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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                        CHAPTER 294--S.F.No. 1151
           An act relating to taxation; imposing or altering 
          certain income tax, withholding tax, sales, and excise 
          tax penalties; extending the time limitations within 
          which certain indictments may be filed; providing for 
          apportionment of property taxes payable with respect 
          to certain claims for property tax refunds; requiring 
          a study; amending Minnesota Statutes 1982, sections 
          290.53, subdivision 4, and by adding a subdivision; 
          290.92, subdivision 15; 290A.03, subdivisions 8 and 
          13; 290A.05; 290A.11, subdivision 2; 297A.08; 297A.39, 
          subdivision 4, and by adding a subdivision; and 
          297B.10. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 290.53, 
subdivision 4, is amended to read: 
    Subd. 4.  [FAILURE TO FILE, FILING FALSE OR FRAUDULENT 
RETURN; INTENT TO EVADE TAX; CRIMINAL PROVISIONS.] In addition 
to the any other penalties hereinbefore prescribed, (a) any 
person required by this chapter to make a return, who knowingly 
fails to make such a return it at the time required by law, 
shall be is guilty of a gross misdemeanor; (b) any person who 
wilfully willfully makes and subscribes any return, statement, 
or other document, which contains or is verified by a written 
declaration that it is made under the penalties of perjury, and 
which he knows to be false and untrue as to any material matter, 
shall be is guilty of a felony; (c) any person who willfully 
attempts in any manner to evade or defeat any tax imposed by 
this chapter is guilty of a felony; and (d) any person who 
willfully fails to pay the tax at the time required by law, with 
the intent to evade or defeat the tax, is guilty of a gross 
misdemeanor unless the tax involved exceeds $300, in which event 
he is guilty of a felony.  Notwithstanding the provisions of 
section 628.26, or any other provision of the criminal laws of 
this state, an indictment may be found and filed upon any 
criminal offense specified in this subdivision, in the proper 
court within six years and six months after the commission of 
the offense.  The term "person" as used in this subdivision 
includes any officer or employee of a corporation or a member or 
employee of a partnership who as such an officer, member or 
employee is under a duty to perform the act in respect to which 
the violation occurs. 
    Sec. 2.  Minnesota Statutes 1982, section 290.53, is 
amended by adding a subdivision to read: 
    Subd. 11.  [ASSISTING IN FRAUD AND FALSE STATEMENTS; 
CRIMINAL PROVISIONS.] Any person who willfully aids or assists 
in, or procures, counsels, or advises the preparation or 
presentation under, or in connection with any matter arising 
under this chapter, of a return, affidavit, claim, or other 
document, which is fraudulent or false as to any material 
matter, where the falsity or fraud is with the knowledge or 
consent of the person authorized or required to present the 
return, affidavit, claim, or document, is guilty of a gross 
misdemeanor unless the tax involved exceeds $300, in which event 
he is guilty of a felony.  Any criminal offense under this 
subdivision may be prosecuted in the same manner and within the 
same period of limitations provided in subdivision 4. 
    Sec. 3.  Minnesota Statutes 1982, section 290.92, 
subdivision 15, is amended to read: 
    Subd. 15.  [PENALTIES.] (1) If any tax required to be 
deducted and withheld under subdivision 2a or subdivision 3, or 
any portion thereof of it, is not paid to or deposited with the 
commissioner within the time specified in subdivision 6 for the 
its payment thereof, there shall be added thereto to it a 
penalty equal to ten percent of the amount so remaining unpaid.  
Such The penalty shall be collected as part of said the tax, and 
the amount of said the tax not timely paid, together with said 
the penalty, shall bear interest at the rate specified in 
section 270.75 from the time such the tax should have been paid 
or deposited until paid.  Where an extension of time for payment 
has been granted under the provisions of subdivision 6, interest 
shall be paid at the rate specified in section 270.75 from the 
date when such the payment or deposit should have been made if 
no extension had been granted, until such the tax is paid.  If 
payment is not made at the expiration of the extended period the 
penalties provided in this subdivision shall apply. 
    (2) In the case of any failure to withhold a tax on wages, 
make and file quarterly returns or make payments to or deposits 
with the commissioner of amounts withheld, as required by this 
section, within the time prescribed by law, there shall be added 
to the tax in lieu of the penalty provided in paragraph (1) a 
penalty equal to ten percent of the amount of tax that should 
have been properly withheld and paid over to or deposited with 
the commissioner if the failure is for not more than 30 days 
with an additional five percent for each additional 30 days or 
fraction thereof during which such the failure continues, not 
exceeding 25 percent in the aggregate.  The amount of the tax 
together with this amount shall bear interest at the rate 
specified in section 270.75 from the time the tax should have 
been paid until paid.  The amount so added to the tax shall be 
collected at the same time and in the same manner and as a part 
of the tax unless the tax has been paid before the discovery of 
the negligence, in which case the amount so added shall be 
collected in the same manner as the tax. 
