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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1984 

                        CHAPTER 522-H.F.No. 1814 
           An act relating to taxation; clarifying certain 
          property tax credit provisions; providing that amounts 
          to pay certain certificates are a special levy; 
          providing for deduction of taconite aids from levy 
          limit base; simplifying iron ore valuation hearing 
          requirements; altering the process for determining 
          flexible homestead brackets; allowing for the rounding 
          of amounts of special assessments on tax statements; 
          changing the date for the issuance of warrants for 
          delinquent personal property taxes; providing for 
          additional administrative procedures for cigarette tax 
          collection; requiring annual payment of occupation 
          taxes; changing payment method for production taxes; 
          adopting certain procedures relating to liquor tax 
          collections; amending Minnesota Statutes 1982, 
          sections 273.1104, subdivision 2; 277.03; 298.09, 
          subdivision 2; 298.27; 298.282, subdivision 3; 
          340.601; Minnesota Statutes 1983 Supplement, sections 
          273.13, subdivision 7; 273.1311; 273.1315; 275.50, 
          subdivision 5; 275.51, subdivision 3i; 276.04; 
          290A.03, subdivisions 8 and 13; 290A.05; and 298.28, 
          subdivision 1; proposing new law coded in Minnesota 
          Statutes, chapters 297 and 340; repealing Minnesota 
          Statutes 1982, sections 298.045; 298.046; 298.047; and 
          298.048. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:  
    Section 1.  Minnesota Statutes 1982, section 273.1104, 
subdivision 2, is amended to read: 
    Subd. 2.  On or before October 1 in each year, the 
commissioner shall send to each person subject to the tax on 
unmined iron ores and to each taxing district affected, a notice 
of the assessed valuation of the unmined ores as determined by 
the commissioner.  Said notice shall be sent by mail directed to 
such person at the address given in the report filed by him and 
the assessor of such taxing district, but the validity of the 
tax shall not be affected by the failure of the commissioner of 
revenue to mail such notice or the failure of the person subject 
to the tax to receive it. 
    On the first secular day following the tenth day of 
October, the commissioner of revenue shall hold a hearing at his 
office in St. Paul which may be adjourned from day to day.  All 
relevant and material evidence having probative value with 
respect to the issues shall be submitted at the hearing and such 
hearing shall not be a "contested case" within the meaning of 
section 14.02, subdivision 3.  Every person subject to such tax 
may at such hearing present evidence and argument on any matter 
bearing upon the validity or correctness of the tax determined 
to be due from him, and the commissioner of revenue shall review 
his determination of such tax. 
    Sec. 2.  Minnesota Statutes 1983 Supplement, section 
273.13, subdivision 7, is amended to read: 
    Subd. 7.  [CLASS 3C, 3CC.] All other real estate and class 
2a property, except as provided by classes 1 and 3cc, which is 
used for the purposes of a homestead, shall constitute class 3c, 
and shall be valued and assessed as follows:  the first $30,000 
of market value shall be valued and assessed at 17 percent; the 
next $30,000 of market value shall be valued and assessed at 19 
percent; and the remaining market value shall be valued and 
assessed at 30 percent.  The maximum amounts of the market value 
of the homestead brackets subject to the 17 percent and 19 
percent rates shall be adjusted by the commissioner of revenue 
as provided in section 273.1311.  The property tax to be paid on 
class 3c property as otherwise determined by law, less any 
reduction received pursuant to sections 273.123, 273.135, and 
473H.10 shall be reduced by 54 percent of the tax imposed on the 
first $67,000 of market value; provided that the amount of the 
reduction shall not exceed $650.  The first $12,000 market value 
of each tract of such real estate used for the purposes of a 
homestead shall be exempt from taxation for state purposes; 
except as specifically provided otherwise by law. 
    Class 3cc property shall include real estate or 
manufactured homes used for the purposes of a homestead by (a) 
any blind person, if the blind person is the owner thereof or if 
the blind person and his or her spouse are the sole owners 
thereof; or (b) any person (hereinafter referred to as veteran) 
who:  (1) served in the active military or naval service of the 
United States and (2) is entitled to compensation under the laws 
and regulations of the United States for permanent and total 
service-connected disability due to the loss, or loss of use, by 
reason of amputation, ankylosis, progressive muscular 
dystrophies, or paralysis, of both lower extremities, such as to 
preclude motion without the aid of braces, crutches, canes, or a 
wheelchair, and (3) with assistance by the administration of 
veterans affairs has acquired a special housing unit with 
special fixtures or movable facilities made necessary by the 
nature of the veteran's disability, or the surviving spouse of 
the deceased veteran for as long as the surviving spouse retains 
the special housing unit as his or her homestead; or (c) any 
person who:  (1) is permanently and totally disabled and (2) 
receives 90 percent or more of his total income from (i) aid 
from any state as a result of that disability, or (ii) 
supplemental security income for the disabled, or (iii) workers' 
compensation based on a finding of total and permanent 
disability, or (iv) social security disability, including the 
amount of a disability insurance benefit which is converted to 
an old age insurance benefit and any subsequent cost of living 
increases, or (v) aid under the Federal Railroad Retirement Act 
of 1937, 45 United States Code Annotated, Section 228b(a)5, or 
(vi) a pension from any local government retirement fund located 
in the state of Minnesota as a result of that disability.  
Property shall be classified and assessed as class 3cc pursuant 
to clause (a) only if the commissioner of revenue welfare 
certifies to the assessor that the owner of the property 
satisfies the requirements of this subdivision.  The 
commissioner of welfare shall provide a copy of the 
certification to the commissioner of revenue.  Class 3cc 
property shall be valued and assessed as follows:  in the case 
of agricultural land, including a manufactured home, used for a 
homestead, the first $30,000 of market value shall be valued and 
assessed at five percent, the next $30,000 of market value shall 
be valued and assessed at 14 percent, and the remaining market 
value shall be valued and assessed at 19 percent; and in the 
case of all other real estate and manufactured homes, the first 
$30,000 of market value shall be valued and assessed at five 
percent, the next $30,000 of market value shall be valued and 
assessed at 19 percent, and the remaining market value shall be 
valued and assessed at 30 percent.  In the case of agricultural 
land including a manufactured home used for purposes of a 
homestead, the commissioner of revenue shall adjust, as provided 
in section 273.1311, the maximum amount of the market value of 
the homestead brackets subject to the five percent and 14 
percent rates; and for all other real estate and manufactured 
homes, the commissioner of revenue shall adjust, as provided in 
section 273.1311, the maximum amount of the market value of the 
homestead brackets subject to the five percent and 19 percent 
rates.  Permanently and totally disabled for the purpose of this 
subdivision means a condition which is permanent in nature and 
totally incapacitates the person from working at an occupation 
which brings him an income.  The property tax to be paid on 
class 3cc property as otherwise determined by law, less any 
reduction received pursuant to section 273.135 shall be reduced 
by 54 percent of the tax imposed on the first $67,000 of market 
value; provided that the amount of the reduction shall not 
exceed $650. 
