Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1994, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 510-H.F.No. 2275
An act relating to taxes; making tax policy,
collections, and administrative changes; amending
Minnesota Statutes 1992, sections 168.011, subdivision
8; 168.012, subdivision 9; 239.05, subdivision 10a;
239.761, subdivision 3; 270.052; 270.0605; 270.10, by
adding a subdivision; 270.60, subdivisions 1 and 2;
270.69, subdivision 4, and by adding a subdivision;
270.70, subdivision 2; 270.72, subdivision 1; 270B.02,
subdivisions 3 and 5; 270B.03, subdivision 1; 270B.12,
subdivision 3, and by adding a subdivision; 270B.14,
by adding a subdivision; 273.12; 289A.37, subdivision
1; 289A.60, by adding subdivisions; 290.01,
subdivision 3a; 290A.08; 290A.18, subdivision 2;
296.01, subdivisions 14, 18, 19, 20, 32, 34, and by
adding subdivisions; 296.02, subdivision 1; 296.025,
subdivision 1, and by adding a subdivision; 296.06,
subdivision 2; 296.12, subdivisions 1, 2, 3, 4, 5, 8,
10, and 11; 296.15, subdivisions 2, 4, 5, and 6;
296.16, subdivision 2; 296.165, subdivision 1; 296.25,
subdivision 1, and by adding a subdivision; 297.03,
subdivision 7; 297A.25, subdivision 9; and 297C.13,
subdivision 1; Minnesota Statutes 1993 Supplement,
sections 116.07, subdivision 10; 270.06; 270.41,
subdivision 5; 270B.01, subdivision 8; 272.115,
subdivision 1; 273.124, subdivision 13; 275.065,
subdivision 6; 289A.18, subdivision 4; 289A.20,
subdivision 4; 290.01, subdivision 19; 297A.01,
subdivision 15; 297A.07, subdivision 1; and 297A.25,
subdivision 11; proposing coding for new law in
Minnesota Statutes, chapters 270; 296; 297; 384; and
385; repealing Minnesota Statutes 1992, sections
270.0604, subdivision 6; 272.09; 272.46, subdivision
1; 272.47; 296.03; 296.14; 296.15, subdivision 3; and
297A.07, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
PROPERTY TAXES; PROPERTY TAX REFUNDS
Section 1. Minnesota Statutes 1992, section 168.011,
subdivision 8, is amended to read:
Subd. 8. [MANUFACTURED HOME; PARK TRAILER; TRAVEL
TRAILER.] (a) "Manufactured home" has the meaning given it in
section 327.31, subdivision 6.
(b) "Park trailer" means a trailer that:
(1) exceeds eight and one-half feet in width in travel mode
but is no larger than 400 square feet when the collapsible
components are fully extended or at maximum horizontal width;
and
(2) is used as temporary living quarters.
"Park trailer" does not include a manufactured home.
(c) "Travel trailer" means a trailer, mounted on wheels,
that:
(1) is designed to provide temporary living quarters during
recreation, camping, or travel;
(2) does not require a special highway movement permit
based on its size or weight when towed by a motor vehicle; and
(3) complies with sections 169.80, subdivision 2, and
169.81, subdivision 2.
Sec. 2. Minnesota Statutes 1992, section 168.012,
subdivision 9, is amended to read:
Subd. 9. Manufactured homes shall not be taxed as motor
vehicles using the public streets and highways and shall be
exempt from the motor vehicle tax provisions of this chapter.
Except as provided in section 274.19, manufactured homes shall
be taxed as personal property. The provisions of Minnesota
Statutes 1957, section 272.02 or any other act providing for tax
exemption shall be inapplicable to manufactured homes, except
such manufactured homes as are held by a licensed dealer and
exempted as inventory. Travel trailers not conspicuously
displaying current registration plates during any calendar
year on the property tax assessment date shall be taxed as
manufactured homes if occupied as human dwelling places. Park
trailers not used on the highway during any calendar year must
be taxed as manufactured homes if occupied as human dwelling
places. Park trailers used on the highway during any calendar
year must be taxed under section 168.013, subdivision 1j.
Sec. 3. Minnesota Statutes 1992, section 270.0605, is
amended to read:
270.0605 [TAX INFORMATION BULLETINS.]
The commissioner of revenue may issue tax information
bulletins. "Tax information bulletins" are informational guides
to enable taxpayers and affected local governmental officials to
become more familiar with Minnesota tax laws and their rights
and responsibilities under the tax laws. Nothing contained in
the tax information bulletins supersedes, alters, or otherwise
changes any provisions of the Minnesota tax law, administrative
rules, court decisions, or revenue notices.
Sec. 4. Minnesota Statutes 1993 Supplement, section
270.41, subdivision 5, is amended to read:
Subd. 5. [PROHIBITED ACTIVITY.] An assessor, deputy
assessor, assistant assessor, appraiser, or other person
employed by an assessment jurisdiction or contracting with an
assessment jurisdiction for the purpose of valuing or
classifying property for property tax purposes is prohibited
from making appraisals or analyses, accepting an appraisal
assignment, or preparing an appraisal report as defined in
section 82B.02, subdivisions 2 to 5, on any property within the
assessment jurisdiction where the individual is employed or
performing the duties of the assessor under contract. Violation
of this prohibition shall result in immediate revocation of the
individual's license to assess property for property tax
purposes. This prohibition must not be construed to prohibit an
individual from carrying out any duties required for the proper
assessment of property for property tax purposes. If a formal
resolution has been adopted by the governing body of a
governmental unit, which specifies the purposes for which such
work will be done, this prohibition does not apply to appraisal
activities undertaken on behalf of and at the request of the
governmental unit that has employed or contracted with the
individual. The resolution may only allow appraisal activities
which are related to condemnations, right-of-way acquisitions,
or special assessments.
Sec. 5. Minnesota Statutes 1993 Supplement, section
272.115, subdivision 1, is amended to read:
Subdivision 1. Whenever any real estate is sold for a
consideration in excess of $1,000, whether by warranty deed,
quitclaim deed, contract for deed or any other method of sale,
the grantor, grantee or the legal agent of either shall file a
certificate of value with the county auditor in the county in
which the property is located when the deed or other document is
presented for recording. Contract for deeds are subject to
recording under section 507.235, subdivision 1. Value shall, in
the case of any deed not a gift, be the amount of the full
actual consideration thereof, paid or to be paid, including the
amount of any lien or liens assumed. The certificate of value
shall include the classification to which the property belongs
for the purpose of determining the fair market value of the
property. The certificate shall include financing terms and
conditions of the sale which are necessary to determine the
actual, present value of the sale price for purposes of the
sales ratio study. The commissioner of revenue shall promulgate
administrative rules specifying the financing terms and
conditions which must be included on the certificate. Pursuant
to the authority of the commissioner of revenue in section
270.066, the certificate of value must include the social
security number or the federal employer identification number of
the grantors and grantees. The identification numbers of the
grantors and grantees are private data on individuals or
nonpublic data as defined in section 13.02, subdivisions 9 and
12, but, notwithstanding that section, the private or nonpublic
data may be disclosed to the commissioner of revenue for
purposes of tax administration.
Sec. 6. Minnesota Statutes 1992, section 273.12, is
amended to read:
273.12 [ASSESSMENT OF REAL PROPERTY.]
It shall be the duty of every assessor and board, in
estimating and determining the value of lands for the purpose of
taxation, to consider and give due weight to every element and
factor affecting the market value thereof, including its
location with reference to roads and streets and the location of
roads and streets thereon or over the same, and to take into
consideration a reduction in the acreage of each tract or lot
sufficient to cover the amount of land actually used for any
improved public highway and the reduction in area of land caused
thereby. It shall be the duty of every assessor and board, in
estimating and determining the value of lands for the purpose of
taxation, to consider and give due weight to lands which are
comparable in character, quality, and location, to the end that
all lands similarly located and improved will be assessed upon a
uniform basis and without discrimination and, for agricultural
lands, to consider and give recognition to its earning potential
as measured by its free market rental rate.
Notwithstanding the provisions of this or any other
section, no additional value shall be assessed for unmined
mineral value except for iron ore or taconite. When mineral,
clay, or gravel deposits exist on a property, and their extent,
quality, and costs of extraction are sufficiently well known so
as to influence market value, such deposits shall be recognized
in valuing the property.
Sec. 7. Minnesota Statutes 1993 Supplement, section
273.124, subdivision 13, is amended to read:
Subd. 13. [HOMESTEAD APPLICATION.] (a) A person who meets
the homestead requirements under subdivision 1 must file a
homestead application with the county assessor to initially
obtain homestead classification.
(b) On or before January 2, 1993, each county assessor
shall mail a homestead application to the owner of each parcel
of property within the county which was classified as homestead
for the 1992 assessment year. The format and contents of a
uniform homestead application shall be prescribed by the
commissioner of revenue. The commissioner shall consult with
the chairs of the house and senate tax committees on the
contents of the homestead application form. The application
must clearly inform the taxpayer that this application must be
signed by all owners who occupy the property or by the
qualifying relative and returned to the county assessor in order
for the property to continue receiving homestead treatment. The
envelope containing the homestead application shall clearly
identify its contents and alert the taxpayer of its necessary
immediate response.
(c) Every property owner applying for homestead
classification must furnish to the county assessor the social
security number of each occupant who is listed as an owner of
the property on the homestead application, and the name and
address of each owner who does not occupy the property. If the
social security number is not provided, the county assessor
shall classify the property as nonhomestead. The social
security numbers of the property owners are private data on
individuals as defined by section 13.02, subdivision 12, but,
notwithstanding that section, the private data may be disclosed
to the commissioner of revenue, or, for purposes of proceeding
under the revenue recapture act to recover personal property
taxes owing, to the county treasurer.
(d) If residential real estate is occupied and used for
purposes of a homestead by a relative of the owner and qualifies
for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead
application must be filed with the assessor. The social
security number of each relative occupying the property and the
social security number of each owner who is related to an
occupant of the property shall be required on the homestead
application filed under this subdivision. If a different
relative of the owner subsequently occupies the property, the
owner of the property must notify the assessor within 30 days of
the change in occupancy. The social security number of a
relative occupying the property is private data on individuals
as defined by section 13.02, subdivision 12, but may be
disclosed to the commissioner of revenue.
(e) The homestead application shall also notify the
property owners that the application filed under this section
will not be mailed annually and that if the property is granted
homestead status for the 1993 assessment, or any assessment year
thereafter, that same property shall remain classified as
homestead until the property is sold or transferred to another
person, or the owners or the relatives no longer use the
property as their homestead. Upon the sale or transfer of the
homestead property, a certificate of value must be timely filed
with the county auditor as provided under section 272.115.
Failure to notify the assessor within 30 days that the property
has been sold, transferred, or that the owner or the relative is
no longer occupying the property as a homestead, shall result in
the penalty provided under this subdivision and the property
will lose its current homestead status.
(f) If the homestead application is not returned within 30
days, the county will send a second application to the present
owners of record. The notice of proposed property taxes
prepared under section 275.065, subdivision 3, shall reflect the
property's classification. Beginning with assessment year 1993
for all properties, if a homestead application has not been
filed with the county by December 15, the assessor shall
classify the property as nonhomestead for the current assessment
year for taxes payable in the following year, provided that the
owner may be entitled to receive the homestead classification by
proper application under section 375.192.
(g) At the request of the commissioner, each county must
give the commissioner a list that includes the name and social
security number of each property owner, or relative of a
property owner, applying for homestead classification under this
subdivision. The commissioner shall use the information
provided on the lists as appropriate under the law, including
for the detection of improper claims by owners, or relatives of
owners, under chapter 290A.
(h) If, in comparing the lists supplied by the counties,
the commissioner finds that a property owner is claiming more
than one homestead, the commissioner shall notify the
appropriate counties. Within 90 days of the notification, the
county assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does
not qualify, the county assessor shall notify the county auditor
who will determine the amount of homestead benefits that had
been improperly allowed. For the purpose of this section,
"homestead benefits" means the tax reduction resulting from the
classification as a homestead under section 273.13, the taconite
homestead credit under section 273.135, and the supplemental
homestead credit under section 273.1391.
The county auditor shall send a notice to the owners of the
affected property, demanding reimbursement of the homestead
benefits plus a penalty equal to 100 percent of the homestead
benefits. The property owners may appeal the county's
determination by filing a notice of appeal with the Minnesota
tax court within 60 days of the date of the notice from the
county. If the amount of homestead benefits and penalty is not
paid within 60 days, and if no appeal has been filed, the county
auditor shall certify the amount of taxes and penalty to the
succeeding year's tax list to be collected as part of the
property taxes.
(i) Any amount of homestead benefits recovered by the
county from the property owner shall be distributed to the
county, city or town, and school district where the property is
located in the same proportion that each taxing district's levy
was to the total of the three taxing districts' levy for the
current year. Any amount recovered attributable to taconite
homestead credit shall be transmitted to the St. Louis county
auditor to be deposited in the taconite property tax relief
account. The total amount of penalty collected must be
deposited in the county general fund.
(j) If a property owner has applied for more than one
homestead and the county assessors cannot determine which
property should be classified as homestead, the county assessors
will refer the information to the commissioner. The
commissioner shall make the determination and notify the
counties within 60 days.
(k) In addition to lists of homestead properties, the
commissioner may ask the counties to furnish lists of all
properties and the record owners.
Sec. 8. Minnesota Statutes 1993 Supplement, section
275.065, subdivision 6, is amended to read:
Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]
Between November 29 and December 20, the governing bodies of the
city, county, metropolitan special taxing districts as defined
in subdivision 3, paragraph (i), and regional library districts
shall each hold a public hearing to discuss and seek public
comment on its final budget and property tax levy for taxes
payable in the following year, and the governing body of the
school district shall hold a public hearing to review its
current budget and proposed property tax levy for taxes payable
in the following year. The metropolitan special taxing
districts shall be required to hold only a single joint public
hearing, the location of which will be determined by the
affected metropolitan agencies.
