penalty is added to the amount required to be 
 25.1   shown as tax.  The penalty is five percent of the tax not paid 
 25.2   on or before the date specified for payment of the tax if the 
 25.3   failure is for not more than 30 days, with an additional penalty 
 25.4   of five percent of the amount of tax remaining unpaid during 
 25.5   each additional 30 days or fraction of 30 days during which the 
 25.6   failure continues, not exceeding 15 percent in the aggregate. 
 25.7      Subd. 3.  [PENALTY FOR FAILURE TO MAKE AND FILE RETURN.] If 
 25.8   a taxpayer fails to make and file a return within the time 
 25.9   prescribed, including any extension, a penalty of five percent 
 25.10  of the amount of tax not timely paid is added to the tax.  If no 
 25.11  tax is due, a penalty of $25 is assessed for each unfiled return.
 25.12     Subd. 4.  [COMBINED PENALTIES.] When penalties are imposed 
 25.13  under subdivisions 2 and 3, the penalties combined must not 
 25.14  exceed 38 percent in the aggregate. 
 25.15     Subd. 5.  [PENALTY FOR INTENTIONAL DISREGARD OF LAW OR 
 25.16  RULES.] If part of an additional assessment is due to negligence 
 25.17  or intentional disregard of the provisions of the applicable tax 
 25.18  laws or rules of the commissioner, but without an intent to 
 25.19  defraud, there must be added to the tax an amount equal to ten 
 25.20  percent of the additional assessment. 
 25.21     Subd. 6.  [PENALTY FOR REPEATED FAILURES TO FILE OR PAY 
 25.22  TAXES.] If there is a pattern by a person of repeated failures 
 25.23  to timely file returns or timely pay taxes, and written notice 
 25.24  is given that a penalty will be imposed if such failures 
 25.25  continue, a penalty of 25 percent of the amount of tax not 
 25.26  timely paid as a result of each such subsequent failure is added 
 25.27  to the tax.  The penalty can be abated under the abatement 
 25.28  authority in section 270.07, subdivisions 1, paragraph (e), and 
 25.29  6. 
 25.30     Subd. 7.  [PENALTY FOR FALSE OR FRAUDULENT RETURN; 
 25.31  EVASION.] If a person files a false or fraudulent return, or 
 25.32  attempts in any manner to evade or defeat a tax or payment of 
 25.33  tax, there is imposed on the person a penalty equal to 50 
 25.34  percent of the tax due for the period to which the return 
 25.35  related, less amounts paid by the person on the basis of the 
 25.36  false or fraudulent return. 
 26.1      Subd. 8.  [REVOCATION OR SUSPENSION OF LICENSE.] The 
 26.2   commissioner may certify to the commissioner of public safety 
 26.3   any failure to pay taxes when due as a violation of the statute 
 26.4   relating to the sale of intoxicating liquor for possible 
 26.5   revocation or suspension of license. 
 26.6      Subd. 9.  [FAILURE TO FILE INFORMATIONAL RETURNS.] A person 
 26.7   required to file informational returns or reports that fails to 
 26.8   do so as required by this chapter is assessed a $25 penalty for 
 26.9   each month the return remains unfiled. 
 26.10     Subd. 10.  [PAYMENT OF PENALTIES.] The penalties imposed by 
 26.11  this section are collected and paid in the same manner as taxes. 
 26.12     Subd. 11.  [PENALTIES ARE ADDITIONAL.] The civil penalties 
 26.13  imposed by this section are in addition to the criminal 
 26.14  penalties imposed by this chapter. 
 26.15     Sec. 19.  [297G.19] [CRIMINAL PENALTIES.] 
 26.16     Subdivision 1.  [PENALTIES FOR FAILURE TO FILE OR PAY.] (a) 
 26.17  A person required to file a return, report, or other document 
 26.18  with the commissioner who fails to do so is guilty of a 
 26.19  misdemeanor.  
 26.20     (b) A person required to pay or to collect and remit a tax 
 26.21  under this chapter, who fails to do so when required, is guilty 
 26.22  of a misdemeanor. 
 26.23     Subd. 2.  [PENALTIES FOR KNOWING FAILURE TO FILE OR PAY; 
 26.24  WILLFUL EVASION.] (a) A person required to file a return, 
 26.25  report, or other document with the commissioner, who knowingly, 
 26.26  rather than accidentally, inadvertently, or negligently, fails 
 26.27  to file it when required, is guilty of a gross misdemeanor.  A 
 26.28  person required to file a return, report, or other document who 
 26.29  willfully attempts in any manner to evade or defeat a tax by 
 26.30  failing to file it when required, is guilty of a felony. 