    (3) If any employer required to withhold a tax on wages, 
make deposits, make and file quarterly returns and make payments 
to the commissioner of amounts withheld, as required by sections 
290.92 to 290.97, wilfully willfully fails to withhold such a 
the tax or make such the deposits, files a false or fraudulent 
return, wilfully willfully fails to make such a the payment or 
deposit, or wilfully willfully attempts in any manner to evade 
or defeat any such the tax or the payment or deposit thereof of 
it, there shall also be imposed on such the employer as a 
penalty an amount equal to 50 percent of the amount of tax (, 
less any amount paid or deposited by such the employer on the 
basis of such the false or fraudulent return or deposit), that 
should have been properly withheld and paid over or deposited 
with the commissioner.  The amount of the tax together with this 
amount shall bear interest at the rate specified in section 
270.75 from the time the tax should have been paid until paid.  
The penalty imposed by this paragraph shall be collected as a 
part of the tax, and shall be in addition to any other penalties 
civil and criminal, prescribed by this subdivision. 
    (4) If any person required under the provisions of 
subdivision 7 to furnish a statement to an employee or payee and 
a duplicate statement to the commissioner, or to furnish a 
reconciliation of such the statements(, and quarterly returns) 
, to the commissioner, wilfully willfully furnishes a false or 
fraudulent statement to an employee or payee or a false or 
fraudulent duplicate statement or reconciliation of statements ( 
, and quarterly returns), to the commissioner, or wilfully 
willfully fails to furnish a statement or such the 
reconciliation in the manner, at the time, and showing the 
information required by the provisions of subdivision 7, or 
regulations rules prescribed by the commissioner thereunder, 
there shall be imposed on such a the person a penalty of $10 for 
each such act or failure to act.  The penalty imposed by this 
paragraph shall become is due and payable within ten days after 
the mailing of a written demand therefor, and may be collected 
in the manner prescribed in subdivision 6, paragraph (8). 
    (5) In addition to the any other penalties hereinbefore 
prescribed, any person required to withhold a tax on wages, make 
and file quarterly returns and make payments or deposits to the 
commissioner of amounts withheld, as required by this section, 
who wilfully willfully fails to withhold such a the tax or 
truthfully make and file such a the quarterly return or make 
such a the payment or deposit, shall be or attempts to evade or 
defeat the tax is guilty of a gross misdemeanor unless the tax 
involved exceeds $300, in which event he is guilty of a felony. 
    (6) In lieu of any other penalty provided by law, except 
the penalty provided by paragraph (4), any person required under 
the provisions of subdivision 7 to furnish a statement of wages 
to an employee and a duplicate statement to the commissioner, 
who wilfully willfully furnishes a false or fraudulent statement 
of wages to an employee or a false or fraudulent duplicate 
statement of wages to the commissioner, or who wilfully 
willfully fails to furnish such a statement in the manner, at 
the time, and showing the information required by the provisions 
of subdivision 7, or regulations rules prescribed by the 
commissioner thereunder, shall be is guilty of a gross 
misdemeanor. 
    (7) Any employee required to supply information to his 
employer under the provisions of subdivision 5, who wilfully 
willfully fails to supply information or willfully supplies 
false or fraudulent information thereunder which would require 
an increase in the tax to be deducted and withheld under 
subdivision 2a or subdivision 3, shall be is guilty of a gross 
misdemeanor. 
    (8) 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 an officer, employee, or member is 
under a duty to perform the act in respect of which the 
violation occurs. 
    (9) All payments received may, in the discretion of the 
commissioner of revenue, be credited first to the oldest 
liability not secured by a judgment or lien, but in all cases 
shall be credited first to penalties, next to interest, and then 
to the tax due. 
    (10) In addition to any other penalty provided by law, any 
employee who furnishes a withholding exemption certificate to 
his employer which the employee has reason to know contains a 
materially incorrect statement shall be is liable to the 
commissioner of revenue for a penalty of $500 for each 
instance.  The penalty shall be is immediately due and payable 
and may be collected in the same manner as any delinquent income 
tax. 