      For purposes of this subdivision, homestead property which 
qualifies for the classification ratios and credits provided in 
this subdivision shall include property which is used for 
purposes of the homestead but is separated from the homestead by 
a road, street, lot, waterway, or other similar intervening 
property.  The term "used for purposes of the homestead" shall 
include but not be limited to uses for gardens, garages, or 
other outbuildings commonly associated with a homestead, but 
shall not include vacant land held primarily for future 
development.  In order to receive homestead treatment for the 
noncontiguous property, the owner shall apply for it to the 
assessor by July 1 of 1983 or the year when the treatment is 
initially sought.  After initial qualification for the homestead 
treatment, additional applications for subsequent years are not 
required.  
    Sec. 3.  Minnesota Statutes 1983 Supplement, section 
273.1311, is amended to read: 
    273.1311 [FLEXIBLE HOMESTEAD BRACKETS.] 
    The maximum amount of the market value of the homestead 
brackets shall be adjusted as provided in this section.  
    For taxes payable in 1985 and subsequent years, the 
commissioner shall adjust the brackets used in the preceding 
assessment by the estimated percentage increase in the statewide 
average assessors' estimated market value, as equalized by the 
state board of equalization, of a residential home for the 
current assessment over the previous assessment.  The revised 
bracket shall be rounded to the nearest $500.  The commissioner 
of revenue shall determine and announce the revised bracket on 
October 1 December 15 of each year preceding the assessment date.
    Sec. 4.  Minnesota Statutes 1983 Supplement, section 
273.1315, is amended to read: 
    273.1315 [CERTIFICATION OF 3CC PROPERTY.] 
    Any property owner seeking classification and assessment of 
his homestead as class 3cc property pursuant to section 273.13, 
subdivision 7, clause (b) or (c), shall file with the 
commissioner of revenue for each assessment year a 3cc homestead 
declaration, on a form prescribed by the commissioner.  The 
declaration shall contain the following information:  
    (a) the information necessary to verify that the property 
owner or his spouse satisfies the requirements of section 
273.13, subdivision 7, for 3cc classification;  
    (b) the property owner's household income, as defined in 
section 290A.03, for the previous calendar year; and 
    (c) any additional information prescribed by the 
commissioner.  
    The declaration shall be filed on or before February March 
1 of each year to be effective for property taxes payable during 
the succeeding calendar year.  The declaration and any 
supplementary information received from the property owner 
pursuant to this section shall be subject to section 290A.17.  
    The commissioner shall provide to the assessor on or before 
April 1 a listing of the parcels of property qualifying for 3cc 
classification.  
    Sec. 5.  Minnesota Statutes 1983 Supplement, section 
275.50, subdivision 5, is amended to read: 
    Subd. 5.  Notwithstanding any other law to the contrary for 
taxes levied in 1983 payable in 1984 and subsequent years, 
"special levies" means those portions of ad valorem taxes levied 
by governmental subdivisions to: 
     (a) satisfy judgments rendered against the governmental 
subdivision by a court of competent jurisdiction in any tort 
action, or to pay the costs of settlements out of court against 
the governmental subdivision in a tort action when substantiated 
by a stipulation for the dismissal of the action filed with the 
court of competent jurisdiction and signed by both the plaintiff 
and the legal representative of the governmental subdivision, 
but only to the extent of the increase in levy for such 
judgments and out of court settlements over levy year 1970, 
taxes payable in 1971; 
     (b) pay the costs of complying with any written lawful 
order initially issued prior to January 1, 1977 by the state of 
Minnesota, or the United States, or any agency or subdivision 
thereof, which is authorized by law, statute, special act or 
ordinance and is enforceable in a court of competent 
jurisdiction, or any stipulation agreement or permit for 
treatment works or disposal system for pollution abatement in 
lieu of a lawful order signed by the governmental subdivision 
and the state of Minnesota, or the United States, or any agency 
or subdivision thereof which is enforceable in a court of 
competent jurisdiction.  The commissioner of revenue shall in 
consultation with other state departments and agencies, develop 
a suggested form for use by the state of Minnesota, its agencies 
and subdivisions in issuing orders pursuant to this subdivision; 
     (c) pay the costs to a governmental subdivision for their 
minimum required share of any program otherwise authorized by 
law for which matching funds have been appropriated by the state 
of Minnesota or the United States, excluding the administrative 
costs of public assistance programs, to the extent of the 
increase in levy over the amount levied for the local share of 
the program for the taxes payable year 1971.  This clause shall 
apply only to those programs or projects for which matching 
funds have been designated by the state of Minnesota or the 
United States on or before September 1, of the previous year and 
only when the receipt of these matching funds is contingent upon 
the initiation or implementation of the project or program 
during the year in which the taxes are payable or those programs 
or projects approved by the commissioner; 
     (d) pay the costs not reimbursed by the state or federal 
government, of payments made to or on behalf of recipients of 
aid under any public assistance program authorized by law, and 
the costs of purchase or delivery of social services.  Except 
for the costs of general assistance as defined in section 
256D.02, subdivision 4, general assistance medical care under 
section 256D.03 and the costs of hospital care pursuant to 
section 261.21, the aggregate amounts levied pursuant to this 
clause are subject to a maximum increase of 18 percent over the 
amount levied for these purposes in the previous year; 
    (e) pay the costs of principal and interest on bonded 
indebtedness or to reimburse for the amount of liquor store 
revenues used to pay the principal and interest due in the year 
preceding the year for which the levy limit is calculated on 
municipal liquor store bonds; 
    (f) pay the costs of principal and interest on certificates 
of indebtedness, except tax anticipation or aid anticipation 
certificates of indebtedness, issued for any corporate purpose 
except current expenses or funding an insufficiency in receipts 
from taxes or other sources or funding extraordinary 
expenditures resulting from a public emergency; and to pay the 
cost for certificates of indebtedness issued pursuant to 
sections 298.28 and 298.282;  
    (g) fund the payments made to the Minnesota state armory 
building commission pursuant to section 193.145, subdivision 2, 
to retire the principal and interest on armory construction 
bonds; 
    (h) provide for the bonded indebtedness portion of payments 
made to another political subdivision of the state of Minnesota; 
    (i) pay the amounts required to compensate for a decrease 
in manufactured homes property tax receipts to the extent that 
