Minnesota Session Laws - 1999, Regular Session

                            CHAPTER 143-S.F.No. 1115 
                  An act relating to courts; revising the process for 
                  action for payment or collection of taxes; amending 
                  Minnesota Statutes 1998, section 270.68, subdivision 1.
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 270.68, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LEGAL ACTION.] (a) In addition to all 
        other methods authorized by law for the collection of tax, if 
        any tax payable to the commissioner of revenue or to the 
        department of revenue, including penalties and interest thereon, 
        is not paid within 60 days after it is required by law to be 
        paid, the commissioner of revenue may proceed under this 
        subdivision.  Within five years after the date of assessment of 
        the tax or at any time a lien filed under section 270.69 is 
        enforceable, or, if the action is to renew or enforce a 
        judgment, at any time before the judgment's expiration, the 
        commissioner may bring an action at law in court against the 
        person liable for the payment or collection of the tax, in the 
        name of the state, for the recovery of the tax and interest and 
        penalties due in respect thereof.  The action shall be brought 
        in the district court of the judicial district in which lies the 
        county of the residence or principal place of business within 
        this state of the taxpayer, or, in the case of an estate or 
        trust, of the place of its principal administration, and for 
        this purpose the place named as such in the return, if any, made 
        by the taxpayer shall be conclusive against the taxpayer in this 
        matter.  If no place is named in the return, the action may be 
        commenced in Ramsey county.  The action shall may be commenced 
        by filing with the court administrator a statement showing the 
        name and address of the taxpayer, if known, an itemized summary 
        of the taxable periods and the type of tax, the tax due and 
        unpaid and the interest and penalties due with respect thereto 
        under the provisions of law applicable to the tax, and shall 
        contain a prayer that the court adjudge the taxpayer to be 
        indebted on account of the taxes, interest, and penalties in the 
        amount specified in the statement; a copy of the statement shall 
        be furnished to the court administrator therewith.  The court 
        administrator shall mail a copy of the statement by certified 
        mail to the taxpayer at the address given in the return, if any; 
        and the commissioner in the same manner as any other civil 
        action. 
           (b) The commissioner may also serve the summons and 
        complaint by mailing a copy to the taxpayer's last known address 
        , within five days after the same is filed, except that, if the 
        taxpayer's address is not known, notice shall be made by posting 
        a copy of the statement for ten days in the place in the 
        courthouse where public notices are regularly posted.  To 
        litigate the claim, or any part of it, the taxpayer shall serve 
        an answer upon the commissioner on or before the 20th day after 
        the date of mailing the statement; or, if notice has been given 
        by posting, on or before the 20th day after the expiration of 
        the period during which the notice was required to be posted.  
        If no answer is served within the specified time, the court 
        administrator, upon the filing of an affidavit of default, shall 
        enter judgment for the state in the amount prayed for, plus 
        costs of $10.  If an answer is filed, the issues raised shall 
        stand for trial as soon as possible after the filing of the 
        answer, and the court shall determine the issues and direct 
        judgment accordingly; and, if the taxes, interest, or penalties 
        are sustained to any extent over the amount rendered by the 
        taxpayer, shall assess $10 costs against the taxpayer.  The 
        court shall disregard all technicalities and matters of form not 
        affecting the substantial merits. by certified mail.  Service by 
        certified mail is complete when mailed in acceptable form with 
        the United States Postal Service or with the central mail system 
        of the state of Minnesota. 
           (c) The commissioner may call upon the county attorney or 
        the attorney general to conduct the proceedings on behalf of the 
        state.  If a proceeding is referred to a county attorney, and 
        the county attorney fails to issue or cause to be issued an 
        indictment or criminal complaint within 30 days after the 
        referral by the commissioner, the attorney general may conduct 
        the proceeding.  Execution shall be issued upon the judgment at 
        the request of the commissioner, and the execution shall, in all 
        other respects, be governed by the laws applicable to executions 
        issued on judgments.  Only the homestead and household goods of 
        the judgment debtor shall be exempt from seizure and sale upon 
        the execution.  
           In addition to the procedure in this subdivision, legal 
        action may be commenced by the commissioner in district court in 
        the same manner or venue as any other civil action. 
           Sec. 2.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment. 
           Presented to the governor May 7, 1999 
           Signed by the governor May 11, 1999, 1:45 p.m.