 26.31     (b) A person required to pay or to collect and remit a tax 
 26.32  under this chapter, who knowingly, rather than accidentally, 
 26.33  inadvertently, or negligently, fails to file it when required, 
 26.34  is guilty of a gross misdemeanor.  A person required to pay or 
 26.35  to collect and remit a tax under this chapter, who willfully 
 26.36  attempts to evade or defeat tax law by failing to do so when 
 27.1   required, is guilty of a felony. 
 27.2      Subd. 3.  [FALSE OR FRAUDULENT RETURNS; PENALTIES.] (a) A 
 27.3   person who files with the commissioner a return, report, or 
 27.4   other document, known by the person to be fraudulent or false 
 27.5   concerning a material matter, is guilty of a felony. 
 27.6      (b) A person who knowingly aids or assists in, or advises 
 27.7   in the preparation or presentation of a return, report, or other 
 27.8   document that is fraudulent or false concerning a material 
 27.9   matter, whether or not the falsity or fraud is committed with 
 27.10  the knowledge or consent of the person authorized or required to 
 27.11  present the return, report, or other document, is guilty of a 
 27.12  felony. 
 27.13     Subd. 4.  [IMPORTATION BY INDIVIDUALS FROM ANOTHER STATE.] 
 27.14  (a) A person entering Minnesota from another state who imports 
 27.15  or possesses one liter or more, but fewer than 25 liters of 
 27.16  untaxed intoxicating liquor, or 288 ounces (nine quarts) or 
 27.17  more, but fewer than 6,800 ounces (225 quarts) of untaxed 
 27.18  fermented malt beverages is guilty of a misdemeanor. 
 27.19     (b) A person entering Minnesota from another state who 
 27.20  imports or possesses 25 liters or more, but fewer than 225 
 27.21  liters of untaxed intoxicating liquor, or 6,800 ounces (225 
 27.22  quarts) or more, but fewer than 34,000 ounces (1,225 quarts) of 
 27.23  untaxed fermented malt beverages is guilty of a gross 
 27.24  misdemeanor. 
 27.25     (c) A person entering Minnesota from another state who 
 27.26  imports or possesses 225 liters or more of untaxed intoxicating 
 27.27  liquor, or 34,000 ounces (1,225 quarts) or more of untaxed 
 27.28  fermented malt beverages is guilty of a felony. 
 27.29     Subd. 5.  [IMPORTATION BY INDIVIDUALS FROM A FOREIGN 
 27.30  COUNTRY.] (a) A person entering Minnesota from a foreign country 
 27.31  who imports or possesses four liters or more, but fewer than 100 
 27.32  liters of untaxed intoxicating liquor, or 320 ounces (ten quarts)
 27.33  or more, but fewer than 8,000 ounces (250 quarts) of untaxed 
 27.34  fermented malt beverages is guilty of a misdemeanor. 
 27.35     (b) A person entering Minnesota from a foreign country who 
 27.36  imports or possesses 100 liters or more, but fewer than 500 
 28.1   liters of untaxed intoxicating liquor, or 8,000 ounces (250 
 28.2   quarts) or more, but fewer than 40,000 ounces (1,250 quarts) of 
 28.3   untaxed fermented malt beverages is guilty of a gross 
 28.4   misdemeanor. 
 28.5      (c) A person entering Minnesota from a foreign country who 
 28.6   imports or possesses 500 liters or more of untaxed intoxicating 
 28.7   liquor, or 40,000 ounces (1,250 quarts) or more of untaxed 
 28.8   fermented malt beverages is guilty of a felony. 
 28.9      Subd. 6.  [PENALTIES ARE ADDITIONAL.] Criminal penalties 
 28.10  imposed by this section are in addition to any civil penalties 
 28.11  imposed by this chapter. 
 28.12     Subd. 7.  [OTHER PENALTIES.] Any violation of this chapter 
 28.13  unless otherwise specified is a misdemeanor. 
 28.14     Subd. 8.  [STATUTE OF LIMITATIONS.] Notwithstanding section 
 28.15  628.26, or any other provision of the criminal laws of this 
 28.16  state, an indictment may be found and filed, or a complaint 
 28.17  filed, upon a criminal offense named in this section, in the 
 28.18  proper court within six years after the offense is committed. 