At a subsequent hearing, the taxing authority, other than a
school district, may amend the proposed budget and property tax
levy and must adopt a final budget and property tax levy, and
the school district may amend the proposed property tax levy and
must adopt a final property tax levy. each county, school
district, city, and metropolitan special taxing district may
amend its proposed property tax levy and must adopt a final
property tax levy. Each county, city, and metropolitan special
taxing district may also amend its proposed budget and must
adopt a final budget at the subsequent hearing. A school
district is not required to adopt its final budget at the
subsequent hearing. The subsequent hearing of a taxing
authority must be held on a date subsequent to the date of the
taxing authority's initial public hearing, or subsequent to the
date of its continuation hearing if a continuation hearing is
held. The subsequent hearing may be held at a regularly
scheduled board or council meeting or at a special meeting
scheduled for the purposes of the subsequent hearing. The
subsequent hearing of a taxing authority does not have to be
coordinated by the county auditor to prevent a conflict with an
initial hearing, a continuation hearing, or a subsequent hearing
of any other taxing authority. All subsequent hearings must be
held prior to five working days after December 20 of the levy
year.
The time and place of the subsequent hearing must be
announced at the initial public hearing or at the continuation
hearing.
The property tax levy certified under section 275.07 by a
city, county, metropolitan special taxing district, regional
library district, or school district must not exceed the
proposed levy determined under subdivision 1, except by an
amount up to the sum of the following amounts:
(1) the amount of a school district levy whose voters
approved a referendum to increase taxes under section 124.82,
subdivision 3, 124A.03, subdivision 2, 124B.03, subdivision 2,
or 136C.411, after the proposed levy was certified;
(2) the amount of a city or county levy approved by the
voters after the proposed levy was certified;
(3) the amount of a levy to pay principal and interest on
bonds issued or approved by the voters under section 475.58
after the proposed levy was certified;
(4) the amount of a levy to pay costs due to a natural
disaster occurring after the proposed levy was certified, if
that amount is approved by the commissioner of revenue under
subdivision 6a;
(5) the amount of a levy to pay tort judgments against a
taxing authority that become final after the proposed levy was
certified, if the amount is approved by the commissioner of
revenue under subdivision 6a;
(6) the amount of an increase in levy limits certified to
the taxing authority by the commissioner of education after the
proposed levy was certified; and
(7) the amount required under section 124.755.
At the hearing under this subdivision, the percentage
increase in property taxes proposed by the taxing authority, if
any, and the specific purposes for which property tax revenues
are being increased must be discussed. At the hearing held in
1993 only, specific information for previous year, current year,
and proposed budget year must be presented on:
(i) percent of total proposed budget representing total
compensation cost;
(ii) numbers of employees by general classification, and
whether full or part time;
(iii) number and budgeted expenditures for independent
contractors; and
(iv) the effect of budget increases or decreases on the
proposed property tax levy.
During the discussion, the governing body shall hear
comments regarding a proposed increase and explain the reasons
for the proposed increase. The public shall be allowed to speak
and to ask questions. At a the subsequent hearing held as
provided in this subdivision, the governing body, other than the
governing body of a school district, shall adopt its final
property tax levy prior to adopting its final budget.
If the hearing is not completed on its scheduled date, the
taxing authority must announce, prior to adjournment of the
hearing, the date, time, and place for the continuation of the
hearing. The continued hearing must be held at least five
business days but no more than 14 business days after the
original hearing.
The hearing must be held after 5:00 p.m. if scheduled on a
day other than Saturday. No hearing may be held on a Sunday.
The governing body of a county shall hold a hearing on the
second Tuesday in December each year, and may hold additional
hearings on other dates before December 20 if necessary for the
convenience of county residents. The county auditor shall
provide for the coordination of hearing dates for all cities and
school districts within the county.
By August 10, each school board and the board of the
regional library district shall certify to the county auditors
of the counties in which the school district or regional library
district is located the dates on which it elects to hold its
hearings and any continuations. If a school board or regional
library district does not certify the dates by August 10, the
auditor will assign the hearing date. The dates elected or
assigned must not conflict with the county hearing dates. The
county auditor shall coordinate with the metropolitan special
taxing districts as defined in subdivision 3, paragraph (i), a
date on which the metropolitan special taxing districts will
hold their joint public hearing and any continuation. By August
20, the county auditor shall notify the clerks of the cities
within the county of the dates on which school districts,
metropolitan special taxing districts, and regional library
districts have elected to hold their hearings. At the time a
city certifies its proposed levy under subdivision 1 it shall
certify the dates on which it elects to hold its hearings and
any continuations. The city must not select dates that conflict
with the county hearing dates, metropolitan special taxing
district dates, or with those elected by or assigned to the
school districts or regional library district in which the city
is located.
The county hearing dates and the city, metropolitan special
taxing district, regional library district, and school district
hearing dates must be designated on the notices required under
subdivision 3. The continuation dates need not be stated on the
notices.
This subdivision does not apply to towns and special taxing
districts other than regional library districts and metropolitan
special taxing districts.
Notwithstanding the requirements of this section, the
employer is required to meet and negotiate over employee
compensation as provided for in chapter 179A.
Sec. 9. Minnesota Statutes 1992, section 290A.08, is
amended to read:
290A.08 [ONE CLAIMANT PER HOUSEHOLD.]
Only one claimant per household per year is entitled to
relief under this chapter. Payment of the claim for relief may
be made payable to the husband and wife as one claimant. The
commissioner, upon written request, may issue separate checks,
to the husband and wife for one-half of the relief provided the
original check has not been issued or has been returned.
Individuals related as husband and wife who were married during
the year may elect to file a joint claim which shall include
each spouse's income, rent constituting property taxes, and
property taxes payable. Husbands and wives who were married for
the entire year and were domiciled in the same household for the
entire year must file a joint claim. The maximum dollar amount
allowable for a joint claim shall not exceed the amount that one
person could receive.
Sec. 10. Minnesota Statutes 1992, section 290A.18,
subdivision 2, is amended to read:
Subd. 2. [CLAIMANT CANNOT BE LOCATED.] If the commissioner
cannot locate the claimant within two years from the date that
the original warrant was issued, or if a claimant to whom a
warrant has been issued does not cash that warrant within two
years from the date the warrant was issued, the right to the
credit shall lapse, and the warrant shall be deposited in the
general fund.
Sec. 11. [384.19] [STATEMENT OF UNPAID DELINQUENT TAXES.]
Upon request of any person the county auditor shall search
the official records of the office to determine if unpaid
property taxes exist for any tax parcels of land listed in the
request. The county auditor shall certify the results of the
search for each parcel by showing the amount of tax unpaid for
each tax year payable. For purposes of this section, "tax"
includes penalty, interest, fees, and costs related to the
unpaid tax.
At the option of the county auditor, magnetic tape or other
electronic media may be employed to transmit the data request or
the search results. For this service a fee may be charged in an
amount established by the county board up to a maximum of $5 per
parcel, to recover the reasonable costs incurred to furnish the
service. The provisions of section 276.041 are not affected by
this section.
Sec. 12. [385.42] [STATEMENT OF UNPAID CURRENT TAXES.]
Upon request of any person the county treasurer shall
search the official records of the office to determine if unpaid
property taxes exist for the current tax year for any tax
parcels of land listed in the request. The county treasurer
shall certify the results of the search for each parcel by
showing the amount of tax unpaid. For purposes of this section,
"tax" includes penalty, interest, fees, and costs related to the
unpaid tax.
At the option of the county treasurer, magnetic tape or
other electronic media may be employed to transmit the data
request or the search results. For this service a fee may be
charged in an amount established by the county board up to a
maximum of $5 per parcel, to recover the reasonable costs
incurred to furnish the service. The provisions of section
276.041 are not affected by this section.
This section shall not authorize the treasurer or county
auditor to charge a fee for certifying to taxes on a deed to be
recorded.
Sec. 13. [REPEALER.]
Minnesota Statutes 1992, sections 270.0604, subdivision 6;
272.09; 272.46, subdivision 1; and 272.47 are repealed.
Sec. 14. [EFFECTIVE DATES.]
Sections 1, 2, and 5 are effective July 1, 1995.
Sections 3, 7, 11 to 13 are effective July 1, 1994.
Sections 4 and 10 are effective on the day following final
enactment.
Sections 6 and 8 are effective for taxes payable in 1995
and thereafter.
Section 9 is effective for refunds based on rents paid in
1994, and property taxes payable in 1995, and thereafter.
ARTICLE 2
INCOME TAX
Section 1. Minnesota Statutes 1992, section 270.052, is
amended to read:
270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.]
Pursuant to section 270B.12, the commissioner may enter
into an agreement with the Internal Revenue Service to identify
taxpayers who have refunds due from the department of revenue
and liabilities owing to the Internal Revenue Service, if the
Internal Revenue Service agrees to identify taxpayers who have
refunds due from the Internal Revenue Service and liabilities
owing to the department of revenue. In accordance with the
procedures established in the agreement, the Internal Revenue
Service may levy against the refunds to be paid by the
department of revenue, and the department of revenue may levy
against refunds to be paid by the Internal Revenue Service.
Sec. 2. Minnesota Statutes 1992, section 289A.60, is
amended by adding a subdivision to read:
Subd. 22. [COMPOSITE RETURNS.] For the purposes of the
penalties imposed by subdivisions 1 and 2, the payment of a
composite tax or filing of a composite return pursuant to
section 289A.08, subdivision 7, is considered the payment and
filing of a corporate tax.
Sec. 3. Minnesota Statutes 1992, section 289A.60, is
amended by adding a subdivision to read:
Subd. 23. [WITHHOLDING FOR NONRESIDENT PARTNERS OR
SHAREHOLDERS.] For the purposes of the penalties imposed by
subdivisions 1, 2, and 5a, the filing of returns required by
section 289A.09, subdivision 1, paragraphs (d) and (e), and the
payment of amounts withheld under section 290.92, subdivisions
4b and 4c, are considered filing and payment corporate tax
rather than withholding tax.
Sec. 4. Minnesota Statutes 1992, section 290.01,
subdivision 3a, is amended to read:
Subd. 3a. [TRUST.] The term "trust" has the meaning
provided under the Internal Revenue Code of 1986, as amended
through December 31, 1991 1993, and also means designated
settlement fund as defined in and taxed federally under section
468B of the Internal Revenue Code of 1986, as amended through
December 31, 1993.
Sec. 5. Minnesota Statutes 1993 Supplement, section
290.01, subdivision 19, is amended to read:
Subd. 19. [NET INCOME.] The term "net income" means the
federal taxable income, as defined in section 63 of the Internal
Revenue Code of 1986, as amended through the date named in this
subdivision, incorporating any elections made by the taxpayer in
accordance with the Internal Revenue Code in determining federal
taxable income for federal income tax purposes, and with the
modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund
thereof, as defined in section 851(a) or 851(h) of the Internal
Revenue Code, federal taxable income means investment company
taxable income as defined in section 852(b)(2) of the Internal
Revenue Code, except that:
(1) the exclusion of net capital gain provided in section
852(b)(2)(A) of the Internal Revenue Code does not apply; and
(2) the deduction for dividends paid under section
852(b)(2)(D) of the Internal Revenue Code must be applied by
allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C)
and 852(b)(5) of the Internal Revenue Code.
The net income of a real estate investment trust as defined
and limited by section 856(a), (b), and (c) of the Internal
Revenue Code means the real estate investment trust taxable
income as defined in section 857(b)(2) of the Internal Revenue
Code.
The net income of a designated settlement fund as defined
in section 468B(d) of the Internal Revenue Code means the gross
income as defined in section 468B(b) of the Internal Revenue
Code.
The Internal Revenue Code of 1986, as amended through
December 31, 1986, shall be in effect for taxable years
beginning after December 31, 1986. The provisions of sections
10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223,
10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the
Omnibus Budget Reconciliation Act of 1987, Public Law Number
100-203, the provisions of sections 1001, 1002, 1003, 1004,
1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013,
1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137,
6277, and 6282 of the Technical and Miscellaneous Revenue Act of
1988, Public Law Number 100-647, and the provisions of sections
7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of
1989, Public Law Number 101-239, shall be effective at the time
they become effective for federal income tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1987, shall be in effect for taxable years
beginning after December 31, 1987. The provisions of sections
4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011,
6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180,
6182, 6280, and 6281 of the Technical and Miscellaneous Revenue
Act of 1988, Public Law Number 100-647, the provisions of
sections 7815 and 7821 of the Omnibus Budget Reconciliation Act
of 1989, Public Law Number 101-239, and the provisions of
section 11702 of the Revenue Reconciliation Act of 1990, Public
Law Number 101-508, shall become effective at the time they
become effective for federal tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1988, shall be in effect for taxable years
beginning after December 31, 1988. The provisions of sections
7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206,
7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622,
7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget
Reconciliation Act of 1989, Public Law Number 101-239, the
provision of section 1401 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, Public Law Number 101-73,
and the provisions of sections 11701 and 11703 of the Revenue
Reconciliation Act of 1990, Public Law Number 101-508, shall
become effective at the time they become effective for federal
tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1989, shall be in effect for taxable years
beginning after December 31, 1989. The provisions of sections
11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of
the Revenue Reconciliation Act of 1990, Public Law Number
101-508, shall become effective at the time they become
effective for federal purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1990, shall be in effect for taxable years
beginning after December 31, 1990.
The Internal Revenue Code of 1986, as amended through
December 31, 1991, shall be in effect for taxable years
beginning after December 31, 1991.
The provisions of sections 1936 and 1937 of the
Comprehensive National Energy Policy Act of 1992, Public Law
Number 102-486, shall become effective at the time they become
effective for federal purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1992, shall be in effect for taxable years
beginning after December 31, 1992.
Except as otherwise provided, references to the Internal
Revenue Code in subdivisions 19a to 19g mean the code in effect
for purposes of determining net income for the applicable year.
Sec. 6. [EFFECTIVE DATES.]
Section 1 is effective the day following final enactment.
Sections 2 and 3 are effective for tax returns due for tax years
beginning after December 31, 1993. Sections 4 and 5 are
effective for tax years beginning after December 31, 1993.
ARTICLE 3
SALES, USE, AND MOTOR VEHICLE EXCISE TAXES
Section 1. Minnesota Statutes 1992, section 270.60,
subdivision 1, is amended to read:
Subdivision 1. [TAXES PAID BY INDIANS.] The commissioner
of revenue is authorized to enter into a tax refund agreement
with the governing body of any Sioux or Chippewa federally
recognized Indian reservation in Minnesota. The agreement may
provide for a mutually agreed upon amount as a refund to the
governing body of any sales or excise tax paid by the total
resident Indian population on or adjacent to a reservation into
the state treasury, or for an amount which measures the economic
value of an agreement by the council tribal government to pay
the equivalent of the state sales tax on items included in the
sales tax base but exempt on the reservation, notwithstanding
any other law which limits the refundment of taxes. The total
resident Indian population on or adjacent to a reservation shall
be defined according to the United States Department of the
Interior, Bureau of Indian Affairs, as determined and stated in
its Report on Service Population and Labor Force.