the governmental subdivision's portion of the total levy in the 
current levy year, pursuant to section 273.13, subdivision 3, as 
amended, is less than the distribution of the manufactured homes 
tax to the governmental subdivision pursuant to section 273.13, 
subdivision 3, in calendar year 1971; 
     (j) pay the amounts required, in accordance with section 
275.075, to correct for a county auditor's error of omission but 
only to the extent that when added to the preceding year's levy 
it is not in excess of an applicable statutory, special law or 
charter limitation, or the limitation imposed on the 
governmental subdivision by sections 275.50 to 275.56 in the 
preceding levy year; 
     (k) pay amounts required to correct for an error of 
omission in the levy certified to the appropriate county auditor 
or auditors by the governing body of a city or town with 
statutory city powers in a levy year, but only to the extent 
that when added to the preceding year's levy it is not in excess 
of an applicable statutory, special law or charter limitation, 
or the limitation imposed on the governmental subdivision by 
sections 275.50 to 275.56 in the preceding levy year; 
     (l) pay the increased cost of municipal services as the 
result of an annexation or consolidation ordered by the 
Minnesota municipal board but only to the extent and for the 
levy years as provided by the board in its order pursuant to 
section 414.01, subdivision 15.  Special levies authorized by 
the board shall not exceed 50 percent of the levy limit base of 
the governmental subdivision and may not be in effect for more 
than three years after the board's order; 
      (m) pay the increased costs of municipal services provided 
to new private industrial and nonresidential commercial 
development, to the extent that the extension of such services 
are not paid for through bonded indebtedness or special 
assessments, and not to exceed the amount determined as 
follows.  The governmental subdivision may calculate the 
aggregate of: 
      (1) The increased expenditures necessary in preparation for 
the delivering of municipal services to new private industrial 
and nonresidential commercial development, but limited to one 
year's expenditures one time for each such development; 
      (2) The amount determined by dividing the overall levy 
limitation established pursuant to sections 275.50 to 275.56, 
and exclusive of special levies and special assessments, by the 
total taxable value of the governmental subdivision, and then 
multiplying this quotient times the total increase in assessed 
value of private industrial and nonresidential commercial 
development within the governmental subdivision.  For the 
purpose of this clause, the increase in the assessed value of 
private industrial and nonresidential commercial development is 
calculated as the increase in assessed value over the assessed 
value of the real estate parcels subject to such private 
development as most recently determined before the building 
permit was issued.  In the fourth levy year subsequent to the 
levy year in which the building permit was issued, the increase 
in assessed value of the real estate parcels subject to such 
private development shall no longer be included in determining 
the special levy. 
      The aggregate of the foregoing amounts, less any costs of 
extending municipal services to new private industrial and 
nonresidential commercial development which are paid by bonded 
indebtedness or special assessments, equals the maximum amount 
that may be levied as a "special levy" for the increased costs 
of municipal services provided to new private industrial and 
nonresidential commercial development.  In the levy year 
following the levy year in which the special levy made pursuant 
to this clause is discontinued, one-half of the amount of that 
special levy made in the preceding year shall be added to the 
permanent levy base of the governmental subdivision; 
     (n) recover a loss or refunds in tax receipts incurred in 
non-special levy funds resulting from abatements or court action 
in the previous year pursuant to section 275.48; 
     (o) pay amounts required by law to be paid to pay the 
interest on and to reduce the unfunded accrued liability of 
public pension funds in accordance with the actuarial standards 
and guidelines specified in sections 356.215 and 356.216 reduced 
by 106 percent of the amount levied for that purpose in 1976, 
payable in 1977.  For the purpose of this special levy, the 
estimated receipts expected from the state of Minnesota pursuant 
to sections 69.011 to 69.031 or any other state aid expressly 
intended for the support of public pension funds shall be 
considered as a deduction in determining the required levy for 
the normal costs of the public pension funds.  No amount of 
these aids shall be considered as a deduction in determining the 
governmental subdivision's required levy for the reduction of 
the unfunded accrued liability of public pension funds; 
     (p) the amounts allowed under section 174.27 to establish 
and administer a commuter van program; 
     (q) pay the costs of financial assistance to local 
governmental units and certain administrative, engineering, and 
legal expenses pursuant to Laws 1979, chapter 253, section 3; 
     (r) compensate for revenue lost as a result of abatements 
or court action pursuant to sections 270.07, 270.17 or 278.01 
due to a reassessment ordered by the commissioner of revenue 
pursuant to section 270.16;  
     (s) pay the total operating cost of a county jail as 
authorized in section 641.01.  If the county government utilizes 
this special levy, then any amount levied by the county 
government in the previous year for operating its county jail 
and included in its previous year's levy limitation computed 
pursuant to section 275.51 shall be deducted from the current 
levy limitation; 
     (t) pay the costs of implementing section 18.023, including 
sanitation and reforestation; and 
     (u) pay the estimated cost for the following calendar year 
of the county's share of funding the Minnesota cooperative soil 
survey. 
    Sec. 6.  Minnesota Statutes 1983 Supplement, section 
275.51, subdivision 3i, is amended to read: 
    Subd. 3i.  [LEVY LIMITATION.] The levy limitation for a 
governmental subdivision shall be equal to the adjusted levy 
limit base determined pursuant to subdivision 3h, reduced by (a) 
the total amount of local government aid that the governmental 
subdivision has been certified to receive pursuant to sections 
477A.011 to 477A.014; (b) taconite taxes and aids pursuant to 
sections 298.28 and 298.282 including any aid received in the 
levy year which was required to be placed in a special fund for 
expenditure in the next succeeding year; (c) state 
reimbursements for wetlands and native prairie property tax 
exemptions pursuant to sections 273.115, subdivision 3 and 
273.116, subdivision 3; and (d) payments in lieu of taxes to a 
county pursuant to section 477A.12 which are required to be used 
to provide property tax levy reduction certified to be paid in 
the calendar year in which property taxes are payable.  If the 
sum of the taconite aids deducted exceeds the adjusted levy 
limit base, the excess must be used to reduce the amounts levied 
as special levies pursuant to section 275.50, subdivisions 5 and 
7.  The commissioner of revenue shall notify a governmental 
subdivision of any excess taconite aids to be used to reduce 
special levies.  