 28.19     Sec. 20.  [297G.20] [CONTRABAND.] 
 28.20     Subdivision 1.  [CONTRABAND DEFINED.] The following are 
 28.21  declared to be contraband and therefore subject to civil and 
 28.22  criminal penalties and seizure under this chapter: 
 28.23     (1) All distilled spirits, wine, and fermented malt 
 28.24  beverages possessed or held with intent to sell without payment 
 28.25  of an excise tax. 
 28.26     (2) All distilled spirits, wine, and fermented malt 
 28.27  beverages sold without payment of an excise tax. 
 28.28     (3) All distilled spirits, wine, and fermented malt 
 28.29  beverages transported without payment of an excise tax. 
 28.30     (4) Devices including, but not limited to, motor vehicles, 
 28.31  trailers, snowmobiles, airplanes, and boats used with the 
 28.32  knowledge of the owner, or of a person operating with the 
 28.33  consent of the owner, for the storage or transportation of 
 28.34  distilled spirits, wine, and fermented malt beverages which are 
 28.35  contraband under this subdivision. 
 28.36     Subd. 2.  [EXCEPTION.] When distilled spirits, wine, and 
 29.1   fermented malt beverages are being transported in the course of 
 29.2   interstate commerce, or are in movement from either a public 
 29.3   warehouse to a wholesaler upon orders from a manufacturer or 
 29.4   wholesaler, or from one wholesaler to another, the distilled 
 29.5   spirits, wine, and fermented malt beverages are not contraband, 
 29.6   notwithstanding the provisions of subdivision 1. 
 29.7      Subd. 3.  [SEIZURE.] Distilled spirits, wine, fermented 
 29.8   malt beverages, or other property made contraband by subdivision 
 29.9   1 may be seized by the commissioner of revenue or public safety 
 29.10  and their authorized agents or by any sheriff or other police 
 29.11  officer, with or without process, and are subject to forfeiture 
 29.12  as provided in subdivisions 4 and 5. 
 29.13     Subd. 4.  [INVENTORY; JUDICIAL DETERMINATION; APPEAL; 
 29.14  DISPOSITION OF SEIZED PROPERTY.] (a) Within ten days after the 
 29.15  seizure of alleged contraband, the person making the seizure 
 29.16  shall make available an inventory of the property seized to the 
 29.17  person from whom the the property was seized, if known, and file 
 29.18  a copy with both the commissioners of revenue and public safety. 
 29.19  Within ten days after the date of service of the inventory, the 
 29.20  person from whom the property was seized or any person claiming 
 29.21  an interest in the property may file with the seizing authority 
 29.22  a demand for judicial determination of whether the property was 
 29.23  lawfully subject to seizure and forfeiture.  Within 60 days 
 29.24  after the date of the filing of the demand, the seizing 
 29.25  authority must bring an action in the district court of the 
 29.26  county where seizure was made to determine the issue of 
 29.27  forfeiture. 
 29.28     (b) The action must be brought in the name of the state and 
 29.29  must be prosecuted by the county attorney or by the attorney 
 29.30  general.  The court shall hear the action without a jury and 
 29.31  determine the issues of fact and law involved. 
 29.32     (c) If a judgment of forfeiture is entered, the seizing 
 29.33  authority may, unless the judgment is stayed pending an appeal, 
 29.34  either: 
 29.35     (1) cause the forfeited property to be destroyed; or 
 29.36     (2) cause it to be sold at a public auction as provided by 
 30.1   law. 
 30.2      (d) If demand for judicial determination is made and no 
 30.3   action is commenced by the seizing authority as provided in this 
 30.4   subdivision, the property must be released by the seizing 
 30.5   authority and delivered to the person entitled to it.  If no 
 30.6   demand is made, the property seized is considered forfeited to 
 30.7   the seizing authority by operation of law and may be disposed of 
 30.8   by the seizing authority as provided for a judgment of 
 30.9   forfeiture.  When the seizing authority is satisfied that a 
 30.10  person from whom property is seized was acting in good faith and 
 30.11  without intent to evade the tax imposed by this chapter, the 
 30.12  seizing authority shall release the property seized without 
 30.13  further legal proceedings. 