Sec. 2. Minnesota Statutes 1992, section 270.60,
subdivision 2, is amended to read:
Subd. 2. [CIGARETTE TAXES SALES, USE, AND EXCISE
TAXES.] (a) The commissioner of revenue is also authorized to
enter into a tax refund agreement with the governing body of any
federally recognized Indian reservation in Minnesota, for refund
of a mutually agreed upon amount of the cigarette taxes
collected from sales on reservations or trust lands of an Indian
tribe to the established governing body of the tribe having
jurisdiction over the reservation or trust land on which the
sale is made. that provides for the state and the tribal
government to share sales, use, and excise tax revenues
generated from on reservation activities of non-Indians and off
reservation activities of members of the reservation. Every
agreement entered into pursuant to this subdivision must require
the commissioner of revenue to collect all state and tribal
taxes covered by the agreement.
(b) The commissioner of revenue is authorized to collect
any tribal taxes imposed pursuant to any agreement entered into
pursuant to this subdivision and to make payments authorized by
the agreement to the tribal government from the funds collected.
(c) The commissioner shall pay to the tribal government its
share of the taxes collected pursuant to the agreement, as
indicated in the agreement, and grant the taxpayer a credit for
the taxpayer's share of the amount paid to the tribal government
against the taxpayer's Minnesota tax.
Sec. 3. Minnesota Statutes 1993 Supplement, section
270B.01, subdivision 8, is amended to read:
Subd. 8. [MINNESOTA TAX LAWS.] For purposes of this
chapter only, "Minnesota tax laws" means the taxes administered
by or paid to the commissioner under chapters 289A (except taxes
imposed under sections 298.01, 298.015, and 298.24), 290, 290A,
291, and 297A and sections 295.50 to 295.59, or any similar
Indian tribal tax administered by the commissioner pursuant to
any tax agreement between the state and the Indian tribal
government, and includes any laws for the assessment,
collection, and enforcement of those taxes.
Sec. 4. Minnesota Statutes 1992, section 270B.03,
subdivision 1, is amended to read:
Subdivision 1. [WHO MAY INSPECT.] Returns and return
information must, on written request, be made open to inspection
by or disclosure to the data subject. For purposes of this
chapter, the following are the data subject:
(1) in the case of an individual return, that individual;
(2) in the case of an income tax return filed jointly,
either of the individuals with respect to whom the return is
filed;
(3) in the case of a partnership return, any person who was
a member of the partnership during any part of the period
covered by the return;
(4) in the case of the return of a corporation or its
subsidiary:
(i) any person designated by resolution of the board of
directors or other similar governing body;
(ii) any officer or employee of the corporation upon
written request signed by any officer and attested to by the
secretary or another officer;
(iii) any bona fide shareholder of record owning one
percent or more of the outstanding stock of the corporation;
(iv) if the corporation is a corporation that has made an
election under section 1362 of the Internal Revenue Code of
1986, as amended through December 31, 1988, any person who was a
shareholder during any part of the period covered by the return
during which an election was in effect; or
(v) if the corporation has been dissolved, any person
authorized by state law to act for the corporation or any person
who would have been authorized if the corporation had not been
dissolved;
(5) in the case of an estate return:
(i) the personal representative or trustee of the estate;
and
(ii) any heir at law, next of kin, or beneficiary of the
estate, but only if the commissioner finds that the heir at law,
next of kin, or beneficiary has a material interest that will be
affected by information contained in the return;
(6) in the case of a trust return:
(i) the trustee or trustees, jointly or separately; and
(ii) any beneficiary of the trust, but only if the
commissioner finds that the beneficiary has a material interest
that will be affected by information contained in the return;
and
(7) if liability has been assessed to a transferee under
section 289A.31, subdivision 3, the transferee is the data
subject with regard to the returns and return information
relating to the assessed liability.; and
(8) in the case of an Indian tribal government or an Indian
tribal government owned entity,
(i) the chair of the tribal government, or
(ii) any person authorized by the tribal government.
Sec. 5. Minnesota Statutes 1992, section 270B.12,
subdivision 3, is amended to read:
Subd. 3. [REQUEST FORM; NAMED INSPECTOR.] Inspections and
disclosures permitted under subdivisions 1 and, 2, and 10 are
allowed only upon written request in a form prescribed by the
commissioner and may be made only to the representatives of the
agency, body, or commission named in the written request as the
individuals who are to inspect or receive the returns or return
information on behalf of the agency, body, or commission.
Sec. 6. Minnesota Statutes 1992, section 270B.12, is
amended by adding a subdivision to read:
Subd. 10. [INDIAN TRIBAL GOVERNMENTS.] Sales and use tax
returns and return information are open to inspection by or
disclosure to the taxing officials of any Indian tribal
government in Minnesota for the purpose of and to the extent
necessary for the administration of any tax agreement entered
into between the state and the Indian tribal government pursuant
to section 270.60, subdivision 2. Prior to inspection or
disclosure, the Indian tribal government must establish
procedures for safeguarding the information.
Sec. 7. Minnesota Statutes 1993 Supplement, section
289A.18, subdivision 4, is amended to read:
Subd. 4. [SALES AND USE TAX RETURNS.] (a) Sales and use
tax returns must be filed on or before the 20th day of the month
following the close of the preceding reporting period, except
that annual use tax returns provided for under section 289A.11,
subdivision 1, must be filed by April 15 following the close of
the calendar year, in the case of individuals. Annual use tax
returns of businesses, including sole proprietorships, and
annual sales tax returns must be filed by February 5 following
the close of the calendar year.
(b) Returns filed by retailers required to remit
liabilities by means of funds transfer under section 289A.20,
subdivision 4, paragraph (d), are due on or before the 25th day
of the month following the close of the preceding reporting
period. The return for the May liability and 75 percent of the
estimated June liability is due on the date payment of the
estimated June liability is due, and on or before August 25 of a
year, the retailer must file a return showing the actual June
liability.
(c) If a retailer has an average sales and use tax
liability, including local sales and use taxes administered by
the commissioner, equal to or less than $500 per month in any
quarter of a calendar year, and has substantially complied with
the tax laws during the preceding four calendar quarters, the
retailer may request authorization to file and pay the taxes
quarterly in subsequent calendar quarters. The authorization
remains in effect during the period in which the retailer's
quarterly returns reflect sales and use tax liabilities of less
than $1,500 and there is continued compliance with state tax
laws.
(d) If a retailer has an average sales and use tax
liability, including local sales and use taxes administered by
the commissioner, equal to or less than $100 per month during a
calendar year, and has substantially complied with the tax laws
during that period, the retailer may request authorization to
file and pay the taxes annually in subsequent years. The
authorization remains in effect during the period in which the
retailer's annual returns reflect sales and use tax liabilities
of less than $1,200 and there is continued compliance with state
tax laws.
(e) The commissioner may also grant quarterly or annual
filing and payment authorizations to retailers if the
commissioner concludes that the retailers' future tax
liabilities will be less than the monthly totals identified in
paragraphs (c) and (d). An authorization granted under this
paragraph is subject to the same conditions as an authorization
granted under paragraphs (c) and (d).
Sec. 8. Minnesota Statutes 1993 Supplement, section
289A.20, subdivision 4, is amended to read:
Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by
chapter 297A are due and payable to the commissioner monthly on
or before the 20th day of the month following the month in which
the taxable event occurred or following another reporting period
as the commissioner prescribes, except that use taxes due on an
annual use tax return as provided under section 289A.11,
subdivision 1, are payable by April 15 following the close of
the calendar year.
(b) A vendor having a liability of $120,000 or more during
a fiscal year ending June 30 must remit the June liability for
the next year in the following manner:
(1) Two business days before June 30 of the year, the
vendor must remit 75 percent of the estimated June liability to
the commissioner.
(2) On or before August 14 of the year, the vendor must pay
any additional amount of tax not remitted in June.
(c) When a retailer located outside of a city that imposes
a local sales and use tax collects use tax to be remitted to
that city, the retailer is not required to remit the tax until
the amount collected reaches $10.
(d) A vendor having a liability of $120,000 or more during
a fiscal year ending June 30 must remit all liabilities in the
subsequent calendar year by means of a funds transfer as defined
in section 336.4A-104, paragraph (a). The funds transfer
payment date, as defined in section 336.4A-401, must be on or
before the 14th day of the month following the month in which
the taxable event occurred, except for 75 percent of the
estimated June liability, which is due two business days before
June 30. The remaining amount of the June liability is due on
August 14. If the date the tax is due is not a funds transfer
business day, as defined in section 336.4A-105, paragraph (a),
clause (4), the payment date must be on or before the funds
transfer business day next following the date the tax is due.
(e) (d) If the vendor required to remit by electronic funds
transfer as provided in paragraph (d) (c) is unable due to
reasonable cause to determine the actual sales and use tax due
on or before the due date for payment, the vendor may remit an
estimate of the tax owed using one of the following options:
(1) 100 percent of the tax reported on the previous month's
sales and use tax return;
(2) 100 percent of the tax reported on the sales and use
tax return for the same month in the previous calendar year; or
(3) 95 percent of the actual tax due.
Any additional amount of tax that is not remitted on or
before the due date for payment, must be remitted with the
return. A vendor must notify the commissioner of the option
that will be used to estimate the tax due, and must obtain
approval from the commissioner to switch to another option. If
a vendor fails to remit the actual liability or does not remit
using one of the estimate options by the due date for payment,
the vendor must remit actual liability as provided in paragraph
(d) (c) in all subsequent periods. This paragraph does not
apply to the June sales and use tax liability.
Sec. 9. Minnesota Statutes 1993 Supplement, section
297A.01, subdivision 15, is amended to read:
Subd. 15. "Farm machinery" means new or used machinery,
equipment, implements, accessories, and contrivances used
directly and principally in the production for sale, but not
including the processing, of livestock, dairy animals, dairy
products, poultry and poultry products, fruits, vegetables,
forage, grains and bees and apiary products. "Farm machinery"
includes:
(1) machinery for the preparation, seeding or cultivation
of soil for growing agricultural crops and sod, harvesting and
threshing of agricultural products, harvesting or mowing of sod,
and certain machinery for dairy, livestock and poultry farms;
(2) barn cleaners, milking systems, grain dryers, automatic
feeding systems and similar installations, whether or not the
equipment is installed by the seller and becomes part of the
real property;
(3) irrigation equipment sold for exclusively agricultural
use, including pumps, pipe fittings, valves, sprinklers and
other equipment necessary to the operation of an irrigation
system when sold as part of an irrigation system, except
irrigation equipment which is situated below ground and
considered to be a part of the real property whether or not the
equipment is installed by the seller and becomes part of the
real property;
(4) logging equipment, including chain saws used for
commercial logging;
(5) fencing used for the containment of farmed cervidae, as
defined in section 17.451, subdivision 2; and
(6) primary and backup generator units used to generate
electricity for the purpose of operating farm machinery, as
defined in this subdivision, or providing light or space heating
necessary for the production of livestock, dairy animals, dairy
products, or poultry and poultry products.
Repair or replacement parts for farm machinery shall not be
included in the definition of farm machinery.
Tools, shop equipment, grain bins, feed bunks, fencing
material except fencing material covered by clause (5),
communication equipment and other farm supplies shall not be
considered to be farm machinery. "Farm machinery" does not
include motor vehicles taxed under chapter 297B, snowmobiles,
snow blowers, lawn mowers except those used in the production of
sod for sale, garden-type tractors or garden tillers and the
repair and replacement parts for those vehicles and machines.
Sec. 10. Minnesota Statutes 1993 Supplement, section
297A.07, subdivision 1, is amended to read:
Subdivision 1. [HEARINGS.] If any person fails to comply
with this chapter or the rules adopted under this chapter,
without reasonable cause, the commissioner may schedule a
hearing requiring the person to show cause why the permit should
not be revoked. The commissioner must give the person 15 days'
notice in writing, specifying the time and place of the hearing
and the reason for the proposed revocation give the person 30
days' notice in writing, specifying the violations, and that
based upon such violations the commissioner intends to revoke
the person's permit. The notice shall also advise the person of
the person's right to contest the revocation under this
subdivision, and the general procedures for a contested case
hearing under chapter 14, and the notice requirement under
subdivision 2. The notice may be served personally or by mail
in the manner prescribed for service of an order of assessment.
A permit is revoked when the commissioner serves a notice of
revocation of permit upon the person after 30 days have passed
following the date of the notice of intent to revoke without the
person requesting a hearing, or if a hearing is timely
requested, and held, after the commissioner serves an order of
revocation of permit under section 14.62, subdivision 1.
Sec. 11. Minnesota Statutes 1992, section 297A.25,
subdivision 9, is amended to read:
Subd. 9. [MATERIALS CONSUMED IN PRODUCTION.] The gross
receipts from the sale of and the storage, use, or consumption
of all materials, including chemicals, fuels, petroleum
products, lubricants, packaging materials, including returnable
containers used in packaging food and beverage products, feeds,
seeds, fertilizers, electricity, gas and steam, used or consumed
in agricultural or industrial production of personal property
intended to be sold ultimately at retail, whether or not the
item so used becomes an ingredient or constituent part of the
property produced are exempt. Seeds, trees, fertilizers, and
herbicides purchased for use by farmers in the Conservation
Reserve Program under United States Code, title 16, section
590h, the Integrated Farm Management Program under section 1627
of Public Law Number 101-624, the Wheat and Feed Grain Programs
under sections 301 to 305 and 401 to 405 of Public Law Number
101-624, and the conservation reserve program under sections
103F.505 to 103F.531, are included in this exemption. Chemicals
used for cleaning food processing machinery and equipment are
included in this exemption. Materials, including chemicals,
fuels, and electricity purchased by persons engaged in
agricultural or industrial production to treat waste generated
as a result of the production process are included in this
exemption. Such production shall include, but is not limited
to, research, development, design or production of any tangible
personal property, manufacturing, processing (other than by
restaurants and consumers) of agricultural products whether
vegetable or animal, commercial fishing, refining, smelting,
reducing, brewing, distilling, printing, mining, quarrying,
lumbering, generating electricity and the production of road
building materials. Such production shall not include painting,
cleaning, repairing or similar processing of property except as
part of the original manufacturing process. Machinery,
equipment, implements, tools, accessories, appliances,
contrivances, furniture and fixtures, used in such production
and fuel, electricity, gas or steam used for space heating or
lighting, are not included within this exemption; however,
accessory tools, equipment and other short lived items, which
are separate detachable units used in producing a direct effect
upon the product, where such items have an ordinary useful life
of less than 12 months, are included within the exemption
provided herein. Electricity used to make snow for outdoor use
for ski hills, ski slopes, or ski trails is included in this
exemption.