    As provided in section 298.28, subdivision 1, one cent per 
taxable ton of the amount distributed under section 298.28, 
subdivision 1, clause (4)(c) shall not be deducted from the levy 
limit base of the counties that receive that aid.  The resulting 
figure is the amount of property taxes which a governmental 
subdivision may levy for all purposes other than those for which 
special levies and special assessments are made.  
    Sec. 7.  Minnesota Statutes 1983 Supplement, section 
276.04, is amended to read: 
    276.04 [NOTICE OF RATES; PROPERTY TAX STATEMENTS.] 
    On receiving the tax lists from the county auditor, the 
county treasurer shall, if directed by the county board, give 
three weeks' published notice in a newspaper specifying the 
rates of taxation for all general purposes and the amounts 
raised for each specific purpose.  He shall, whether or not 
directed by the county board, cause to be printed on all tax 
statements, or on an attachment, a tabulated statement of the 
dollar amount due to each taxing authority and the amount to be 
paid to the state of Minnesota from the parcel of real property 
for which a particular tax statement is prepared.  The dollar 
amounts due the state, county, township or municipality and 
school district shall be separately stated but the amounts due 
other taxing districts, if any, may be aggregated.  The dollar 
amounts, including the dollar amount of any special assessments, 
may be rounded to the nearest even whole dollar.  For purposes 
of this section whole odd-numbered dollars may be adjusted to 
the next higher even-numbered dollar.  The property tax 
statements for class 2a property shall contain the same 
information that is required on the tax statements for real 
property.  The county treasurer shall mail to taxpayers 
statements of their personal property taxes due, such statements 
to be mailed not later than February 15 (except in the case of 
Class 2a property), statements of the real property taxes due 
shall be mailed not later than January 31; provided, that the 
validity of the tax shall not be affected by failure of the 
treasurer to mail such statement.  The taxpayer is defined as 
the owner who is responsible for the payment of the tax.  Such 
real and personal property tax statements shall contain the 
market value, as defined in section 272.03, subdivision 8, used 
in determining the tax.  The statement shall show the amount 
attributable to section 124.2137 as "state paid agricultural 
credit" and the amount attributable to section 273.13, 
subdivisions 6 and 7 as "state paid homestead credit."  The 
statement shall show the reduction attributable to the aid given 
pursuant to section 273.139 and shall indicate that the 
reduction is paid by the state of Minnesota.  If so directed by 
the county board, the treasurer shall visit places in the county 
as he deems expedient for the purpose of receiving taxes and the 
county board is authorized to pay the expenses of such visits 
and of preparing duplicate tax lists.  Failure to mail the tax 
statement shall not be deemed a material defect to affect the 
validity of any judgment and sale for delinquent taxes.  
    Sec. 8.  Minnesota Statutes 1982, section 277.03, is 
amended to read: 
    277.03 [DISTRESS AND SALE.] 
    Upon the twentieth tenth secular day of July next after the 
filing of such list the clerk of the district court shall issue 
his warrants to the sheriff of the county as to all the taxes 
and penalties embraced in the list, except those as to which a 
petition has been filed, pursuant to section 277.011, directing 
him to proceed to collect the same.  If such taxes are not paid 
upon demand, the sheriff shall distrain sufficient goods and 
chattels belonging to the person charged with such taxes, if 
found within the county, to pay the same, with the said penalty 
of eight percent and all accruing costs, together with 25 cents 
from each delinquent, as compensation to the clerk of the 
district court.  Immediately after making distress, the sheriff 
shall give at least ten days' posted notice in the town or 
district where the property is taken, stating that the property, 
or so much thereof as will be sufficient to pay the taxes for 
which it is distrained, with penalty and costs of distress and 
sale, will be sold at public vendue at a place and time therein 
designated, which time shall not be less than ten days after 
such taking.  If such taxes and penalties and accrued costs are 
not paid before the day designated, the sheriff or his deputy 
shall proceed to sell the property pursuant to the notice.  
    Sec. 9.  Minnesota Statutes 1983 Supplement, section 
290A.03, subdivision 8, is amended to read: 
    Subd. 8.  [CLAIMANT.] (a) "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. 
    (b) 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. 
    (c) "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. 
    (d) Notwithstanding paragraph (c), if the claimant was a 
resident of the nursing home, intermediate care facility or long 
term residential facility for only a portion of the calendar 
year covered by the claim, the claimant may compute rent 
constituting property taxes by disregarding the rent 
constituting property taxes from the nursing home, intermediate 
care facility, or long term residential facility and use only 
that amount of rent constituting property taxes or property 
taxes payable relating to that portion of the year when the 
claimant was not in the facility.  The claimant's household 
income is his income for the entire calendar year covered by the 
claim.  
    (e) In the case of a claim for rent constituting property 
taxes of a part year Minnesota 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 Minnesota 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. 
    (f) 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. 10.  Minnesota Statutes 1983 Supplement, 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, 273.1391, 
273.42, subdivision 2, and any other state paid property tax 
credits in any calendar year.  In the case of a claimant who 
makes ground lease payments, "property taxes payable" includes 
the amount of the payments directly attributable to the property 
taxes assessed against the parcel on which the house is 
located.  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 the amount of the gross rent 
paid in the preceding year for the site on which the homestead 
is located, which is attributable to the net tax paid on the 
site.  The amount attributable to property taxes shall be 
determined by multiplying the net tax on the parcel by a 
fraction, the numerator of which is the gross rent paid for the 
calendar year for the site and the denominator of which is the 
gross rent paid for the calendar year for the parcel.  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 October 1 of the 
year in which the "property taxes payable" were payable and that 
the assessor has approved the application.  
    Sec. 11.  Minnesota Statutes 1983 Supplement, 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. 12.  [297.40] [EVASIONS; VIOLATIONS.] 
    Subdivision 1.  [ASSESSMENT, GENERALLY.] Except as 
otherwise provided in this chapter, the amount of any tax due 
shall be assessed within 3-1/2 years after a return is filed. 