    (11) In addition to any other penalty provided by law, any 
employer who fails to submit a copy of a withholding exemption 
certificate required by section 26, clause (1)(a), (1)(b), or 
(2) shall be is liable to the commissioner of revenue for a 
penalty of $50 for each instance.  The penalty shall be is 
immediately due and payable and may be collected in the manner 
provided in subdivision 6, paragraph (8).  
    (12) Any person who willfully aids or assists in, or 
procures, counsels, or advises the preparation or presentation 
under, or in connection with any matter arising under this 
section, of a return, affidavit, claim, or other document, which 
is fraudulent or false as to any material matter, where the 
falsity or fraud is with the knowledge or consent of the person 
authorized or required to present the return, affidavit, claim, 
or document, is guilty of a gross misdemeanor, unless the tax 
involved exceeds $300, in which event he is guilty of a felony.  
    (13) Notwithstanding the provisions of section 628.26, or 
any other provision of the criminal laws of this state, an 
indictment may be found and filed, upon any criminal offense 
specified in this subdivision, in the proper court within six 
years after the commission of the offense.  
    Sec. 4.  Minnesota Statutes 1982, section 290A.03, 
subdivision 8, is amended to read: 
    Subd. 8.  [CLAIMANT.] "Claimant" means a person, other than 
a dependent, who filed a claim authorized by sections 290A.01 to 
290A.20 and who was domiciled in this state during the calendar 
year for which the claim for relief was filed.  In the case of a 
claim relating to rent constituting property taxes, the claimant 
shall have resided in a rented or leased unit on which ad 
valorem taxes or payments made in lieu of ad valorem taxes, 
including payments of special assessments imposed in lieu of ad 
valorem taxes, are payable at some time during the calendar year 
covered by the claim.  "Claimant" shall not include a resident 
of a nursing home, intermediate care facility, or long-term 
residential facility whose rent constituting property taxes is 
paid pursuant to the supplemental security income program under 
title XVI of the Social Security Act, the Minnesota supplemental 
aid program under sections 256D.35 to 256D.41, the medical 
assistance program pursuant to title XIX of the Social Security 
Act, or the general assistance medical care program pursuant to 
section 256D.03, subdivision 3.  If only a portion of the rent 
constituting property taxes is paid by these programs, the 
resident shall be a claimant for purposes of this chapter, but 
the refund calculated pursuant to section 290A.04 shall be 
multiplied by a fraction, the numerator of which is income as 
defined in subdivision 3 reduced by the total amount of income 
from the above sources other than vendor payments under the 
medical assistance program or the general assistance medical 
care program and the denominator of which is income as defined 
in subdivision 3 plus vendor payments under the medical 
assistance program or the general assistance medical care 
program, to determine the allowable refund pursuant to this 
chapter.  In the case of a claim for rent constituting property 
taxes of a part year resident, the income and rental reflected 
in this computation shall be for the period of Minnesota 
residency only.  Any rental expenses paid which may be reflected 
in arriving at federal adjusted gross income cannot be utilized 
for this computation.  When two individuals of a household are 
able to meet the qualifications for a claimant, they may 
determine among them as to who the claimant shall be.  If they 
are unable to agree, the matter shall be referred to the 
commissioner of revenue and his decision shall be final.  If a 
homestead property owner was a part year resident, the income 
reflected in the computation made pursuant to section 290A.04 
shall be for the entire calendar year, including income not 
assignable to Minnesota. 
    Except as provided in section 290A.05, if a homestead is 
occupied by two or more renters or joint tenants or tenants in 
common, who are not husband and wife, the rent or property taxes 
shall be deemed to be paid equally by each, and separate claims 
shall be filed by each.  The income of each shall be his 
household income for purposes of computing the amount of credit 
to be allowed. 
    Sec. 5.  Minnesota Statutes 1982, section 290A.03, 
subdivision 13, is amended to read: 
    Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
payable" means the property tax exclusive of special 
assessments, penalties, and interest payable on a claimant's 
homestead before reductions made pursuant to section 273.13, 
subdivisions 6, 7 and 14a, but after deductions made pursuant to 
sections 124.2137, 273.115, 273.116, 273.135, 273.139, and 
273.1391 in any calendar year.  No apportionment or reduction of 
the "property taxes payable" shall be required for the use of a 
portion of the claimant's homestead for a business purpose if 
the claimant does not deduct any business depreciation expenses 
for the use of a portion of the homestead in the determination 
of federal adjusted gross income.  For homesteads which are 
manufactured homes as defined in section 168.011, subdivision 8, 
"property taxes payable" shall also include 23 percent of gross 
rent paid in the preceding year for the site on which the 
homestead is located, exclusive of charges for utilities or 
services.  When a homestead is owned by two or more persons as 
joint tenants or tenants in common, such tenants shall determine 
between them which tenant may claim the property taxes payable 
on the homestead.  If they are unable to agree, the matter shall 
be referred to the commissioner of revenue and his decision 
shall be final.  Property taxes are considered payable in the 
year prescribed by law for payment of the taxes. 