Sec. 12. Minnesota Statutes 1993 Supplement, section
297A.25, subdivision 11, is amended to read:
Subd. 11. [SALES TO GOVERNMENT.] The gross receipts from
all sales, including sales in which title is retained by a
seller or a vendor or is assigned to a third party under an
installment sale or lease purchase agreement under section
465.71, of tangible personal property to, and all storage, use
or consumption of such property by, the United States and its
agencies and instrumentalities, the University of Minnesota,
state universities, community colleges, technical colleges,
state academies, the Minnesota center for arts education, and
school districts are exempt.
As used in this subdivision, "school districts" means
public school entities and districts of every kind and nature
organized under the laws of the state of Minnesota, including,
without limitation, school districts, intermediate school
districts, education districts, educational cooperative service
units, secondary vocational cooperative centers, special
education cooperatives, joint purchasing cooperatives,
telecommunication cooperatives, regional management information
centers, technical colleges, joint vocational technical
districts, and any instrumentality of a school district, as
defined in section 471.59.
Sales exempted by this subdivision include sales under
section 297A.01, subdivision 3, paragraph (f), but do not
include sales under section 297A.01, subdivision 3, paragraph
(j), clause (vii).
Sales to hospitals and nursing homes owned and operated by
political subdivisions of the state are exempt under this
subdivision.
The sales to and exclusively for the use of libraries of
books, periodicals, audio-visual materials and equipment,
photocopiers for use by the public, and all cataloging and
circulation equipment, and cataloging and circulation software
for library use are exempt under this subdivision. For purposes
of this paragraph "libraries" means libraries as defined in
section 134.001, county law libraries under chapter 134A, the
state library under section 480.09, and the legislative
reference library.
Sales of supplies and equipment used in the operation of an
ambulance service owned and operated by a political subdivision
of the state are exempt under this subdivision provided that the
supplies and equipment are used in the course of providing
medical care. Sales to a political subdivision of repair and
replacement parts for emergency rescue vehicles and fire trucks
and apparatus are exempt under this subdivision.
Sales to a political subdivision of machinery and
equipment, except for motor vehicles, used directly for mixed
municipal solid waste collection and disposal services at a
solid waste disposal facility as defined in section 115A.03,
subdivision 10, are exempt under this subdivision.
Sales to political subdivisions of chore and homemaking
services to be provided to elderly or disabled individuals are
exempt.
This exemption shall not apply to building, construction or
reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type
of contract with a guaranteed maximum price covering both labor
and materials for use in the construction, alteration, or repair
of a building or facility. This exemption does not apply to
construction materials purchased by tax exempt entities or their
contractors to be used in constructing buildings or facilities
which will not be used principally by the tax exempt entities.
This exemption does not apply to the leasing of a motor
vehicle as defined in section 297B.01, subdivision 5, except for
leases entered into by the United States or its agencies or
instrumentalities.
The tax imposed on sales to political subdivisions of the
state under this section applies to all political subdivisions
other than those explicitly exempted under this subdivision,
notwithstanding section 115A.69, subdivision 6, 116A.25,
360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2,
469.127, 473.394, 473.448, 473.545, or 473.608 or any other law
to the contrary enacted before 1992.
Sales exempted by this subdivision include sales made to
other states or political subdivisions of other states are
exempt, if the sale would be exempt from taxation if it occurred
in that state, but do not include sales under section 297A.01,
subdivision 3, paragraphs (c) and (e).
Sec. 13. [REPEALER.]
Minnesota Statutes 1992, section 297A.07, subdivision 2, is
repealed.
Sec. 14. [EFFECTIVE DATE.]
Sections 1 to 6 are effective July 1, 1994.
Section 8 is effective the day following final enactment.
Section 7 is effective for returns due after December 31,
1994.
Sections 9, 11, and 12 are effective for sales occurring
after June 30, 1994.
Sections 10 and 13 are effective for notices dated after
January 1, 1995.
ARTICLE 4
COLLECTIONS
Section 1. Minnesota Statutes 1992, section 270.10, is
amended by adding a subdivision to read:
Subd. 5. [APPEAL; PAYMENT OF ORDER.] No collection action
may be taken, including the filing of liens under section
270.69, and no penalties may be imposed if an order of the
commissioner, excluding orders relating to property tax matters,
is paid:
(1) within 60 days after notice and demand for payment of
the order have been mailed to the taxpayer; or
(2) if an administrative appeal or a tax court appeal under
chapter 271 is timely filed, within 60 days following final
determination of the appeal if the appeal is based upon a
constitutional challenge to the tax, and if not, when the
decision of the tax court is made.
Sec. 2. [270.102] [SUCCESSOR LIABILITY OF BUSINESSES.]
Subdivision 1. [DEFINITIONS.] (a) The following terms used
in this section have the following meanings.
(b) "Successor" means a person who directly or indirectly
purchases, acquires, is gifted, or succeeds to the business or
stock of goods of any person quitting, selling, or otherwise
disposing of a business or stock of goods. Successor does not
include a personal representative or beneficiary of an estate.
(c) "Person" means an individual, partnership, corporation,
sole proprietorship, joint venture, limited liability company,
or any other type of business entity or association.
(d) "Withhold" means setting aside money or dealing with
the payment of consideration in a manner that denies a
transferring business the benefit of the transfer in an amount
equal to the sales and withholding tax liability of the
transferring business.
(e) "Purchase price" means the consideration paid or to be
paid for the transfer by the successor to the transferring
business, and includes amounts paid for tangible property or
intangibles such as leases, licenses, or goodwill. Purchase
price also includes debts assumed or forgiven by the successor,
or real or personal property conveyed or to be conveyed by the
successor to the transferring business.
(f) "Arm's length transaction" means a transfer for
adequate consideration between independent parties both acting
in their own best interests. If the parties are related to each
other, a rebuttable presumption arises that the transaction is
not at arm's length.
(g) "Transfer" means every mode, direct or indirect,
absolute or conditional, voluntary or involuntary, of disposing
of or parting with a business or an interest in a business, or a
stock of goods, whether by gift or for consideration. Transfer
includes a change in the type of business entity or the name of
the business, where one business is discontinued and a new one
started. Transfer also includes the acquisition by a new
corporation of the assets of a prior business in exchange for
the stock of the new corporation.
Subd. 2. [BULK TRANSFERS; LIABILITY OF SUCCESSOR;
LIEN.] (a) Whenever a business transfers in bulk to a successor
all or any part of the business assets, other than in the
ordinary course of business, and a lien for unpaid sales and
withholding taxes has been filed against the business by the
commissioner under section 270.69 in the office of the secretary
of state or in the office of the county recorder for the county
in which the business is located, at least 20 days before taking
possession of the assets or paying the purchase price, the
successor shall notify the commissioner of the transfer and the
terms and conditions related to it. The notice must include the
tax identification number of the transferring business.
(b) If the successor fails to give the notice required in
paragraph (a), the successor is liable for any unpaid sales and
withholding taxes, interest, and penalties due from the
transferring business to the extent of the purchase price. If
the successor provides the notice required in paragraph (a) and,
within 20 days after receipt of the notice, the commissioner
notifies the successor that tax liabilities exist in addition to
those included on the lien or there are sales and withholding
tax returns due but not filed, the successor is, in addition to
being liable for the amounts included on the lien, liable for
all other uncontested sales and withholding taxes, interest, and
penalties as stated in the commissioner's notice from the
transferring business to the extent the successor pays the
purchase price or takes possession of the assets without
withholding and remitting the liability to the commissioner.
The successor is liable whether the purchase price is paid or
the assets are transferred prior to or after notification from
the commissioner. The commissioner may also notify the
successor that there are no sales or withholding tax liabilities
or returns due from the transferring business other than the
liabilities included on the lien, and of the current balance due
to satisfy the lien.
(c) The commissioner shall have a first priority lien for
all consideration paid or to be paid toward the purchase price
when the requirements of this section have not been met.
(d) If, based upon the information available, the
commissioner determines that a transfer was not at arm's length
or was a gift, the successor's liability under this section
equals the value of the assets transferred. For purposes of
imposing the liability, the value of the property transferred is
presumed to equal the unpaid sales and withholding taxes,
interest, and penalties of the transferring business.
(e) In the case of a gift resulting in successor liability
under this section, return of the gifted property by the donee
to the donor releases the donee's successor liability.
(f) The liability imposed by this section does not include
assignments for the benefit of creditors under chapter 577,
foreclosures of mortgages under chapters 580 to 582 or of
security interests arising under article 9 of the Uniform
Commercial Code, or sales by trustees in bankruptcy.
(g) A successor who complies with the requirements of
paragraphs (a) and (b) is not liable for any assessments of
sales and withholding taxes of the transferring business made
after the commissioner provides notice to the successor under
paragraph (b), except for taxes assessed on returns filed to
comply with the notice. If the commissioner fails to provide
the notice and the 20-day period expires, the successor is not
liable for any sales and withholding taxes of the transferring
business other than those included on the lien.
Subd. 3. [ASSESSMENT PROCEDURE; NO STAY ON COLLECTION
REMEDIES.] The commissioner may assess liability under this
section within the time prescribed for collecting the underlying
sales and withholding taxes, interest, and penalties. The
assessment is presumed to be valid, and the burden is upon the
successor to show it is incorrect or invalid. An order
assessing successor liability is reviewable administratively
under section 289A.65 and is appealable to tax court under
chapter 271. Collection remedies available against the
transferring business are available against the successor from
the date of assessment of successor liability.
Subd. 4. [DISCLOSURE.] Notification by the commissioner to
the successor under subdivision 2, paragraph (b), that the
transferring business owes sales and withholding taxes,
interest, and penalties or has returns that are due, or that
there are no outstanding liabilities or returns other than the
liabilities included on the lien, or of the current balance due
to satisfy the lien, is not a disclosure violation under chapter
270B.
Sec. 3. Minnesota Statutes 1992, section 270.69,
subdivision 4, is amended to read:
Subd. 4. [PERIOD OF LIMITATIONS.] The lien imposed by this
section shall, notwithstanding any other provision of law to the
contrary, be enforceable from the time the lien arises and for
ten years from the date of filing the notice of lien, which must
be filed by the commissioner within five years after the date of
assessment of the tax or final administrative or judicial
determination of the assessment. A notice of lien filed in one
county may be transcribed to any other county within ten years
after the date of its filing, but the transcription shall not
extend the period during which the lien is enforceable. A
notice of lien may be renewed by the commissioner before the
expiration of the ten-year period for an additional ten years.
The taxpayer must receive written notice of the renewal.
Sec. 4. Minnesota Statutes 1992, section 270.69, is
amended by adding a subdivision to read:
Subd. 15. [ASSIGNMENT OF LIENS.] The commissioner may sell
and assign to a third party the right of redemption in specific
real property for liens filed under this section. The
redemption in the hands of the assignee shall not be enforceable
by any of the collection remedies provided to the commissioner
by law. The assignee is limited to the same rights of
redemption the commissioner would have in any mortgage
foreclosure proceeding, but in any bankruptcy proceeding does
not obtain the priority of the commissioner as a tax claimant.
Should the taxpayer or its assigns exercise the right of
redemption the assignment by the commissioner is extinguished.
Sec. 5. Minnesota Statutes 1992, section 270.70,
subdivision 2, is amended to read:
Subd. 2. [NOTICE AND DEMAND; COLLECTION BY LEVY; JEOPARDY
COLLECTION.] (a) Before a levy is made, notice and demand for
payment of the amount due must be given to the person liable for
the payment or collection of the tax at least 30 days prior to
the levy. If the commissioner has reason to believe that
collection of the tax is in jeopardy, notice and demand for
immediate payment of the tax may be made by the commissioner.
If the tax is not paid, the commissioner may proceed to collect
by levy without regard to the period provided herein. The
notice required under this subdivision paragraph must be sent to
the taxpayer's last known address and must include a brief
statement that sets forth in simple and nontechnical terms:
(1) the administrative appeals available to the taxpayer
with respect to the levy and sale; and
(2) the alternatives available to the taxpayer that can
prevent a levy, including installment payment agreements under
section 270.67, subdivision 2.
(b) Notwithstanding the stay of collection provisions in
sections 270.10, subdivision 5, and 289A.37, subdivision 1,
paragraph (b), and the notice provisions in paragraph (a), if
the commissioner has reason to believe that collection of the
tax is in jeopardy, notice and demand for immediate payment of
the tax may be made. If the tax is not paid, the commissioner
may proceed to collect by levy.
Sec. 6. Minnesota Statutes 1992, section 270.72,
subdivision 1, is amended to read:
Subdivision 1. [TAX CLEARANCE REQUIRED.] The state or a
political subdivision of the state may not issue, transfer, or
renew a license for the conduct of a profession, occupation,
trade, or business, if the commissioner notifies the licensing
authority that the applicant owes the state delinquent taxes,
penalties, or interest. The commissioner may not notify the
licensing authority unless the applicant taxpayer owes $500 or
more in delinquent taxes or has not filed returns. If the
applicant taxpayer does not owe delinquent taxes but has not
filed returns, the commissioner may not notify the licensing
authority unless the taxpayer has been given 90 days' written
notice to file the returns or show that the returns are not
required to be filed. A licensing authority that has received a
notice from the commissioner may issue, transfer, or renew the
applicant's license only if (a) the commissioner issues a tax
clearance certificate and (b) the commissioner or the applicant
forwards a copy of the clearance to the authority. The
commissioner may issue a clearance certificate only if the
applicant does not owe the state any uncontested delinquent
taxes, penalties, or interest and has filed all required returns.
Sec. 7. [270.79] [REFUNDS PAYABLE IN INSTALLMENTS.]
Subdivision 1. [LAW HELD UNCONSTITUTIONAL.] Where there is
(1) a final judicial determination that a tax law is
unconstitutional, is in violation of state or federal law, or
that a regulation or statute has been misinterpreted by the
department; and (2) the determination is not limited to
prospective application, the procedures in this section relating
to refunds attributable to that determination apply.