The taxes are deemed to have been assessed within the meaning of 
this section whenever the commissioner of revenue has determined 
the tax and computed and recorded the amount of tax with respect 
thereto, and if the amount is found to be in excess of that 
originally declared on the return, whenever the commissioner has 
prepared a notice of tax assessment and mailed it to the 
taxpayer.  The notice of tax assessment shall be sent by mail to 
the post office address given in the return and the record of 
the mailing shall be presumptive evidence of the giving of such 
notice, and such records shall be preserved by the commissioner. 
    Subd. 2.  [COMPUTATION OF TIME.] For the purposes of this 
section, a return filed before the last day prescribed by law 
for the filing thereof shall be considered as filed on the last 
day.  
     Subd. 3.  [FALSE OR FRAUDULENT RETURN AND NO RETURN.] When 
a company, joint stock association, copartnership, corporation, 
or individual required to file a return under this chapter files 
a false or fraudulent return or fails to file a return, the tax 
may be assessed, and the attorney general may begin proceedings 
at any time.  
    Subd. 4.  [CONSENT TO EXTEND TIME.] Where before the 
expiration of the time prescribed in subdivision 1 for the 
assessment of the tax, the commissioner of revenue and the 
company, joint stock association, copartnership, corporation, or 
individual filing the return consent in writing to an extension 
of time for the assessment of the tax, the tax may be assessed 
at any time prior to the expiration of the period agreed upon. 
The period so agreed upon may be extended by subsequent 
agreements in writing made before the expiration of the period 
previously agreed upon.  
     Subd. 5.  [OMISSION IN EXCESS OF 25 PERCENT.] If the 
taxpayer omits an amount properly includable therein which is in 
excess of 25 percent of the amount of tax stated in the return, 
the tax may be assessed, or a proceeding in court for the 
collection of such tax, may be begun at any time within six 
years after the return was filed.  
    Sec. 13.  Minnesota Statutes 1982, section 298.09, 
subdivision 2, is amended to read: 
    Subd. 2.  On the first secular day following the fourteenth 
day of May, the commissioner of revenue shall hold a hearing at 
his office in St. Paul which may be adjourned from day to day.  
All relevant and material evidence having probative value with 
respect to the issues shall be submitted at the hearing and such 
hearing shall not be a "contested case" within the meaning of 
section 14.02, subdivision 3.  Every person subject to such tax 
may at such hearing present evidence and argument on any matter 
bearing upon the validity or correctness of the tax determined 
to be due from him, and the commissioner of revenue shall review 
his determination of such tax. 
    Sec. 14.  Minnesota Statutes 1982, section 298.27, is 
amended to read: 
    298.27 [COLLECTION AND PAYMENT OF TAX.] 
    The taxes provided by section 298.24 shall be collected and 
paid in the same manner as provided by law for the payment of 
the occupation tax, except that the report required by section 
298.05 shall be filed on or before February 15 together with a 
remittance equal to 90 percent of the estimated tax required to 
be paid hereunder on or before April 15.  On or before February 
25, the commissioner of revenue shall make distribution of such 
estimated the payment in the manner provided by section 298.28.  
The commissioner of revenue shall determine the amount of tax 
due on or before March 15.  The tax found to be balance due 
shall be paid on or before April 15 following the production 
year.  Reports shall be made and hearings held upon the 
determination of the tax in accordance with procedures 
established by the commissioner of revenue.  The commissioner of 
revenue shall have authority to make reasonable regulations as 
to the form and manner of filing reports necessary for the 
determination of the tax hereunder, and by such regulations may 
require the production of such information as may be reasonably 
necessary or convenient for the determination and apportionment 
of the tax.  All the provisions of the occupation tax law with 
reference to the assessment, determination, and collection of 
the occupation tax, including all provisions for appeals from or 
review of the orders of the commissioner of revenue relative 
thereto, are hereby made applicable to the taxes imposed by 
section 298.24 except in so far as inconsistent herewith.  If 
any person subject to section 298.24 shall fail to make the 
report provided for in this section at the time and in the 
manner herein provided, the commissioner of revenue shall in 
such case, upon such information as he may possess or obtain, 
ascertain the kind and amount of ore mined or produced and 
thereon find and determine the amount of the tax due from such 
person.  There shall be added to the amount of tax due a penalty 
for failure to report on or before February 15, which penalty 
shall equal ten percent of the tax imposed and be treated as a 
part thereof. 
    If any person required to make an estimated responsible for 
making a partial tax payment at the time and in the manner 
herein provided, and fails to do so, there shall be imposed a 
penalty equal to ten percent of the amount so due, which penalty 
shall be treated as part of the tax due. 
    In the case of any underpayment of the estimated partial 
tax payment required herein, there may be added and be treated 
as part of the tax due a penalty equal to ten percent of the 
amount so underpaid. 
    If any portion of the taxes provided for in section 298.24 
is not paid before the fifteenth day of April of the year in 
which due and payable, a penalty of ten percent of such unpaid 
portion shall immediately accrue, and thereafter one percent per 
month shall be added to such tax and penalty while such tax 
remains unpaid. 
    Sec. 15.  Minnesota Statutes 1983 Supplement, section 
298.28, subdivision 1, is amended to read: 
    Subdivision 1.  [DISTRIBUTION FROM GENERAL FUND.] The 
proceeds of the taxes collected under section 298.24, except the 
tax collected under section 298.24, subdivision 2, shall, upon 
certificate of the commissioner of revenue to the general fund 
of the state, be paid by the commissioner of revenue as follows: 
    (1) 2.5 cents per gross ton of merchantable iron ore 
concentrate, hereinafter referred to as "taxable ton," to the 
city or town in which the lands from which taconite was mined or 
quarried were located or within which the concentrate was 
produced.  If the mining, quarrying, and concentration, or 
different steps in either thereof are carried on in more than 
one taxing district, the commissioner shall apportion equitably 
the proceeds of the part of the tax going to cities and towns 
among such subdivisions upon the basis of attributing 40 percent 
of the proceeds of the tax to the operation of mining or 
quarrying the taconite, and the remainder to the concentrating 
plant and to the processes of concentration, and with respect to 
each thereof giving due consideration to the relative extent of 
such operations performed in each such taxing district.  His 
order making such apportionment shall be subject to review by 
the tax court at the instance of any of the interested taxing 
districts, in the same manner as other orders of the 
commissioner. 
     (2) 12.5 cents per taxable ton, less any amount distributed 
under clause (8), to the taconite municipal aid account in the 
apportionment fund of the state treasury, to be distributed as 
provided in section 298.282. 