    In the case of a claim relating to "property taxes 
payable," the claimant must have owned and occupied the 
homestead on January 2 of the year in which the tax is payable 
and (i) the property must have been classified as homestead 
property pursuant to section 273.13, subdivisions 6, 7, or 14a 
on or before June 1 of the year in which the "property taxes 
payable" were levied; or (ii) the claimant must provide 
documentation from the local assessor that application for 
homestead classification has been made prior to July 1 of the 
year in which the "property taxes payable" were payable and that 
the assessor has approved the application.  
    For property taxes levied in 1981, payable 1982, "property 
taxes payable" shall be limited to that portion of the property 
taxes eligible for the homestead credit as determined pursuant 
to section 273.13, subdivision 15b.  
    Sec. 6.  Minnesota Statutes 1982, section 290A.05, is 
amended to read: 
    290A.05 [COMBINED HOUSEHOLD INCOME; RENTERS AND LESSEES.] 
    If a person occupies a homestead with another person or 
persons not related to the person as husband and wife, excluding 
dependents, joint tenants or tenants in common who are also 
claimants, roomers or boarders on contract, and has property tax 
payable with respect to the homestead, the household income of 
the claimant or claimants for the purpose of computing the 
refund allowed by section 290A.04 shall include the total income 
received by the other persons residing in the homestead.  If a 
person occupies a homestead with another person or persons not 
related as husband and wife or as dependents, and who are 
residing at the homestead under rental or lease agreement, the 
property tax payable or rent constituting property tax shall be 
reduced as follows:  
    If the other person or persons are residing at the 
homestead under rental or lease agreement, the amount of 
property tax payable or rent constituting property tax shall be 
that portion not covered by the rental agreement. 
    Sec. 7.  Minnesota Statutes 1982, section 290A.11, 
subdivision 2, is amended to read: 
    Subd. 2.  [FRAUDULENT CLAIM; PENALTY.] In any case in which 
it is determined that the claim is or was excessive and was 
filed with fraudulent intent, the claim shall be disallowed in 
full.  If the claim has been paid, the amount disallowed shall 
be recovered by assessment and collection in the manner provided 
in chapter 290 for collection of income tax.  The assessment 
shall bear interest from the date the claim is paid by the state 
until the date of repayment by the claimant, at the rate 
specified in section 270.75.  The claimant, and any person who 
assisted in the preparation of filing of the excessive claim or 
supplied information upon which the excessive claim was 
prepared, with fraudulent intent, is guilty of a misdemeanor.  
    Any person who knowingly prepares, assists in preparing, or 
files false or excessive claims with the intent of defrauding 
the state of Minnesota of $2,500 or more, aggregated within any 
12 month period, is guilty of a felony an offense and upon 
conviction may be sentenced to imprisonment for not more than 
ten years or to payment of a fine of not more than $10,000, or 
both as follows:  
    (1) to imprisonment for not more than ten years or to 
payment of a fine of not more than $10,000; or both, if the 
amount of the claims, aggregated within any 12-month period, 
exceeds $2,500; or 
    (2) to imprisonment for not more than five years or to 
payment of a fine of not more than $5,000; or both, if the 
amount of the claims, aggregated within any 12-month period, is 
more than $300, but not more than $2,500; or 
    (3) to imprisonment for not more than one year or to 
payment of a fine of not more than $1,000; or both, if the 
amount of the claims does not exceed $300.  
    Notwithstanding the provisions of section 628.26, or any 
other provisions of the criminal laws of this state, an 
indictment may be found and filed upon any criminal offense 
specified in this subdivision, in the proper court within six 
years after the commission of the offense.  
    Sec. 8.  Minnesota Statutes 1982, section 297A.08, is 
amended to read: 
    297A.08 [SALES WITHOUT PERMITS, VIOLATIONS.] 
    A person who engages in the business of making retail sales 
in Minnesota without the required permit or permits, and each 
officer of any corporation which so engages in business, shall 
be is guilty of a gross misdemeanor.  