Subd. 2. [ESTIMATE OF CUMULATIVE REFUNDS.] The
commissioner shall estimate the cumulative refunds due resulting
from the judicial determination.
Subd. 3. [GENERAL REFUND PROVISIONS.] If the commissioner
determines that the cumulative refunds due all affected
taxpayers will not exceed $50,000,000, the general provisions
for refunding for the particular tax type apply.
Subd. 4. [REFUND PROCEDURES.] (a) If the commissioner
determines that the cumulative refunds due all affected
taxpayers will exceed $50,000,000, the refund procedures in this
subdivision apply.
(b) The refunds due shall be paid in installments beginning
after July 1 of the calendar year following the later of the
filing of the refund claim or the final judicial determination
and ending in the fifth calendar year or at the time that the
return for that calendar year is filed.
(c) The refunds shall be paid in the form of refundable
credits claimed on the tax return for the tax type giving rise
to the refund.
(d) In the case of annual returns the credit allowable must
be claimed on the annual return. When returns are filed on
other than an annual basis, the allowable credit must be claimed
on the first return due after July 1 of a calendar year.
(e) The credit allowed for each year equals 20 percent of
the claimed refund unless the commissioner determines that the
cumulative refunds due for a particular year under this section
will exceed $150,000,000. If the refunds payable will exceed
that amount, the claimed refunds will be reduced pro rata with
any balance remaining due payable with the final refund
installment.
(f) Unless contrary to the provisions in this section, the
provisions for refunds in the various tax types, including
provisions related to the payment of interest, apply to the
refunds subject to these provisions.
(g) The commissioner may establish a deminimis individual
refund amount below which the installment provisions do not
apply. The amount established under this paragraph is not
subject to the provisions of chapter 14.
Sec. 8. Minnesota Statutes 1992, section 270B.14, is
amended by adding a subdivision to read:
Subd. 14. [DISCLOSURE TO SECRETARY OF STATE.] The
commissioner may disclose return information to the secretary of
state to the extent necessary to verify that the annual fee
collected from a foreign corporation under section 303.07,
subdivision 2, is the correct amount due.
Sec. 9. Minnesota Statutes 1992, section 289A.37,
subdivision 1, is amended to read:
Subdivision 1. [ORDER OF ASSESSMENT; NOTICE AND DEMAND TO
TAXPAYER.] (a) When a return has been filed and the commissioner
determines that the tax disclosed by the return is different
than the tax determined by the examination, the commissioner
shall send an order of assessment to the taxpayer. When no
return has been filed, the commissioner may make a return for
the taxpayer under section 289A.35 or may send an order of
assessment under this subdivision. The order must explain the
basis for the assessment and must explain the taxpayer's appeal
rights. An order of assessment is final when made but may be
reconsidered by the commissioner under section 289A.65.
(b) The penalty under section 289A.60, subdivision 1, is
not imposed and no collection action can be taken, including the
filing of liens under section 270.69, if the amount shown on the
order is paid to the commissioner: (1) within 60 days after
notice of the amount and demand for its payment have been mailed
to the taxpayer by the commissioner; or (2) if an administrative
appeal is filed under section 289A.65 or a tax court appeal is
filed under chapter 271, within 60 days following final
determination of the appeal if the appeal is based upon a
constitutional challenge to the tax, and if not, when the
decision of the tax court is made.
Sec. 10. [EFFECTIVE DATE.]
Sections 1, 3 to 6, 8, and 9 are effective the day
following final enactment. Section 2 is effective for business
transfers, acquisitions, successions, or dissolutions on or
after January 1, 1995.
Section 7 is effective for refunds resulting from final
determinations made on or after the day following final
enactment, including refunds resulting from appeals that were
filed before that date but finally determined on or after that
date.
ARTICLE 5
PETROLEUM TAXES
Section 1. Minnesota Statutes 1992, section 239.05,
subdivision 10a, is amended to read:
Subd. 10a. [OXYGENATE.] "Oxygenate" means agriculturally
derived, denatured ethanol, ETBE, MTBE, or other alcohol or
ether, approved as an oxygenate by the United States
Environmental Protection Agency.
Sec. 2. Minnesota Statutes 1992, section 239.761,
subdivision 3, is amended to read:
Subd. 3. [GASOLINE.] Gasoline that is not blended with
ethanol must not be contaminated with water or other impurities
and must comply with ASTM specification D 439-89 D 4814-92c.
Gasoline that is not blended with ethanol must also comply with
the volatility requirements in Code of Federal Regulations,
title 40, part 80. After gasoline is sold, transferred, or
otherwise removed from a refinery or terminal, a person
responsible for the product:
(1) may blend the gasoline with agriculturally derived
ethanol as provided in subdivision 4;
(2) shall not blend the gasoline with any oxygenate other
than denatured, agriculturally derived ethanol;
(3) shall not blend the gasoline with other petroleum
products that are not gasoline or denatured, agriculturally
derived ethanol;
(4) shall not blend the gasoline with products commonly and
commercially known as casinghead gasoline, absorption gasoline,
condensation gasoline, drip gasoline, or natural gasoline; and
(5) may blend the gasoline with a detergent additive, an
antiknock additive, or an additive designed to replace
tetra-ethyl lead, that is registered by the EPA.
Sec. 3. Minnesota Statutes 1992, section 296.01,
subdivision 14, is amended to read:
Subd. 14. [DIESEL FUEL OIL.] "Diesel fuel oil" means a
petroleum distillate or blend of petroleum distillate and
residual fuels, intended for use as a motor fuel in internal
combustion diesel engines, that meets the specifications in ASTM
specification D 975-90. Diesel fuel includes number 1 and
number 2 fuel oils. K-1 kerosene is not diesel fuel unless it
is blended with diesel fuel for use in motor vehicles.
Sec. 4. Minnesota Statutes 1992, section 296.01, is
amended by adding a subdivision to read:
Subd. 15a. [DYED FUEL.] "Dyed fuel" means diesel fuel that
indelible dye has been added to either before or upon withdrawal
at a terminal or refinery rack, and which may be sold for exempt
purposes. The dye may be either dye required to be added per
the Environmental Protection Agency or dye that meets other
specifications required by the Internal Revenue Service or the
department.
Sec. 5. Minnesota Statutes 1992, section 296.01, is
amended by adding a subdivision to read:
Subd. 15b. [ETBE.] "ETBE" means "ethyl tertiary butyl
ether," or the equivalent term "tert-butyl ethyl ether." ETBE
is a hydrocarbon compound approved by the United States
Environmental Protection Agency for use as an oxygenate in
gasoline. ETBE is a liquid at normal atmospheric pressure and
temperature. The chemical composition of ETBE is C\T2\tH\T5\tOC(CH\T3\t)\T3\t.
Sec. 6. Minnesota Statutes 1992, section 296.01,
subdivision 18, is amended to read:
Subd. 18. [GASOLINE.] "Gasoline" means:
(a) all products commonly or commercially known or sold as
gasoline regardless of their classification or uses, except
casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline that under the requirements
of section 239.761, subdivision 3, must not be blended with
gasoline that has been sold, transferred, or otherwise removed
from a refinery or terminal; and
(b) any liquid prepared, advertised, offered for sale or
sold for use as, or commonly and commercially used as, a fuel in
spark-ignition, internal combustion engines, and that when
tested by the weights and measures division meets the
specifications in ASTM specification D 439-89 D 4814-92c.
(c) Gasoline that is not blended with ethanol must not be
contaminated with water or other impurities and must comply with
both ASTM specification D 439-89 and the volatility requirements
in Code of Federal Regulations, title 40, part 80.
(d) After gasoline is sold, transferred, or otherwise
removed from a refinery or terminal, a person responsible for
the product:
(1) may blend the gasoline with agriculturally derived
ethanol, as provided in subdivision 20;
(2) must not blend the gasoline with any oxygenate other
than denatured, agriculturally derived ethanol;
(3) must not blend the gasoline with other petroleum
products that are not gasoline or denatured, agriculturally
derived ethanol;
(4) must not blend the gasoline with products commonly and
commercially known as casinghead gasoline, absorption gasoline,
condensation gasoline, drip gasoline, or natural gasoline; and
(5) may blend the gasoline with a detergent additive, an
antiknock additive, or an additive designed to replace
tetra-ethyl lead, that is registered by the United States
Environmental Protection Agency.
Sec. 7. Minnesota Statutes 1992, section 296.01,
subdivision 19, is amended to read:
Subd. 19. [GASOLINE BLENDED WITH AN A NONETHANOL
OXYGENATE.] "Gasoline blended with an a nonethanol oxygenate"
means gasoline blended with an ETBE, MTBE, or other alcohol or
ether, other than except denatured ethanol, that is approved as
an oxygenate by the United States Environmental Protection
Agency, and that complies with ASTM specification D 4814-90a.
Oxygenates, other than denatured ethanol, must not be blended
into gasoline after the gasoline has been sold, transferred, or
otherwise removed from a refinery or terminal.
Sec. 8. Minnesota Statutes 1992, section 296.01,
subdivision 20, is amended to read:
Subd. 20. [GASOLINE BLENDED WITH ETHANOL.] "Gasoline
blended with ethanol" means gasoline blended with up to ten
percent, by volume, agriculturally derived, denatured ethanol.
The blend must comply with the volatility requirements in Code
of Federal Regulations, title 40, part 80. The blend must also
comply with ASTM specification D 4814-90a, except when subjected
to a standard distillation test. or the gasoline base stock from
which a gasoline-ethanol blend was produced must comply with
ASTM specification D 4814-90a; and the gasoline-ethanol blend
must not be blended with casing head gasoline, absorption
gasoline, condensation gasoline, drip gasoline, or natural
gasoline after the gasoline-ethanol blend has been sold,
transferred, or otherwise removed from a refinery or terminal.
The blend need not comply with ASTM specification D 4814-90a if
it is subjected to a standard distillation test. For a
distillation test, a gasoline-ethanol blend is not required to
comply with the temperature specification at the 50 percent
liquid recovery point, if the gasoline from which the
gasoline-ethanol blend was produced complies with all of the
distillation specifications.
Sec. 9. Minnesota Statutes 1992, section 296.01, is
amended by adding a subdivision to read:
Subd. 24a. [MTBE.] "MTBE" means "methyl tertiary butyl
ether," or the equivalent term "tert-butyl methyl ether." MTBE
is a hydrocarbon compound approved by the United States
Environmental Protection Agency for use as an oxygenate in
gasoline. MTBE is a liquid at normal atmospheric pressure and
temperature. The chemical composition of MTBE is (CH\T3\t)\T3\tCOCH\T3\t.
Sec. 10. Minnesota Statutes 1992, section 296.01,
subdivision 32, is amended to read:
Subd. 32. [RECEIVED.] (a) Except as otherwise provided in
this subdivision, petroleum products brought into this state
shall be deemed to be "received" in this state at the time and
place the same are unloaded in this state. When so unloaded
such products shall be deemed to be "received" in this state by
the person who is the owner thereof immediately after such
unloading; provided, however, that if such owner is not licensed
as a distributor in this state and if such products were shipped
or delivered into this state by a person who is licensed as a
distributor, then such products shall be deemed to be "received"
in this state by the licensed distributor by whom the same were
so shipped or delivered.
(b) Petroleum products produced, manufactured, or refined,
at a refinery in this state and stored thereat, or brought into
the state by boat or barge or like form of transportation and
delivered at a marine terminal in this state and stored thereat,
or brought into the state by pipeline and delivered at a
pipeline terminal in this state and stored thereat, shall not be
considered "received" until the same are withdrawn from such
refinery or terminal for sale or use in this state or for
delivery or shipment to points within this state.
(c) When so withdrawn such products shall be deemed
"received" by the person who was the owner thereof immediately
prior to withdrawal; unless (1) such products are withdrawn for
shipment or delivery to another licensed distributor, in which
case the licensed distributor to whom such shipment or delivery
is made shall be deemed to have "received" such products in this
state, or (2) such products are withdrawn for shipment or
delivery to a person not licensed as a distributor, pursuant to
one or more sale or exchange agreements by or between persons
one or more of whom is a licensed distributor, in which case the
last purchaser or exchangee under such agreement or agreements,
who is licensed as a distributor, shall be deemed to have
"received" such products in this state.
(d) Petroleum products produced in this state in any manner
other than as covered heretofore in this subdivision shall be
considered "received" by the producer thereof at the time and
place produced.
Sec. 11. Minnesota Statutes 1992, section 296.01,
subdivision 34, is amended to read:
Subd. 34. [SPECIAL FUEL.] "Special fuel" means (1) all
combustible gases and liquid petroleum products or substitutes
therefor including clear diesel fuel, except gasoline, which are
delivered into the supply tank of a licensed motor vehicle or
into storage tanks maintained by an owner or operator of a
licensed motor vehicle as a source of supply for such vehicle;
or (2) all combustible gases and liquid petroleum products or
substitutes therefor, except gasoline, when delivered to a
licensed special fuel dealer or to the retail service station
storage of a distributor who has elected to pay the special fuel
excise tax as provided in section 296.12, subdivision 3; or (3)
all combustible gases and liquid petroleum products or
substitutes therefor, except gasoline, which are used as
aviation fuel; or (4) dyed fuel that is being used illegally in
a licensed motor vehicle.
Sec. 12. Minnesota Statutes 1992, section 296.01, is
amended by adding a subdivision to read:
Subd. 38. [WET ALCOHOL.] "Wet alcohol" means
agriculturally derived fermentation ethyl alcohol having a
purity of at least 50 percent but less than 99 percent.
Sec. 13. Minnesota Statutes 1992, section 296.02,
subdivision 1, is amended to read:
Subdivision 1. [TAX IMPOSED; EXCEPTION FOR QUALIFIED
SERVICE STATION.] There is imposed an excise tax on gasoline
used in producing and generating power for propelling motor
vehicles used on the public highways of this state. For
purposes of this section, gasoline is defined in section 296.01,
subdivisions 10, 15b, 18, 19, and 20, and 24a. This tax is
payable at the times, in the manner, and by persons specified in
this chapter. The tax is payable at the rate specified in
subdivision 1b, subject to the exceptions and reductions
specified in this section.
(a) Notwithstanding any other provision of law to the
contrary, the tax imposed on special fuel sold by a qualified
service station may not exceed, or the tax on gasoline delivered
to a qualified service station must be reduced to, a rate not
more than three cents per gallon above the state tax rate
imposed on such products sold by a service station in a
contiguous state located within the distance indicated in clause
(b).