     (3) 29 cents per taxable ton plus the increase provided in 
paragraph (c) to qualifying school districts to be distributed 
as follows: 
     (a) Six cents per taxable ton to the school districts in 
which the lands from which taconite was mined or quarried were 
located or within which the concentrate was produced.  The 
commissioner shall follow the apportionment formula prescribed 
in clause (1). 
     (b) 23 cents per taxable ton, less any amount distributed 
under part (d), shall be distributed to a group of school 
districts comprised of those school districts wherein the 
taconite was mined or quarried or the concentrate produced or in 
which there is a qualifying municipality as defined by section 
273.134 in direct proportion to school district tax levies as 
follows:  each district shall receive that portion of the total 
distribution which its certified levy for the prior year, 
computed pursuant to section 275.125, comprises of the sum of 
certified levies for the prior year for all qualifying 
districts, computed pursuant to section 275.125.  For purposes 
of distributions pursuant to this part, certified levies for the 
prior year computed pursuant to section 275.125 shall not 
include the amount of any increased levy authorized by 
referendum pursuant to section 275.125, subdivision 2d. 
     (c) On July 15, 1982 and on July 15 in subsequent years, an 
amount equal to the increase derived by increasing the amount 
determined by clause (3)(b) in the same proportion as the 
increase in the steel mill products index over the base year of 
1977 as provided in section 298.24, subdivision 1, clause (a), 
shall be distributed to any school district described in clause 
(3)(b) where a levy increase pursuant to section 275.125, 
subdivision 2d, is authorized by referendum, according to the 
following formula.  Each district shall receive the product of: 
     (i) $150 times the pupil units identified in section 
124.17, subdivision 1, clauses (1) and (2), enrolled in the 
previous school year, less the product of two mills times the 
district's taxable valuation in the second previous year; times 
     (ii) the lesser of: 
     (A) one, or 
     (B) the ratio of the amount certified pursuant to section 
275.125, subdivision 2d, in the previous year, to the product of 
two mills times the district's taxable valuation in the second 
previous year. 
     If the total amount provided by clause (3)(c) is 
insufficient to make the payments herein required then the 
entitlement of $150 per pupil unit shall be reduced uniformly so 
as not to exceed the funds available.  Any amounts received by a 
qualifying school district in any fiscal year pursuant to clause 
(3)(c) shall not be applied to reduce foundation aids which the 
district is entitled to receive pursuant to sections 124.2121 to 
124.2128 or the permissible levies of the district.  Any amount 
remaining after the payments provided in this paragraph shall be 
paid to the commissioner of finance who shall deposit the same 
in the taconite environmental protection fund and the northeast 
Minnesota economic protection trust fund as provided in section 
298.28, subdivision 1, clause 10. 
     (d) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
     (4) 19.5 cents per taxable ton to counties to be 
distributed as follows: 
     (a) 15.5 cents per taxable ton shall be distributed to the 
county in which the taconite is mined or quarried or in which 
the concentrate is produced, less any amount which is to be 
distributed pursuant to part (b).  The commissioner shall follow 
the apportionment formula prescribed in clause (1). 
     (b) If an electric power plant owned by and providing the 
primary source of power for a taxpayer mining and concentrating 
taconite is located in a county other than the county in which 
the mining and the concentrating processes are conducted, one 
cent per taxable ton of the tax distributed to the counties 
pursuant to part (a) and imposed on and collected from such 
taxpayer shall be distributed by the commissioner of revenue to 
the county in which the power plant is located. 
     (c) Four cents per taxable ton shall be paid to the county 
from which the taconite was mined, quarried or concentrated to 
be deposited in the county road and bridge fund.  If the mining, 
quarrying and concentrating, or separate steps in any of those 
processes are carried on in more than one county, the 
commissioner shall follow the apportionment formula prescribed 
in clause (1). 
     (5) (a) 25.75 cents per taxable ton, less any amount 
required to be distributed under part (b), to the taconite 
property tax relief account in the apportionment fund in the 
state treasury, to be distributed as provided in sections 
273.134 to 273.136. 
     (b) If an electric power plant owned by and providing the 
primary source of power for a taxpayer mining and concentrating 
taconite is located in a county other than the county in which 
the mining and the concentrating processes are conducted, .75 
cent per taxable ton of the tax imposed and collected from such 
taxpayer shall be distributed by the commissioner of revenue to 
the county and school district in which the power plant is 
located as follows:  25 percent to the county and 75 percent to 
the school district. 
     (6) One cent per taxable ton to the state for the cost of 
administering the tax imposed by section 298.24. 
     (7) Three cents per taxable ton shall be deposited in the 
state treasury to the credit of the iron range resources and 
rehabilitation board account in the special revenue fund for the 
purposes of section 298.22.  The amount determined in this 
clause shall be increased in 1981 and subsequent years in the 
same proportion as the increase in the steel mill products index 
as provided in section 298.24, subdivision 1.  The amount 
distributed pursuant to this clause shall be expended within or 
for the benefit of a tax relief area defined in section 
273.134.  No part of the fund provided in this clause may be 
used to provide loans for the operation of private business 
unless the loan is approved by the governor and the legislative 
advisory commission. 
     (8) .20 cent per taxable ton shall be paid in 1979 and each 
year thereafter, to the range association of municipalities and 
schools, for the purpose of providing an area wide approach to 
problems which demand coordinated and cooperative actions and 
which are common to those areas of northeast Minnesota affected 
by operations involved in mining iron ore and taconite and 
producing concentrate therefrom, and for the purpose of 
promoting the general welfare and economic development of the 
cities, towns and school districts within the iron range area of 
northeast Minnesota. 
     (9) the amounts determined under clauses (4)(a), (4)(c), 
and (5) shall be increased in 1979 and subsequent years in the 
same proportion as the increase in the steel mill products index 
as provided in section 298.24, subdivision 1. 
    (10) the proceeds of the tax imposed by section 298.24 
which remain after the distributions in clauses (1) to (9) and 
parts (a) and (b) of this clause have been made shall be divided 
between the taconite environmental protection fund created in 
section 298.223 and the northeast Minnesota economic protection 
trust fund created in section 298.292 as follows:  In 1981 and 
each year thereafter, two-thirds to the taconite environmental 
protection fund and one-third to the northeast Minnesota 
economic protection trust fund.  The proceeds shall be placed in 
the respective special accounts in the general fund. 
    (a) In 1978 and each year thereafter, there shall be 
distributed to each city, town, school district, and county the 
amount that they received under section 294.26 in calendar year 
1977; provided, however, that the amount distributed in 1981 to 
the unorganized territory number 2 of Lake County and the town 
of Beaver Bay based on the between-terminal trackage of Erie 
Mining Company will be distributed in 1982 and subsequent years 
to the unorganized territory number 2 of Lake County and the 
towns of Beaver Bay and Stony River based on the miles of track 
of Erie Mining Company in each taxing district. 
    (b) In 1978 and each year thereafter, there shall be 
distributed to the iron range resources and rehabilitation board 
the amounts it received in 1977 under section 298.22. 
    On or before October 10 of each calendar year each producer 
of taconite or iron sulphides subject to taxation under section 
298.24 (hereinafter called "taxpayer") shall file with the 
commissioner of revenue and with the county auditor of each 
county in which such taxpayer operates, and with the chief 
clerical officer of each school district, city or town which is 
entitled to participate in the distribution of the tax, an 
estimate of the amount of tax which would be payable by such 
taxpayer under said law for such calendar year; provided such 
estimate shall be in an amount not less than the amount due on 
the mining and production of concentrates up to September 30 of 
said year plus the amount becoming due because of probable 
production between September 30 and December 31 of said year, 
less any credit allowable as hereinafter provided.  Such 
estimate shall list the taxing districts entitled to participate 
in the distribution of such tax, and the amount of the estimated 
tax which would be distributable to each such district in the 
next ensuing calendar year on the basis of the last percentage 
distribution certified by the commissioner of revenue.  If there 
be no such prior certification, the taxpayer shall set forth its 
estimate of the proper distribution of such tax under the law, 
which estimate may be corrected by the commissioner if he deems 
it improper, notice of such correction being given by him to the 
taxpayer and the public officers receiving such estimate.  The 
commissioner of revenue shall annually on or before October 10 
report an estimated distribution amount to each taxing district 
and the officers with whom such report is so filed shall use the 
amount so indicated as being distributable to each taxing 
district in computing the permissible tax levy of such county, 
or city or school district in the year in which such estimate is 
made, and payable in the next ensuing calendar year, except that 
in 1978 and 1979 two cents per taxable ton, and in 1980 and 
thereafter, one cent per taxable ton of the amount distributed 
under clause (4)(c) shall not be deducted in calculating the 
permissible levy.  Such taxpayer shall then pay, at the times 
payments are required to be made pursuant to section 298.27, as 
the amount of tax payable under section 298.24, the greater of 
(a) the amount shown by such estimate, or (b) the amount due 
under said section as finally determined by the commissioner of 
revenue pursuant to law.  If, as a result of the payment of the 
amount of such estimate, the taxpayer has paid in any calendar 
year an amount of tax in excess of the amount due in such year 
under section 298.24, after application of credits for any 
excess payments made in previous years, all as determined by the 
commissioner of revenue, the taxpayer shall be given credit for 
such excess amount against any taxes which, under said section, 
may become due from the taxpayer in subsequent years.  In any 
calendar year in which a general property tax levy subject to 
sections 275.125 or 275.50 to 275.59 has been made, if the taxes 
distributable to any such county, or city or school district are 
greater than the amount estimated by the commissioner to be paid 
to any such county, or city or school district in such year, the 
excess of such distribution shall be held in a special fund by 
the county, or city or school district and shall not be expended 
until the succeeding calendar year, and shall be included in 
computing the permissible levies under sections 275.125 or 
275.50 to 275.59, of such county, or city or school district 
payable in such year.  If the amounts distributable to any such 
county, or city or school district, after final determination by 
the commissioner of revenue under this section are less than the 
amounts indicated by such estimates by which a taxing district's 
levies were reduced pursuant to this section, such county, or 
city or school district may issue certificates of indebtedness 
in the amount of the shortage, and may include in its next tax 
levy, in excess of the limitations of sections 275.125 or 275.50 
to 275.59 an amount sufficient to pay such certificates of 
indebtedness and interest thereon, or, if no certificates were 
issued, an amount equal to such shortage. 
    There is hereby annually appropriated to such taxing 
districts as are stated herein, to the taconite property tax 
relief account and to the taconite municipal aid account in the 
apportionment fund in the state treasury, to the department of 
revenue, to the iron range resources and rehabilitation board, 
to the range association of municipalities and schools, to the 
taconite environmental protection fund, and to the northeast 
Minnesota economic protection trust fund, from any fund or 
account in the state treasury to which the money was credited, 
an amount sufficient to make the payment or transfer.  The 
payment of the amount appropriated to such taxing districts 
shall be made by the commissioner of revenue on or before May 15 
annually. 
    Sec. 16.  Minnesota Statutes 1982, section 298.282, 
subdivision 3, is amended to read: 
    Subd. 3.  If the amount certified by the commissioner of 
revenue as distributable to any qualifying municipality is 
greater than the amount previously estimated to have been 
distributable to such qualifying municipality in such year, the 
excess distributed to such municipality shall be held in a 
separate fund by the qualifying municipality and shall not be 
expended until the succeeding calendar year and shall be 
deducted, first, from the permissible general levy and then 
proportionately from permissible excess levies of the qualifying 
municipality in the succeeding calendar year.  If the amount 
distributable to any qualifying municipality, after final 
determination by the commissioner of revenue is less than the 
amount estimated to have been distributable to such qualifying 
municipality, such municipality may issue certificates of 
indebtedness in the amount of the shortage and may include in 
its next tax levy in excess of then existing levy limitations 
the limitations under sections 275.50 to 275.56, an amount 
sufficient to pay such certificates of indebtedness and interest 
thereon or, if no certificates were issued, an amount equal to 
such shortage. 
    Sec. 17.  Minnesota Statutes 1982, section 340.601, is 
amended to read: 
    340.601 [IMPORT; TAX EVASION, MISDEMEANOR.] 
    Any person, excluding persons of minor age and other 
disqualified persons as provided by sections 340.73 and 340.78, 
who enters the state of Minnesota from another state may have in 
his personal possession one quart (32 ounces) liter of 
intoxicating liquor or 288 ounces of fermented malt beverages or 
who enters the state of Minnesota from a foreign country may 
have in his possession one gallon (128 ounces) four liters of 
intoxicating liquor or ten quarts (320 ounces) of fermented malt 
beverages without the required payment of the Minnesota excise 
tax.  Any collector of commemorative bottles as defined in 
section 340.44, clauses (6) and (7), excluding persons of minor 
age and other disqualified persons as provided by sections 
340.73 and 340.78, who enters the state of Minnesota from 
another state may have in his personal possession 12 or fewer 
commemorative bottles without the required payment of the 
Minnesota excise tax.  Any person who shall import or have in 
his possession any such untaxed intoxicating liquor or fermented 
malt beverages in excess of the quantities provided for in this 
section is guilty of a misdemeanor.  The foregoing provisions do 
not apply to the consignments of alcoholic beverages shipped 
into this state by holders of Minnesota import licenses or 
Minnesota manufacturers and wholesalers of such beverages when 
duly licensed by the commissioner or to common carriers with 
licenses to sell intoxicating liquor in more than one state.  
Any peace officer, the commissioner, or his authorized agents, 
may seize such untaxed liquor. 
    Sec. 18 [340.987] 
    Subdivision 1.  [COMMISSIONER TO EXAMINE AND CORRECT RETURN;
COLLECTION OF DEFICIENCY.] As soon as practicable after any 
return is filed as directed by this chapter, the commissioner 
shall examine the return and correct it, if necessary, according 
to his best judgment and information.  The return, together with 
the commissioner's corrections, if any, shall be prima facie 
correct and shall be prima facie evidence of the correctness of 
the amount of tax due, as shown therein.  If the commissioner 
finds that any amount of tax is due and unpaid, he shall notify 
the taxpayer of the deficiency, stating that he proposes to 
assess the amount due together with interest and penalties as 
hereinafter provided.  If a deficiency disclosed by the 
commissioner's examination cannot be allocated by him to a 
particular month or months, he shall notify the taxpayer of the 
deficiency, assessing the amount due for a given period without 
allocating it to any particular month or months, together with 
the penalty provided in the case of other corrected returns.  If 
any taxpayer making any return shall die or shall become 
incompetent at any time before the commissioner issues his 
notice that he proposes to assess an amount due, that notice 
shall be issued to the administrator, executor, or other legal 
representative, as such, of that distributor.  
    Subd. 2.  [MONTHLY TAX PAYMENTS; PENALTY FOR NONPAYMENT.] 
All taxes shall be due and payable as directed in this chapter, 
and taxes not paid shall bear interest at the rate specified in 
section 270.75.  The commissioner in issuing his final 
assessment shall add to the amount of tax found due and unpaid a 
penalty of ten percent thereof, except that, if he finds that 
the taxpayer has made a false and fraudulent return with intent 
to evade the tax imposed by this chapter, the penalty shall be 
25 percent of the entire tax as shown by the corrected return. 
If the tax is not paid within the time herein specified for the 
payment thereof or within 30 days after final determination of 
an appeal to the Minnesota tax court relating thereto, there 
shall be added thereto a specific penalty equal to ten percent 
of the amount so remaining unpaid, but in no event shall the 
penalty for failure to pay the tax within the time provided for 
payment be less than $10.  The commissioner is authorized to 
extend the time for paying the tax without penalty for good 
cause shown.  
    Subd. 3.  [RECOVERY BY COMMISSIONER.] The commissioner may 
recover the amount of any tax due and unpaid, interest, and any 
penalty in a civil action.  The collection of a tax, interest, 
or penalty shall not be a bar to any prosecution under this 
chapter.  
    Subd. 4.  [PENALTY; MAXIMUM; MINIMUM; EXTENSION.] If any 
return required to be filed under the provisions of this section 
is not filed within the time herein specified, a penalty of five 
percent of the unpaid tax remaining each month up to a maximum 
of 25 percent is imposed, but in no event shall the penalty for 
failing to timely file a return be less than $10.  The 
commissioner of revenue is authorized to extend the time for 
filing a return without penalty for good cause shown.  
    Sec. 19.  [340.988] [EVASIONS; VIOLATIONS.] 
    Subdivision 1.  [ASSESSMENT, GENERALLY.] Except as 
otherwise provided in this chapter, the amount of any tax due 
shall be assessed within 3-1/2 years after the return is filed. 
The taxes are deemed to have been assessed within the meaning of 
this section whenever the commissioner of revenue has determined 
the tax and computed and recorded the amount of tax with respect 
thereto, and if the amount is found to be in excess of that 
originally declared on the return, whenever the commissioner has 
prepared a notice of tax assessment and mailed it to the 
taxpayer.  The notice of tax assessment shall be sent by mail to 
the post office address given in the return and the record of 
mailing shall be presumptive evidence of the giving of notice, 
and such records shall be preserved by the commissioner.  
    Subd. 2.  [COMPUTATION OF TIME.] For the purposes of this 
section, a return filed before the last day prescribed by law 
for the filing thereof is considered as filed on the last day.  
    Subd. 3.  [FALSE OR FRAUDULENT RETURN AND NO RETURN.] When 
a company, joint stock association, copartnership, corporation, 
or individual required to file a return under this chapter files 
a false or fraudulent return or fails to file a return, the tax 
may be assessed, and the attorney general may begin proceedings 
at any time.  
    Subd. 4.  [CONSENT TO EXTEND TIME.] Where, before the 
expiration of the time prescribed in subdivision 1 for the 
assessment of the tax, the commissioner of revenue and the 
company, joint stock association, copartnership, corporation, or 
individual filing the return consent in writing to an extension 
of time for the assessment of the tax, the tax may be assessed 
at any time prior to the expiration of the period agreed upon. 
The period so agreed upon may be extended by subsequent 
agreements in writing made before the expiration of the period 
previously agreed upon. 
    Subd. 5.  [OMISSION IN EXCESS OF 25 PERCENT.] If the 
taxpayer omits an amount properly includable therein which is in 
excess of 25 percent of the amount of tax stated in the return, 
the tax may be assessed, or a proceeding in court for the 
collection of such tax may be begun at any time within six years 
after the return was filed.  
    Sec. 20.  [REPEALER.] 
    Minnesota Statutes 1982, sections 298.045, 298.046, 
298.047, and 298.048, are repealed.  
    Sec. 21.  [EFFECTIVE DATES.] 
    Sections 1, 4, 7, 8, 12, 13, and 17 to 20 are effective the 
day following final enactment.  Sections 2, 5, 6, and 16 are 
effective for taxes levied in 1984 and thereafter, payable in 
1985 and thereafter.  Sections 9 to 11 are effective for claims 
based on property taxes payable in 1985 and thereafter. Sections 
14 and 15 are effective for taconite produced in 1984 and 
thereafter, taxes payable in 1985 and thereafter. 
    Approved April 25, 1984