    Any person who engages in the business of making retail 
sales in Minnesota after revocation of the permit under section 
297A.07, when the commissioner has not issued a new permit, is 
guilty of a felony.  
    Sec. 9.  Minnesota Statutes 1982, section 297A.39, 
subdivision 4, is amended to read: 
    Subd. 4.  [PENALTIES; FAILURE TO FILE OR PAY.] In addition 
to the any other penalties hereinbefore prescribed, any person 
who wilfully willfully fails to make a return or wilfully 
willfully makes a false return or wilfully willfully fails to 
pay over taxes imposed by this chapter collected for or on 
behalf of the state, with intent to evade any tax imposed by 
sections 297A.01 to 297A.44, shall be or attempts in any manner 
to evade or defeat the taxes imposed by this chapter is guilty 
of a gross misdemeanor unless the amount of the tax involved 
exceeds $100 $300, in which event he shall be is guilty of a 
felony.  The term "person" as used in this subdivision includes 
any officer or employee of a corporation or a member or employee 
of a partnership who as such an officer, member or employee is 
under a duty to perform the act in respect to which the 
violation occurs.  Notwithstanding the provisions of section 
628.26, or any other provision of the criminal laws of this 
state, an indictment may be found and filed, upon any criminal 
offense specified in this subdivision, in the proper court 
within six years after the commission of the offense.  
    Sec. 10.  Minnesota Statutes 1982, section 297A.39, is 
amended by adding a subdivision to read:  
    Subd. 8.  [PENALTY; FALSE CLAIM.] Any person who willfully 
aids or assists in, or procures, counsels, or advises the 
preparation or presentation under, or in connection with any 
matter arising under this section, of a return, affidavit, 
claim, or other document, which is fraudulent or false as to any 
material matter, where the falsity or fraud is with the 
knowledge or consent of the person authorized or required to 
present the return, affidavit, claim, or document, is guilty of 
a gross misdemeanor unless the tax involved exceeds $300, in 
which event he is guilty of a felony.  Any criminal offense 
under this subdivision may be prosecuted in the same manner and 
within the same period of limitations provided in subdivision 4. 
    Sec. 11.  Minnesota Statutes 1982, section 297B.10 is 
amended to read: 
    297B.10 [PENALTIES.] 
    (1) Any person, including persons other than the purchaser, 
who shall complete or submit prepares, completes or submits a 
false or fraudulent motor vehicle purchaser's certificate with 
intent to defeat or evade the tax imposed under Laws 1971, 
chapter 853, shall be is guilty of a gross misdemeanor and for 
each such offense shall be fined not to exceed $500 or shall be 
imprisoned in the county jail not to exceed one year, or shall 
be subject to both such fine and imprisonment, in the discretion 
of the court unless the tax involved exceeds $300, in which 
event he is guilty of a felony.  The term "person" as used in 
this section includes any officer or employee of a corporation 
or a member or employee of a partnership who as an officer, 
member or employee is under a duty to perform the act with 
respect to which the violation occurs.  Notwithstanding the 
provisions of section 628.26 or any other provision of the 
criminal laws of this state, an indictment may be found and 
filed, upon any criminal offense specified in this section, in 
the proper court within six years after the commission of the 
offense. 
    (2) Any person who shall violate violates any of the 
provisions of Laws 1971, chapter 853 shall, unless the violation 
be of the type referred to in clause (1), be is guilty of a 
misdemeanor and shall be punished by a fine of not less than $50 
nor more than $100 or by imprisonment in the county jail for not 
less than 30 days, or both such fine and imprisonment.  
    Sec. 12.  [STUDY.] 
    The commissioner of revenue and the commissioner of 
economic security shall prepare a report to be given to the 
chairmen of the senate committees on taxes and tax laws, 
employment, and governmental operations, and the house 
committees on taxes, labor-management relations, and 
governmental operations.  The report shall contain 
recommendations from the commissioners on possible functions of 
each agency which could be combined or performed jointly to 
achieve economy in the budgets of the agencies and/or reduce 
paperwork for taxpayers.  The report shall include proposed 
legislation to accomplish the recommendations of the 
commissioners.  The report shall be submitted by January 15, 
1984, to the legislative committee chairmen.  
    Sec. 13.  [EFFECTIVE DATE.] 
    Sections 1 to 3 and 7 to 11 are effective the day after 
final enactment and applies to offenses committed on or after 
that date.  Sections 4 to 6 are effective for claims based on 
property taxes payable in 1984 and thereafter.  Section 12 is 
effective the day after final enactment. 
    Approved June 7, 1983