(b) A "qualifying service station" means a service station
located within 7.5 miles, measured by the shortest route by
public road, from a service station selling like product in the
contiguous state.
(c) A qualified service station shall be allowed a credit
by the supplier or distributor, or both, for the amount of
reduction computed in accordance with clause (a).
A qualified service station, before receiving the credit,
shall be registered with the commissioner of revenue.
Sec. 14. Minnesota Statutes 1992, section 296.025,
subdivision 1, is amended to read:
Subdivision 1. [TAX IMPOSED FOR MOTOR VEHICLE USE.] There
is hereby imposed an excise tax of the same rate per gallon as
the gasoline excise tax on all special fuel. For clear diesel
fuel, the tax is imposed on the first distributor who received
the product in Minnesota. For dyed fuel being used illegally in
a licensed motor vehicle, the tax is imposed on the owner or
operator of the motor vehicle, or in some instances, on the
dealer who supplied the fuel. For dyed fuel used in a motor
vehicle but subject to a federal exemption, although no federal
tax may be imposed, the fuel is subject to the state tax. For
other fuels, including jet fuel, propane, and compressed natural
gas, the tax is imposed on the distributor, special fuel dealer,
or bulk purchaser. This tax shall be is payable at the
time, and in the manner and by persons specified in this
chapter. For purposes of this section, "owner or operator"
means the operation of licensed motor vehicles, whether loaded
or empty, whether for compensation or not for compensation, and
whether owned by or leased to the motor carrier who operates
them or causes them to be operated.
Sec. 15. Minnesota Statutes 1992, section 296.025, is
amended by adding a subdivision to read:
Subd. 7. [TAX ON INVENTORY.] For dealers paying tax on
sales, all inventory as of 12:01 a.m. on September 1, 1994,
shall be reported on the dealer's final report.
Sec. 16. Minnesota Statutes 1992, section 296.06,
subdivision 2, is amended to read:
Subd. 2. [REQUIREMENTS FOR ISSUANCE; FEE.] A distributor's
license shall be issued to any responsible person qualifying as
a distributor who makes application therefor, and who shall pay
to the commissioner at the time thereof and annually thereafter
a license fee of $25, and who shall further comply with the
following conditions:
(1) A written application shall be made in a manner
approved by the commissioner, who shall require the applicant or
licensee to deposit with the state treasurer securities of the
United States government or the state of Minnesota or to execute
and file a bond, with a corporate surety approved by the
commissioner, to the state of Minnesota in an amount to be
determined by the commissioner and in a form to be fixed by the
commissioner and approved by the attorney general, and which
shall be conditioned for the payment when due of all excise
taxes, inspection fees, penalties, and accrued interest arising
in the ordinary course of business or by reason of any
delinquent money which may be due the state of Minnesota; the
bond shall cover all places of business within the state where
petroleum products are received by the licensee; and the
applicant or licensee shall designate and maintain an agent in
this state upon whom service may be had for all purposes of this
section.
(2) An initial applicant for a distributor's license shall
furnish a bond in a minimum sum of $3,000 for the first year;
(3) The commissioner, on reaching the opinion that the bond
given by a licensee is inadequate in amount to fully protect the
state, shall require an additional bond in such amount as the
commissioner deems sufficient;
(4) A licensee who desires to be exempt from depositing
securities or furnishing such bond, as hereinbefore provided
shall furnish an itemized financial statement showing the assets
and the liabilities of the applicant and if it shall appear to
the commissioner, from the financial statement or otherwise,
that the applicant is financially responsible, then the
commissioner may exempt such applicant from depositing such
securities or furnishing such bond until the commissioner
otherwise orders.
(5) Each license period shall be for one year ending each
June 30.
(6) Upon application to the commissioner and compliance by
the applicant with the provisions of this subdivision, the
commissioner also shall issue a distributor's license to (a) any
person engaged in this state in the bulk storage of petroleum
products and the distribution thereof by tank car or tank truck
or both, and (b) any person holding an unrevoked license as a
distributor since from January 1, 1947 to July 1, 1994, and (c)
any person holding a license and performing a function under the
motor fuel tax law of an adjoining state equivalent to that of a
distributor under this act, who desires to ship or deliver
petroleum products from that state to persons in this state not
licensed as distributors in this state and who agrees to assume
with respect to all petroleum products so shipped or delivered
the liabilities of a distributor receiving petroleum products in
this state, provided, however, that any such license shall be
issued only for the purpose of permitting such person to receive
in this state the petroleum products so shipped or delivered.
Except as herein provided, all persons licensed as distributors
under this clause shall have the same rights and privileges and
be subject to the same duties, requirements and penalties as
other licensed distributors.
Sec. 17. Minnesota Statutes 1992, section 296.12,
subdivision 1, is amended to read:
Subdivision 1. [SPECIAL FUEL DEALERS' LICENSE
REQUIREMENTS.] No person except a licensed distributor shall
engage in the business of selling or delivering special fuel,
upon which no tax has been imposed, as a special fuel dealer
without having applied for and secured from the commissioner a
special fuel dealer's license. The application shall be made in
a manner approved by the commissioner and shall be accompanied
by the payment of $25, which shall be the license fee. A
special fuel dealer's license shall be issued to any responsible
person qualifying as a special fuel dealer who makes proper
application therefor. The license shall be displayed in a
conspicuous manner in the place of business and shall expire
annually on November 30.
A special fuel dealer who discontinues, sells or disposes
of the business in any manner, at any time, shall surrender the
dealer's special fuel dealer's license at the commissioner's
office in St. Paul, Minnesota.
Sec. 18. Minnesota Statutes 1992, section 296.12,
subdivision 2, is amended to read:
Subd. 2. [BULK PURCHASERS' LICENSE REQUIREMENTS.] No
person shall receive special fuel, upon which no tax has been
imposed, as a bulk purchaser without having applied for and
secured from the commissioner a bulk purchaser's license. The
application shall be made in a manner approved by the
commissioner and shall be accompanied by the payment of $25,
which shall be the license fee. A bulk purchaser's license
shall be issued to any responsible person qualifying as a bulk
purchaser who makes proper application therefor. The license
shall be displayed in a conspicuous manner in the place of
business and shall expire annually on November 30.
A bulk purchaser who discontinues, sells or disposes of the
business in any manner, at any time, shall surrender the bulk
purchaser's license at the commissioner's office in St. Paul,
Minnesota.
Sec. 19. Minnesota Statutes 1992, section 296.12,
subdivision 3, is amended to read:
Subd. 3. [TAX COLLECTION, REPORTING AND PAYMENT.]
Distributors shall pay the special fuel excise tax on all
combustible gases and liquid petroleum products or substitutes
therefor, except gasoline, delivered into storage tanks at
retail service stations operated by them. (a) For clear diesel
fuel, the tax is imposed on the distributor who receives the
fuel.
(b) For all other special fuels, the tax is imposed on the
distributor, bulk purchaser, or special fuel dealer. The tax
may be paid upon receipt or sale as follows:
(1) Distributors and special fuel dealers may, subject to
the approval of the commissioner, elect to pay to the
commissioner the special fuel excise tax on all special fuel
delivered or sold into the supply tank of an aircraft or a
licensed motor vehicle. Under this option an invoice must be
issued at the time of each delivery showing the name and address
of the purchaser, date of sale, number of gallons, price per
gallon and total amount of sale. A separate sales ticket book
shall be maintained for special fuel sales.; and
(2) Bulk purchasers shall report and pay the excise tax on
all special fuel purchased by them for storage, to the
commissioner.
(c) Any person delivering special fuel on which the excise
tax has not previously been paid, into the supply tank of an
aircraft or a licensed motor vehicle shall report such delivery
and pay the excise tax on the special fuel so delivered, to the
commissioner.
Sec. 20. Minnesota Statutes 1992, section 296.12,
subdivision 4, is amended to read:
Subd. 4. [MONTHLY REPORTS; SHRINKAGE ALLOWANCE.] On or
before the 23rd day of each month, the persons subject to the
provisions of this section shall file in the office of the
commissioner at St. Paul, Minnesota, a report in the following
manner:
(1) Distributors of clear diesel fuel must file a monthly
tax return with the department listing all purchases or receipts
of clear diesel fuel. Distributors may be allowed to take a
credit or credits under section 296.14, subdivision 2.
(2) Distributors and special fuel dealers of special fuel
other than clear diesel fuel shall report the total number of
gallons delivered to them during the preceding calendar month
and shall pay the special fuel excise tax due thereon to the
commissioner. Credit for the excise tax due or previously paid
on special fuel used by the distributor or special fuel dealer
for heating the distributor's or dealer's place of business, or
special fuel sold for any purpose other than use in licensed
motor vehicles and evidenced by an invoice issued at time of
sale, may be allowed in computing the tax liability. The
invoice must show the true and correct name and address of the
purchaser, and the purchaser's signature. The report shall
contain such other information as the commissioner may require.
(2) (3) Distributors and special fuel dealers of special
fuel other than clear diesel fuel who have elected to pay the
special fuel excise tax on all special fuel delivered into the
supply tank of an aircraft or licensed motor vehicle as provided
in subdivision 3, shall report the total number of gallons
delivered into the supply tank of an aircraft or licensed motor
vehicle during the preceding calendar month and shall pay the
special fuel excise tax due thereon to the commissioner.
(3) (4) Bulk purchasers shall report and pay the special
fuel excise tax on all special fuel except clear diesel fuel
purchased by them for storage, during the preceding calendar
month. In such cases as the commissioner may permit, credit for
the excise tax due or previously paid on special fuel not used
in aircraft or licensed motor vehicles, may be allowed in
computing tax liability. The report shall contain such other
information as the commissioner may require.
(4) (5) In computing the special fuel excise tax due under
clauses (1), (2), and (3), a deduction of one percent of the
quantity of special fuel on which tax is due shall be made for
evaporation and loss.
(5) (6) Each report shall contain a confession of judgment
for the amount of the tax shown due thereon to the extent not
timely paid.
Sec. 21. Minnesota Statutes 1992, section 296.12,
subdivision 5, is amended to read:
Subd. 5. [SALES TICKETS.] A sales ticket shall be issued
for each delivery of special fuel to a special fuel dealer or
bulk purchaser. A sales ticket shall also be issued for each
delivery into the supply tank of an aircraft or a licensed motor
vehicle, if so requested by the purchaser. The person who
delivers the special fuel shall issue the sales ticket and shall
show thereon the name and address of the purchaser, date of
sale, number of gallons, price per gallon, amount of tax, and
total amount of sale.
Sec. 22. Minnesota Statutes 1992, section 296.12,
subdivision 8, is amended to read:
Subd. 8. [REGISTRAR SHALL NOTIFY COMMISSIONER.] When an
application for registration of a motor vehicle discloses that
such motor vehicle uses special fuel, the registrar of motor
vehicles shall notify the commissioner, in written form, on an
annual basis, by June 30 of each year, of the name and address
of the owner and the make, model, year and license number of the
vehicle.
Sec. 23. Minnesota Statutes 1992, section 296.12,
subdivision 10, is amended to read:
Subd. 10. [ACCUMULATING METERS REQUIRED.] Every purchaser
licensed under subdivision 2 special fuel dealer shall make all
withdrawals of special fuel except liquefied petroleum gas
through an accumulating meter in working order, which shall be
provided by such bulk purchaser dealer. Whenever a bulk
purchaser licensed special fuel dealer fails to comply with the
provisions of this subdivision or of any rules of the
commissioner pertinent thereto, the license issued to such bulk
purchaser dealer pursuant to subdivision 2 1 may be revoked by
the commissioner.
Sec. 24. Minnesota Statutes 1992, section 296.12,
subdivision 11, is amended to read:
Subd. 11. [QUALIFIED BULK PURCHASERS.] Notwithstanding any
other provision of law to the contrary, the commissioner of
revenue may allow any bulk purchaser who receives special fuel
other than clear diesel fuel in bulk storage for subsequent
delivery into the supply tank of passenger automobiles or other
licensed motor vehicles or aircraft operated by the bulk
purchaser to purchase bulk special fuel on a tax paid basis from
any consenting supplier licensed as a distributor or special
fuel dealer under this section or section 296.06. Bulk
purchasers qualifying under this provision must become
registered in a manner approved by the commissioner but shall be
exempt from the bulk purchaser license requirements. Every
licensed distributor or special fuel dealer who sells or
delivers special fuel other than clear diesel fuel on a tax paid
basis to persons registered under this provision must report on
or before the 23rd day of each month sales made during the
preceding calendar month and shall pay the special fuel excise
tax due thereon to the commissioner. The report shall contain
information as the commissioner may require.
Sec. 25. [296.141] [GASOLINE TAX; SPECIAL FUEL TAX;
PETROLEUM TANK RELEASE CLEANUP FEE; AND INSPECTION FEE MONTHLY
REPORTS.]
Subdivision 1. [PAYMENT OF GASOLINE TAX AND PETROLEUM TANK
RELEASE CLEANUP FEE; SHRINKAGE ALLOWANCE.] On or before the 23rd
day of each month, every person who is required to pay a
gasoline tax shall file in the office of the commissioner at St.
Paul, Minnesota, a report in a manner approved by the
commissioner showing the number of gallons of petroleum products
received by the reporter during the preceding calendar month,
and other information the commissioner may require. The number
of gallons of gasoline must be reported in United States
standard liquid gallons (231 cubic inches), except that the
commissioner may upon written application and for cause shown
permit the distributor to report the number of gallons of
gasoline as corrected to a 60 degree Fahrenheit temperature. If
the application is granted, all gasoline covered in the
application and allowed by the commissioner must continue to be
reported by the distributor on the adjusted basis for a period
of one year from the date of the granting of the application.
The number of gallons of petroleum products other than gasoline
must be reported as originally invoiced.
Each report must show separately the number of gallons of
aviation gasoline received by the reporter during such calendar
month.
Each report must include the amount of gasoline tax on
gasoline received by the reporter during the preceding month;
provided that in computing the tax a deduction of three percent
of the quantity of gasoline received by a distributor shall be
made for evaporation and loss; provided further that at the time
of reporting, the distributor shall submit satisfactory evidence
that one-third of the three percent deduction has been credited
or paid to dealers on quantities sold to them. The report is
deemed to have been filed as required in this subdivision if
postmarked on or before the 23rd day of the month in which
payable.