 30.14     Subd. 5.  [DISPOSAL.] (a) The property described in 
 30.15  subdivision 1, clause (4), must be confiscated after conviction 
 30.16  of the person from whom it was seized, upon compliance with the 
 30.17  following procedure:  the seizing authority shall file with the 
 30.18  court a separate complaint against the property, describing it 
 30.19  and charging its use in the specific violation, and specifying 
 30.20  substantially the time and place of the unlawful use.  A copy of 
 30.21  the complaint must be served upon the defendant or person in 
 30.22  charge of the seizure, if any.  
 30.23     (b) If the person arrested is acquitted, the court shall 
 30.24  dismiss the complaint against the property and order it returned 
 30.25  to the persons legally entitled to it.  Upon conviction of the 
 30.26  person arrested, the court shall issue an order directed to any 
 30.27  person known or believed to have any right, title, or interest 
 30.28  in, or lien upon, any of the property, and to persons unknown 
 30.29  claiming any right, title, interest, or lien in it, describing 
 30.30  the property and (1) stating that it was seized and that a 
 30.31  complaint against it, charging the specified violation, has been 
 30.32  filed with the court, (2) requiring the persons to file with the 
 30.33  court administrator their answer to the complaint, setting forth 
 30.34  any claim they may have to any right or title to, interest in, 
 30.35  or lien upon the property, within 30 days after the service of 
 30.36  the order, and (3) notifying them in substance that if they fail 
 31.1   to file their answer within the time, the property will be 
 31.2   ordered sold by the seizing authority.  
 31.3      (c) The court shall cause the order to be served upon any 
 31.4   person known or believed to have any right, title, interest, or 
 31.5   lien as in the case of a summons in a civil action, and upon 
 31.6   unknown persons by publication, as provided for service of 
 31.7   summons in a civil action.  If an answer is filed within the 
 31.8   time provided, the court shall fix a time for hearing, which 
 31.9   must not be less than ten nor more than 30 days after the time 
 31.10  for filing the answer expires.  If no answer is filed within the 
 31.11  time prescribed, upon affidavit by the court administrator, 
 31.12  setting forth the fact, the court shall order the property sold 
 31.13  by the seizing authority.  Seventy-five percent of the proceeds 
 31.14  of the sale of forfeited property, after payment of seizure, 
 31.15  storage, forfeiture, and sale expenses, must be forwarded to the 
 31.16  seizing authority for deposit as a supplement to its operating 
 31.17  fund or similar fund for official use, and 25 percent must be 
 31.18  forwarded to the county attorney or other prosecuting agency 
 31.19  that handled the forfeiture for deposit as a supplement to its 
 31.20  operating fund or similar fund for prosecutorial purposes. 
 31.21     (d) At the time fixed for hearing, unless continued for 
 31.22  cause, the matter must be heard and determined by the court, 
 31.23  without a jury as in other civil actions.  If the court finds 
 31.24  that the property, or any part of it, was used in the violation 
 31.25  specified in the complaint, it shall order the unlawfully used 
 31.26  property sold as provided by law, unless the owner shows to the 
 31.27  satisfaction of the court that the owner had no notice or 
 31.28  knowledge or reason to believe that the property was used or 
 31.29  intended to be used in the violation.  The officer making a 
 31.30  sale, after deducting the expense of keeping the property, the 
 31.31  fee for seizure, and the costs of the sale, shall pay all liens 
 31.32  according to their priority, which are established at the 
 31.33  hearing as being bona fide and as existing without the lienor 
 31.34  having any notice or knowledge that the property was being used 
 31.35  or was intended to be used for or in connection with the 
 31.36  violation specified in the order of the court, and shall pay the 
 32.1   balance of the proceeds to the seizing authority for official 
 32.2   use and sharing in the manner provided in paragraph (a).  A sale 
 32.3   under this section frees the property from all liens on it.  
 32.4   Appeal from the order of the district is available as in other 
 32.5   civil cases. 
 32.6      (e) At any time after seizure of the articles specified in 
 32.7   this subdivision, and before the hearing provided for, the 
 32.8   property must be returned to the owner or person having a legal 
 32.9   right to its possession, upon execution of a good and valid bond 
 32.10  to the state, with corporate surety, in the sum of at least $100 
 32.11  and not more than double of the value of the property seized, to 
 32.12  be approved by the court in which the case is triable, or a 
 32.13  judge of it, conditioned to abide any order and the judgment of 
 32.14  the court, and to pay the full value of the property at the time 
 32.15  of the seizure.  The seizing authority may dismiss the 
 32.16  proceedings outlined in this subdivision when the seizing 
 32.17  authority considers it in the public interest to do so. 
 32.18     Sec. 21.  [297G.21] [ADMINISTRATIVE REVIEW.] 
 32.19     Subdivision 1.  [TAXPAYER RIGHT TO RECONSIDERATION.] A 
 32.20  taxpayer may obtain reconsideration by the commissioner of an 
 32.21  order assessing any tax imposed by this chapter, a denial of a 
 32.22  request for abatement of penalty, or a denial of a claim for 
 32.23  refund by filing an administrative appeal under subdivision 3.  
 32.24  A taxpayer cannot obtain reconsideration under this section if 
 32.25  the action taken by the commissioner is the outcome of an 
 32.26  administrative appeal. 
 32.27     Subd. 2.  [NOTICE DATE.] For purposes of this section, the 
 32.28  term "notice date" means the date of the order adjusting the tax 
 32.29  or order denying a request for abatement, or, in the case of a 
 32.30  denied refund, the date of the notice of denial. 
 32.31     Subd. 3.  [TIME AND CONTENT FOR ADMINISTRATIVE APPEAL.] 
 32.32  Within 60 days after the notice date, the taxpayer must file a 
 32.33  written appeal with the commissioner.  The appeal need not be in 
 32.34  any particular form but must contain the following information: 
 32.35     (1) the name and address of the taxpayer; 
 32.36     (2) if a corporation, the state of incorporation of the 
 33.1   taxpayer, and the principal place of business of the 
 33.2   corporation; 
 33.3      (3) the Minnesota identification number or social security 
 33.4   number of the taxpayer; 
 33.5      (4) the type of tax involved; 
 33.6      (5) the date; 
 33.7      (6) the tax years or periods involved and the amount of tax 
 33.8   involved for each year or period; 
 33.9      (7) the findings in the notice that the taxpayer disputes; 
 33.10     (8) a summary statement that the taxpayer relies on for 
 33.11  each exception; and 
 33.12     (9) the taxpayer's signature or signature of the taxpayer's 
 33.13  duly authorized agent. 
 33.14     Subd. 4.  [EXTENSIONS.] When requested in writing and 
 33.15  within the time allowed for filing an administrative appeal, the 
 33.16  commissioner may extend the time for filing an appeal for a 
 33.17  period of not more than 30 days from the expiration of the 60 
 33.18  days from the notice date. 
 33.19     Subd. 5.  [DETERMINATION OF APPEAL.] On the basis of 
 33.20  applicable law and available information, the commissioner shall 
 33.21  determine the validity, if any, in whole or part of the appeal 
 33.22  and notify the taxpayer of the decision.  This notice must be in 
 33.23  writing and contain the basis for the determination. 
 33.24     Subd. 6.  [AGREEMENT DETERMINING TAX LIABILITY.] When it 
 33.25  appears to be in the best interests of the state, the 
 33.26  commissioner may settle any taxes, penalties, or interest that 
 33.27  the commissioner has under consideration by virtue of an appeal 
 33.28  filed under this section.  An agreement must be in writing and 
 33.29  signed by the commissioner and the taxpayer, or the taxpayer's 
 33.30  representative authorized by the taxpayer to enter into an 
 33.31  agreement.  The agreement must be filed in the office of the 
 33.32  commissioner. 
 33.33     Subd. 7.  [APPEAL OF AN ADMINISTRATIVE DETERMINATION.] 
 33.34  Following the determination or settlement of an appeal and 
 33.35  notwithstanding any period of limitations for making assessments 
 33.36  or other determinations to the contrary, the commissioner shall 
 34.1   issue an order reflecting that disposition.  If the statute of 
 34.2   limitations for making assessments or other determinations would 
 34.3   have expired before the issuance of this order, except for this 
 34.4   section, the order is limited to issues or matters contained in 
 34.5   the appealed determination.  Except in the case of an agreement 
 34.6   determining tax under this section, the order is appealable to 
 34.7   the Minnesota tax court under section 271.06. 
 34.8      Subd. 8.  [APPEAL WHERE NO DETERMINATION.] If the 
 34.9   commissioner does not make a determination within six months of 
 34.10  the filing of an administrative appeal, the taxpayer may elect 
 34.11  to appeal to tax court. 
 34.12     Subd. 9.  [EXEMPTION FROM ADMINISTRATIVE PROCEDURE 
 34.13  ACT.] This section is not subject to chapter 14. 
 34.14     Sec. 22.  [297G.22] [JUDICIAL REVIEW.] 
 34.15     In lieu of an administrative appeal under this chapter, a 
 34.16  person aggrieved by an order of the commissioner fixing a tax, 
 34.17  penalty, or interest under this chapter may, within 60 days from 
 34.18  the date of the notice of the order, appeal to the tax court in 
 34.19  the manner provided under section 271.06.  
 34.20     Sec. 23.  [PURPOSE.] 
 34.21     It is the intent of the legislature to simplify Minnesota's 
 34.22  liquor tax laws by consolidating and recodifying tax 
 34.23  administration and compliance provisions now contained 
 34.24  throughout Minnesota Statutes, chapter 297C.  Due to the 
 34.25  complexity of the recodification, prior provisions are repealed 
 34.26  on the effective date of the new provisions.  The repealed 
 34.27  provisions, however, continue to remain in effect until 
 34.28  superseded by the analogous provision in the new law. 
 34.29     Sec. 24.  [REPEALER.] 
 34.30     Minnesota Statutes 1996, sections 297C.01; 297C.02; 
 34.31  297C.03; 297C.04; 297C.045; 297C.05; 297C.06; 297C.07; 297C.08; 
 34.32  297C.09; 297C.10; 297C.11; 297C.12; 297C.13; 297C.14; 297C.16; 
 34.33  and 297C.17, are repealed. 
 34.34     Sec. 25.  [EFFECTIVE DATE.] 
 34.35     Sections 1 and 23 are effective the day following final 
 34.36  enactment.  Sections 2 to 12, 18, 21, and 22 are effective for 
 35.1   returns, reports, taxes, or other payments first becoming due on 
 35.2   or after August 1, 1997.  Sections 13, 20, and 24 are effective 
 35.3   August 1, 1997.  Sections 14 and 15 are effective for audits or 
 35.4   investigations initiated on or after August 1, 1997.  Section 16 
 35.5   is effective for returns becoming due on or after August 1, 
 35.6   1997.  Section 17 is effective for interest on amounts first 
 35.7   becoming due to the commissioner on or after August 1, 1997.  
 35.8   Section 19 is effective for crimes committed on or after August 
 35.9   1, 1997. 
 35.10                             ARTICLE 2 
 35.11                         TECHNICAL CHANGES 
 35.12     Section 1.  Minnesota Statutes 1996, section 16A.26, is 
 35.13  amended to read: 
 35.14     16A.26 [ONE DEPOSITORY ACCOUNT FOR EACH TAX.] 
 35.15     Notwithstanding sections 297.13, 298.17, 298.282, 298.39, 
 35.16  298.396, 297C.02 to 297C.08 297G.10, and similar laws to the 
 35.17  contrary relating to the depositing, disposition, or 
 35.18  apportionment of tax receipts, the commissioner may use one 
 35.19  depository account for each tax.  To do so, there must be enough 
 35.20  information to identify and dispose of or apportion the tax 
 35.21  under law.  The commissioner shall ask the appropriate officials 
 35.22  for the transfers and necessary certifications.  The 
 35.23  commissioner may issue directives to carry out this section. 
 35.24     Sec. 2.  Minnesota Statutes 1996, section 340A.301, 
 35.25  subdivision 8, is amended to read: 
 35.26     Subd. 8.  [SALES WITHOUT LICENSE.] A licensed brewer may 
 35.27  without an additional license sell malt liquor to employees or 
 35.28  retired former employees, in amounts of not more than 768 fluid 
 35.29  ounces in a week for off-premise consumption only.  A collector 
 35.30  of commemorative bottles, those terms are as defined in 
 35.31  section 297C.01 297G.01, subdivisions 4 and 5, may sell them to 
 35.32  another collector without a license.  It is also lawful for a 
 35.33  collector of beer cans to sell unopened cans of a brand which 
 35.34  has not been sold commercially for at least two years to another 
 35.35  collector without obtaining a license.  The amount sold to any 
 35.36  one collector in any one month shall not exceed 768 fluid 
 36.1   ounces. A licensed manufacturer of wine containing not more than 
 36.2   25 percent alcohol by volume nor less than 51 percent wine made 
 36.3   from Minnesota-grown agricultural products may sell at on-sale 
 36.4   or off-sale wine made on the licensed premises without a further 
 36.5   license. 
 36.6      Sec. 3.  Minnesota Statutes 1996, section 340A.302, 
 36.7   subdivision 1, is amended to read: 
 36.8      Subdivision 1.  [LICENSES REQUIRED.] Except as provided in 
 36.9   sections 297C.09 297G.07, subdivision 2, and 340A.301, 
 36.10  subdivision 1, no retailer or other person may ship or cause to 
 36.11  be shipped alcoholic beverages or ethyl alcohol for personal use 
 36.12  or to a licensed manufacturer or wholesaler without obtaining an 
 36.13  importer's license from the commissioner. 
 36.14     Sec. 4.  Minnesota Statutes 1996, section 340A.414, 
 36.15  subdivision 7, is amended to read: 
 36.16     Subd. 7.  [INSPECTION.] An establishment holding a permit 
 36.17  under this section is open for inspection by the commissioner 
 36.18  and the commissioner's representative and by peace officers, who 
 36.19  may enter and inspect during reasonable hours.  Intoxicating 
 36.20  liquor sold, served, or displayed in violation of law may be 
 36.21  seized and may be disposed of under section 297C.12 297G.20. 
 36.22     Sec. 5.  Minnesota Statutes 1996, section 340A.417, is 
 36.23  amended to read: 
 36.24     340A.417 [SHIPMENTS INTO MINNESOTA.] 
 36.25     (a) Notwithstanding section 297C.09 297G.07, subdivision 2, 
 36.26  or any provision of this chapter, a winery licensed in a state 
 36.27  which affords Minnesota wineries an equal reciprocal shipping 
 36.28  privilege may ship, for personal use and not for resale, not 
 36.29  more than two cases of wine, containing a maximum of nine liters 
 36.30  per case, in any calendar year to any resident of Minnesota age 
 36.31  21 or over.  Delivery of a shipment under this section may not 
 36.32  be deemed a sale in this state.  
 36.33     (b) The shipping container of any wine sent into or out of 
 36.34  Minnesota under this section must be clearly labeled to indicate 
 36.35  that the package cannot be delivered to a person under the age 
 36.36  of 21 years.  
 37.1      (c) No person may (1) advertise shipments authorized under 
 37.2   this section, or (2) by advertisement or otherwise, solicit 
 37.3   shipments authorized by this section.  No shipper located 
 37.4   outside Minnesota may advertise such interstate reciprocal wine 
 37.5   shipments in Minnesota.  
 37.6      (d) It is not the intent of this section to impair the 
 37.7   distribution of wine through distributors or importing 
 37.8   distributors, but only to permit shipments of wine for personal 
 37.9   use.  
 37.10     Sec. 6.  Minnesota Statutes 1996, section 340A.7035, is 
 37.11  amended to read: 
 37.12     340A.7035 [CONSUMER IMPORTATION; ILLEGAL ACTS.] 
 37.13     A person who enters Minnesota from another state and who 
 37.14  imports or possesses alcoholic beverages in excess of the 
 37.15  tax-exempt quantities provided for in section 297C.07, 
 37.16  paragraphs (10), (11), and (12), 297G.07, subdivision 2, 
 37.17  paragraphs (a), (b), and (c), is guilty of a misdemeanor.  A 
 37.18  person who enters Minnesota from a foreign country who imports 
 37.19  or possesses alcoholic beverages on which the excise tax imposed 
 37.20  by sections 297C.02 and 297C.09 chapter 297G has not been paid, 
 37.21  other than the tax-exempt quantities provided for in 
 37.22  section 297C.07, paragraphs (10), (11), and (12), 297G.07, 
 37.23  subdivision 2, paragraphs (a), (b), and (c), is guilty of a 
 37.24  misdemeanor.  A peace officer, the commissioner of public 
 37.25  safety, and employees designated by the commissioner of public 
 37.26  safety may seize alcoholic beverages imported or possessed in 
 37.27  violation of this section.  This section does not apply to the 
 37.28  consignments of alcoholic beverages shipped into this state by 
 37.29  holders of Minnesota import licenses or Minnesota manufacturers 
 37.30  and wholesalers when licensed by the commissioner of public 
 37.31  safety or to common carriers with licenses to sell alcoholic 
 37.32  beverages in more than one state when licensed by the 
 37.33  commissioner of public safety to sell alcoholic beverages in 
 37.34  this state. 
 37.35     Sec. 7.  [EFFECTIVE DATE.] 
 37.36     Sections 1 to 6 are effective August 1, 1997.