Subd. 2. [INSPECTION FEES.] Persons required to pay an
inspection fee under section 239.101 must file a report. Each
report must include the amount of inspection fees due on
petroleum products. The report is considered filed as required
if postmarked on or before the 23rd day of the month in which
payable.
Subd. 3. [ELECTRONIC FUNDS TRANSFER REQUIRED.] All
remittances must be made by means of electronic funds transfer
as defined in section 336.4A-104, paragraph (a). The funds
transfer payment date, as defined in section 336.4A-401, must be
on or before the date the remittance is due. If the date the
remittance is due is not a funds transfer business day, as
defined in section 336.4A-105, paragraph (a), clause (4), the
payment date must be on or before the funds transfer business
day next following the date the remittance is due.
Subd. 4. [CREDIT OR REFUND OF TAX PAID.] The commissioner
shall allow the distributor credit or refund of the tax paid on
gasoline and special fuel:
(1) exported or sold for export from the state, other than
in the supply tank of a motor vehicle or of an aircraft;
(2) sold to the United States government to be used
exclusively in performing its governmental functions and
activities or to any "cost plus a fixed fee" contractor employed
by the United States government on any national defense project;
(3) if the fuel is placed in a tank used exclusively for
residential heating;
(4) destroyed by accident while in the possession of the
distributor;
(5) in error;
(6) sold for storage in an on-farm bulk storage tank, if
the tax was not collected on the sale; and
(7) in such other cases as the commissioner may permit, not
inconsistent with the provisions of this chapter and other laws
relating to the gasoline and special fuel excise taxes.
Subd. 5. [REFUND TO DEALER; DESTRUCTION BY
ACCIDENT.] Notwithstanding the provisions of subdivision 4, the
commissioner shall allow a dealer a refund of the tax paid on
gasoline or special fuel destroyed by accident while in the
possession of the dealer.
Subd. 6. [ON-FARM BULK STORAGE OF GASOLINE OR SPECIAL
FUEL; ETHYL ALCOHOL FOR PERSONAL USE.] Notwithstanding the
provisions of this section, the producer of ethyl alcohol which
is produced for personal use and not for sale in the usual
course of business and a farmer who uses gasoline or any special
fuel on which a tax has not been paid shall report and pay the
tax on all ethyl alcohol, gasoline, or special fuel delivered
into the supply tank of a licensed motor vehicle during the
preceding calendar year. The tax must be reported and paid
together with any refund claim filed by the taxpayer under
section 296.18. If no refund claim is filed, the tax must be
reported and paid annually by March 15 or more frequently, as
the commissioner may prescribe. Any producer qualifying under
this subdivision is exempt from the licensing requirements
contained in section 296.06, subdivision 1.
Subd. 7. [REFUNDS; REFRIGERATOR UNITS.] Notwithstanding
the provisions of subdivision 4, the commissioner shall allow a
special fuel dealer a refund of the tax paid on fuel sold
directly into a supply tank of a refrigeration unit with a
separate engine and used exclusively by that refrigeration
unit. A claim for refund may be filed as provided in section
296.18, subdivision 1.
Sec. 26. Minnesota Statutes 1992, section 296.15,
subdivision 2, is amended to read:
Subd. 2. [FAILURE TO PAY TAXES; PROCEEDINGS.] Upon the
failure of any person to pay any tax or inspection fees within
the time provided by sections 296.01 to 296.421, all taxes and
inspection fees imposed by this chapter shall become immediately
due and payable, whether or not the person has previously
reported the tax and inspection fees to the commissioner, and
after the default in payment the commissioner may deliver to the
attorney general a certified statement of the amount due from
each person hereunder whose excise tax and inspection fees are
delinquent. The statement shall give the address of the person
owing such tax and inspection fees, the month for which the tax
and inspection fees are due, the date of the delinquency, and
such other information as may be required by the attorney
general. It shall be the duty of the attorney general, upon
receipt of the statement, to bring an action in the district
court of Ramsey county, or of the county in which the delinquent
taxpayer resides, to recover the amount of such tax and
inspection fees, with penalty, interest and costs and
disbursements, and the action may be tried in the county in
which it is brought. The judgment of the court when so obtained
shall draw interest at the rate specified in section 270.75 and
shall be enforceable in the manner provided by law for the
enforcement of judgments obtained in civil actions and may be
collected as provided in chapter 270.
Sec. 27. Minnesota Statutes 1992, section 296.15,
subdivision 4, is amended to read:
Subd. 4. [RECEIVER, APPOINTMENT.] In the event suit is
instituted as herein provided in subdivision 2, the court shall,
upon application of the attorney general, appoint a receiver of
the property and business of the delinquent defendant for the
purpose of impounding the same as security for any judgment
which has been or may be recovered.
Sec. 28. Minnesota Statutes 1992, section 296.15,
subdivision 5, is amended to read:
Subd. 5. [SALE PROHIBITED UNDER CERTAIN CONDITIONS.] No
petroleum product shall be unloaded or sold by any person or
distributor whose tax and inspection fees have been certified to
the attorney general for collection are the basis for collection
action under subdivision 2.
Sec. 29. Minnesota Statutes 1992, section 296.15,
subdivision 6, is amended to read:
Subd. 6. [LIMITATION OF ACTIONS.] No action shall be
brought for the collection of delinquent excise taxes and
inspection fees under the provisions of this chapter section
270.68 unless commenced within five years after the date of
assessment of the taxes and fees. In the case of a false or
fraudulent report with intent to evade tax or inspection fee or
of a failure to file a report, the taxes or fees may be assessed
at any time, and a proceeding in court for their collection must
be begun within five years after the assessment.
The period of time during which a tax or fee must be
assessed under this chapter or collection proceedings commenced
under this subdivision is suspended during the period from the
date of filing of a petition in bankruptcy until 30 days after
the commissioner of revenue receives notice that the bankruptcy
proceedings have been closed or dismissed or the automatic stay
has been terminated or has expired.
The suspension of the statute of limitations under this
subdivision applies to the person against whom the petition in
bankruptcy is filed and all other persons who may also be wholly
or partially liable for the tax under this chapter.
Sec. 30. [296.151] [PERSONAL LIABILITY FOR TAX.]
Liability for payment of taxes under this chapter includes
a responsible person or entity described in the personal
liability provisions of section 270.101.
Sec. 31. [296.152] [TAX AS A PERSONAL DEBT OF A
FIDUCIARY.]
The tax imposed by this chapter, and interest and
penalties, is a personal debt of the taxpayer from the time the
liability arises, regardless of when the time for discharging
the liability by payment occurs. The debt is, in the case of
any fiduciary, that of the individual in the individual's
official or fiduciary capacity only, unless the individual has
voluntarily distributed the assets held in that capacity without
reserving sufficient assets to pay the tax, interest, and
penalties, in which event the individual is personally liable
for the deficiency.
Sec. 32. Minnesota Statutes 1992, section 296.16,
subdivision 2, is amended to read:
Subd. 2. [SELLER MAY COLLECT TAX.] A person who directly
or indirectly pays either of the taxes provided for by sections
296.02 and 296.025 and does not in fact use the gasoline or
special fuel in motor vehicles in this state or receive, store,
or withdraw it from storage to be used personally for the
purpose of producing or generating power for propelling
aircraft, but sells or otherwise disposes of the same, except as
provided in section 296.14, subdivision 2, is hereby authorized
to collect (from the person to whom the gasoline or special fuel
is so sold or disposed of) the tax so paid, and is hereby
required, upon request, to make, sign, and deliver to such
person an invoice of such sale or disposition. The sums
collected must be held as a special fund in trust for the state
of Minnesota.
Sec. 33. Minnesota Statutes 1992, section 296.165,
subdivision 1, is amended to read:
Subdivision 1. [SEIZURE.] The commissioner or authorized
designees may seize gasoline or special fuel being transported
for delivery in violation of section 296.06, subdivision 1, and
any vehicle or other method of conveyance used for transporting
the gasoline or special fuel. Any untaxed motor vehicle fuel
that is received by a person other than a licensee is subject to
seizure along with the vehicle or other means of transportation
used to transport the motor vehicle fuel. Any motor vehicle
fuel, along with the transporting vehicle, brought into
Minnesota by a transporter for use, distribution, storage, or
sale that is not supported by a manifest, bill of lading, or
invoice, reflecting the licensed distributor responsible for the
tax and/or fees is subject to seizure by the Minnesota
department of revenue. Property seized under this subdivision
is subject to forfeiture as provided in subdivisions 2 and 3.
Sec. 34. Minnesota Statutes 1992, section 296.25,
subdivision 1, is amended to read:
Subdivision 1. [PENALTIES IMPOSED.] (a) A person who fails
to comply with a provision of sections 296.01 to 296.421, or who
knowingly provides false information, including, but not limited
to, false odometer readings, or who knowingly makes a false
statement in a report, record, claim, or sales ticket required
by section 296.12; 296.14; 296.17, subdivisions 5, or 7 to 22;
296.18, subdivision 2; or 296.21, is guilty of a gross
misdemeanor.
(b) A person who willfully attempts in any manner to evade
or defeat any tax imposed by sections 296.01 to 296.421,
including, but not limited to, making and subscribing any false
statement in any report, record, claim, or sales ticket required
by sections 296.12; 296.14; 296.17, subdivisions 5, or 7 to 22;
296.18, subdivision 2; and 296.21; or making a false claim for a
refund under section 296.18, subdivision 4, is guilty of a
felony.
(c) It is a misdemeanor for a person to operate, or cause
to be operated, a licensed motor vehicle on the public highways
of this state on special fuel on which the excise tax provided
by this chapter has not been paid or the liability therefore
assumed by another person licensed under this chapter. A person
who uses gasoline, delivered into an on-farm bulk storage tank
and on which no tax has been collected, for propelling a motor
vehicle on the public highways of this state is also guilty of a
misdemeanor.
(d) An officer or employee of the state of Minnesota
charged with the enforcement of a provision of sections 296.01
to 296.421 who is employed by or who engages in business as a
distributor or dealer in petroleum products is guilty of a
misdemeanor.
(e) The authorization in this chapter for the collection of
the excise taxes by persons other than the commissioner for and
in behalf of the state of Minnesota establishes a fiduciary
relationship, for the violation of which, in failure to make
payment when due and payable, the person so authorized to
collect these excise taxes shall be deemed guilty of a violation
of this chapter and of section 609.54, and punished accordingly.
(f) A minimum fine of $200 shall be imposed on a person who
fails to obtain a license or trip permit required under section
296.17, subdivisions 10 and 17.
Sec. 35. Minnesota Statutes 1992, section 296.25, is
amended by adding a subdivision to read:
Subd. 1a. [IMPOSITION OF PENALTY; DYED FUEL.] (a) If any
dyed fuel is sold or held for sale by a person for any use which
the person knows or has reason to know is not a nontaxable use
of the fuel; or if any dyed fuel is held for use or used by any
person for a use other than a nontaxable use and the person
knew, or had reason to know, that the fuel was so dyed; or if
any person willfully alters, or attempts to alter, the strength
or composition of any dye or marking in any dyed fuel, then the
person shall pay a penalty in addition to the tax, if any.
(b) Except as provided in paragraph (c), the amount of
penalty under paragraph (a) for each act is the greater of
$1,000, or $10 for each gallon of dyed fuel involved.
(c) With regard to a multiple violation under paragraph
(a), the penalty is increased by taking the penalty amount
multiplied by the number of prior penalties imposed by this
section on the person, or a related person, or any predecessor
of the person or related person.
(d) If a penalty is imposed under this section on a
business entity, each officer, employee, or agent of the entity
who willfully participated in any act giving rise to the penalty
is jointly and severally liable with the entity for the penalty.
Sec. 36. [REPEALER.]
Minnesota Statutes 1992, sections 296.03; 296.14; and
296.15, subdivision 3, are repealed.
Sec. 37. [EFFECTIVE DATES.]
Sections 1 to 36 are effective September 1, 1994, except
that section 25, subdivision 3, is effective for taxes payable
on or after January 1, 1995.
ARTICLE 6
SPECIAL TAXES
Section 1. Minnesota Statutes 1993 Supplement, section
116.07, subdivision 10, is amended to read:
Subd. 10. [SOLID WASTE ASSESSMENTS.] (a) A person that
collects mixed municipal solid waste shall collect and remit to
the commissioner of revenue a solid waste assessment from each
of the person's customers as provided in paragraphs (b) and (c).
For the purposes of this subdivision, a "person that
collects mixed municipal solid waste" means each person that
collects sales tax on solid waste collection services under
section 297A.45. A disposal facility that accepts mixed
municipal solid waste shall collect and remit to the
commissioner of revenue a solid waste assessment as provided in
paragraph (g).
(b) "Residential customer" includes the following:
(1) a person who resides in a single residence; and
(2) a person residing in a building or at a site containing
multiple residences, including a townhome or mobile home park,
where each resident either has separate trash pickup, or is
separately assessed for such service. Each dwelling unit will
be considered a residential customer if there is separate waste
collection for each resident, even if the resident pays to the
owner or an association a monthly maintenance fee which includes
the expense of waste collection, and the owner or association
pays the waste collector for waste collection in one lump sum.
The amount of the assessment for each residential customer
is $2 per year. Each waste collector shall collect the
assessment annually from each residential customer that is
receiving waste collection service on July 1 of each year and
shall remit the amount collected along with the collector's
first remittance of the sales tax on solid waste collection
services, described in section 297A.45, made after October 1 of
each year. Any amount of the assessment that is received by the
waste collector after October 1 of each year must be remitted
along with the collector's next remittance of sales tax after
receipt of the assessment.
(c) "Nonresidential customer" includes the following:
(1) an industry, business, including a home-operated
business, church, nursing home, nonprofit organization and
schools, and other commercial accounts;
(2) an owner of a building or site containing multiple
residences, including a townhome or mobile home park, where no
resident has separate trash pickup, and no resident is
separately assessed for such service; and
(3) a vendor who sells to customers waste collection bags
or stickers supplied by a waste collector, the cost of which is
a substitute for a waste collection fee. A 30 gallon bag equals
.15 cubic yard, and a 38 gallon bag equals .19 cubic yard.
The amount of the assessment for each nonresidential
customer is 12 cents per noncompacted cubic yard of periodic
waste collection capacity purchased by the customer. The
capacity of a "noncompacted cubic yard" means the number of
loose cubic yards of mixed municipal solid waste, and is based
on the size of the waste collection container. "Periodic waste
collection" means each time the container is emptied by the
waste collector. If the capacity purchased is for compacted
cubic yards, instead of noncompacted cubic yards, the capacity
is calculated based on the compaction ratio of 3:1. For
purposes of this subdivision, one compacted cubic yard equals
600 pounds.
Each waste collector shall collect the assessment from each
nonresidential customer as part of each statement for payment of
waste collection charges and shall remit the amount collected
along with the next remittance of sales tax after receipt of the
assessment.
(d) The commissioner of revenue shall redesign sales tax
forms for solid waste collectors and disposal facilities to
accommodate payment of the assessment. The commissioner of
revenue shall deposit the amounts remitted under this
subdivision in the environmental fund and shall credit
four-sevenths of the receipts to the landfill cleanup account
established in section 115B.42.
(e) For the purposes of this subdivision, a "person that
collects mixed municipal solid waste" means each person that
pays sales tax on solid waste collection services under section
297A.45. The remitter of the solid waste assessment may offset
against the fees payable, with respect to any reporting period,
the amount of assessment imposed by this section previously
remitted to the commissioner of revenue, which qualified as a
bad debt under section 166(a) of the Internal Revenue Code, as
amended through December 31, 1993, during such reporting period,
but only in proportion to the portion of such debt which became
uncollectible.
(f) The audit, penalty, enforcement, and administrative
provisions applicable to taxes imposed under chapter 297A apply
to the assessments imposed under this subdivision.
(g) A disposal facility must collect an assessment of 12
cents per noncompacted cubic yard from a person who self-hauls
mixed municipal solid waste to the disposal facility, or from a
hauler that does not collect the sales tax on collection
services. The disposal facility must remit the amount assessed
along with the next remittance of sales tax.
(h) To avoid undue hardship and to promote the effective
and reasonable application and enforcement of this subdivision,
the commissioner may permit a solid waste collector or disposal
facility to use a formula, or some other method of allocation,
in calculating the amount of solid waste assessment due to the
commissioner of revenue. The solid waste collector or disposal
facility must receive written approval from the commissioner of
revenue before using an alternative method.
(i) A waste collector that contracts with a town, statutory
city, or other similar governmental entity for waste collection,
shall collect from the entity as follows:
(1) to the extent the bill is based on the number of
residential stops it makes, a $2 annual fee for each residential
periodic waste collection location that the collector services
as of July 1 of each year;
(2) to the extent the bill is based on the volume of the
waste containers it empties at nonresidential sites, 12 cents
per noncompacted cubic yard of periodic waste collection
capacity; and
(3) to the extent the bill is based, not on the number of
residential stops, but on the number of bags collected from
residences, 12 cents per noncompacted cubic yard of periodic
waste collection capacity. A 30 gallon bag equals .15 cubic
yard, and a 38 gallon bag equals .19 cubic yard.
Sec. 2. Minnesota Statutes 1993 Supplement, section
270.06, is amended to read:
270.06 [POWERS AND DUTIES.]
The commissioner of revenue shall:
(1) have and exercise general supervision over the
administration of the assessment and taxation laws of the state,
over assessors, town, county, and city boards of review and
equalization, and all other assessing officers in the
performance of their duties, to the end that all assessments of
property be made relatively just and equal in compliance with
the laws of the state;
(2) confer with, advise, and give the necessary
instructions and directions to local assessors and local boards
of review throughout the state as to their duties under the laws
of the state;
(3) direct proceedings, actions, and prosecutions to be
instituted to enforce the laws relating to the liability and
punishment of public officers and officers and agents of
corporations for failure or negligence to comply with the
provisions of the laws of this state governing returns of
assessment and taxation of property, and cause complaints to be
made against local assessors, members of boards of equalization,
members of boards of review, or any other assessing or taxing
officer, to the proper authority, for their removal from office
for misconduct or negligence of duty;
(4) require county attorneys to assist in the commencement
of prosecutions in actions or proceedings for removal,
forfeiture and punishment for violation of the laws of this
state in respect to the assessment and taxation of property in
their respective districts or counties;
(5) require town, city, county, and other public officers
to report information as to the assessment of property,
collection of taxes received from licenses and other sources,
and such other information as may be needful in the work of the
department of revenue, in such form and upon such blanks as the
commissioner may prescribe;
(6) require individuals, copartnerships, companies,
associations, and corporations to furnish information concerning
their capital, funded or other debt, current assets and
liabilities, earnings, operating expenses, taxes, as well as all
other statements now required by law for taxation purposes;
(7) subpoena witnesses, at a time and place reasonable
under the circumstances, to appear and give testimony, and to
produce books, records, papers and documents for inspection and
copying relating to any matter which the commissioner may have
authority to investigate or determine;
(8) issue a subpoena which does not identify the person or
persons with respect to whose liability the subpoena is issued,
but only if (a) the subpoena relates to the investigation of a
particular person or ascertainable group or class of persons,
(b) there is a reasonable basis for believing that such person
or group or class of persons may fail or may have failed to
comply with any law administered by the commissioner, (c) the
information sought to be obtained from the examination of the
records (and the identity of the person or persons with respect
to whose liability the subpoena is issued) is not readily
available from other sources, (d) the subpoena is clear and
specific as to the information sought to be obtained, and (e)
the information sought to be obtained is limited solely to the
scope of the investigation. Provided further that the party
served with a subpoena which does not identify the person or
persons with respect to whose tax liability the subpoena is
issued shall have the right, within 20 days after service of the
subpoena, to petition the district court for the judicial
district in which lies the county in which that party is located
for a determination as to whether the commissioner of revenue
has complied with all the requirements in (a) to (e), and thus,
whether the subpoena is enforceable. If no such petition is
made by the party served within the time prescribed, the
subpoena shall have the force and effect of a court order;
(9) cause the deposition of witnesses residing within or
without the state, or absent therefrom, to be taken, upon notice
to the interested party, if any, in like manner that depositions
of witnesses are taken in civil actions in the district court,
in any matter which the commissioner may have authority to
investigate or determine;
(10) investigate the tax laws of other states and countries
and to formulate and submit to the legislature such legislation
as the commissioner may deem expedient to prevent evasions of
assessment and taxing laws, and secure just and equal taxation
and improvement in the system of assessment and taxation in this
state;
(11) consult and confer with the governor upon the subject
of taxation, the administration of the laws in regard thereto,
and the progress of the work of the department of revenue, and
furnish the governor, from time to time, such assistance and
information as the governor may require relating to tax matters;
(12) transmit to the governor, on or before the third
Monday in December of each even-numbered year, and to each
member of the legislature, on or before November 15 of each
even-numbered year, the report of the department of revenue for
the preceding years, showing all the taxable property in the
state and the value of the same, in tabulated form;
(13) inquire into the methods of assessment and taxation
and ascertain whether the assessors faithfully discharge their
duties, particularly as to their compliance with the laws
requiring the assessment of all property not exempt from
taxation;
(14) administer and enforce the assessment and collection
of state taxes and, from time to time, make, publish, and
distribute rules for the administration and enforcement
of assessments and fees administered by the commissioner and
state tax laws. The rules have the force of law;
(15) prepare blank forms for the returns required by state
tax law and distribute them throughout the state, furnishing
them subject to charge on application;
(16) prescribe rules governing the qualification and
practice of agents, attorneys, or other persons representing
taxpayers before the commissioner. The rules may require that
those persons, agents, and attorneys show that they are of good
character and in good repute, have the necessary qualifications
to give taxpayers valuable services, and are otherwise competent
to advise and assist taxpayers in the presentation of their case
before being recognized as representatives of taxpayers. After
due notice and opportunity for hearing, the commissioner may
suspend and disbar from further practice before the commissioner
any person, agent, or attorney who is shown to be incompetent or
disreputable, who refuses to comply with the rules, or who with
intent to defraud, willfully or knowingly deceives, misleads, or
threatens a taxpayer or prospective taxpayer, by words,
circular, letter, or by advertisement. This clause does not
curtail the rights of individuals to appear in their own behalf
or partners or corporations' officers to appear in behalf of
their respective partnerships or corporations;
(17) appoint agents as the commissioner considers necessary
to make examinations and determinations. The agents have the
rights and powers conferred on the commissioner to subpoena,
examine, and copy books, records, papers, or memoranda, subpoena
witnesses, administer oaths and affirmations, and take
testimony. In addition to administrative subpoenas of the
commissioner and the agents, upon demand of the commissioner or
an agent, the court administrator of any district court shall
issue a subpoena for the attendance of a witness or the
production of books, papers, records, or memoranda before the
agent for inspection and copying. Disobedience of a court
administrator's subpoena shall be punished by the district court
of the district in which the subpoena is issued, or in the case
of a subpoena issued by the commissioner or an agent, by the
district court of the district in which the party served with
the subpoena is located, in the same manner as contempt of the
district court;
(18) appoint and employ additional help, purchase supplies
or materials, or incur other expenditures in the enforcement of
state tax laws as considered necessary. The salaries of all
agents and employees provided for in this chapter shall be fixed
by the appointing authority, subject to the approval of the
commissioner of administration;
(19) execute and administer any agreement with the
secretary of the treasury of the United States or a
representative of another state regarding the exchange of
information and administration of the tax laws;
(20) administer and enforce the provisions of sections
325D.30 to 325D.42, the Minnesota unfair cigarette sales act;
(21) authorize the use of unmarked motor vehicles to
conduct seizures or criminal investigations pursuant to the
commissioner's authority; and
(22) exercise other powers and perform other duties
required of or imposed upon the commissioner of revenue by law.
Sec. 3. Minnesota Statutes 1992, section 270B.02,
subdivision 3, is amended to read:
Subd. 3. [CONFIDENTIAL DATA ON INDIVIDUALS; PROTECTED
NONPUBLIC DATA.] (a) Except as provided in paragraph (b), names
of informers, informer letters, and other unsolicited data, in
whatever form, given to the department of revenue by a person,
other than the data subject, that inform who informs that a
specific taxpayer is not or may not be in compliance with tax
laws, or nontax laws administered by the department of revenue,
are confidential data on individuals or protected nonpublic data
as defined in section 13.02, subdivisions 3 and 13.
(b) Data under paragraph (a) may be disclosed with the
consent of the informer or upon a written finding by a court
that the information provided by the informer was false and that
there is evidence that the information was provided in bad
faith. This subdivision does not alter disclosure
responsibilities or obligations under the rules of criminal
procedure.
Sec. 4. Minnesota Statutes 1992, section 270B.02,
subdivision 5, is amended to read:
Subd. 5. [MAINTAINING CLASSIFICATIONS.] Notwithstanding
section 13.03, subdivision 7, returns and return information
retain the classification designated under this chapter.
Notwithstanding sections 13.03, subdivision 8, and 13.10, data
classified under subdivision 3 and department of revenue data
classified under this chapter as nonpublic data, protected
nonpublic data, private data on individuals, or confidential
data on individuals remain so classified.
Sec. 5. Minnesota Statutes 1992, section 297.03,
subdivision 7, is amended to read:
Subd. 7. [LICENSED DISTRIBUTOR'S PERMIT NUMBER.] The
commissioner shall assign a permit number to each person
licensed as a distributor at the time of issuance of the first
license, which shall be inscribed and printed upon all licenses
issued to that distributor. If the commissioner determines that
cancellation of the stamps is necessary for the enforcement of
sections 297.01 to 297.13, the distributor shall use the permit
number, in a manner prescribed by the commissioner, as the
cancellation mark for the stamps affixed by the distributor.
Sec. 6. [297.075] [INFORMATIONAL REPORTS.]
Subdivision 1. [REPORTS REQUIRED.] The following persons
shall file with the commissioner a monthly informational report
in the manner and on the form prescribed by the commissioner:
(1) distributors licensed to ship cigarettes into
Minnesota;
(2) persons who manufacture cigarettes within the state;
(3) all other persons who import cigarettes into Minnesota;
and
(4) those who possess, receive, store, or warehouse
cigarettes in Minnesota, upon which the tax imposed by section
297.02 or 297.22 has not been paid.
Subd. 2. [FILING DATES; FAILURE TO FILE.] No payment of
any tax is required to be remitted with this report. The report
must be filed on or before the tenth day following the end of
each calendar month, regardless of whether or not the person
shipped, manufactured, possessed, received, stored, or
warehoused any cigarettes into or within Minnesota during the
previous month, unless the commissioner determines that a longer
filing period is appropriate for a particular person. A person
failing to file this report is guilty of a misdemeanor. The
requirement of filing an informational report does not apply to
persons conveying or possessing cigarettes described in section
297.05, subdivision 2, nor to any lawful manufacture of
cigarettes within the state for personal consumption.
Subd. 3. [CONSUMERS.] A person who files a cigarette
consumer return as required by section 297.23 may fulfill the
requirements of subdivision 1 by indicating on the cigarette
consumer's return which of the items reported on the return were
transported into the state by the consumer. The requirement of
filing an informational report does not apply to consumers who
import 200 or less cigarettes into this state.
Subd. 4. [LICENSED DISTRIBUTORS.] A licensed distributor
may fulfill the requirements of subdivision 1 by filing a tax
return as required by section 297.07.
Sec. 7. Minnesota Statutes 1992, section 297C.13,
subdivision 1, is amended to read:
Subdivision 1. [FELONIES.] It is a felony for a holder of
an alcoholic beverage license to:
(1) evade or attempt to evade the excise tax on
intoxicating liquor and 3.2 percent malt liquor;
(2) fraudulently neglect or fail to keep complete accounts
in book or books of account, or to make true and exact entries
in them as required by the rules of the commissioner of public
safety and the commissioner of revenue, or by law;
(3) conspire to violate a provision of this chapter;
(4) fail to do or cause not to be done anything required by
law;
(5) refill or cause to be refilled a bottle or other
container of intoxicating liquor in order to evade tax; or
(6) sell intoxicating liquor or 3.2 percent malt liquor on
which the excise tax has not been paid and thereby evade the
tax;
(7) file with the commissioner a return, report, or other
document known by the person to be fraudulent or false
concerning a material matter; or
(8) knowingly aid or assist in, or advise in the
preparation or presentation of a return, report, or other
document that is fraudulent or false concerning a material
matter, whether or not the falsity or fraud committed is with
the knowledge or consent of the person authorized or required to
present the return, report, or other document.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective the day following final
enactment.
Presented to the governor April 22, 1994
Signed by the governor April 25, 1994, 1:12 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes