2004 Minnesota Statutes

CHAPTER 270. Department of revenue

     270.01 Department created. 

    The Department of Revenue shall be under the supervision 
 and control of a commissioner of revenue. 

    HIST: (2362-1) 1939 c 431 art 6 s 1; 1965 c 698 s 3; 1973 c 
 582 s 3; 1976 c 134 s 78; 1977 c 307 s 29; 1979 c 50 s 25 

     270.02 Department of Revenue; commissioner of revenue. 

    Subdivision 1.    Powers and duties.  The name of the 
 Department of Taxation is changed to the Department of Revenue.  
 The name of the commissioner of taxation is changed to the 
 commissioner of revenue.  Subject to the provisions of Laws 
 1973, chapter 582 and other applicable laws, the Department of 
 Revenue with its commissioner and other officers shall continue 
 to exercise all the powers and duties vested in, or imposed upon 
 its commissioner as existing and constituted immediately prior 
 to July 1, 1973. 

    Subd. 2.    Terms.  The commissioner of revenue shall 
 be appointed by the governor under the provisions of section 
 15.06.  The commissioner shall be selected on the basis of 
 ability and experience in the field of tax administration and 
 without regard to political affiliations. 

    Subd. 3.    Powers, organization, assistants.  Subject 
 to the provisions of this chapter and other applicable laws the 
 commissioner shall have power to organize the department with 
 such divisions and other agencies as the commissioner deems 
 necessary and to appoint one deputy commissioner, a department 
 secretary, directors of divisions, and such other officers, 
 employees, and agents as the commissioner may deem necessary to 
 discharge the functions of the department, define the duties of 
 such officers, employees, and agents, and delegate to them any 
 of the commissioner's powers or duties, subject to the 
 commissioner's control and under such conditions as the 
 commissioner may prescribe.  Appointments to exercise delegated 
 power to sign documents which require the signature of the 
 commissioner or a delegate by law shall be by written order 
 filed with the secretary of state. 

    Subd. 3a.    Mission; efficiency.  It is part of the 
 department's mission that within the department's resources the 
 commissioner shall endeavor to: 

    (1) prevent the waste or unnecessary spending of public 
 money; 

    (2) use innovative fiscal and human resource practices to 
 manage the state's resources and operate the department as 
 efficiently as possible; 

    (3) coordinate the department's activities wherever 
 appropriate with the activities of other governmental agencies; 

    (4) use technology where appropriate to increase agency 
 productivity, improve customer service, increase public access 
 to information about government, and increase public 
 participation in the business of government; 

    (5) utilize constructive and cooperative labor-management 
 practices to the extent otherwise required by chapters 43A and 
 179A; 

    (6) report to the legislature on the performance of agency 
 operations and the accomplishment of agency goals in the 
 agency's biennial budget according to section 16A.10, 
 subdivision 1; and 

    (7) recommend to the legislature appropriate changes in law 
 necessary to carry out the mission and improve the performance 
 of the department. 

    Subd. 4.    Department seal.  The Department of Revenue 
 shall have a seal engraved with the words, "State of Minnesota, 
 Department of Revenue."  Such seal may be used to authenticate 
 the official acts of the commissioner or any other members of 
 the department, but the failure to use the seal shall not 
 invalidate any such acts.  Duplicate seals may be provided for 
 the use of directors of divisions or other members of the 
 department. 

    HIST: (2362-2) 1939 c 431 art 6 s 2; 1949 c 739 s 3; 1951 c 
 478 s 1; 1951 c 713 s 30; 1965 c 45 s 48; 1965 c 698 s 3; 1969 c 
 1129 art 8 s 8; 1973 c 582 s 1; 1976 c 134 s 78; 1977 c 305 s 
 32,33; 1977 c 307 s 29; 1979 c 50 s 26; 1986 c 444; 1995 c 248 
 art 11 s 20; 1997 c 84 art 6 s 3; 1998 c 366 s 66 

     270.021 Ex-officers and ex-employees not to represent 
  clients; penalty. 

    An officer or employee of the Department of Revenue may 
 not, for a period of one year after the term of office has ended 
 or employment has terminated, act as counsel, attorney, or agent 
 for a taxpayer in connection with a claim or proceeding pending 
 in the department.  An officer or employee of the Department of 
 Revenue may not act as counsel, attorney, or agent for a 
 taxpayer at any time after termination of the office or 
 employment in connection with a claim or proceeding of which the 
 person has knowledge that was acquired during the term of office 
 or employment.  A violation of this section is a gross 
 misdemeanor. 

    HIST: 1989 c 324 s 1 

     270.022 Filing officers. 

    The commissioner of revenue is the filing officer and 
 custodian of the books, files, and records of the Department of 
 Revenue.  The commissioner may certify copies of the books, 
 files, and records in the custody of the commissioner for all 
 purposes in the same manner as other custodians of public 
 records.  The commissioner may authorize other officers or 
 employees of the Department of Revenue to certify books, files, 
 and records in the custody of the commissioner.  The 
 authorization must be made by a written order stating the 
 documents that may be certified and must be filed with the 
 secretary of state.  

    HIST: 1989 c 324 s 2 

  270.03 Repealed, 1943 c 160 s 1 

     270.04 Office and supplies furnished; expenses.  

    The commissioner of revenue shall be provided with suitable 
 and necessary office furniture, supplies, stationery, books, 
 periodicals, newspapers, maps, and financial and commercial 
 reports; and all necessary expenses therefor shall be audited 
 and paid as other expenses are audited and paid.  The actual 
 necessary expenses of the commissioner and the commissioner's 
 secretary, clerks, and such experts and assistants as may be 
 employed by the commissioner while traveling on the business of 
 the department shall be paid by the state, such expenditures to 
 be sworn to by the party who incurred the expense and approved 
 by the commissioner of revenue. 

    HIST: (2363) 1907 c 408 s 10; 1973 c 582 s 3; 1986 c 444 

     270.05 Minnesota Tax Commission abolished; powers and 
  duties transferred. 

    All the powers and duties now vested in or imposed upon the 
 Department of Revenue and the Minnesota Tax Commission, except 
 those herein or by other provisions of law transferred to the 
 Tax Court, are hereby transferred to, vested in, and imposed 
 upon, the commissioner of revenue.  The Minnesota Tax Commission 
 as heretofore constituted is hereby abolished. 

    HIST: (2362-3) 1939 c 431 art 6 s 3; 1965 c 698 s 3; 1973 c 
 582 s 3; 1976 c 134 s 78; 1977 c 307 s 29 

  270.051 Repealed, 1984 c 502 art 14 s 20 

     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.  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.  For each refund levied upon, the 
 commissioner shall first deduct from the refund a fee of $20, 
 and then remit the refund or the amount of the levy, whichever 
 is less, to the Internal Revenue Service.  The proceeds of fees 
 shall be deposited into the Department of Revenue recapture 
 revolving fund under section 270A.07, subdivision 1. 

    HIST: 1987 c 268 art 17 s 1; 1989 c 184 art 2 s 11; 1994 c 510 
 art 2 s 1; 1Sp2003 c 1 art 2 s 78 

     270.058 Authority to pay local taxes; appropriation. 

    The commissioner may pay to any local government unit, any 
 locally imposed sales taxes that may be assessed against the 
 Department of Revenue.  There is appropriated to the 
 commissioner of revenue from the general fund the amount needed 
 to make the payments.  

    HIST: 1987 c 268 art 14 s 7 

     270.059 Revenue Department service and recovery special 
  revenue fund. 

    A Revenue Department service and recovery special revenue 
 fund is created for the purpose of recovering the costs of 
 furnishing public government data and related services or 
 products, as well as recovering costs associated with collecting 
 local taxes on sales.  All money collected under this section is 
 deposited in the Revenue Department service and recovery special 
 revenue fund.  Money in the fund is appropriated to the 
 commissioner of revenue to reimburse the Department of Revenue 
 for the costs incurred in administering the tax law or providing 
 the data, service, or product.  Any monies paid to the 
 department as a criminal fine for a tax law violation that are 
 designated by the court to fund tax law enforcement are 
 appropriated to this fund. 

    HIST: 1991 c 345 art 1 s 83; 2003 c 127 art 14 s 2 

     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 fees, including the use of any remedy 
 available to nongovernmental creditors, and, from time to time, 
 make, publish, and distribute rules for the administration and 
 enforcement of laws 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 bar 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) authorize the use of unmarked motor vehicles to 
 conduct seizures or criminal investigations pursuant to the 
 commissioner's authority; and 

    (21) exercise other powers and perform other duties 
 required of or imposed upon the commissioner of revenue by law.  

    HIST: (2364) 1907 c 408 s 1; 1943 c 199 s 1; 1945 c 599 s 1; 
 1971 c 670 s 1; 1973 c 123 art 5 s 7; 1973 c 582 s 3; 1974 c 406 
 s 66; 1977 c 203 s 5; 1979 c 303 art 10 s 4; 1980 c 423 s 2; 
 1982 c 523 art 2 s 2; 1983 c 180 s 1; 1985 c 248 s 70; 1986 c 
 444; 1989 c 277 art 1 s 6; 1990 c 480 art 2 s 1; 1993 c 375 art 
 10 s 7; 1994 c 510 art 6 s 2; 1998 c 300 art 3 s 2; 1Sp2001 c 5 
 art 7 s 4; art 20 s 5; 2003 c 127 art 5 s 1 

     270.0601 Tax Court appeals. 

    The powers of examination, investigation, and subpoena, and 
 the power to administer oaths and take testimony granted to the 
 commissioner of revenue and officers and employees of the 
 Department of Revenue in section 270.06 do not apply to a matter 
 that has been appealed to the Tax Court.  

    HIST: 1989 c 324 s 3 

     270.0602 Basis for evaluation of Department of Revenue 
  employees. 

    The Department of Revenue must not use tax enforcement 
 results to impose individual revenue quotas with respect to 
 employees or their immediate supervisors who are directly 
 involved in assessment or collection activities.  The department 
 may, however, use individual performance with regard to number 
 of cases completed and, in the case of collections employees, 
 dollars collected, as factors in evaluating an employee and not 
 be considered as failing to comply with this section. 

    HIST: 1990 c 604 art 1 s 1 

     270.0603 Disclosure of rights of taxpayers. 

    Subdivision 1.    In general.  The commissioner of 
 revenue shall, as soon as practicable, but not later than 180 
 days after the date of enactment of Laws 1990, chapter 604, 
 prepare statements that set forth in simple and nontechnical 
 terms: 

    (1) the rights and obligations of the Department of Revenue 
 and the taxpayer during an audit; 

    (2) the procedures by which a taxpayer may appeal an 
 adverse decision of the department, including administrative and 
 judicial appeals; 

    (3) the procedures for filing refund claims and filing of 
 taxpayer complaints; and 

    (4) the procedures that the department may use in enforcing 
 the tax laws, including assessment, jeopardy assessment, levy 
 and distraint, and the filing of liens. 

    Subd. 2.    Transmission to legislature.  The 
 commissioner shall provide drafts of the statements required 
 under subdivision 1 to the chairs of the house of 
 representatives and senate tax committees for proposed revisions 
 of the statements. 

    Subd. 3.    Distribution.  The appropriate statement 
 prepared in accordance with subdivisions 1 and 2 must be 
 distributed by the commissioner to all taxpayers contacted with 
 respect to the determination or collection of a tax, other than 
 the providing of tax forms.  Failure to receive the statement 
 does not invalidate the determination or collection action. 

    HIST: 1990 c 604 art 1 s 2 

     270.0604 Revenue notices. 

    Subdivision 1.    Authority.  The commissioner of 
 revenue may make, adopt, and publish interpretive revenue 
 notices.  A "revenue notice" is a policy statement that has been 
 published pursuant to subdivision 5 and that provides 
 interpretation, details, or supplementary information concerning 
 the application of law or rules.  Revenue notices are published 
 for the information and guidance of taxpayers, the Department of 
 Revenue, and others concerned. 

    Subd. 2.    Effect.  Revenue notices do not have the 
 force and effect of law and have no precedential effect, but may 
 be relied on by taxpayers until revoked or modified.  A notice 
 may be expressly revoked or modified by the department, by the 
 issuance of a revenue notice, but may not be revoked or modified 
 retroactively to the detriment of the taxpayers.  A change in 
 the law or an interpretation of the law occurring after the 
 revenue notice is issued, whether in the form of a statute, 
 court decision, administrative rule, or revenue notice, results 
 in revocation or modification of the notice to the extent that 
 the change affects the notice. 

    Subd. 3.    Retroactivity.  Revenue notices are 
 generally interpretive of existing law and therefore are 
 retroactive to the effective date of the applicable law 
 provision unless otherwise stated in the notice. 

    Subd. 4.    Issuance.  The issuance of revenue notices 
 is at the discretion of the commissioner of revenue.  The 
 commissioner shall establish procedures governing the issuance 
 of revenue notices and tax information bulletins.  At least one 
 week before publication of a revenue notice in the State 
 Register, the commissioner shall provide a copy of the notice to 
 the chairs of the Taxes Committee of the house of 
 representatives and the Taxes and Tax Laws Committee of the 
 senate. 

    Subd. 5.    Publication.  The commissioner shall publish 
 the revenue notices in the State Register and in any other 
 manner that makes them accessible to the general public.  The 
 commissioner may charge a reasonable fee for publications. 

    Subd. 6. Repealed, 1994 c 510 art 1 s 13 

    HIST: 1991 c 291 art 21 s 6; 1995 c 1 s 1 

     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. 

    HIST: 1991 c 291 art 21 s 7; 1994 c 510 art 1 s 3 

     270.061 Service of notice by mail.  

    Notwithstanding any other law to the contrary, the 
 commissioner of revenue, if required to serve notices by 
 registered or certified mail, may choose to make such services 
 by regular mail, retaining a record of adequate proof of such 
 service.  

    HIST: Ex1967 c 48 s 96; 1969 c 1139 s 66; 1973 c 582 s 3; 1986 
 c 444 

     270.062 Access to criminal justice data. 

    The commissioner of revenue may enter into an agreement 
 with the commissioner of public safety allowing designated 
 employees of the Revenue Department to have access to the 
 criminal justice data communications network provided in section 
 299C.46.  For purposes of that section, the Special 
 Investigation Unit of the Revenue Department is considered a 
 criminal justice agency. 

    HIST: 1Sp1985 c 14 art 16 s 1 

     270.063 Collection of delinquent taxes; costs. 

    Subdivision 1.    Appropriation.  For the purpose of 
 collecting delinquent state tax liabilities or debts as defined 
 in section 16D.02, subdivision 3, there is appropriated to the 
 commissioner of revenue an amount representing the cost of 
 collection by contract with collection agencies, revenue 
 departments of other states, or attorneys to enable the 
 commissioner to reimburse these agencies, departments, or 
 attorneys for this service.  The commissioner shall report 
 quarterly on the status of this program to the chair of the 
 house Tax and Ways and Means Committees and senate Tax and 
 Finance Committees. 

    Subd. 2.    Prepayment.  Notwithstanding section 16A.15, 
 subdivision 3, the commissioner of revenue may authorize the 
 prepayment of sheriff's fees, attorney fees, fees charged by 
 revenue departments of other states, or court costs to be 
 incurred in connection with the collection of delinquent tax 
 liabilities owed to the commissioner of revenue. 

    Subd. 3.    Collection of financial institution fees.  
 The commissioner shall collect from a taxpayer any collection 
 fees or costs charged by financial institutions and incurred by 
 the commissioner. 

    Subd. 4.    Federal tax refund offset fees; time limit for 
 submitting claims for offset.  For fees charged by the 
 Department of the Treasury of the United States for the offset 
 of federal tax refunds that are deducted from the refund amounts 
 remitted to the commissioner, the unpaid debts of the taxpayers 
 whose refunds are being offset to satisfy the debts are reduced 
 only by the actual amount of the refund payments received by the 
 commissioner.  Notwithstanding any other provision of law to the 
 contrary, a claim for the offset of a federal tax refund must be 
 submitted to the Department of the Treasury of the United States 
 within ten years after the date of the assessment of the tax 
 owed by the taxpayer whose refund is to be offset to satisfy the 
 debt. 

    HIST: 1981 c 356 s 336; 1982 c 523 art 2 s 1; 1985 c 101 s 1; 
 1986 c 444; 1Sp1986 c 1 art 7 s 10; 1992 c 513 art 4 s 34; 1993 
 c 192 s 84; 1997 c 84 art 5 s 1; 1998 c 366 s 67; 2000 c 490 art 
 13 s 5; 2002 c 377 art 9 s 1; 2004 c 284 art 2 s 17 

     270.064 Requesting assistance in criminal tax 
  investigations. 

    If the commissioner of revenue has reason to believe that a 
 criminal violation of the state tax laws or chapter 349 has 
 occurred, the commissioner may request the attorney general or 
 the prosecuting authority of any county to assist in a criminal 
 tax investigation and may disclose information to the 
 prosecuting authority relevant to the investigation. 

    HIST: 1Sp1985 c 14 art 16 s 2; 1989 c 184 art 2 s 12; 1990 c 
 594 art 1 s 62 

     270.065 Equality and consistency in the exercise of 
  powers and duties.  

    Notwithstanding the provisions of any other law, the 
 commissioner of revenue may use any and all information in 
 possession, or to which the commissioner has access, to insure 
 equal and consistent application and enforcement of all tax laws 
 administered by the department.  This section shall not be 
 construed as granting to the commissioner of revenue any power 
 to release any information outside the department.  

    HIST: 1971 c 431 s 1; 1973 c 582 s 3; 1986 c 444 

     270.066 Commissioner to require Social Security or 
  identifying numbers on forms. 

    Notwithstanding the provisions of any other law, the 
 commissioner of revenue may require that a form required to be 
 filed with the commissioner include the Social Security number, 
 federal employer identification number, or Minnesota taxpayer 
 identification number of the taxpayer or applicant. 

    HIST: 1978 c 767 s 2; 1987 c 268 art 17 s 2 

     270.0665 Prohibition of use of Social Security numbers. 

    No label, envelope, or other material printed by the 
 Department of Revenue may include the Social Security number of 
 the taxpayer in a place that will be visible when delivered or 
 mailed to the taxpayer. 

    HIST: 1998 c 389 art 6 s 19 

     270.067 Tax expenditure budget. 

    Subdivision 1.    Statement of purpose.  State 
 governmental policy objectives are sought to be achieved both by 
 direct expenditure of governmental funds and by the granting of 
 special and selective tax relief or tax expenditures.  Both 
 direct expenditures of governmental funds and tax expenditures 
 have an effect on the ability of the state and local governments 
 to lower tax rates or to increase expenditures.  As a result, 
 tax expenditures should receive a regular and comprehensive 
 review by the legislature as to (a) their total cost, (b) their 
 effectiveness in achieving their objectives, (c) their effect on 
 the fairness and equity of the distribution of the tax burden, 
 and (d) the public and private cost of administering tax 
 expenditure financed programs.  This section is intended to 
 facilitate a regular review of the state and local tax 
 expenditure budget by the legislature by providing for the 
 preparation of a regular biennial tax expenditure budget.  

    Subd. 2.    Preparation; submission.  The commissioner 
 of revenue shall prepare a tax expenditure budget for the state. 
 The tax expenditure budget report shall be submitted to the 
 legislature by February 1 of each even-numbered year. 

    Subd. 3.    Period covered.  The report shall include 
 estimates of annual tax expenditures for, at a minimum, a 
 three-year period including the two-year period covered in the 
 governor's budget submitted in the preceding January pursuant to 
 section 16A.11.  

    Subd. 4.    Contents.  The report shall detail for each 
 tax expenditure item the amount of tax revenue foregone, a 
 citation of the statutory or other legal authority for the 
 expenditure, and the year in which it was enacted or the tax 
 year in which it became effective.  The report may contain 
 additional information which the commissioner considers relevant 
 to the legislature's consideration and review of individual tax 
 expenditure items.  This may include, but is not limited to, 
 statements of the intended purpose of the tax expenditure, 
 analysis of whether the expenditure is achieving that objective, 
 and the effect of the expenditure device on the distribution of 
 the tax burden and administration of the tax system.  

    Subd. 5.    Revenue estimates; legislative bills.  Upon 
 reasonable notice from the chair of the house or senate tax 
 committee that a bill is scheduled for hearing, the commissioner 
 of revenue shall prepare an estimate of the effect on the 
 state's tax revenues which would result from the passage of a 
 legislative bill establishing, extending, or restricting a tax 
 expenditure.  These revenue estimates shall contain the same 
 information as provided in subdivision 4 for expenditure items 
 contained in the tax expenditure budget, as appropriate.  

    Subd. 6.    Definitions.  For purposes of this section, 
 the following terms have the meanings given:  

    (1) "Tax expenditure" means a tax provision which provides 
 a gross income definition, deduction, exemption, credit, or rate 
 for certain persons, types of income, transactions, or property 
 that results in reduced tax revenue.  

    (2) "Tax" means any tax of statewide application or any tax 
 authorized by state law to be levied by local governments 
 generally.  It does not include a special local tax levied 
 pursuant to special law or to a special local tax levied 
 pursuant to general authority that is no longer applicable to 
 local governments generally.  

    HIST: 1983 c 301 s 176; 1986 c 444; 1Sp1989 c 1 art 17 s 1,2; 
 1991 c 291 art 21 s 8,9; 1996 c 471 art 13 s 5 

     270.068 Revision of Minnesota assessors' manual. 

    In accordance with the provisions of section 270.06, clause 
 (14), the commissioner of revenue shall prepare a revised 
 Minnesota assessors' manual by July 1, 1986, and thereafter 
 shall revise the manual in a timely manner. 

    HIST: 1Sp1985 c 14 art 3 s 15 

     270.0681 Tax information sample data. 

    Subdivision 1.    Preparation of samples.  The 
 commissioner of revenue shall prepare microdata samples of 
 income tax returns and other information useful for purposes of 
 (1) estimating state revenues, (2) simulating the effect of 
 changes or proposed changes in state and federal tax law on the 
 amount of state revenues, and (3) analyzing the incidence of 
 present or proposed taxes. 

    Subd. 2.    Coordinating committee.  A coordinating 
 committee is established to oversee and coordinate preparation 
 of the microdata samples.  The committee consists of (1) the 
 director of the Research Division of the Department of Revenue 
 who shall serve as chair of the committee, (2) the state 
 economist, (3) the chair of the Committee on Taxes of the house 
 of representatives or the chair's designee, and (4) the chair of 
 the Committee on Taxes and Tax Laws of the senate or the chair's 
 designee.  The committee shall consider the analysis needs and 
 use of the microdata samples by the finance and revenue 
 departments and the legislature in designing and preparing the 
 samples, including the type of data to be included, the 
 structure of the samples, size of the samples, and other 
 relevant factors. 

    Subd. 3.    Contents of samples.  The samples must 
 consist of information derived from a random sample of federal 
 and Minnesota individual income tax returns.  The samples 
 prepared in odd numbered years must be augmented by additional 
 information from other sources as the coordinating committee 
 determines is feasible and appropriate.  The coordinating 
 committee shall consider inclusion of (1) information derived 
 from property tax refund returns, (2) the estimated market value 
 of the taxpayer's home from the homestead declaration, and (3) 
 information from other sources, such as the surveys conducted by 
 the United States Departments of Commerce and Labor. 

    Subd. 4.    Consultation on analysis models.  The 
 coordinating committee shall facilitate regular consultation 
 among the Department of Revenue, the Department of Finance, and 
 house and senate staffs in development and maintenance of their 
 respective computer models used to analyze the microdata 
 samples.  The committee shall encourage efforts to attain more 
 commonality in the models, greater sharing of program 
 development efforts and programming tasks, and more consistency 
 in the resulting analyses. 

    HIST: 1988 c 719 art 19 s 10 

     270.0682 Tax incidence reports. 

    Subdivision 1.    Biennial report.  The commissioner of 
 revenue shall report to the legislature by March 1 of each 
 odd-numbered year on the overall incidence of the income tax, 
 sales and excise taxes, and property tax.  The report shall 
 present information on the distribution of the tax burden (1) 
 for the overall income distribution, using a systemwide 
 incidence measure such as the Suits index or other appropriate 
 measures of equality and inequality, (2) by income classes, 
 including at a minimum deciles of the income distribution, and 
 (3) by other appropriate taxpayer characteristics. 

    Subd. 2.    Bill analyses.  At the request of the chair 
 of the house Tax Committee or the senate Committee on Taxes and 
 Tax Laws, the commissioner of revenue shall prepare an incidence 
 impact analysis of a bill or a proposal to change the tax system 
 which increases, decreases, or redistributes taxes by more than 
 $20,000,000.  To the extent data is available on the changes in 
 the distribution of the tax burden that are affected by the bill 
 or proposal, the analysis shall report on the incidence effects 
 that would result if the bill were enacted.  The report may 
 present information using systemwide measures, such as Suits or 
 other similar indexes, by income classes, taxpayer 
 characteristics, or other relevant categories.  The report may 
 include analyses of the effect of the bill or proposal on 
 representative taxpayers.  The analysis must include a statement 
 of the incidence assumptions that were used in computing the 
 burdens. 

    Subd. 3.    Income measure.  The incidence analyses 
 shall use the broadest measure of economic income for which 
 reliable data is available. 

    HIST: 1990 c 604 art 10 s 9 

     270.069 Commissioner to collect certain local taxes. 

    Subdivision 1.    Costs deducted; appropriation.  If the 
 commissioner of revenue agrees to collect a locally imposed tax, 
 the local unit of government must agree that all the direct and 
 indirect costs of the Department of Revenue for collecting the 
 tax and any other statewide indirect costs will be deducted from 
 the amounts collected and paid to the local unit of government.  

    Subd. 2.    Development costs.  If the commissioner 
 determines that a new computer system will be required to 
 collect the locally imposed taxes, the costs of development of 
 the system will be charged to the first local units of 
 government to be included in the system.  Any additional local 
 units of government that by agreement are added to the system 
 will be charged for a share of the development costs.  The 
 charge will be determined by the commissioner who shall then 
 refund to the original local units of government their portion 
 of the development costs recovered from the additional users.  

    HIST: 1Sp1986 c 1 art 8 s 6; 1989 c 335 art 4 s 69; 1998 c 300 
 art 2 s 1 

     270.07 Power to abate; correction of errors. 

    Subdivision 1.    Powers of commissioner; application for 
 abatement; orders.  (a) The commissioner of revenue shall 
 prescribe the form of all blanks and books required under this 
 chapter and shall hear and determine all matters of grievance 
 relating to taxation.  Except for matters delegated to the 
 various boards of county commissioners under section 375.192, 
 and except as otherwise provided by law, the commissioner shall 
 have power to grant such reduction or abatement of net tax 
 capacities or taxes and of any costs, penalties or interest 
 thereon as the commissioner may deem just and equitable, and to 
 order the refundment, in whole or in part, of any taxes, costs, 
 penalties or interest thereon which have been erroneously or 
 unjustly paid.  Application therefor shall be submitted with a 
 statement of facts in the case and the favorable recommendation 
 of the county board or of the board of abatement of any city 
 where any such board exists, and the county auditor of the 
 county wherein such tax was levied or paid. In the case of taxes 
 other than gross earnings taxes, the order may be made only on 
 application and approval as provided in this paragraph.  No 
 reduction, abatement, or refundment of any special assessments 
 made or levied by any municipality for local improvements shall 
 be made unless it is also approved by the board of review or 
 similar taxing authority of such municipality. 

    (b) The commissioner has the power to grant reductions or 
 abatements of gross earnings tax.  An application for reduction 
 of gross earnings taxes may be made directly to the commissioner 
 without the favorable action of the county board and county 
 auditor.  The commissioner shall direct that any gross earnings 
 taxes that may have been erroneously or unjustly paid be applied 
 against unpaid taxes due from the applicant. 

    (c) The commissioner shall forward to the county auditor a 
 copy of the order made by the commissioner in all cases in which 
 the approval of the county board is required. 

    (d) The commissioner may refer any question that may arise 
 in reference to the true construction of this chapter to the 
 attorney general, and the decision thereon shall be in force and 
 effect until annulled by the judgment of a court of competent 
 jurisdiction.  

    (e) The commissioner may by written order abate, reduce, or 
 refund any penalty or interest imposed by any law relating to 
 taxation, if in the commissioner's opinion the failure to timely 
 pay the tax or failure to timely file the return is due to 
 reasonable cause, or if the taxpayer is located in a 
 presidentially declared disaster area.  

    (f) An appeal may not be taken to the Tax Court from any 
 order of the commissioner of revenue made in the exercise of the 
 discretionary authority granted in paragraph (a) with respect to 
 the reduction or abatement of real or personal property taxes in 
 response to a taxpayer's application for an abatement, 
 reduction, or refund of taxes, net tax capacities, costs, 
 penalties, or interest. 

    Subd. 1a.    Examination of application; reductions; 
 appeals.  The commissioner shall examine all applications 
 submitted by a county board pursuant to section 375.192, 
 subdivision 3.  If the applicant has previously submitted a 
 claim for property tax relief pursuant to chapter 290A based on 
 the property taxes payable prior to receiving the abatement, the 
 commissioner may approve the application in an amount reduced by 
 the relief provided pursuant to chapter 290A. 

    An appeal may be taken to the Tax Court from an order of 
 the commissioner made pursuant to this subdivision. 

    Subd. 2.    Correction of errors.  The commissioner of 
 revenue, on application of the county auditor with the approval 
 of the county board, may order the correction of any 
 administrative and clerical errors in the assessment, levy and 
 extension of ad valorem taxes other than valuation. 

    Subd. 3.    Additional powers of commissioner.  
 Notwithstanding any other provision of law the commissioner of 
 revenue may, 

    (a) based upon the administrative costs of processing, 
 determine minimum standards for the determination of additional 
 tax for which an order shall be issued, and 

    (b) based upon collection costs as compared to the amount 
 of tax involved, determine minimum standards of collection, and 

    (c) based upon the administrative costs of processing, 
 determine the minimum amount of refunds for which an order shall 
 be issued and refund made where no claim therefor has been 
 filed, and 

    (d) cancel any amounts below these minimum standards 
 determined under (a) and (b) hereof, and 

    (e) based upon the inability of a taxpayer to pay a 
 delinquent tax liability, abate the liability if the taxpayer 
 agrees to perform uncompensated public service work for a state 
 agency, a political subdivision or public corporation of this 
 state, or a nonprofit educational, medical, or social service 
 agency.  The Department of Corrections shall administer the work 
 program.  No benefits under chapter 176 or 268 shall be 
 available, but a claim authorized under section 3.739 may be 
 made by the taxpayer.  The state may not enter into any 
 agreement that has the purpose of or results in the displacement 
 of public employees by a delinquent taxpayer under this 
 section.  The state must certify to the appropriate bargaining 
 agent or employees, as applicable, that the work performed by a 
 delinquent taxpayer will not result in the displacement of 
 currently employed workers or layoff from a substantially 
 equivalent position, including partial displacement such as 
 reduction in hours of nonovertime work, wages, or other 
 employment benefits, and 

    (f) based on a showing of reasonable cause reissue an 
 uncashed rebate or property tax refund warrant or check that has 
 lapsed under any provision of law relating to rebates or under 
 section 290A.18, subdivision 2.  The authority to reissue 
 warrants or checks under this paragraph is limited to five years 
 after the date of issuance of the original warrant or check. 

    Subd. 3a.    Appropriation.  An amount sufficient for 
 the reissuance of rebate warrants authorized under subdivision 
 3, paragraph (f), is appropriated to the commissioner from the 
 general fund. 

    Subd. 4.    Erroneous remittances.  If a remittance is 
 erroneously made payable to the commissioner of revenue and the 
 commissioner had knowledge that the proper payee is a state or 
 local official of this state, the commissioner may endorse such 
 remittance to the proper state or local official.  The 
 commissioner of revenue is also authorized to return a 
 remittance if the records indicate that it has been erroneously 
 submitted. 

    Subd. 5.    Credit of overpayment to delinquent tax 
 liabilities.  Notwithstanding any other provision of law to 
 the contrary, in the case of an overpayment of any tax collected 
 by the commissioner of revenue, the commissioner may credit the 
 amount of such overpayment against any uncontested delinquent 
 tax liability on the part of the taxpayer who made the 
 overpayment.  An overpayment may be credited under this 
 subdivision only if the uncontested delinquent liability has 
 been assessed within ten years of the date on which the 
 overpayment is credited.  However, this limitation shall not be 
 applicable if the delinquent liability has been entered into 
 judgment or if legal action is pending for collection of the 
 liability or for renewal of the judgment.  An amount paid as tax 
 shall constitute an overpayment even if in fact there was no tax 
 liability with respect to which such amount was paid. 

    Subd. 6.    Abatement of penalty.  (a) A request for 
 abatement of penalty under subdivision 1, under section 289A.60, 
 subdivision 4, or under paragraph (c), must be filed with the 
 commissioner within 60 days of the date the notice was mailed to 
 the taxpayer's last known address, stating that a penalty has 
 been imposed. 

    (b) If the commissioner issues an order denying a request 
 for abatement of penalty, the taxpayer may, except as limited 
 under subdivision 1, file an administrative appeal as provided 
 in section 289A.65 or appeal to Tax Court as provided in section 
 271.06. 

    If the commissioner does not issue an order on the 
 abatement request within 60 days from the date the request is 
 received, the taxpayer may appeal to Tax Court as provided in 
 section 271.06. 

    (c) The commissioner shall abate any part of a penalty or 
 additional tax charge under section 289A.25, subdivision 2, or 
 289A.26, subdivision 4, attributable to erroneous advice given 
 to the taxpayer in writing by an employee of the department 
 acting in an official capacity, if the advice:  

    (1) was reasonably relied on and was in response to a 
 specific written request of the taxpayer; and 

    (2) was not the result of failure by the taxpayer to 
 provide adequate or accurate information. 

    HIST: (1983) RL s 801; 1909 c 96 s 1; 1911 c 339 s 1; 1923 c 
 145 s 1; 1941 c 454; 1949 c 45 s 1; Ex1959 c 59 s 1; 1965 c 357 
 s 1; 1965 c 506 s 1; 1969 c 97 s 1; 1971 c 479 s 1; 1973 c 457 s 
 1; 1973 c 582 s 3; 1975 c 377 s 1,2; 1976 c 134 s 78; 1977 c 307 
 s 29; 1978 c 767 s 3; 1982 c 523 art 2 s 3; 1986 c 444; 1988 c 
 719 art 5 s 84; 1989 c 324 s 4; 1989 c 329 art 13 s 20; 1990 c 
 604 art 1 s 3; 1992 c 511 art 9 s 4; 1993 c 375 art 17 s 6; 1996 
 c 471 art 3 s 3; 1997 c 31 art 1 s 1; 1999 c 243 art 16 s 4; 
 1Sp2001 c 5 art 20 s 6,7; 2002 c 379 art 1 s 62 

     270.071 Definitions. 

    Subdivision 1.    Applicability.  The following words 
 and phrases, when used in sections 270.071 to 270.079, unless 
 the context clearly indicates otherwise, shall have the meanings 
 ascribed to them in this section.  

    Subd. 2.    Air commerce.  (a) "Air commerce" means the 
 transportation by aircraft of persons or property for hire in 
 interstate, intrastate, or international transportation on 
 regularly scheduled flights or on intermittent or irregularly 
 timed flights by airline companies. 

    (b) "Air commerce" includes but is not limited to an 
 intermittent or irregularly timed flight, a flight arranged at 
 the convenience of an airline and the person contracting for the 
 transportation, or a charter flight.  It includes any airline 
 company making three or more flights in or out of Minnesota 
 during a calendar year. 

    (c) "Air commerce" does not include casual transportation 
 for hire by aircraft commonly owned and used for private 
 airflight purposes if the person furnishing the transportation 
 does not hold out to be engaged regularly in transportation for 
 hire. 

    Subd. 3.    Aircraft.  "Aircraft" means any contrivance 
 now known or hereafter invented, used or designed for navigation 
 of or flight in the air.  

    Subd. 4.    Airline company.  "Airline company" means 
 any person who undertakes, directly or indirectly, to engage in 
 the business of air commerce.  

    Subd. 5.    Commissioner.  "Commissioner" means state 
 commissioner of revenue. 

    Subd. 6.    Equated plane hours.  "Equated plane hours" 
 means hours spent by aircraft in flight weighted according to 
 the cargo capacity of each aircraft. 

    Subd. 7.    Flight property.  "Flight property" means 
 all aircraft and flight equipment used in connection therewith, 
 including spare flight equipment.  

    Subd. 8.    Person.  "Person" means any individual, 
 corporation, firm, copartnership, company, or association, and 
 includes any guardian, trustee, executor, administrator, 
 receiver, conservator, or any person acting in any fiduciary 
 capacity therefor.  

    Subd. 9.    Small or medium sized community.  "Small or 
 medium sized community" means a home rule charter or statutory 
 city or town in Minnesota with a population of 100,000 or fewer 
 that is not located in Anoka, Carver, Dakota, Hennepin, Ramsey, 
 Scott, or Washington Counties. 

    HIST: 1945 c 418 s 1; 1953 c 672 s 1; 1973 c 582 s 3; 1976 c 
 334 s 2; 1986 c 444; 1987 c 268 art 14 s 8; 1989 c 277 art 2 s 
 8; 1993 c 375 art 3 s 2 

     270.072 Taxation and assessment of flight property. 

    Subdivision 1.    Tax on real estate.  All real 
 property of an airline company and all personal property thereof 
 except flight property shall be taxed as otherwise provided by 
 law. 

    Subd. 2.    Assessment of flight property.  The flight 
 property of all airline companies operating in Minnesota shall 
 be assessed and appraised annually by the commissioner with 
 reference to its value on January 2 of the assessment year in 
 the manner prescribed by sections 270.071 to 270.079.  Aircraft 
 with a gross weight of less than 30,000 pounds and used on 
 intermittent or irregularly timed flights shall be excluded from 
 the provisions of sections 270.071 to 270.079. 

    Subd. 3.    Report by airline company.  Every airline 
 company engaged in air commerce in this state shall file with 
 the commissioner on or before the time fixed by the commissioner 
 a report under oath setting forth specifically the information 
 prescribed by the commissioner to enable the commissioner to 
 make the assessment required in sections 270.071 to 270.079, 
 unless the commissioner determines that the airline company or 
 person should be excluded from filing because its activities do 
 not constitute air commerce as defined herein.  A penalty of 
 five percent of the tax being assessed is imposed on a late 
 filing of the annual report.  If the report is not filed within 
 30 days, an additional penalty of five percent of the assessed 
 tax is imposed for each additional 30 days or fraction of 30 
 days until the return is filed.  The penalty imposed under this 
 section must not exceed the lesser of $25,000 or 25 percent of 
 the assessed tax. 

    Subd. 4.    Extension of time.  The commissioner for 
 good cause may extend for not to exceed 30 days the time for 
 making a report. 

    Subd. 5. Repealed, 2000 c 490 art 5 s 40 

    Subd. 6.    Airflight property tax lien.  The tax 
 imposed under sections 270.071 to 270.079 is a lien on all real 
 and personal property within this state of the airline company 
 in whose name the property is assessed.  For purposes of 
 sections 270.65 and 270.69, the date of assessment for the tax 
 imposed under sections 270.071 to 270.079 is January 2 of each 
 year for the taxes payable in the following year.  

    HIST: 1945 c 418 s 2,3,7,10; 1976 c 334 s 3,4; 1986 c 444; 
 1989 c 277 art 2 s 9,10; 1993 c 375 art 3 s 3; 2000 c 490 art 5 
 s 1,2 

     270.073 Examinations and investigations. 

    Subdivision 1.    Powers of commissioner.  For the 
 purpose of determining the correctness of any statement, the 
 commissioner shall have the power to examine or cause to be 
 examined any books, papers, records, or memoranda relevant to 
 the determination of the net tax capacity of flight property as 
 herein provided, including the airline company's retained copy 
 of any return or statement made to the United States of America 
 or any state for any year, whether such books, papers, records, 
 or memoranda are the property of or in the possession of the 
 airline company or any other person.  The commissioner shall 
 have the right to inspect the originals of such reports with or 
 without obtaining copies from the company.  The commissioner 
 shall have further power to require the attendance of any 
 airline company or other person having knowledge or information 
 in the premises, to compel the production of books, papers, 
 records, or memoranda by persons so required to attend, to take 
 testimony on matters material to such determination and to 
 administer oaths or affirmations.  

    Subd. 2.    Appointments of others; powers of subpoena.  
 For the purpose of making such examinations, the commissioner 
 may appoint such persons as the commissioner may deem 
 necessary.  Such persons shall have the rights and powers with 
 reference to the examining of books, papers, records, or 
 memoranda, and with reference to the subpoenaing of witnesses, 
 administering of oaths and affirmations, and taking of 
 testimony, which are conferred upon the commissioner hereby.  
 The court administrator of any court of record, upon demand of 
 any such person, shall issue a subpoena for the attendance of 
 any witness or the production of any books, papers, records, or 
 memoranda before such person.  The commissioner may also issue 
 subpoenas for the appearance of witnesses before the 
 commissioner or before such persons.  Disobedience of subpoenas 
 so issued shall be punished by the district court of the 
 district in which the subpoena is issued as for a contempt of 
 the district court.  

    Subd. 3.    Assessment on available information.  If any 
 airline company shall refuse or neglect to make the statement 
 required by this section to the commissioner, or shall refuse or 
 neglect to permit an inspection and examination of its property, 
 its records, books, accounts or other papers when requested by 
 the commissioner, or shall refuse or neglect to appear before 
 the commissioner or a person appointed under subdivision 2 when 
 required so to do, the commissioner shall assess the tax 
 provided for by sections 270.071 to 270.079 against the airline 
 company according to the commissioner's best judgment on 
 available information, and such airline company shall be 
 estopped to question or impeach the action or determination of 
 the commissioner, except upon proof of fraud on the part of the 
 commissioner; and the commissioner may add to the assessment a 
 penalty not exceeding ten percent of the assessment.  

    HIST: 1945 c 418 s 4; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 1988 
 c 719 art 5 s 84; 1989 c 329 art 13 s 20 

     270.074 Valuation of flight property; methods of 
  apportionment; ratio of tax. 

    Subdivision 1.    Valuation.  The commissioner shall 
 determine the market valuation of all flight property operated 
 or used by every airline company in air commerce in this state.  
 The valuation apportioned to this state of such flight property 
 shall be the proportion of the total valuation thereof 
 determined on the basis of the total of the following 
 percentages: 

    (1) 33-1/3 percent of the percentage which the total 
 tonnage of passengers, express and freight first received by the 
 airline company in this state during the preceding calendar year 
 plus the total tonnage of passengers, express and freight 
 finally discharged by it within this state during the preceding 
 calendar year is of the total of such tonnage first received by 
 the airline company or finally discharged by it, within and 
 without this state during the preceding calendar year. 

    (2) 33-1/3 percent of the percentage which, in equated 
 plane hours, the total time of all aircraft of the airline 
 company in flight in this state during the preceding calendar 
 year, is of the total of such time in flight within and without 
 this state during the preceding calendar year.  

    (3) 33-1/3 percent of the percentage which the number of 
 revenue ton miles of passengers, mail, express and freight flown 
 by the airline company within this state during the preceding 
 calendar year is of the total number of such miles flown by it 
 within and without this state during the preceding calendar year.

    Subd. 2.    Other apportionment methods.  The method 
 prescribed by subdivision 1 shall be presumed to determine 
 fairly and correctly the value of the flight property of an 
 airline allocable to this state.  Any airline aggrieved by the 
 valuation of the flight property or the application to its case 
 of the apportionment methods prescribed by subdivision 1, may 
 petition the commissioner for determination of the valuation or 
 the apportionment thereof to this state by the use of some other 
 method.  Thereupon, if the commissioner finds that the 
 application of the methods prescribed by subdivision 1 will be 
 unjust to the airline, the commissioner may allow the use of the 
 methods so petitioned for by the airline, or may determine the 
 valuation or apportionment thereof by other methods if satisfied 
 that such other methods will fairly reflect such valuation or 
 apportionment thereof.  

    Subd. 3.    Tax capacity.  (a) The flight property of 
 every airline company shall have a tax capacity of 70 percent of 
 the value thereof apportioned to this state under subdivision 1, 
 except that quiet aircraft shall have a tax capacity of 40 
 percent of the value determined under subdivision 1.  Quiet 
 aircraft shall include turboprops and aircraft defined as stage 
 III by the Federal Aeronautics Administration.  If, in the 
 opinion of the commissioner, other aircraft may be qualified as 
 quiet aircraft, the commissioner may adopt rules providing 
 additional qualifications.  

    (b) The flight property of an airline company that owns or 
 leases aircraft the majority of which are turboprops, and which 
 provides, during six months or more of the year that taxes are 
 levied, scheduled passenger service to three or more airports 
 inside or outside of this state that serve small or medium sized 
 communities, shall be assessed at 50 percent of the assessment 
 percentage otherwise set by paragraph (a). 

    HIST: 1945 c 418 s 5; 1953 c 672 s 2,3; 1971 c 427 s 15; 1986 
 c 444; 1987 c 268 art 14 s 9; 1988 c 719 art 5 s 84 

     270.075 Tax levy. 

    Subdivision 1.    Rate of tax.  The commissioner shall 
 determine the rate of tax to be levied and collected against the 
 net tax capacity as determined pursuant to section 270.074, 
 subdivision 2, to generate revenues sufficient to fund the 
 airflight property tax portion of each year's state airport fund 
 appropriation, as certified to the commissioner by the 
 commissioner of transportation.  The property tax portion of the 
 state airport fund appropriation is the difference between the 
 total fund appropriation and the estimated total fund revenues 
 from other sources for the state fiscal year in which the tax is 
 payable.  If a levy amount has not been certified by September 1 
 of a levy year, the commissioner shall use the last previous 
 certified amount to determine the rate of tax. 

    Subd. 2.    Notice of taxes; payment.  As soon as 
 practicable and not later than December 1 next following the 
 levy of the tax, the commissioner shall give actual notice to 
 the airline company of the net tax capacity and of the tax.  The 
 taxes imposed under sections 270.071 to 270.079 shall become due 
 and payable on January 1 following the levy thereof.  If any tax 
 is not paid on the due date or, if an appeal is made pursuant to 
 section 270.076, within 60 days after notice of an increased 
 tax, a late payment penalty of five percent of the unpaid tax 
 shall be assessed.  If the tax remains unpaid for more than 30 
 days, an additional penalty of five percent of the unpaid tax is 
 imposed for each additional 30 days or fraction of 30 days that 
 the tax remains unpaid.  The penalty imposed under this section 
 must not exceed the lesser of $25,000 or 25 percent of the 
 unpaid tax.  The unpaid tax and penalty shall bear interest at 
 the rate specified in section 270.75 from the time such tax 
 should have been paid until paid.  All interest and penalties 
 shall be added to the tax and collected as a part thereof. 

    Subd. 3. Repealed, 2000 c 490 art 5 s 40 

    Subd. 4. Repealed, 2000 c 490 art 5 s 40 

    HIST: 1945 c 418 s 6; Ex1971 c 31 art 10 s 1; 1975 c 377 s 3; 
 1976 c 2 s 92; 1978 c 767 s 4; 1987 c 268 art 14 s 10; 1987 c 
 384 art 3 s 9; 1988 c 719 art 5 s 84; art 6 s 1; 1989 c 277 art 
 2 s 11; 1989 c 329 art 13 s 20; 1992 c 511 art 4 s 2 

     270.076 Appeal. 

    Subdivision 1.    Appeal.  Any airline company against 
 which a tax has been imposed under sections 270.071 to 270.079 
 shall have the right to appeal within 60 days from the date of 
 notice of the levy of the tax to the Tax Court in the manner 
 provided by law. 

    Subd. 2.    Payment of tax under appeal.  In case of 
 appeal from the assessment and levy of the tax, the airline 
 company shall currently pay when due 90 percent of the tax 
 unless the payment is waived or otherwise adjusted by an order 
 of the court.  If the final determination of the litigation 
 should result in sustaining the assessment and levy or in the 
 finding that the amount paid by the airline company is 
 insufficient, the difference between the amount paid and the 
 amount which should have been paid shall be decreed delinquent 
 taxes subject to interest, as hereinabove provided.  If the 
 final determination of the Tax Court or the Supreme Court shall 
 result in increasing any assessment above that which was made 
 final by the order of the commissioner from which the appeal is 
 taken, then the taxes on such increased assessment shall be 
 delinquent 30 days after notice of the amount of the increased 
 tax shall have been given to the airline company by the 
 commissioner. 

    HIST: 1945 c 418 s 8; 1965 c 698 s 3; 1975 c 377 s 4; 1976 c 
 134 s 78; 1977 c 307 s 29; 1978 c 767 s 5; 1985 c 300 s 1 

     270.077 Taxes credited to state airports fund. 

    All taxes levied under sections 270.071 to 270.079 must be 
 credited to the state airports fund created in section 360.017. 

    HIST: 1945 c 418 s 9; 1976 c 166 s 7; 1998 c 403 s 24 

     270.078 Not to conflict with federal law. 

    Subdivision 1.    Conformance to federal law.  If any 
 provision of sections 270.071 to 270.079 is contrary to any 
 provision of any law of the United States of America, 
 hereinafter enacted, providing for or relating to the ad valorem 
 taxation by a state of aircraft or flying equipment of an 
 airline company, such provision shall be of no effect and the 
 commissioner is authorized and directed to prescribe by rule 
 such provisions as may be necessary to make sections 270.071 to 
 270.079 conform to the federal act and to effectuate the 
 purposes of sections 270.071 to 270.079, provided such rules do 
 not prescribe a rate of taxation higher than that provided in 
 section 270.075 or a net tax capacity based on a percentage 
 higher than that provided in section 270.074, subdivision 2.  

    Subd. 2.    Federal act; attorney general certification. 
  No provision of any law of the United States of America 
 providing for or relating to the ad valorem taxation by a state 
 of aircraft or flying equipment of an airline company shall be 
 effective for the purposes of subdivision 1 until the attorney 
 general of Minnesota shall have certified to the commissioner 
 that in the attorney general's opinion such federal act is a 
 valid exercise of federal authority under the Constitution of 
 the United States.  

    Subd. 3.    Applicability.  The provisions of this 
 section shall not affect the validity of any tax imposed under 
 sections 270.071 to 270.079 prior to the effective date of such 
 federal law.  

    HIST: 1945 c 418 s 11; 1985 c 248 s 70; 1986 c 444; 1988 c 719 
 art 5 s 84; 1989 c 329 art 13 s 20 

     270.079 Reciprocal arrangement with other states.  

    The commissioner may enter into an agreement with the 
 commissioner or other tax officials of another state for the 
 interpretation and administration of the acts of their several 
 states providing for the taxation of flight property of airline 
 companies for the purpose of promoting uniformity of taxation of 
 such companies thereunder.  

    HIST: 1945 c 418 s 12 

  270.08 Repealed, 1990 c 480 art 2 s 18 

  270.083 Repealed, 2000 c 490 art 10 s 22 

     270.084 Transfers.  

    Subdivision 1.    Transfer of duties.  All the powers 
 and duties and functions conferred by law upon the public 
 examiner in respect to auditing railroads and other corporations 
 for determining gross earnings tax liability, at the time of 
 passage of Laws 1945, chapter 348, shall hereafter be exercised, 
 performed, and administered by the commissioner of revenue.  

    Subd. 2.    Transfer of records.  The public examiner 
 shall transfer and deliver to the commissioner of revenue all 
 contracts, books, maps, plans, papers, records, and property of 
 every description within the public examiner's jurisdiction or 
 control, and shall also transfer thereto any or all employees 
 engaged in the exercise of such functions, powers or duties 
 pertaining to the auditing of railroads and other corporations 
 paying gross earnings taxes.  The commissioner of revenue is 
 hereby authorized to take possession of said property, and shall 
 take charge of said employees and shall employ them in the 
 exercise of their respective functions, powers and duties 
 transferred as aforesaid, without reduction of compensation, 
 subject to change or termination of employment or compensation 
 as may be otherwise provided by law.  

    HIST: 1945 c 348 s 2,3; 1973 c 582 s 3; 1986 c 444 

     270.09 Opinion of attorney general; effect. 

    The commissioner of revenue may in writing request the 
 opinion of the attorney general upon any matter within the scope 
 of the functions of the Department of Revenue as now or 
 hereafter prescribed by law.  Any written opinion of the 
 attorney general upon any such matter rendered in response to 
 such request shall have the force and effect of law unless and 
 until overruled by a decision of the Tax Court or a court of 
 competent jurisdiction. 

    HIST: (2362-8) 1939 c 431 art 6 s 8; 1965 c 698 s 3; 1973 c 
 582 s 3; 1976 c 134 s 78; 1977 c 307 s 29 

     270.10 Orders; decisions; appeals. 

    Subdivision 1.    In writing.  All orders and decisions 
 of the commissioner of revenue, or any subordinates, respecting 
 any tax, assessment, or other obligation, shall be in writing, 
 filed in the offices of the department.  Any order or decision 
 increasing or decreasing any tax, assessment, or other 
 obligation by a sum exceeding $1,000 on real or personal 
 property, or the net tax capacity thereof, or other obligation 
 relating thereto, the result of which is to increase or decrease 
 the total amount payable including penalties and interest, by a 
 sum exceeding $1,000, and any order or decision increasing or 
 decreasing any other tax by a sum exceeding $1,000 exclusive of 
 penalties and interest, must bear the written signature or 
 facsimile signature of the commissioner or the commissioner's 
 delegate.  The attorney general may appeal from the order on 
 behalf of the state as provided in chapter 271.  Written 
 approval of the commissioner or a delegate shall not be required 
 with respect to the following orders:  (1) orders reducing net 
 tax capacity of property by reason of its classification as a 
 homestead; (2) orders not involving refunds which have the 
 effect only of correcting income and franchise tax assessments 
 to conform to the amounts shown on final returns filed as 
 provided by section 289A.19, subdivisions 1 and 2; and (3) 
 original orders for the refundment of gasoline and special fuel 
 taxes.  

    Subd. 1a.    Notification to taxpayer.  At the same time 
 that notice of the assessment, determination, or order of the 
 commissioner is given to a taxpayer, the taxpayer must be 
 notified in writing of the right to appeal to the Tax Court, and 
 if applicable, to the Small Claims Division.  Except in the case 
 of mathematical or clerical errors, the notice must contain a 
 description of the basis for, including applicable law and other 
 factors considered in the determination, and a listing of the 
 amounts of tax due, interest, additions to tax, and penalties.  
 Failure to provide all the required information does not 
 invalidate the notice for purposes of satisfying statutory 
 notice requirements if the notice contains sufficient 
 information to advise the taxpayer that an assessment, order, or 
 other determination has been made.  The taxpayer may request 
 further clarification within the time provided for appealing the 
 determination.  

    Subd. 2.    Only official actions of county board or other 
 agency acted upon.  No action requiring the recommendation or 
 approval of any county board or other public agency shall be 
 taken by the commissioner of revenue, or any other members of 
 the department, unless such recommendation or approval shall 
 have been made upon official action by such county board or 
 other agency, entered upon the minutes or record of its 
 proceedings as a public record, showing the names of the 
 taxpayers and other persons concerned and the amounts involved, 
 and so certified by the recording officer of such board or 
 agency. 

    Subd. 3. Repealed, 1998 c 371 s 21 

    Subd. 4. Repealed, 1990 c 480 art 2 s 18 

    Subd. 5.    Appeal; payment of order.  Except for orders 
 relating to property tax matters, no collection action may be 
 taken, including the filing of liens under section 270.69, and 
 no late payment penalties may be imposed when a return has been 
 filed for the tax type and period upon which the order is based, 
 if an order of the commissioner is paid: 

    (1) within 60 days after the order has 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. 

    HIST: 1939 c 431 art 6 s 9; 1943 c 174 s 1,2; 1943 c 652 s 1; 
 1951 c 611 s 1; 1965 c 102 s 1; 1969 c 97 s 2; 1973 c 582 s 3; 
 1976 c 239 s 85; 1977 c 203 s 6; 1979 c 50 s 27; 1982 c 523 art 
 2 s 4; 1983 c 180 s 2; 1983 c 222 s 1,2; 1986 c 444; 1987 c 268 
 art 14 s 11; art 17 s 3; 1988 c 719 art 5 s 84; 1989 c 324 s 5; 
 1989 c 329 art 13 s 20; 1990 c 480 art 1 s 46; 1990 c 604 art 1 
 s 4; 1994 c 510 art 4 s 1; 1997 c 84 art 6 s 4,5; 2003 c 127 art 
 5 s 2 

     270.101 Personal liability. 

    Subdivision 1.    Liability imposed.  A person who, 
 either singly or jointly with others, has the control of, 
 supervision of, or responsibility for filing returns or reports, 
 paying taxes, or collecting or withholding and remitting taxes 
 and who fails to do so, or a person who is liable under any 
 other law, is liable for the payment of taxes, penalties, and 
 interest arising under chapters 295, 296A, 297F, 297A, and 297G, 
 or sections 290.92 and 297E.02. 

    Subd. 2.    Person defined.  The term "person" includes, 
 but is not limited to, a corporation, estate, trust, 
 organization, or association, whether organized for profit or 
 not, an officer or director of a corporation, a member of a 
 partnership, an employee, a third party (including, but not 
 limited to, a financial institution, lender, or surety), and any 
 other individual or entity.  "Person" does not include an 
 unpaid, volunteer member of a board of trustees or directors of 
 an organization exempt from taxation under section 290.05, if 
 the member is solely serving in an honorary capacity, does not 
 participate in the day-to-day or financial operations of the 
 organization, and has no actual knowledge of the failure to file 
 returns or remit taxes. 

    Subd. 3.    Procedure for assessment.  The commissioner 
 may assess liability for the taxes described in subdivision 1 
 against a person liable under this section.  The assessment may 
 be based upon information available to the commissioner.  It 
 must be made within the prescribed period of limitations for 
 assessing the underlying tax, or within one year after the date 
 of an order assessing underlying tax, whichever period expires 
 later.  An order assessing personal liability under this section 
 is reviewable under section 289A.65 and is appealable to Tax 
 Court. 

    If a person has been assessed under this section for an 
 amount for a given period and the time for appeal has expired or 
 there has been a final determination that the person is liable, 
 collection action is not stayed pursuant to section 270.10, 
 subdivision 5, for subsequent assessments of additional amounts 
 for the same person for the same period and tax type. 

    Subd. 4.    Right of contribution.  A person who has 
 paid all or part of a liability assessed under this section has 
 a cause of action against other liable persons to recover the 
 amount paid in excess of that person's share of the liability.  
 A claim for recovery of contribution may be made only in a 
 proceeding which is separate from, and cannot be joined or 
 consolidated with, an administrative or judicial proceeding or 
 investigation involving the commissioner's administration or 
 enforcement of this section.  An order assessing liability under 
 this section against the person from whom contribution is being 
 sought is not a prerequisite for bringing an action for recovery 
 of contribution, nor is the issuance of an order binding on the 
 court in which the proceeding is brought.  The court can 
 determine whether each person would be liable under this section 
 and the share of liability.  The commissioner cannot be made a 
 party to any proceeding for recovery of contribution, nor is a 
 determination in such a proceeding binding on the commissioner 
 for the purpose of administering or enforcing this section.  An 
 action for contribution arises when the liability under this 
 section is paid in full, or the liability of the person seeking 
 contribution has been determined by agreement between the 
 commissioner and such person and paid, and must be brought 
 within the time period prescribed in section 541.05. 

    HIST: 1990 c 480 art 2 s 2; 1994 c 633 art 3 s 1; 1995 c 234 
 art 9 s 3; 1997 c 84 art 5 s 2; art 6 s 6,7; 1998 c 299 s 30; 
 2000 c 260 s 42 

     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, a 
 trustee in bankruptcy, a debtor in possession, a receiver, a 
 secured party, a mortgagee, an assignee of rents, or any other 
 lienholder.  

    (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.  Transfer does not include an 
 assignment for the benefit of creditors, foreclosure or 
 enforcement of a mortgage, assignment of rents, security 
 interest or lien, sale or disposition in a bankruptcy 
 proceeding, or sale or disposition by a receiver. 

    (h) "Transfer in bulk" means a transfer, other than in the 
 ordinary course of the transferor's trade or business, of more 
 than one-half of all the property of a business at all locations 
 combined, as measured by the value of the property at the time 
 of the transfer. 

    Subd. 2.    Bulk transfers; liability of successor; lien. 
  (a) Whenever a business transfers in bulk to a successor the 
 business assets, and an enforceable lien for unpaid sales and 
 withholding taxes has been filed against the business by the 
 commissioner under section 270.69, 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.  If 
 an agreement to transfer has been entered into, this notice 
 requirement only applies:  (1) if a lien described under this 
 paragraph has been filed prior to the date of the agreement; or 
 (2) if the date of the transfer is more than 30 days after the 
 date of the agreement, and a lien described under this paragraph 
 is filed at least 30 days prior to the date of transfer. 

    (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 of the purchase price if 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) 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, subject to rebuttal, to equal the unpaid sales and 
 withholding taxes, interest, and penalties of the transferring 
 business. 

    (d) 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. 

    (e) 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 abatement; review.  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.  The 
 commissioner may abate an assessment if the successor's failure 
 to give the notice required under this section is due to 
 reasonable cause.  The procedural and appeal provisions under 
 section 270.07, subdivision 6, apply to abatement requests under 
 this subdivision.  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.  

    HIST: 1994 c 510 art 4 s 2; 1996 c 471 art 13 s 6-8 

     270.11 Powers; meetings. 

    Subdivision 1.    To act as State Board of Equalization. 
  The commissioner of revenue shall have and exercise all the 
 rights, powers and authority by law vested in the State Board of 
 Equalization, which board of equalization is hereby continued, 
 with full power and authority to review, modify, and revise all 
 of the acts and proceedings of the commissioner in so far as 
 they relate to the equalization and valuation of property 
 assessed for taxation, as prescribed by section 270.12. 

    Subd. 2.    County assessor's reports of assessment filed 
 with commissioner.  Each county assessor shall file by April 1 
 with the commissioner of revenue a copy of the abstract that 
 will be acted upon by the local and county boards of review.  
 The abstract must list the real and personal property in the 
 county itemized by assessment districts.  The assessor of each 
 county in the state shall file with the commissioner, within ten 
 working days following final action of the local board of review 
 or equalization and within five days following final action of 
 the county board of equalization, any changes made by the local 
 or county board.  The information must be filed in the manner 
 prescribed by the commissioner.  It must be accompanied by a 
 printed or typewritten copy of the proceedings of the 
 appropriate board. 

    The final abstract of assessments after adjustments by the 
 State Board of Equalization and inclusion of any omitted 
 property shall be submitted to the commissioner of revenue on or 
 before September 1 of each calendar year.  The final abstract 
 must separately report the captured tax capacity of tax 
 increment financing districts under section 469.177, subdivision 
 2, the metropolitan revenue contribution value under section 
 473F.07, and the value subject to the power line credit under 
 section 273.42. 

    Subd. 3.    Special assessors, deputies; reassessments.  
  The commissioner of revenue shall appoint a special assessor 
 and deputies and cause to be made, in any year, a reassessment 
 of all or any real and personal property, or either, in any 
 assessment district, when in the commissioner's judgment such 
 reassessment is desirable or necessary, to the end that any and 
 all property in such district shall be assessed equitably as 
 compared with like property in the county wherein such district 
 is situated. 

    Subd. 4.    Omitted property.  The commissioner of 
 revenue shall require the county auditor to carefully place upon 
 the assessment rolls omitted property which may be discovered to 
 have escaped assessment and taxation in previous years. 

    Subd. 5.    Examination of complaints; proceedings.  The 
 commissioner of revenue shall receive complaints and carefully 
 examine into all cases where it is alleged that property subject 
 to taxation has not been assessed or has been fraudulently or 
 for any reason improperly or unequally assessed, or the law in 
 any manner evaded or violated, and cause to be instituted such 
 proceedings as will remedy improper or negligent administration 
 of the taxing of the state. 

    Subd. 6.    Change of market values.  The commissioner 
 of revenue shall raise or lower the market value of any real or 
 personal property, including the power to raise or lower the 
 market value of the real or personal property of any individual, 
 copartnership, company, association, or corporation; provided, 
 that before any such assessment against the property of any 
 individual, copartnership, company, association, or corporation 
 is so raised, notice of an intention to raise such market value 
 and of the time and place at which a hearing thereon will be 
 held shall be given to such person, by mail, addressed to the 
 person at the place of residence listed upon the assessment 
 book, at least five days before the day of such hearing.  

    All relevant and material evidence concerning the market 
 value of the real or personal property shall be submitted at the 
 hearing, and the hearing shall not be a "contested case" within 
 the meaning of section 14.02, subdivision 3.  The person 
 notified of the hearing, or any other person having an interest 
 in the property, may present evidence and argument bearing upon 
 the market value of the property.  

    Subd. 7.    Appearances before the commissioner.  A 
 property owner, other than a public utility or mining company, 
 for which the original assessments are determined by the 
 commissioner of revenue, may not appear before the commissioner 
 for the purposes provided in subdivision 5 or 6 unless a timely 
 appearance in person, by counsel, or by written communication 
 has been made before the county board of equalization as 
 provided in section 274.13, to appeal the assessment of the 
 property, or that the property owner can establish not receiving 
 notice of market value at least five days before the local board 
 of review meeting. 

    The commissioner may refuse to hear an appeal that is 
 within the jurisdiction of the Small Claims Division of the Tax 
 Court as stated in section 271.21, subdivision 2.  The property 
 owner shall be notified by the commissioner of the right to 
 appeal to the Small Claims Division whenever an appeal to the 
 commissioner is denied. 

    HIST: (2365) 1907 c 408 s 12; 1909 c 294 s 1,5; 1971 c 564 s 
 1,2; 1973 c 582 s 3; 1974 c 521 s 28; 1975 c 46 s 2; 1975 c 339 
 s 2; 1977 c 434 s 1; 1980 c 437 s 1; 1Sp1981 c 1 art 8 s 1; 1982 
 c 424 s 130; 1985 c 300 s 2; 1986 c 444; 1987 c 268 art 7 s 
 18,19; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1Sp1989 c 
 1 art 9 s 8; 1991 c 291 art 12 s 2 

     270.12 State Board of Equalization; duties. 

    Subdivision 1.    Commissioner of revenue constitutes 
 board.  The commissioner of revenue shall constitute the State 
 Board of Equalization.  The board may adjourn from day to day 
 and employ necessary clerical assistance. 

    Subd. 2.    Meeting dates; duties.  The board shall meet 
 annually between April 15 and June 30 at the office of the 
 commissioner of revenue and examine and compare the returns of 
 the assessment of the property in the several counties, and 
 equalize the same so that all the taxable property in the state 
 shall be assessed at its market value, subject to the following 
 rules: 

    (1) The board shall add to the aggregate valuation of the 
 real property of every county, which the board believes to be 
 valued below its market value in money, such percent as will 
 bring the same to its market value in money; 

    (2) The board shall deduct from the aggregate valuation of 
 the real property of every county, which the board believes to 
 be valued above its market value in money, such percent as will 
 reduce the same to its market value in money; 

    (3) If the board believes the valuation for a part of a 
 class determined by a range of market value under clause (8) or 
 otherwise, a class, or classes of the real property of any town 
 or district in any county, or the valuation for a part of a 
 class, a class, or classes of the real property of any county 
 not in towns or cities, should be raised or reduced, without 
 raising or reducing the other real property of such county, or 
 without raising or reducing it in the same ratio, the board may 
 add to, or take from, the valuation of a part of a class, a 
 class, or classes in any one or more of such towns or cities, or 
 of the property not in towns or cities, such percent as the 
 board believes will raise or reduce the same to its market value 
 in money; 

    (4) The board shall add to the aggregate valuation of any 
 part of a class, a class, or classes of personal property of any 
 county, town, or city, which the board believes to be valued 
 below the market value thereof, such percent as will raise the 
 same to its market value in money; 

    (5) The board shall take from the aggregate valuation of 
 any part of a class, a class, or classes of personal property in 
 any county, town or city, which the board believes to be valued 
 above the market value thereof, such percent as will reduce the 
 same to its market value in money; 

    (6) The board shall not reduce the aggregate valuation of 
 all the property of the state, as returned by the several county 
 auditors, more than one percent on the whole valuation thereof; 

    (7) When it would be of assistance in equalizing values the 
 board may require any county auditor to furnish statements 
 showing assessments of real and personal property of any 
 individuals, firms, or corporations within the county.  The 
 board shall consider and equalize such assessments and may 
 increase the assessment of individuals, firms, or corporations 
 above the amount returned by the county board of equalization 
 when it shall appear to be undervalued, first giving notice to 
 such persons of the intention of the board so to do, which 
 notice shall fix a time and place of hearing.  The board shall 
 not decrease any such assessment below the valuation placed by 
 the county board of equalization; 

    (8) In equalizing values pursuant to this section, the 
 board shall utilize a 12-month assessment/sales ratio study 
 conducted by the Department of Revenue containing only sales 
 that are filed in the county auditor's office under section 
 272.115, by November 1 of the previous year and that occurred 
 between October 1 of the year immediately preceding the previous 
 year and September 30 of the previous year.  

    The assessment/sales ratio study may separate the values of 
 residential property into market value categories.  The board 
 may adjust the market value categories and the number of 
 categories as necessary to create an adequate sample size for 
 each market value category.  The board may determine the 
 adequate sample size.  To the extent practicable, the 
 methodology used in preparing the assessment/sales ratio study 
 must be consistent with the most recent Standard on Assessment 
 Sales Ratio Studies published by the Assessment Standards 
 Committee of the International Association of Assessing 
 Officers.  The board may determine the geographic area used in 
 preparing the study to accurately equalize values.  A sales 
 ratio study separating residential property into market value 
 categories may not be used as the basis for a petition under 
 chapter 278. 

    The sales prices used in the study must be discounted for 
 terms of financing.  The board shall use the median ratio as the 
 statistical measure of the level of assessment for any 
 particular category of property; and 

    (9) The board shall receive from each county the estimated 
 market values on the assessment date falling within the study 
 period for all parcels by magnetic tape or other medium as 
 prescribed by the commissioner of revenue. 

    Subd. 3.    Jurisdictions in two or more counties.  When 
 a taxing jurisdiction lies in two or more counties, if the sales 
 ratio studies prepared by the Department of Revenue show that 
 the average levels of assessment in the several portions of the 
 taxing jurisdictions in the different counties differ by more 
 than five percent, the board may order the apportionment of the 
 levy.  When the sales ratio studies prepared by the Department 
 of Revenue show that the average levels of assessment in the 
 several portions of the taxing jurisdictions in the different 
 counties differ by more than ten percent, the board shall order 
 the apportionment of the levy unless (a) the proportion of total 
 adjusted gross tax capacity in one of the counties is less than 
 ten percent of the total adjusted gross tax capacity in the 
 taxing jurisdiction and the average level of assessment in that 
 portion of the taxing jurisdiction is the level which differs by 
 more than five percent from the assessment level in any one of 
 the other portions of the taxing jurisdiction; (b) significant 
 changes have been made in the level of assessment in the taxing 
 jurisdiction which have not been reflected in the sales ratio 
 study, and those changes alter the assessment levels in the 
 portions of the taxing jurisdiction so that the assessment level 
 now differs by five percent or less; or (c) commercial, 
 industrial, mineral, or public utility property predominates in 
 one county within the taxing jurisdiction and another class of 
 property predominates in another county within that same taxing 
 jurisdiction.  If one or more of these factors are present, the 
 board may order the apportionment of the levy.  

    Notwithstanding any other provision, the levy for the 
 Metropolitan Mosquito Control District, Metropolitan Council, 
 metropolitan transit district, and metropolitan transit area 
 must be apportioned without regard to the percentage difference. 

    If, pursuant to this subdivision, the board apportions the 
 levy, then that levy apportionment among the portions in the 
 different counties shall be made in the same proportion as the 
 adjusted gross tax capacity as determined by the commissioner in 
 each portion is to the total adjusted gross tax capacity of the 
 taxing jurisdiction. 

    For the purposes of this section, the average level of 
 assessment in a taxing jurisdiction or portion thereof shall be 
 the aggregate assessment sales ratio.  Gross tax capacities as 
 determined by the commissioner shall be the gross tax capacities 
 as determined for the year preceding the year in which the levy 
 to be apportioned is levied. 

    Actions pursuant to this subdivision shall be commenced 
 subsequent to the annual meeting on April 15 of the State Board 
 of Equalization, but notice of the action shall be given to the 
 affected jurisdiction and the appropriate county auditors by the 
 following June 30. 

    Apportionment of a levy pursuant to this subdivision shall 
 be considered as a remedy to be taken after equalization 
 pursuant to subdivision 2, and when equalization within the 
 jurisdiction would disturb equalization within other 
 jurisdictions of which the several portions of the jurisdiction 
 in question are a part. 

    Subd. 4.    Public utility property.  For purposes of 
 equalization only, public utility personal property shall be 
 treated as a separate class of property notwithstanding the fact 
 that its class rate is the same as commercial-industrial 
 property. 

    Subd. 5.    Equalization orders.  The Board of 
 Equalization may, pursuant to its responsibilities under 
 subdivisions 2 and 3, issue orders to ensure that the results of 
 local and county boards of equalization are consistent with the 
 objective of state equalization.  The board may issue, at its 
 discretion, a supplemental order to amend, supersede, or correct 
 a prior order of the board or an order of a local or county 
 board.  The supplemental order must be issued within 60 days of 
 the order to be changed.  The board may issue to a local or 
 county board of equalization, within ten business days of the 
 receipt of minutes of a local or county board of equalization, 
 an order explaining the action that the state board believes 
 will be necessary to effect the objective of state equalization. 

    HIST: (2366) RL s 863; 1971 c 564 s 3; 1973 c 123 art 5 s 7; 
 1973 c 582 s 3; 1975 c 295 s 1; 1975 c 339 s 8; 1978 c 766 s 1; 
 1980 c 616 s 10; 1983 c 222 s 3; 1985 c 300 s 3; 1Sp1986 c 1 art 
 4 s 10; 1987 c 268 art 7 s 20,21; 1988 c 719 art 5 s 84; 1989 c 
 277 art 2 s 12; 1989 c 329 art 15 s 20; 1Sp1989 c 1 art 2 s 11; 
 art 3 s 1; art 9 s 9,10; 1991 c 291 art 1 s 7; art 12 s 3; 1994 
 c 416 art 1 s 7 

     270.13 Record of proceedings changing gross tax 
  capacity; duties of county auditor. 

    A record of all proceedings of the commissioner of revenue 
 affecting any change in the gross tax capacity of any property, 
 as revised by the State Board of Equalization, shall be kept by 
 the commissioner of revenue and a copy thereof, duly certified, 
 shall be mailed each year to the auditor of each county wherein 
 such property is situated, on or before June 30 or 30 days after 
 submission of the abstract required by section 270.11, 
 subdivision 2, whichever is later.  This record shall specify 
 the amounts or amount, or both, added to or deducted from the 
 gross tax capacity of the real property of each of the several 
 towns and cities, and of the real property not in towns or 
 cities, also the percent or amount of both, added to or deducted 
 from the several classes of personal property in each of the 
 towns and cities, and also the amount added to or deducted from 
 the assessments of individuals, copartnerships, associations, or 
 corporations.  The county auditor shall add to or deduct from 
 such tract or lot, or portion thereof, of any real property in 
 the county the required percent or amount, or both, on the gross 
 tax capacity thereof as it stood after equalized by the county 
 board, adding in each case a fractional sum of 50 cents or more, 
 and deducting in each case any fractional sum of less than 50 
 cents, so that no gross tax capacity of any separate tract or 
 lot shall contain any fraction of a dollar; and add to, or 
 deduct from, the several classes of personal property in the 
 county the required percent or amount, or both, on the gross tax 
 capacity thereof as it stood after equalized by the county 
 board, adding or deducting in manner aforesaid any fractional 
 sum so that no gross tax capacity of any separate class of 
 personal property shall contain a fraction of a dollar, and add 
 to or deduct from assessments of individuals, copartnerships, 
 associations, or corporations, as they stood after equalization 
 by the county board, the required amounts to agree with the 
 assessments as returned by the commissioner of revenue. 

    HIST: (2367) 1907 c 408 s 13; 1949 c 543 s 6; 1971 c 564 s 4; 
 1973 c 123 art 5 s 7; 1973 c 582 s 3; 1976 c 334 s 5; 1986 c 
 444; 1987 c 268 art 7 s 22; 1988 c 719 art 5 s 84; 1989 c 329 
 art 13 s 20; 1Sp1989 c 1 art 9 s 11 

     270.14 County auditor to calculate tax rate. 

    The county auditor shall calculate the tax rate necessary 
 to raise the required amount of the various taxes on the net tax 
 capacity of all property as returned by the commissioner of 
 revenue.  

    HIST: (2368) 1907 c 408 s 14; 1973 c 582 s 3; 1988 c 719 art 5 
 s 84; 1989 c 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11 

     270.15 Witnesses, how sworn; failure to testify or 
  produce.  

    Oaths to witnesses in any matter under the investigation or 
 consideration of the commissioner of revenue may be administered 
 by the commissioner's secretary.  In case any witness shall fail 
 to obey any summons or appear before the commissioner of revenue 
 or refuse to testify or answer any material questions or to 
 produce records, books, papers, or documents when required so to 
 do, such failure or refusal shall be reported to the attorney 
 general, who shall thereupon proceed in the proper court to 
 compel obedience to any summons or order of the commissioner of 
 revenue, or to punish witnesses for any such neglect or refusal. 

    HIST: (2369) 1907 c 408 s 15; 1973 c 582 s 3; 1986 c 444 

     270.16 Property omitted or undervalued; reassessment. 

    Subdivision 1.    Property omitted or undervalued.  When 
 it shall be made to appear to the commissioner of revenue, by 
 complaint or by the finding of a court or of the legislature, or 
 either body of the legislature, or any committee of the 
 legislature, or any city council or county board, that any 
 considerable amount of property has been improperly omitted from 
 the tax list or assessment roll of any district or county for 
 any year, or, if assessed, that the same has been undervalued or 
 overvalued, as compared with like property in the same county or 
 in the state so that the assessment for such year in such 
 district or county is grossly unfair and inequitable, whether or 
 not the same has been equalized by the county board of 
 equalization or the commissioner of revenue, the commissioner of 
 revenue shall examine into the facts in the matter and, if 
 satisfied therefrom that it would be for the best interests of 
 the state that a reassessment of such property be made, the 
 commissioner shall appoint a special assessor and such deputy 
 assessors as may be necessary and cause a reassessment to be 
 made of all or any of the real and personal property, or either, 
 in any such district or county as the commissioner may deem 
 best, to the end that all property in such district or county 
 shall be assessed equitably as compared with like property in 
 such district or county. 

    Subd. 2.    Failure to appraise.  When an assessor has 
 failed to properly appraise at least one-quarter of the parcels 
 of property in a district or county as provided in section 
 273.01, the commissioner of revenue shall appoint a special 
 assessor and deputy assessor as necessary and cause a 
 reappraisal to be made of the property due for reassessment in 
 accordance with law. 

    HIST: (2370) 1907 c 408 s 16; 1909 c 294 s 2; 1965 c 185 s 1; 
 1973 c 123 art 5 s 7; 1973 c 582 s 3; 1975 c 437 art 8 s 1; 1976 
 c 334 s 6; 1986 c 444 

     270.17 Qualification of assessors; reassessment, how 
  made.  

    Every special assessor and deputy appointed under the 
 provisions of section 270.16 shall subscribe and file with the 
 commissioner of revenue an oath to faithfully and fairly perform 
 the duties of office.  Such special assessor, assisted by 
 deputies, shall thereupon proceed to carefully examine and 
 reassess the property so to be reassessed and prepare duplicate 
 lists of such reassessment in such form as the commissioner of 
 revenue may prescribe, showing the property or person so 
 reassessed, the amount of the original assessment thereof made 
 in such year, and opposite the same the reassessment so made by 
 such special assessor.  The special assessor shall file both 
 copies of such list with the commissioner of revenue; and the 
 commissioner of revenue shall thereupon examine, equalize, and 
 correct such reassessment so as to substantially conform with 
 the assessment of like property throughout the state and 
 transmit to the auditor of the county wherein such reassessment 
 was so made one copy of such reassessment by the commissioner so 
 corrected and equalized.  Such list shall for all purposes 
 supersede and be in place of the original assessment made for 
 such year upon such property and the county auditor, upon 
 receipt thereof, shall extend and levy against such property so 
 reassessed the taxes thereon for such year according to such 
 reassessment in the same manner as though such list was the 
 original assessment list of such property.  Any person feeling 
 aggrieved by an assessment so made against the person, or upon 
 any property at that time owned by the person, may appeal 
 therefrom to the district court of the county in which such 
 assessment is made.  To render the appeal effective for any 
 purpose, the appellant shall file a notice of the appeal with 
 the auditor of such county within 30 days after the making of 
 the assessment, which notice shall specify the ground upon which 
 the appeal was taken, and no other or different service shall be 
 required to perfect it.  Upon the filing of the notice the 
 county auditor shall make and file in the office of the court 
 administrator of the district court a certified copy of the 
 notice and of the particular assessment appealed from and notify 
 the county attorney of such county of the pendency of the 
 appeal.  Thereupon the district court shall be deemed to have 
 acquired jurisdiction of the matter and proceed to hear and 
 determine it in like manner as other tax matters are tried and 
 determined in the district courts of this state.  The county 
 attorney of such county shall appear for and defend the 
 interests of the state in such matter. 

    HIST: (2371) 1909 c 294 s 3; 1973 c 582 s 3; 1973 c 776 s 1; 
 1986 c 444; 1Sp1986 c 3 art 1 s 82 

     270.18 Reassessment; compensation; reimbursement by 
  counties. 

    The compensation of each special assessor and deputies, 
 appointed under the provisions of sections 270.11, subdivision 
 3, and 270.16, and the expenses as such, shall be fixed by the 
 commissioner of revenue and paid out of money appropriated for 
 operation of the Department of Revenue.  The commissioner of 
 revenue on August 1 shall notify the auditor of each affected 
 county of the amount thereof paid on behalf of such county since 
 August 1 of the preceding year, whereupon the county auditor 
 shall levy a tax upon the taxable property in the assessment 
 district or districts wherein such reassessment was made 
 sufficient to pay the same.  One-half of such tax shall be 
 levied in the year in which the commissioner of revenue so 
 notifies the county auditor and the remaining one-half shall be 
 levied in the following year.  The respective counties shall 
 reimburse the state by paying one-half of the tax so assessed on 
 or before July 1 and the remaining one-half on or before 
 December 1 in the year in which the tax is payable by owner, 
 whether or not the tax was collected by the county.  The 
 reimbursement shall be credited to the general fund.  If any 
 county fails to reimburse the state within the time specified 
 herein, the commissioner of revenue is empowered to order 
 withholding of state aids or distributions to such county equal 
 to the amount delinquent.  

    HIST: (2372) 1909 c 294 s 4; 1963 c 714 s 1; 1965 c 743 s 1; 
 1969 c 399 s 1; 1971 c 932 s 1; 1973 c 492 s 14; 1974 c 98 s 1; 
 1983 c 343 s 4; 1986 c 444; 1Sp1989 c 1 art 9 s 12 

  270.185 Repealed, 1992 c 513 art 4 s 60 

     270.19 Municipalities to be party to tax hearings. 

    Any city, town, school district, or county (all of which 
 governmental subdivisions shall be embraced in the word 
 "municipality" as used hereinafter) may appear at and become a 
 party to any proceedings before the commissioner of revenue held 
 for the purpose of equalizing or assessing any real or personal 
 property in such municipality, or reducing the net tax capacity 
 of any such property.  For that purpose any such municipality 
 may employ counsel and disburse money for other expenses in 
 connection with such proceedings, on duly itemized, verified 
 claims, which shall be audited and allowed as now provided by 
 law for the allowance of claims against a municipality.  It 
 shall be the duty of the commissioner of revenue, at the time of 
 such hearing, to grant the municipality, at its request, such 
 further reasonable time as may be necessary for such 
 municipality to prepare for further hearing.  Before granting 
 any reduction in net tax capacity exceeding $100,000, it shall 
 be the duty of the commissioner of revenue, when any taxpayer or 
 property owner has applied to the commissioner after June 30, 
 1983, for a reduction of the net tax capacity of any real or 
 personal property in an amount exceeding $100,000, to give 
 written notice to the officials of the municipality wherein such 
 property is located and to permit such municipality to have 
 reasonable opportunity to be heard at any proceedings concerning 
 such reduction.  

    HIST: (2372-1) 1931 c 304 s 1; 1965 c 642 s 1; 1974 c 362 s 1; 
 1983 c 222 s 4; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20 

     270.20 Hearings, request for, notice of, preparation for.

    Any such municipality may, at any time within ten days 
 after the final adjournment of the county board of equalization 
 of the county in which such municipality is located or within 
 ten days after the filing with the auditor of such county of any 
 order of the commissioner of revenue reducing the net tax 
 capacity of any property in such municipality, file a written 
 request with the commissioner of revenue for a hearing upon the 
 equalization or assessment of any property within such 
 municipality, specifying the property and the name and address 
 of the owner thereof, as they appear from the assessment books.  
 The commissioner of revenue shall thereupon order a hearing 
 thereon and mail a notice stating the time and place of such 
 hearing to the municipality and to the owner of such property.  
 It shall be the duty of the commissioner of revenue, at the time 
 of such hearing, to grant the municipality, at its request, such 
 further reasonable time as may be necessary for such 
 municipality to prepare for further hearing.  

    HIST: (2372-2) 1931 c 304 s 2; 1973 c 582 s 3; 1988 c 719 art 
 5 s 84; 1989 c 329 art 13 s 20 

     270.21 Witnesses summoned.  

    Upon any such hearing the commissioner of revenue shall, 
 upon the request of such municipality or any party to such 
 proceedings, issue subpoenas and summon witnesses to appear and 
 give testimony, and to produce books, records, papers, and 
 documents.  For the purpose of preparing for and participating 
 in such hearing the municipality shall have access to, and use 
 of, all the data, records, and files of the commissioner of 
 revenue pertaining to the property in question.  Upon demand of 
 any party a record shall be kept by the commissioner of revenue 
 of all evidence offered or received upon such hearing, the cost 
 thereof to be paid by the party making such demand.  

    HIST: (2372-3) 1931 c 304 s 3; 1973 c 582 s 3 

     270.22 Findings of fact. 

    The commissioner of revenue shall determine the controversy 
 upon the evidence produced at the hearing and shall make and 
 file written findings of fact and an order determining the 
 controversy.  In the equalization and determination of net tax 
 capacities, the findings and net tax capacities as given by the 
 assessor of the local assessment district shall be considered as 
 prima facie correct.  Copies of the order and findings shall be 
 mailed to all parties appearing at the hearing and to the 
 auditor of the county in which the property is located.  Any 
 municipality which has appeared in the proceedings, and which is 
 aggrieved by the order of the commissioner of revenue reducing 
 the net tax capacity of any of the property, or failing to 
 increase the net tax capacity, may have the order of the 
 commissioner of revenue reviewed by appeal to the Court of 
 Appeals, on either of the following grounds:  (a) that the 
 determination of the commissioner of revenue was not in 
 accordance with the laws relating to the assessment of property, 
 or that the commissioner of revenue committed any other error of 
 law; or (b) that the findings of fact and determination of net 
 tax capacity were unwarranted by or were contrary to the weight 
 of the evidence.  

    Any owner of property who has appeared in the proceedings 
 and who is aggrieved by the order of the commissioner of revenue 
 raising the net tax capacity of the property, or failing to 
 reduce the net tax capacity, may have the order of the 
 commissioner of revenue reviewed on appeal to the Court of 
 Appeals in like manner and upon the same grounds as provided for 
 review on the appeal of any municipality.  

    HIST: (2372-4) 1931 c 304 s 4; 1973 c 582 s 3; 1983 c 247 s 
 115; 1986 c 444; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20 

     270.23 Notice of appeal. 

    To secure review, the municipality shall, within 30 days 
 after mailing of notice of the determination by the commissioner 
 of revenue, serve upon the commissioner of revenue a notice of 
 appeal to the Court of Appeals from the order of the 
 commissioner of revenue and file the original, with proof of 
 service, with the clerk of the appellate courts, paying the 
 filing fee provided by law for appeals in civil actions.  The 
 filing of the notice of appeal shall vest the court with 
 jurisdiction and the appeal shall be heard and disposed of as in 
 other civil cases.  

    The court shall reverse or affirm the order of the 
 commissioner of revenue or remand the cause to the commissioner 
 of revenue for a new hearing or further proceedings or for other 
 disposition, with further directions as the court deems proper. 

    HIST: (2372-5, 2372-6) 1931 c 304 s 5,6; 1973 c 582 s 3; 1983 
 c 247 s 116 

     270.24 Appeal not to stay collection. 

    The institution of any such appeal from the order of the 
 commissioner of revenue shall not operate to stay in any way 
 proceedings for the assessment or collection of taxes against 
 the property involved therein.  Notwithstanding such appeal, the 
 commissioner of revenue shall file with the auditor of the 
 county in which such property is situated an order confirming, 
 increasing, decreasing, or determining the net tax capacity 
 thereof, and the county auditor shall extend and levy against 
 such property, or the owner thereof, the taxes thereupon for 
 such year according to such assessment, and all subsequent 
 proceedings for the determination of the taxes and the 
 collection thereof shall be taken as if no appeal from such 
 order were pending.  When the matter is finally determined on 
 review a properly authenticated copy of the findings, order, or 
 judgment shall be filed with the auditor of the county in which 
 the land or property referred to in the proceedings is 
 situated.  If such order or judgment lowers the net tax capacity 
 of the land or property referred to in the proceedings, the 
 commissioner of revenue, upon petition of the owner, approved by 
 the county board, shall abate so much of the taxes against such 
 property as is attributable to the excessive net tax capacity 
 thereof.  If such tax has been paid, the county auditor, upon 
 petition of the owner, approved by the county board and the 
 commissioner of revenue, shall refund so much of such payment as 
 is attributable to such excess net tax capacity.  Upon such 
 refund being made the county auditor shall charge the same to 
 the state and the various governmental subdivisions thereof that 
 participated in such excessive payment, in proportion to their 
 respective shares therein, and deduct the same in the next tax 
 apportionment.  

    HIST: (2372-7) 1931 c 304 s 7; 1973 c 582 s 3; 1986 c 444; 
 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20 

     270.25 Increase in net tax capacity; additional taxes. 

    If such final order and judgment result in raising the net 
 tax capacity of the property affected by the proceedings, the 
 county officers shall, for the next ensuing year, in addition to 
 the regular taxes levied for such ensuing year, levy, extend, 
 and spread against such property, if real property, or against 
 the owner thereof, if personal property, a tax equal to the 
 difference between the taxes actually levied and extended 
 against such property, or owner, for the year in question and 
 the taxes which should have been levied or extended against such 
 property, or owner, at the increased net tax capacity as finally 
 determined.  

    HIST: (2372-8) 1931 c 304 s 8; 1988 c 719 art 5 s 84; 1989 c 
 329 art 13 s 20 

     270.26 Proceedings to determine net tax capacity. 

    The proceedings provided in this section are for 
 determining the net tax capacity upon the basis of which taxes 
 are spread against property, or its owner, in the first 
 instance.  The order of the commissioner of revenue, or the 
 final order for judgment of the Court of Appeals on it, shall 
 not be a bar to any defense against the taxes interposed at the 
 time of the proceedings for judgment on them.  All defenses 
 which may be set up against the proceedings for judgment upon 
 the taxes may be asserted notwithstanding the determination of 
 the commissioner of revenue or the court.  If the taxes are 
 levied or extended pending review of the order of the 
 commissioner of revenue by the court, a judgment entered upon 
 the taxes in the tax delinquency proceedings shall not be a bar 
 to the spreading of further taxes against the property for that 
 year, in the event the net tax capacity of the property is 
 raised as herein provided.  In the proceedings for the 
 collection of any taxes which include an additional levy because 
 of the raising of the net tax capacity of any property, the 
 owner may answer separately to the proceedings to obtain 
 judgment for the excess levy.  

    HIST: (2372-9) 1931 c 304 s 9; 1973 c 582 s 3; 1983 c 247 s 
 117; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20 

     270.27 Due date on Saturday, Sunday or holiday. 

    When the last day prescribed by law for the payment of any 
 tax to or the filing of any return, statement or document with 
 the commissioner of revenue or the Department of Revenue falls 
 on Saturday, Sunday or a legal holiday, the performance of such 
 act shall be considered timely if it is performed on the next 
 succeeding day which is not a Saturday, Sunday or legal 
 holiday.  For purposes of this section, the last day for the 
 performance of the prescribed act shall be determined by 
 including any authorized extension of time; the term "legal 
 holiday" shall mean any day made a holiday in Minnesota by 
 section 645.44, subdivision 5, or by the laws of the United 
 States.  

    HIST: 1973 c 104 s 1; 1973 c 582 s 3 

     270.271 Timely mailing treated as timely filing and 
  paying. 

    Subdivision 1.    Date of delivery.  When a document, 
 including a return, claim, or statement, is required to be 
 filed, or a payment is required to be made to the commissioner 
 within a prescribed period, or on or before a prescribed date, 
 and if the document or payment is delivered by electronic means 
 or by United States mail after the period or the date to the 
 place prescribed for filing or payment, then the date of 
 delivery or of payment is the date of the confirmation 
 time-and-date stamp of the transaction, if delivered by 
 electronic means, or the date of the United States postmark 
 stamped on the cover in which the document or payment is mailed, 
 if delivered by United States mail, as the case may be. 

    Subd. 2.    Mailing requirements.  Subdivision 1 applies 
 only if: 

    (1) the postmark date falls within the prescribed period or 
 on or before the prescribed date, 

    (i) for filing (including any extension granted for the 
 filing) of the document, or 

    (ii) for making the payment (including any extension 
 granted for making the payment); and 

    (2) the document or payment was within the time prescribed 
 in clause (1), deposited in the mail in the United States in an 
 envelope or other appropriate wrapper, postage prepaid, properly 
 addressed to the office of the Department of Revenue with which 
 the document is required to be filed or to which payment is 
 required to be made. 

    Subd. 3.    Confirmation of electronic filing and payment 
 and United States Postal Service postmark.  The confirmation 
 numbers and confirmation time-and-date stamps received by the 
 taxpayer following electronic payment or filing are proof of the 
 payment authorization and filing dates.  Only the postmark of 
 the United States Postal Service, rather than those of private 
 postage meters, qualifies as proof of timely mailing under this 
 section.  If the document or payment is sent by United States 
 registered mail, the date of registration shall be treated as 
 the postmark date.  If the document or payment is sent by United 
 States certified mail and the sender's receipt is postmarked by 
 the postal employee to whom the envelope containing such 
 document or payment is presented, the date of the United States 
 postmark on the receipt shall be treated as the postmark date of 
 the document or payment. 

    Subd. 4.    Receipt date otherwise governs.  In any case 
 in which the document or payment is not treated as timely filed 
 or paid under this section, the date of receipt by the 
 commissioner, and not the postmark date, shall govern for 
 purposes of determining the amount of any penalties for late 
 filing or payment.  

    Subd. 5.    Private delivery services.  A reference in 
 this section to the United States mail shall be treated as 
 including a reference to any designated delivery service, and 
 any reference in this section to a postmark by the United States 
 Postal Service shall be treated as including a reference to any 
 date recorded or marked by any designated delivery service in 
 accordance with section 7502(f) of the Internal Revenue Code. 

    HIST: 1987 c 268 art 17 s 4; 1997 c 84 art 6 s 8; 1Sp2001 c 5 
 art 17 s 2,3 

     270.272 Procedures involving in-person taxpayer 
  interviews. 

    Subdivision 1.    Recording of interviews.  (a) In 
 connection with an interview with a taxpayer relating to the 
 audit or collection of a tax, and on advance request of the 
 taxpayer, an employee of the Department of Revenue shall allow 
 the taxpayer to make an audio recording of the interview at the 
 taxpayer's expense and with the taxpayer's equipment. 

    (b) An employee of the department may record an interview 
 described in paragraph (a) if the taxpayer is informed of the 
 recording before the interview and a transcript or copy of the 
 recording is made available to the taxpayer on the taxpayer's 
 request, provided the department is reimbursed by the taxpayer 
 for the cost of transcribing or copying the recording. 

    Subd. 2.    Safeguards.  (a) Before or at the start of 
 an initial interview, an employee of the department shall 
 provide to the taxpayer in the case of an audit interview an 
 explanation of the audit process and the taxpayer's rights under 
 that process and, in the case of a collection interview, an 
 explanation of the collection process and the taxpayer's rights 
 under that process. 

    (b) If a taxpayer requests to consult with an attorney, 
 accountant, agent, preparer, or any other person permitted to 
 represent the taxpayer before the department at any time during 
 an interview, except an interview initiated by an administrative 
 subpoena, the interview must be suspended for no more than 30 
 days. 

    Subd. 3.    Representatives holding power of attorney.  
 An attorney, accountant, agent, preparer, or any other person 
 permitted to represent the taxpayer before the department who 
 has a written power of attorney executed by the taxpayer may 
 represent the taxpayer in an interview described in subdivision 
 1.  The taxpayer may be required to accompany the representative 
 only if an administrative subpoena is issued.  In this instance, 
 with the consent of an immediate supervisor and after ten days' 
 notice to the representative, the department employee may notify 
 the taxpayer directly that the employee believes the 
 representative is unreasonably delaying the examination or 
 investigation process. 

    Subd. 4.    Not to apply to certain investigations.  
 This section does not apply to criminal investigations or 
 investigations relating to the conduct of an employee of the 
 department.  

    HIST: 1990 c 604 art 1 s 5 

     270.273 Taxpayer assistance orders; taxpayer's rights 
  advocate. 

    Subdivision 1.    Authority to issue.  On application 
 filed by a taxpayer with the Department of Revenue taxpayer's 
 rights advocate, in the form, manner, and in the time prescribed 
 by the commissioner, and after thorough investigation, the 
 taxpayer's rights advocate may issue a taxpayer assistance order 
 if, in the determination of the taxpayer's rights advocate, the 
 manner in which the state tax laws are being administered is 
 creating or will create an unjust and inequitable result for the 
 taxpayer. 

    Subd. 2.    Terms of a taxpayer assistance order.  A 
 taxpayer assistance order may require the department within a 
 specified time period to release property of the taxpayer levied 
 on, cease any action, take any action as permitted by law, or 
 refrain from taking any action to enforce the state tax laws 
 against the taxpayer, until the issue or issues giving rise to 
 the order have been resolved. 

    Subd. 3.    Authority to modify or rescind.  A taxpayer 
 assistance order issued by the taxpayer's rights advocate under 
 this section may be modified or rescinded by the commissioner. 

    Subd. 4.    Suspension of running of period of limitation. 
  The running of the period of limitation with respect to an 
 action described in subdivision 2 is suspended from the date of 
 the taxpayer assistance order until the expiration date of the 
 order or, if modified, the expiration date of the modified order 
 or, if rescinded, the date of the rescission. 

    Subd. 5.    Independent action of taxpayer's rights 
 advocate.  This section does not prevent the taxpayer's rights 
 advocate from taking action in the absence of an application 
 under subdivision 1. 

    Subd. 6.    Taxpayer's rights advocate.  For purposes of 
 this section, the term "taxpayer's rights advocate" includes a 
 designee of the taxpayer's rights advocate.  The taxpayer's 
 rights advocate shall represent the interests of taxpayers who 
 have grievances against the department in connection with an 
 audit or collection activity, and shall report directly to the 
 commissioner.  A determination of the taxpayer's rights advocate 
 under this section to issue or to not issue a taxpayer 
 assistance order is final and cannot be appealed to the Tax 
 Court or any other court. 

    HIST: 1990 c 604 art 1 s 6; 1997 c 84 art 6 s 9 

     270.274 Review of jeopardy assessment and levy 
  procedures. 

    Subdivision 1.    Administrative review.  Within five 
 days after a jeopardy assessment or jeopardy collection is made 
 to assess or collect a tax administered by the commissioner of 
 revenue, the commissioner shall provide the taxpayer with a 
 written statement of the information relied on in making the 
 assessment or levy.  Within 30 days after the written statement 
 is provided or, if not provided, within 35 days after the 
 assessment or levy, the taxpayer may request the commissioner to 
 review the action taken.  After a request for review, the 
 commissioner shall determine whether the assessment or levy is 
 reasonable and whether the amount assessed or demanded as a 
 result of the action is appropriate under the circumstances. 

    Subd. 2.    Judicial review.  A determination by the 
 commissioner under subdivision 1 is appealable to the Tax Court 
 in the manner provided by law, and the appeal must be 
 expeditiously heard by the court.  If the court determines that 
 the making of the assessment or levy is unreasonable, or that 
 the amount assessed or demanded is inappropriate, the court may 
 order the commissioner to release the levy, abate the 
 assessment, redetermine in whole or in part the amount assessed 
 or demanded, or take other action.  A determination by the court 
 under this subdivision is final and may not be appealed by 
 either party. 

    Subd. 3.    Burden of proof.  In a proceeding under 
 subdivision 2, the burden of proving that the assessment or 
 collection of the tax was jeopardized by delay is on the 
 commissioner.  Regarding the issue of whether the amount 
 assessed or demanded as a result of the action is appropriate, 
 the commissioner shall provide a written statement explaining 
 the basis for determining the amount, and the burden is on the 
 taxpayer to show that the statement is incorrect or invalid. 

    HIST: 1990 c 604 art 1 s 7; 1991 c 291 art 16 s 1 

     270.275 Civil damages for failure to release lien. 

    Subdivision 1.    In general.  (a) A taxpayer may bring 
 a civil action for damages against the commissioner in district 
 court when an employee or the department has knowingly or 
 negligently: 

    (1) failed to release a lien as required by section 270.69, 
 subdivision 11; or 

    (2) failed to release a lien within 30 days after 
 satisfaction of the liability on which the lien is based. 

    (b) An action under paragraph (a), clause (2), must be 
 preceded by 30 days' written notice by the taxpayer to the 
 commissioner and the taxpayer's rights advocate that the lien 
 has not been released.  An action under paragraph (a) must be 
 commenced within two years after the date the right of action 
 accrued. 

    Subd. 2.    Damages.  On a finding of liability on the 
 part of the defendant in an action brought under subdivision 1, 
 the defendant is liable to the plaintiff in an amount equal to 
 the sum of actual, direct economic damages sustained by the 
 plaintiff due to the actions of the defendant, plus the costs of 
 the action.  Damages must be paid in accordance with section 
 3.736, subdivision 7. 

    Subd. 3.    Mitigation of damages.  Damages awarded must 
 be reduced by the amount of the damages that could reasonably 
 have been mitigated by the plaintiff. 

    HIST: 1990 c 604 art 1 s 8 

     270.276 Civil damages for certain unauthorized 
  collection actions. 

    Subdivision 1.    In general.  If in connection with the 
 collection of previously determined delinquent taxes from a 
 taxpayer of a state tax administered by the commissioner of 
 revenue, an employee of the department recklessly or 
 intentionally disregards a state tax law or rule, the taxpayer 
 may bring a civil action for damages against the commissioner in 
 district court within two years after the date the right of 
 action accrues. 

    Subd. 2.    Damages.  On a finding of liability on the 
 part of the defendant in an action brought under subdivision 1, 
 the defendant is liable to the plaintiff in an amount equal to 
 the lesser of $200,000, or the sum of (1) actual, direct 
 economic damages sustained by the plaintiff as a proximate 
 result of the reckless or intentional actions of the employee 
 and (2) the costs of the action.  Damages must be paid in 
 accordance with section 3.736, subdivision 7. 

    Subd. 3.    Limitations.  A judgment for damages must 
 not be awarded under subdivision 2 unless the court determines 
 that the plaintiff has exhausted the administrative remedies 
 available to the plaintiff within the department.  Damages 
 awarded must be reduced by the amount of the damages that could 
 reasonably have been mitigated by the plaintiff. 

    Subd. 4.    Penalties for procedures instituted primarily 
 for delay.  When it appears to the district court that: 

    (1) proceedings before it under this section have been 
 instituted or maintained by the taxpayer primarily for delay; 

    (2) the taxpayer's position in such proceeding is frivolous 
 or groundless; or 

    (3) the taxpayer unreasonably failed to pursue available 
 administrative remedies, 

 the district court, in its decision, may require the taxpayer to 
 pay to the department of revenue a penalty not in excess of 
 $25,000.  The penalty may be assessed and, upon notice and 
 demand, may be collected in the same manner as a tax. 

    HIST: 1990 c 604 art 1 s 9; 1997 c 84 art 6 s 10 

     270.277 Notices to holders of powers of attorney. 

    If a taxpayer has executed a written power of attorney, in 
 a form prescribed by the commissioner, the commissioner shall 
 allow the taxpayer to elect, in writing, that all notices and 
 correspondence between the Department of Revenue and the 
 taxpayer will be sent to the holder of the power of attorney. 

    HIST: 1Sp2001 c 5 art 20 s 8 

     270.278 Penalty for filing certain documents against 
  Department of Revenue employees. 

    Subdivision 1.    Definitions.  (a) "Recording office" 
 means a county recorder, registrar of titles, or secretary of 
 state in this state or another state. 

    (b) "Filing party" means the person or persons requesting 
 or causing another person to request that the recording office 
 accept documents or instruments for recording or filing. 

    Subd. 2.    Invalid documents naming commissioner or 
 Department of Revenue employees.  Filing a document, including 
 a nonconsensual common law lien under section 514.99, that 
 purports to create a claim against the commissioner of revenue 
 or an employee of the Department of Revenue based on performance 
 or nonperformance of duties by the commissioner or employee is 
 invalid unless accompanied by a specific order from a court of 
 competent jurisdiction authorizing the filing of the document or 
 unless a specific statute authorizes the filing of the document. 

    Subd. 3.    Civil penalty.  If a filing party causes a 
 document described in subdivision 2 to be recorded in a 
 recording office, the commissioner may assess a penalty against 
 the filing party of $1,000 per document filed, payable to the 
 general fund.  An order assessing a penalty under this section 
 is reviewable administratively under section 289A.65 and is 
 appealable to Tax Court under chapter 271.  The penalty is 
 collected and paid in the same manner as income tax.  The 
 penalty is in addition to any other remedy available to the 
 commissioner of revenue or to an employee of the Department of 
 Revenue against whom the document has been filed.  

    HIST: 2003 c 127 art 8 s 1 

     270.30 Tax preparation services. 

    Subdivision 1.    Scope.  (a) This section applies to a 
 person who offers, provides, or facilitates the provision of 
 refund anticipation loans, as part of or in connection with the 
 provision of tax preparation services. 

    (b) This section does not apply to: 

    (1) a tax preparer who provides tax preparation services 
 for fewer than six clients in a calendar year; 

    (2) the provision by a person of tax preparation services 
 to a spouse, parent, grandparent, child, or sibling; and 

    (3) the provision of services by an employee for an 
 employer. 

    Subd. 2.    Definitions.  (a) For purposes of this 
 section, the following terms have the meanings given. 

    (b) "Client" means an individual for whom a tax preparer 
 performs or agrees to perform tax preparation services. 

    (c) "Person" means an individual, corporation, partnership, 
 limited liability company, association, trustee, or other legal 
 entity. 

    (d) "Refund anticipation loan" means a loan, whether 
 provided by the tax preparer or another entity such as a 
 financial institution, in anticipation of, and whose payment is 
 secured by, a client's federal or state income tax refund or 
 both. 

    (e) "Tax preparation services" means services provided for 
 a fee or other consideration to a client to: 

    (1) assist with preparing or filing state or federal 
 individual income tax returns; 

    (2) assume final responsibility for completed work on an 
 individual income tax return on which preliminary work has been 
 done by another; or 

    (3) offer or facilitate the provision of refund 
 anticipation loans.  

    (f) "Tax preparer" or "preparer" means a person providing 
 tax preparation services subject to this section. 

    Subd. 3.    Standards of conduct.  No tax preparer shall:

    (1) without good cause fail to promptly, diligently, and 
 without unreasonable delay complete a client's tax return; 

    (2) obtain the signature of a client to a tax return or 
 authorizing document that contains blank spaces to be filled in 
 after it has been signed; 

    (3) fail to sign a client's tax return when payment for 
 services rendered has been made; 

    (4) fail or refuse to give a client a copy of any document 
 requiring the client's signature within a reasonable time after 
 the client signs the document; 

    (5) fail to retain for at least four years a copy of 
 individual income tax returns; 

    (6) fail to maintain a confidential relationship between 
 themselves and their clients or former clients; 

    (7) fail to take commercially reasonable measures to 
 safeguard a client's nonpublic personal information; 

    (8) make, authorize, publish, disseminate, circulate, or 
 cause to make, either directly or indirectly, any false, 
 deceptive, or misleading statement or representation relating to 
 or in connection with the offering or provision of tax 
 preparation services; 

    (9) require a client to enter into a loan arrangement in 
 order to complete a tax return; 

    (10) claim credits or deductions on a client's tax return 
 for which the tax preparer knows or reasonably should know the 
 taxpayer does not qualify; 

    (11) charge, offer to accept, or accept a fee based upon a 
 percentage of an anticipated refund for tax preparation 
 services; 

    (12) under any circumstances, withhold or fail to return to 
 a client a document provided by the client for use in preparing 
 the client's tax return. 

    Subd. 4.    Required disclosures; refund anticipation 
 loans.  (a) If a tax preparer offers to make or facilitate a 
 refund anticipation loan to the client, the preparer must make 
 the disclosures in this subdivision.  The disclosures must be 
 made before or at the same time the preparer offers the refund 
 anticipation loan to the client. 

    (b) The tax preparer must provide to a client a written 
 notice on a single sheet of paper, separate from any other 
 document or writing, containing: 

    (1) a legend, centered at the top on the single sheet of 
 paper, in bold, capital letters, and in 28-point type stating 
 "NOTICE"; 

    (2) the following verbatim statements: 

    (i) "This a loan.  The annual percentage rate (APR), based 
 on the estimated payment period, is (fill in the estimated APR)."

    (ii) "Your refund will be used to repay the loan.  As a 
 result, the amount of your refund will be reduced by (fill in 
 appropriate dollar amount) for fees, interest, and other 
 charges." 

    (iii) "You can get your refund in about two weeks if you 
 file your return electronically and have the Internal Revenue 
 Service send your refund to your own bank account." and 

    (3) if the client is subject to additional interest when a 
 refund is delayed, the following verbatim statement must also be 
 included in the notice:  "If you choose to take this loan and 
 your refund is delayed, you may have to pay additional interest."

    (c) All required statements must be in capital and small 
 font type fonts, in a minimum of 14-point type, with at least a 
 double space between each line in the statement and four spaces 
 between each statement. 

    (d) The notice must be signed and dated by the tax preparer 
 and the client. 

    Subd. 5.    Itemized bill required.  A tax preparer must 
 provide an itemized statement of the charges for services, at 
 least separately stating the charges for: 

    (1) return preparation; 

    (2) electronic filing; and 

    (3) providing or facilitating a refund anticipation loan. 

    Subd. 6.    Enforcement; penalties.  The commissioner 
 may impose an administrative penalty of not more than $1,000 per 
 violation of subdivision 3, 4, or 5.  The commissioner may 
 terminate a tax preparer's authority to transmit returns 
 electronically to the state, if the commissioner determines the 
 tax preparer engaged in a pattern and practice of violating this 
 section.  Imposition of a penalty under this subdivision is 
 subject to the contested case procedure under chapter 14.  The 
 commissioner shall collect the penalty in the same manner as the 
 income tax. 

    Subd. 7.    Enforcement; civil actions.  (a) Any 
 violation of this section is an unfair, deceptive, and unlawful 
 trade practice within the meaning of section 8.31. 

    (b) A client may bring a civil action seeking redress for a 
 violation of this section in the conciliation or the district 
 court of the county in which unlawful action is alleged to have 
 been committed or where the respondent resides or has a 
 principal place of business. 

    (c) A district court finding for the plaintiff must award 
 actual damages, including incidental and consequential damages, 
 reasonable attorney fees, court costs, and any other equitable 
 relief as the court considers appropriate. 

    Subd. 8.    Exemptions; enforcement provisions.  The 
 provisions of subdivisions 6 and 7 do not apply to: 

    (1) an attorney admitted to practice under section 481.01; 

    (2) a certified public accountant holding a certificate 
 under section 326A.04 or a person issued a permit to practice 
 under section 326A.05; 

    (3) a person designated as a registered accounting 
 practitioner under Minnesota Rules, part 1105.6600, or a 
 registered accounting practitioner firm issued a permit under 
 Minnesota Rules, part 1105.7100; 

    (4) an enrolled agent who has passed the special enrollment 
 examination administered by the Internal Revenue Service; and 

    (5) any fiduciary, or the regular employees of a fiduciary, 
 while acting on behalf of the fiduciary estate, the testator, 
 trustor, grantor, or beneficiaries of them. 

    HIST: 1Sp2003 c 21 art 11 s 6 

  270.31 Repealed, 1Sp2001 c 5 art 8 s 17 

  270.32 Repealed, 1Sp2001 c 5 art 8 s 17 

  270.33 Repealed, 1Sp2001 c 5 art 8 s 17 

  270.34 Repealed, 1Sp2001 c 5 art 8 s 17 

  270.35 Repealed, 1Sp2001 c 5 art 8 s 17 

  270.36 Repealed, 1Sp2001 c 5 art 8 s 17 

  270.37 Repealed, 1Sp2001 c 5 art 8 s 17 

  270.38 Repealed, 1Sp2001 c 5 art 8 s 17 

  270.39 Repealed, 1Sp2001 c 5 art 8 s 17 

STATE BOARD OF ASSESSORS

     270.41 Board of Assessors. 

    Subdivision 1.    Creation; purpose; powers.  A Board of 
 Assessors is created.  The board shall establish, conduct, 
 review, supervise, coordinate, and approve courses in assessment 
 practices, and establish criteria for determining assessor's 
 qualifications.  The board shall also consider other matters 
 relating to assessment administration brought before it by the 
 commissioner of revenue.  The board may grant, renew, suspend, 
 or revoke an assessor's license.  

    Subd. 2.    Members.  The board shall consist of nine 
 members, who shall be appointed by the commissioner of revenue, 
 in the manner provided herein.  The members shall include:  

    (1) two from the Department of Revenue; 

    (2) two county assessors; 

    (3) two assessors who are not county assessors, one of whom 
 shall be a township assessor; 

    (4) one from the private appraisal field holding a 
 professional appraisal designation; and 

    (5) two public members as defined by section 214.02. 

    The appointment provided in clauses (2) and (3) may be made 
 from two lists of not less than three names each, one submitted 
 to the commissioner of revenue by the Minnesota Association of 
 Assessing Officers or its successor organization containing 
 recommendations for the appointment of appointees described in 
 clause (2), and one by the Minnesota Association of Assessors, 
 Inc. or its successor organization containing recommendations 
 for the appointees described in clause (3).  The lists must be 
 submitted 30 days before the commencement of the term.  In the 
 case of a vacancy, a new list shall be furnished to the 
 commissioner by the respective organization immediately.  A 
 member of the board who is no longer engaged in the capacity 
 listed above is disqualified from membership in the board. 

    The board shall annually elect a chair and a secretary of 
 the board. 

    Subd. 3.    Licenses; refusal or revocation.  The board 
 may refuse to grant or renew, or may suspend or revoke, a 
 license of an applicant or licensee for any of the following 
 causes or acts: 

    (1) failure to complete required training; 

    (2) inefficiency or neglect of duty; 

    (3) "unprofessional conduct" which means knowingly 
 neglecting to perform a duty required by law, or violation of 
 the laws of this state relating to the assessment of property or 
 unlawfully exempting property or knowingly and intentionally 
 listing property on the tax list at substantially less than its 
 market value or the level required by law in order to gain favor 
 or benefit, or knowingly and intentionally misclassifying 
 property in order to gain favor or benefit; 

    (4) conviction of a crime involving moral turpitude; or 

    (5) any other cause or act that in the board's opinion 
 warrants a refusal to issue or suspension or revocation of a 
 license. 

    Subd. 4.    Rules.  The Board of Assessors may adopt 
 rules under chapter 14, defining or interpreting grounds for 
 refusing to grant or renew, and for suspending or revoking a 
 license under this section.  An action of the Board of Assessors 
 in refusing to grant or renew a license or in suspending or 
 revoking a license is subject to review in accordance with 
 chapter 14.  

    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. 

    HIST: Ex1971 c 31 art 25 s 1; 1973 c 582 s 3; 1975 c 136 s 52; 
 1976 c 222 s 132; 1985 c 285 s 46; 1986 c 444; 1988 c 719 art 7 
 s 2; 1993 c 375 art 3 s 4; 1994 c 510 art 1 s 4 

     270.42 Membership. 

    Membership terms, compensation of members, removal of 
 members, the filling of membership vacancies, and fiscal year 
 and reporting requirements shall be as provided in sections 
 214.07 to 214.09.  The provision of staff, administrative 
 services and office space; the review and processing of 
 complaints; the setting of board fees; and other provisions 
 relating to board operations shall be as provided in chapter 214.

    HIST: Ex1971 c 31 art 25 s 2; 1975 c 136 s 53; 1976 c 222 s 
 133; 1991 c 199 art 1 s 49 

     270.43 Compensation and expenses.  

    Members of the board shall receive no compensation but 
 shall be entitled to actual expenses for the performance of 
 their duties.  

    HIST: Ex1971 c 31 art 25 s 3 

     270.44 Charges for courses, examinations or materials. 

    The board shall charge the following fees: 

    (1) $105 for a senior accredited Minnesota assessor 
 license; 

    (2) $80 for an accredited Minnesota assessor license; 

    (3) $65 for a certified Minnesota assessor specialist 
 license; 

    (4) $55 for a certified Minnesota assessor license; 

    (5) $50 for a course challenge examination; 

    (6) $35 for grading a form appraisal; 

    (7) $60 for grading a narrative appraisal; 

    (8) $30 for a reinstatement fee; 

    (9) $25 for a record retention fee; 

    (10) $20 for an educational transcript; and 

    (11) $30 for all retests of board-sponsored educational 
 courses.  

    HIST: Ex1971 c 31 art 25 s 4; 1Sp2003 c 1 art 2 s 79 

     270.45 Disposition of fees. 

    All fees so established and collected shall be paid to the 
 commissioner of finance for deposit in the general fund.  The 
 expenses of carrying out the provisions of sections 270.41 to 
 270.53 shall be paid from appropriations made to the Board of 
 Assessors. 

    HIST: Ex1971 c 31 art 25 s 5; 1973 c 582 s 3; 1975 c 136 s 54; 2003 
 c 112 art 2 s 50 

     270.46 Training courses, establishment; other courses, 
  regulation.  

    The board shall establish training courses on assessment 
 practices and shall review and approve courses on assessment 
 practices offered by schools, colleges and universities as well 
 as courses that are offered by any units of government on 
 techniques of assessment.  Courses shall be established in 
 various places throughout the state and be offered on regular 
 intervals.  

    HIST: Ex1971 c 31 art 25 s 6; 1973 c 641 s 1 

     270.47 Rules. 

    The board shall establish the rules necessary to accomplish 
 the purpose of section 270.41, and shall establish criteria 
 required of assessing officials in the state.  Separate criteria 
 may be established depending upon the responsibilities of the 
 assessor.  The board shall prepare and give examinations from 
 time to time to determine whether assessing officials possess 
 the necessary qualifications for performing the functions of the 
 office.  Such tests shall be given immediately upon completion 
 of courses required by the board, or to persons who already 
 possess the requisite qualifications under the rules of the 
 board.  

    HIST: Ex1971 c 31 art 25 s 7; 1973 c 641 s 2; 1976 c 222 s 
 134; 1Sp1981 c 1 art 10 s 3; 1985 c 248 s 70; 1986 c 444; 1995 c 
 264 art 16 s 1 

     270.48 Licensure of qualified persons. 

    The board shall license persons as possessing the necessary 
 qualifications of an assessing official.  Different levels of 
 licensure may be established as to classes of property which 
 assessors may be certified to assess at the discretion of the 
 board.  Every person, except a local or county assessor, 
 regularly employed by the assessor to assist in making decisions 
 regarding valuing and classifying property for assessment 
 purposes shall be required to become licensed within three years 
 of the date of employment.  Licensure shall be required for 
 local and county assessors as otherwise provided in sections 
 270.41 to 270.53. 

    HIST: Ex1971 c 31 art 25 s 8; 1975 c 339 s 3; 1976 c 222 s 
 135; 1986 c 444; 1995 c 264 art 16 s 2 

     270.485 Senior accreditation. 

    The legislature finds that the property tax system would be 
 enhanced by requiring that every senior appraiser in the 
 Department of Revenue's Property Tax Division obtain senior 
 accreditation from the State Board of Assessors.  Every senior 
 appraiser, including the department's regional representatives, 
 and every county assessor within two years of the first 
 appointment under section 273.061, must obtain senior 
 accreditation from the state Board of Assessors.  The board 
 shall provide the necessary courses or training.  If a 
 department senior appraiser or regional representative fails to 
 obtain or maintain senior accreditation, the failure shall be 
 grounds for dismissal, disciplinary action, or corrective 
 action.  Except as provided in section 273.061, subdivision 2, 
 paragraph (c), the commissioner must not approve the appointment 
 of a county assessor who is not senior accredited by the State 
 Board of Assessors.  No employee hired by the commissioner as a 
 senior appraiser or regional representative shall attain 
 permanent status until the employee obtains senior accreditation.

    HIST: 1987 c 268 art 7 s 23; 1988 c 719 art 7 s 3; 1989 c 277 
 art 2 s 13; 1995 c 264 art 16 s 3 

  270.49 Repealed, 1995 c 264 art 16 s 21 

  270.493 Repealed, 1995 c 264 art 16 s 21 

     270.494 Certain townships and cities option to elect to 
  reinstate the office of assessor. 

    Notwithstanding the provisions of section 273.05, 
 subdivision 1, a city or township in which the office of 
 assessor has been eliminated because of failure to fill a 
 vacancy in the office within 90 days pursuant to section 273.05, 
 subdivision 1, may elect, with the approval of the commissioner, 
 to have the office of assessor reinstated by hiring a certified 
 or accredited assessor.  This section shall not apply to Ramsey 
 county or to cities and townships located in counties which have 
 elected a county assessment system in accordance with section 
 273.055. 

    HIST: 1977 c 434 s 2; 1995 c 264 art 16 s 4 

     270.50 Employment of licensed assessors. 

    No assessor shall be employed who has not been licensed as 
 qualified by the board, provided the time to comply may be 
 extended after application to the board upon a showing that 
 licensed assessors are not available for employment.  The board 
 may license that a county or local assessor who has not received 
 the training, but possesses the necessary qualifications for 
 performing the functions of the office by the passage of an 
 approved examination or may waive the examination if such person 
 has demonstrated competence in performing the functions of the 
 office for a period of time the board deems reasonable.  The 
 county or local assessing district shall assume the cost of 
 training of its assessors in courses approved by the board for 
 the purpose of obtaining the assessor's license to the extent of 
 course fees, mileage, meals and lodging, and recognized travel 
 expenses not paid by the state.  If the governing body of any 
 township or city fails to employ an assessor as required by 
 sections 270.41 to 270.53, the assessment shall be made by the 
 county assessor. 

    In the case of cities incorporated or townships organized 
 after April 11, 1974, except cities or towns located in Ramsey 
 county or which have elected a county assessor system in 
 accordance with section 273.055, the board shall allow the city 
 or town 90 days from the date of incorporation or organization 
 to employ a licensed assessor. 

    HIST: Ex1971 c 31 art 25 s 10; 1974 c 449 s 1; 1976 c 222 s 
 136; 1977 c 347 s 42; 1977 c 434 s 3; 1986 c 444; 1995 c 264 art 
 16 s 5 

     270.51 Previously accredited assessors. 

    All assessors previously accredited by the commissioner of 
 revenue shall be considered as qualified under sections 270.41 
 to 270.53 and shall be so licensed. 

    HIST: Ex1971 c 31 art 25 s 11; 1973 c 582 s 3; 1976 c 222 s 
 137 

     270.52 Costs of making assessments. 

    The cost of making any assessment provided in sections 
 270.41 to 270.53 shall be charged to the assessment district 
 involved.  The county auditor shall certify the costs incurred 
 to the appropriate governing body not later than August 1 of 
 each year, and if unpaid as of September 1, the county auditor 
 shall levy a tax upon the taxable property of such taxing 
 district sufficient to pay such costs.  The amount so collected 
 shall be credited to the general revenue fund of the county.  

    HIST: Ex1971 c 31 art 25 s 12; 1995 c 264 art 16 s 6 

     270.53 Existing contracts for assessment of property. 

    Sections 270.41 to 270.53 shall not supersede existing 
 contracts executed pursuant to section 273.072 or 471.59 except 
 to the extent that such contracts may conflict with section 
 270.50 nor preclude contracts between a taxing district and the 
 county for the assessment of property by the county assessor.  

    HIST: Ex1971 c 31 art 25 s 13; 1995 c 264 art 16 s 7 

     270.60 Taxes and fees; refund and sharing agreements 
  with Indians. 

    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 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 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. 

    Subd. 2.    Sales, use, and excise taxes.  (a) The 
 commissioner of revenue is authorized to enter into a tax 
 agreement with the governing body of any federally recognized 
 Indian reservation in Minnesota, 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.  

    Subd. 3.    Appropriation.  There is annually 
 appropriated from the general fund to the commissioner of 
 revenue the amounts necessary to make the refunds provided in 
 this section. 

    Subd. 4.    Payments to counties.  (a) The commissioner 
 shall pay to a county in which an Indian gaming casino is 
 located: 

    (1) ten percent of the state share of all taxes generated 
 from activities on reservations and collected under a tax 
 agreement under this section with the tribal government for the 
 reservation located in the county; or 

    (2) five percent of excise taxes collected by the state 
 that are determined by the Department of Revenue to have been 
 generated from activities on a reservation located in the 
 county, the tribal government of which does not have a tax 
 agreement under this section and did not have a tax agreement on 
 June 30, 2003. 

    If the tribe has casinos located in more than one county, 
 the payment must be divided equally among the counties in which 
 the casinos are located. 

    (b) The commissioner shall make the payments required under 
 this subdivision by February 28 of the year following the year 
 the taxes are collected. 

    (c) An amount sufficient to make the payments authorized by 
 this subdivision is annually appropriated from the general fund 
 to the commissioner.  

    Subd. 5.    Fees; appropriation.  (a) The commissioner 
 may enter into an agreement with the governing body of any 
 federally recognized Indian reservation in Minnesota concerning 
 fees administered by the commissioner that are paid by the 
 tribe, members of the tribe, or persons who conduct business 
 with the tribe, or otherwise imposed on on-reservation 
 activities.  The agreement may provide for the refund or sharing 
 of the fee.  The commissioner may make any payments required by 
 the agreement from the fees collected. 

    (b) Each head of an agency, board, or other governmental 
 entity that administers a program that is funded by fees 
 administered by the commissioner may sign an agreement entered 
 into by the commissioner under this subdivision.  An agreement 
 is not valid until signed by the head of each agency, board, or 
 other governmental entity that administers a program funded by 
 the particular fee covered in an agreement and by the 
 commissioner of revenue. 

    (c) There is annually appropriated to the commissioner of 
 revenue from the funds for which the fees are collected the 
 amounts necessary to make payments as provided in this 
 subdivision. 

    HIST: 1977 c 203 s 9; 1983 c 342 art 6 s 1; 1989 c 277 art 1 s 
 7; 1991 c 291 art 9 s 5; 1994 c 510 art 3 s 1,2; 1997 c 231 art 
 16 s 6; 1Sp1997 c 5 s 37; 1998 c 389 art 16 s 11; 1Sp2001 c 5 
 art 7 s 5; 2002 c 377 art 3 s 1; 1Sp2003 c 21 art 9 s 3 

     270.65 Date of assessment; definition. 

    For purposes of taxes administered by the commissioner, the 
 term "date of assessment" means the date a liability reported on 
 a return was entered into the records of the commissioner or the 
 date a return should have been filed, whichever is later; or, in 
 the case of taxes determined by the commissioner, "date of 
 assessment" means the date of the order assessing taxes or date 
 of the return made by the commissioner; or, in the case of an 
 amended return filed by the taxpayer, the assessment date is the 
 date additional liability reported on the return, if any, was 
 entered into the records of the commissioner; or, in the case of 
 a check from a taxpayer that is dishonored and results in an 
 erroneous refund being given to the taxpayer, remittance of the 
 check is deemed to be an assessment and the "date of assessment" 
 is the date the check was received by the commissioner. 

    HIST: 1985 c 101 s 2; 1990 c 480 art 2 s 3; 1999 c 243 art 16 
 s 5; 2000 c 490 art 13 s 6 

  270.651 Repealed, 1990 c 480 art 1 s 45 

     270.652 Allocation of payment. 

    In the discretion of the commissioner of revenue, payments 
 received for taxes may be credited first to the oldest liability 
 not secured by a judgment or lien.  For liabilities to which 
 payments are applied, the commissioner may credit payments first 
 to penalties, next to interest, and then to the tax due. 

    HIST: 1990 c 480 art 2 s 4 

     270.66 Right of setoff. 

    Subdivision 1.    Certification by commissioner.  Upon 
 certification by the commissioner of revenue to the commissioner 
 of finance, or to any state agency described in subdivision 3 
 which disburses its own funds, within ten years after the date 
 of assessment of the tax, that a taxpayer has an uncontested 
 delinquent tax liability owed to the commissioner of revenue, 
 the commissioner of finance or the state agency shall apply to 
 such delinquent tax liability funds sufficient to satisfy such 
 unpaid tax liability from funds appropriated for payment of an 
 obligation of the state or any of its agencies that are due and 
 owing the taxpayer, provided however, that such credit shall not 
 be made against any funds exempt under section 550.37 or those 
 funds owed an individual taxpayer who receives assistance under 
 the provisions of chapter 256. 

    Subd. 2.    Setoff satisfies state obligation.  All 
 funds, whether general or dedicated, shall be subject to setoff 
 in the manner herein provided.  Transfer of funds as herein 
 provided is payment of the obligation of the state or any of its 
 agencies to such taxpayer and any actions for said funds, if 
 any, shall be had against the Department of Revenue on the issue 
 of such tax liability.  Nothing in this section shall be 
 construed to limit the previously existing right of the state or 
 any of its agencies to setoff. 

    Subd. 3.    Agencies shall maintain records.  
 Notwithstanding any provision to the contrary, every person, 
 organization, or corporation doing business (hereafter called 
 vendor) with the state of Minnesota or any of its departments, 
 agencies, or educational institutions including the University 
 of Minnesota (all hereafter called agency) shall provide that 
 agency with either their Social Security number, federal 
 taxpayer identification number, or Minnesota tax identification 
 number.  The commissioner may verify to the agency the 
 identifying information provided by a vendor.  The agency shall 
 maintain records of this information, and shall make these 
 records available, on request, to the commissioner for the sole 
 purpose of identifying people who have not filed state tax 
 returns or who have not paid uncontested state tax liabilities 
 (hereafter called delinquent taxpayer).  When an agency is 
 notified by the commissioner that a vendor is a delinquent 
 taxpayer, payments shall not be made by the agency to the vendor 
 until the commissioner notifies the agency that the vendor no 
 longer is a delinquent taxpayer.  Furthermore, if the vendor has 
 an uncontested delinquent tax liability, the setoff provided in 
 subdivision 1 may be implemented.  The commissioner shall 
 determine that a vendor no longer is a delinquent taxpayer when 
 the vendor has filed all delinquent state tax returns, paid all 
 uncontested state tax liabilities or entered into an agreement 
 with the commissioner which provides for the payment of these 
 liabilities.  

    Subd. 4.    Political subdivision debts.  (a) As used in 
 this subdivision, "political subdivision" means counties and 
 home rule charter or statutory cities, and "debts" means a legal 
 obligation to pay a fixed amount of money, which equals or 
 exceeds $100 and which is due and payable to the claimant 
 political subdivision. 

    (b) If one political subdivision owes a debt to another 
 political subdivision, and the debt has not been paid within six 
 months of the date when payment was due, the creditor political 
 subdivision may notify the commissioner of revenue of the debt, 
 and shall provide the commissioner with information sufficient 
 to verify the claim.  If the commissioner has reason to believe 
 that the claim is valid, and the debt has not been paid, the 
 commissioner shall initiate setoff procedures under this 
 subdivision. 

    (c) Within ten days of receipt of the notification from the 
 creditor political subdivision, the commissioner shall send a 
 written notice to the debtor political subdivision, advising it 
 of the nature and amount of the claim.  This written notice 
 shall advise the debtor of the creditor political subdivision's 
 intention to request setoff of the refund against the debt. 

    The notice will also advise the debtor that the debt can be 
 setoff against a state aid payment, and will advise the debtor 
 of the right to contest the validity of the claim at a hearing.  
 The debtor must assert this right by written request to the 
 commissioner of revenue, which request the commissioner must 
 receive within 45 days of the mailing date of the notice. 

    (d) If the commissioner receives written notice of a debtor 
 political subdivision's intention to contest at hearing the 
 claim upon which the intended setoff is based, the commissioner 
 shall initiate a hearing according to contested case procedures 
 established in the state Administrative Procedure Act not later 
 than 30 days after receipt of the debtor's request for a 
 hearing.  The costs of the hearing shall be paid equally by the 
 political subdivisions that are parties to the hearing.  The 
 Office of Administrative Hearings shall separately bill each 
 political subdivision for one-half of the costs. 

    (e) If the debtor political subdivision does not object to 
 the claim, or does not prevail in an objection to the claim or 
 at a hearing on the claim, the commissioner of revenue shall 
 deduct the amount of the debt from the next payment scheduled to 
 be made to the debtor under section 273.1398 or chapter 477A.  
 The commissioner shall remit the amount deducted to the claimant 
 political subdivision. 

    HIST: 1975 c 377 s 5; 1981 c 356 s 337; 1982 c 523 art 2 s 5; 
 1985 c 101 s 3; 1986 c 444; 1989 c 184 art 2 s 13; 1991 c 291 
 art 16 s 2; 1993 c 375 art 17 s 7; 1Sp1997 c 3 s 29 

     270.67 Agreements regarding tax liability or extension 
  of payment of tax. 

    Subdivision 1.    Liability agreements.  The 
 commissioner of revenue, or any officer or employee of the 
 Department of Revenue authorized in writing by the commissioner, 
 is authorized to enter into an agreement in writing with any 
 taxpayer, or duly authorized agent or representative of the 
 taxpayer, relating to the liability of the taxpayer in respect 
 of any state tax administered by the commissioner for any 
 taxable period ending prior to the date of the agreement.  The 
 agreement shall be final and conclusive and, except upon a 
 showing of fraud or malfeasance, or misrepresentation of a 
 material fact, the case shall not be reopened as to the matters 
 agreed upon, or the agreement modified, by any officer, 
 employee, or agent of the state; and, in any suit, action, or 
 proceeding, the agreement, or any determination, assessment, 
 collection, payment, abatement, refund, or credit made in 
 accordance with the agreement, shall not be annulled, modified, 
 set aside, or disregarded.  

    Subd. 2.    Extension agreements.  When any portion of 
 any tax payable to the commissioner of revenue together with 
 interest and penalty thereon, if any, has not been paid, the 
 commissioner may extend the time for payment for a further 
 period.  When the authority of this section is invoked, the 
 extension shall be evidenced by written agreement signed by the 
 taxpayer and the commissioner, stating the amount of the tax 
 with penalty and interest, if any, and providing for the payment 
 of the amount in installments.  The agreement may contain a 
 confession of judgment for the amount and for any unpaid portion 
 thereof.  If the agreement contains a confession of judgment, 
 the confession of judgment must provide that the commissioner 
 may forthwith enter judgment against the taxpayer in the 
 district court of the county of residence as shown upon the 
 taxpayer's tax return for the unpaid portion of the amount 
 specified in the extension agreement.  The agreement shall 
 provide that it can be terminated, after notice by the 
 commissioner, if information provided by the taxpayer prior to 
 the agreement was inaccurate or incomplete, collection of the 
 tax covered by the agreement is in jeopardy, there is a 
 subsequent change in the taxpayer's financial condition, the 
 taxpayer has failed to make a payment due under the agreement, 
 or the taxpayer has failed to pay any other tax or file a tax 
 return coming due after the agreement.  The notice must be given 
 at least 14 calendar days prior to termination, and shall advise 
 the taxpayer of the right to request a reconsideration from the 
 commissioner of whether termination is reasonable and 
 appropriate under the circumstances.  A request for 
 reconsideration does not stay collection action beyond the 
 14-day notice period.  If the commissioner has reason to believe 
 that collection of the tax covered by the agreement is in 
 jeopardy, the commissioner may proceed under sections 270.70, 
 subdivision 2, paragraph (b), and 270.274, and terminate the 
 agreement without regard to the 14-day period.  The commissioner 
 may accept other collateral the commissioner considers 
 appropriate to secure satisfaction of the tax liability.  The 
 principal sum specified in the agreement shall bear interest at 
 the rate specified in section 270.75 on all unpaid portions 
 thereof until the same has been fully paid or the unpaid portion 
 thereof has been entered as a judgment.  The judgment shall bear 
 interest at the rate specified in section 270.75.  If it appears 
 to the commissioner that the tax reported by the taxpayer is in 
 excess of the amount actually owing by the taxpayer, the 
 extension agreement or the judgment entered pursuant thereto 
 shall be corrected.  If after making the extension agreement or 
 entering judgment with respect thereto, the commissioner 
 determines that the tax as reported by the taxpayer is less than 
 the amount actually due, the commissioner shall assess a further 
 tax in accordance with the provisions of law applicable to the 
 tax.  The authority granted to the commissioner by this section 
 is in addition to any other authority granted to the 
 commissioner by law to extend the time of payment or the time 
 for filing a return and shall not be construed in limitation 
 thereof. 

    Subd. 3.    Consent agreement.  A taxpayer shall have 
 the right at any time, whether or not an order has been issued, 
 to sign and deliver to the commissioner a written consent to a 
 change in tax liability which waives the requirement of any 
 additional notice and all rights of appeal to the Tax Court 
 concerning the assessment and collection of any part or all of 
 the tax liability. 

    Subd. 4.    Offer-in-compromise and installment payment 
 program.  (a) In implementing the authority provided in 
 subdivision 2 or in sections 8.30 and 16D.15 to accept offers of 
 installment payments or offers-in-compromise of tax liabilities, 
 the commissioner of revenue shall prescribe guidelines for 
 employees of the Department of Revenue to determine whether an 
 offer-in-compromise or an offer to make installment payments is 
 adequate and should be accepted to resolve a dispute.  In 
 prescribing the guidelines, the commissioner shall develop and 
 publish schedules of national and local allowances designed to 
 provide that taxpayers entering into a compromise or payment 
 agreement have an adequate means to provide for basic living 
 expenses.  The guidelines must provide that the taxpayer's 
 ownership interest in a motor vehicle, to the extent of the 
 value allowed in section 550.37, will not be considered as an 
 asset; in the case of an offer related to a joint tax liability 
 of spouses, that value of two motor vehicles must be excluded.  
 The guidelines must provide that employees of the department 
 shall determine, on the basis of the facts and circumstances of 
 each taxpayer, whether the use of the schedules is appropriate 
 and that employees must not use the schedules to the extent the 
 use would result in the taxpayer not having adequate means to 
 provide for basic living expenses.  The guidelines must provide 
 that: 

    (1) an employee of the department shall not reject an 
 offer-in-compromise or an offer to make installment payments 
 from a low-income taxpayer solely on the basis of the amount of 
 the offer; and 

    (2) in the case of an offer-in-compromise which relates 
 only to issues of liability of the taxpayer: 

    (i) the offer must not be rejected solely because the 
 commissioner is unable to locate the taxpayer's return or return 
 information for verification of the liability; and 

    (ii) the taxpayer shall not be required to provide an 
 audited, reviewed, or compiled financial statement. 

    (b) The commissioner shall establish procedures: 

    (1) that require presentation of a counteroffer or a 
 written rejection of the offer by the commissioner if the amount 
 offered by the taxpayer in an offer-in-compromise or an offer to 
 make installment payments is not accepted by the commissioner; 

    (2) for an administrative review of any written rejection 
 of a proposed offer-in-compromise or installment agreement made 
 by a taxpayer under this section before the rejection is 
 communicated to the taxpayer; 

    (3) that allow a taxpayer to request reconsideration of any 
 written rejection of the offer or agreement to the commissioner 
 of revenue to determine whether the rejection is reasonable and 
 appropriate under the circumstances; and 

    (4) that provide for notification to the taxpayer when an 
 offer-in-compromise has been accepted, and issuance of 
 certificates of release of any liens imposed under section 
 270.69 related to the liability which is the subject of the 
 compromise. 

    HIST: 1982 c 523 art 2 s 6; 1985 c 210 art 1 s 6; 1986 c 444; 
 1990 c 480 art 2 s 5,6; 1997 c 84 art 6 s 11; 1998 c 389 art 16 
 s 12; 1999 c 243 art 16 s 6; 2001 c 7 s 55; 2003 c 2 art 1 s 28; 
 2003 c 127 art 14 s 3 

     270.68 Legal action; confession of judgment. 

    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 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 may be commenced 
 by 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 
 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.  

    Subd. 2.    Appeals.  Either party to an action or a 
 judgment for the recovery of any taxes, interest, or penalties 
 under subdivision 1 may appeal the judgment as in other civil 
 cases. 

    Subd. 3.    Tax presumed valid.  The tax, as assessed by 
 the commissioner, with any penalties included therein, shall be 
 presumed to be valid and correctly determined and assessed, and 
 the burden shall be upon the taxpayer to show its incorrectness 
 or invalidity.  A statement filed by the commissioner showing 
 the amount of the tax and penalties as determined or assessed by 
 the commissioner, is admissible in evidence and shall establish 
 prima facie the facts set forth therein.  

    Subd. 4.    Confession of judgment.  (a) The 
 commissioner may, within 3-1/2 years after any return or report 
 is filed, notwithstanding section 541.09, enter judgment on any 
 confession of judgment contained in the return or report after 
 ten days' notice served upon the taxpayer by mail at the address 
 shown in the return or report.  The judgment shall be entered by 
 the court administrator of district court upon the filing of a 
 photocopy or similar reproduction of that part of the return or 
 report containing the confession of judgment along with a 
 statement of the commissioner or an agent that the tax has not 
 been paid.  The commissioner may prescribe the words for the 
 confession of judgment statement contained on the return or 
 report.  

    (b) Notwithstanding any other provision of the law to the 
 contrary, the commissioner may, within five years after a 
 written agreement is signed by the taxpayer and the commissioner 
 under the provisions of section 270.67, subdivision 2, enter 
 judgment on the confession of judgment contained within the 
 agreement after ten days' notice served upon the taxpayer at the 
 address shown in the agreement.  Such judgment shall be entered 
 by the court administrator of district court upon the filing of 
 the agreement or a certified copy thereof along with a statement 
 of the commissioner or an agent that the tax has not been paid.  

    HIST: 1982 c 523 art II s 7; 1983 c 247 s 118; 1985 c 101 s 
 4,5; 1Sp1985 c 14 art 1 s 6; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 
 1990 c 480 art 2 s 7,8; 1990 c 594 art 1 s 63; 1991 c 291 art 16 
 s 3; 1997 c 84 art 5 s 3; 1999 c 143 s 1 

     270.69 Lien for taxes. 

    Subdivision 1.    Creation of lien.  The tax imposed by 
 any chapter administered by the commissioner of revenue, and 
 interest and penalties imposed with respect thereto, including 
 any recording fees, sheriff fees, or court costs that may 
 accrue, shall become a lien upon all the property within this 
 state, both real and personal, of the person liable for the 
 payment or collection of the tax, except property exempt under 
 subdivision 3, from and after the date of assessment of the tax. 

    Subd. 2.    Filing of liens necessary for enforceability 
 against certain persons; methods of filing; fees.  (a) The 
 lien imposed by subdivision 1 is not enforceable against any 
 purchaser, mortgagee, pledgee, holder of a Uniform Commercial 
 Code security interest, mechanic's lienor, or judgment lien 
 creditor whose interest has been duly perfected or is a 
 conveyance or interest entitled to protection against judgments 
 and attachments under section 507.34 or under any other 
 applicable provisions of state law, until a notice of lien has 
 been filed by the commissioner of revenue in the office of the 
 county recorder of the county in which real property is 
 situated, or in the case of personal property in the Office of 
 the Secretary of State. 

    (b)(1) Notices of liens, and lien releases, transcriptions, 
 and renewals, in a form prescribed by the commissioner of 
 revenue, may be filed with the county recorder or the secretary 
 of state by mail, personal delivery, or by electronic 
 transmission by the commissioner or a delegate into the 
 computerized filing system of the secretary of state.  The 
 secretary of state shall transmit the notice electronically to 
 the office of the county recorder, if that is the place of 
 filing, in the county or counties shown on the computer entry.  
 The filing officer, whether the county recorder or the secretary 
 of state, shall endorse and index a printout of the notice in 
 the same manner as if the notice had been mailed or delivered.  

    (2) County recorders and the secretary of state shall enter 
 information relative to lien notices, transcriptions, renewals, 
 and releases filed in their offices into the central database of 
 the secretary of state.  For notices filed electronically with 
 the county recorders, the date and time of receipt of the notice 
 and county recorder's file number, and for notices filed 
 electronically with the secretary of state, the secretary of 
 state's recording information, must be entered by the filing 
 officer into the central database before the close of the 
 working day following the day of the original data entry by the 
 Department of Revenue.  

    The filing and indexing of all notices must be in 
 accordance with the filing and indexing of notices of federal 
 liens, certificates of release, and refiled notices under 
 section 272.483.  

    (c) Notwithstanding any other law to the contrary, the 
 Department of Revenue is exempt from payment of fees when a 
 lien, lien renewal, or lien transcription is offered for 
 recording.  The recording fees must be paid along with the 
 release fee at the end of the month in which the release of lien 
 is recorded, after receipt of a monthly statement from a county 
 recorder or the secretary of state.  The Department of Revenue 
 shall add the recording fees to the delinquent tax liability of 
 the taxpayer.  Notwithstanding any other law to the contrary, 
 the fee for filing or recording a notice of lien, or lien 
 release, transcription, or renewal is $15.  

    (d) There is appropriated to the commissioner of revenue an 
 amount representing the cost of payment of recording fees to the 
 county recorders and the secretary of state.  The commissioner 
 shall keep a separate accounting of the costs and of payments 
 for recording fees remitted by taxpayers, and make the records 
 available to the legislature upon request.  

    Subd. 3.    Exempt property.  The lien imposed on 
 personal property by this section, even though properly filed, 
 is not enforceable:  (1) against a purchaser with respect to 
 tangible personal property purchased at retail in the ordinary 
 course of the seller's trade or business, unless at the time of 
 purchase the purchaser intends the purchase to or knows the 
 purchase will hinder, evade, or defeat the collection of a tax; 
 or (2) against the personal property listed as exempt in 
 sections 550.37, 550.38, and 550.39. 

    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. 

    Subd. 5. Repealed, 1985 c 101 s 17 

    Subd. 6.    Enforceability of lien.  The lien imposed by 
 this section shall be enforceable by levy as authorized in 
 section 270.70, or by judgment lien foreclosure as authorized in 
 chapter 550.  

    Subd. 7.    Notice of mortgage foreclosure or contract 
 termination.  In the case of a mortgage foreclosure upon real 
 property commenced under chapter 580, or a termination of 
 contract of sale of real property commenced under section 
 559.21, if the commissioner has filed a lien under this section 
 before the foreclosure sale or date of termination, notice of 
 the mortgage foreclosure or termination of contract of sale 
 shall be mailed to the commissioner not less than 25 days prior 
 to the foreclosure sale or date of termination.  Provided, 
 notice need not be given pursuant to this subdivision if the 
 lien of the commissioner has been filed within 30 days or less 
 prior to the foreclosure sale or date of termination.  The 
 notice must contain the following information:  (1) the name and 
 address of the taxpayer; (2) a copy of the notice of mortgage 
 foreclosure or contract for deed cancellation; (3) a copy of the 
 lien filed by the commissioner; (4) the total unpaid balance of 
 the mortgage or contract for deed; (5) a legal description of 
 the property; and (6) the fair market value of the property.  

    Subd. 8.    Filing entitlement.  Execution of notices of 
 liens or of other notices affecting state tax liens by the 
 original or facsimile signature of the commissioner of revenue 
 or a delegate entitles them to be filed, and no other 
 attestation, certification, or acknowledgment is necessary.  For 
 purposes of this subdivision, transmission of notices under 
 subdivision 2, paragraph (b), clause (1), constitutes execution. 

    Subd. 9.    Lien search fees.  Upon request of any 
 person, the filing officer shall issue a certificate showing 
 whether there is recorded in that filing office, on the date and 
 hour stated in the certificate, any notice of lien or 
 certificate or notice affecting any lien filed on or after ten 
 years before the date of the search certificate, naming a 
 particular person, and giving the date and hour of filing of 
 each notice or certificate naming the person.  The fee for a 
 certificate shall be as provided by section 336.9-525 or 357.18, 
 subdivision 1, clause (3).  Upon request, the filing officer 
 shall furnish a copy of any notice of state lien, or notice or 
 certificate affecting a state lien, for a fee of 50 cents per 
 page. 

    Subd. 10.    Limitation for homestead property.  A lien 
 imposed under this section upon property defined as homestead 
 property in sections 510.01 and 510.02 may not be enforced 
 against homestead property by levy under section 270.70, or by 
 judgment lien foreclosure under chapter 550, but notwithstanding 
 section 510.07, is enforceable against the proceeds from the 
 sale, conveyance, or transfer of the homestead. 

    Subd. 11.    Erroneous liens.  After the filing of a 
 notice of lien under this section on the property or rights to 
 property of a person, the person may appeal to the commissioner, 
 in the form and at the time prescribed by the commissioner, 
 alleging an error in the filing of the lien and requesting its 
 release.  If the commissioner determines that the filing of the 
 notice of any lien was erroneous, within 14 days after the 
 determination, the commissioner must issue a certificate of 
 release of the lien.  The certificate must include a statement 
 that the filing of the lien was erroneous.  In the event that 
 the lien is erroneous and is not released within the 14-day 
 period, reasonable attorney fees shall be paid.  Damages must be 
 paid in accordance with section 3.736, subdivision 7.  Even if a 
 lien is not erroneous, the commissioner may withdraw the lien if 
 the filing of the lien was premature or not in accordance with 
 administrative procedures of the commissioner, or withdrawal of 
 the lien will facilitate the collection of the tax liability. 

    Subd. 12.    Lien release fee.  A fee of $25 must be 
 paid to the commissioner of revenue for each duplicate of an 
 original release of lien. 

    Subd. 13.    Forty-five day rule.  A notice of tax lien 
 filed under this section has priority over a security interest 
 arising under article 9 of the Uniform Commercial Code that is 
 perfected before the date of filing of the lien imposed by this 
 section, but only if: 

    (1) the perfected security interest secures property 
 acquired by the taxpayer or advances made by the secured party 
 after the notice of tax lien is filed; and 

    (2) the property is acquired or the advance is made after 
 the 45th day following the day on which the notice of tax lien 
 is filed, or after the secured party has actual notice or 
 knowledge of the tax lien filing, whichever is earlier.  

    Subd. 14.    Registered land.  When a lien is filed with 
 a county recorder under subdivision 2, the county recorder shall 
 search the registered land records in that county and cause the 
 lien to be memorialized on every certificate of title or 
 certificate of possessory title of registered land in that 
 county which can be reasonably identified as owned by the 
 taxpayer who is named on the lien.  The fees for memorializing 
 the lien shall be paid in the manner prescribed by subdivision 
 2, paragraph (c).  The county recorders, and their employees and 
 agents, shall not be liable for any loss or damages arising from 
 failure to identify a parcel of registered land owned by the 
 taxpayer who is named on the lien. 

    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. 

    Subd. 16.    Attachment to proceeds of property.  Any 
 lien imposed under this section attaches to the proceeds of 
 property with the same priority that the lien has with respect 
 to the property itself.  "Proceeds of property" means proceeds 
 from the sale, lease, license, exchange, or other disposition of 
 the property, including insurance proceeds arising from the loss 
 or destruction of the property. 

    HIST: 1982 c 523 art 2 s 8; 1983 c 180 s 3-6; 1985 c 101 s 
 6-9; 1985 c 281 s 2; 1986 c 444; 1Sp1986 c 1 art 7 s 11-14; 1989 
 c 324 s 6; 1990 c 480 art 2 s 9-13; 1990 c 604 art 1 s 10; 1991 
 c 291 art 16 s 4; art 18 s 2-4; 1992 c 511 art 9 s 5; 1994 c 510 
 art 4 s 3,4; 1995 c 186 s 52; 1995 c 264 art 19 s 1; 1997 c 84 
 art 6 s 12; 2001 c 195 art 2 s 11-13; 2002 c 377 art 10 s 3; 
 2003 c 127 art 8 s 2 

     270.691 Publication of names of delinquent taxpayers. 

    Subdivision 1.    Commissioner may publish.  (a) 
 Notwithstanding any other law, the commissioner may publish a 
 list or lists of taxpayers who owe delinquent taxes or fees 
 administered by the commissioner, and who meet the requirements 
 of paragraph (b). 

    (b) For purposes of this section, a taxpayer may be 
 included on a list if: 

    (1) the taxes or fees owed remain unpaid at least 180 days 
 after the dates they were due; 

    (2) the taxpayer's total liability for the taxes and fees, 
 including penalties, interest, and other charges, is at least 
 $5,000; and 

    (3) a tax lien has been filed or a judgment for the 
 liability has been entered against the taxpayer before notice is 
 given under subdivision 3. 

    (c) In the case of listed taxpayers that are business 
 entities, the commissioner may also list the names of 
 responsible persons assessed pursuant to section 270.101 for 
 listed liabilities, who are not protected from publication by 
 subdivision 2, and for whom the requirements of paragraph (b) 
 are satisfied with regard to the personal assessment. 

    (d) Before any list is published under this section, the 
 commissioner of revenue must certify in writing that each of the 
 conditions for publication as provided in this section has been 
 satisfied, and that procedures were followed to ensure the 
 accuracy of the list and notice was given to the affected 
 taxpayers. 

    Subd. 2.    Required and excluded taxpayers.  (a) The 
 commissioner may publish lists of some or all of the taxpayers 
 described in subdivision 1.  A list must include the taxpayers 
 with the largest unpaid liabilities of the kind used to define 
 the list, subject to the limitations of paragraphs (b) and (c). 

    (b) For the purposes of this section, a tax or fee is not 
 delinquent if: 

    (1) an administrative or court action contesting the amount 
 or validity of the taxpayer's liability has been filed or served 
 and is unresolved at the time when notice would be given under 
 subdivision 3; 

    (2) an appeal period to contest the liability has not 
 expired; or 

    (3) the liability is subject to a payment agreement and 
 there is no delinquency in the payments required under the 
 agreement. 

    (c) Unpaid liabilities are not subject to publication if: 

    (1) the commissioner is in the process of reviewing or 
 adjusting the liability; 

    (2) the taxpayer is a debtor in a bankruptcy proceeding and 
 the automatic stay is in effect; 

    (3) the commissioner has been notified that the taxpayer is 
 deceased; or 

    (4) the time period for collecting the taxes or fees has 
 expired. 

    Subd. 3.    Notice to taxpayer.  (a) At least 30 days 
 before publishing the name of a delinquent taxpayer, the 
 commissioner shall mail a written notice to the taxpayer, 
 detailing the amount and nature of each liability and the 
 intended publication of the information listed in subdivision 4 
 related to the liability.  The notice must be mailed by first 
 class and certified mail addressed to the last known address of 
 the taxpayer.  The notice must include information regarding the 
 exceptions listed in subdivision 2 and must state that the 
 taxpayer's information will not be published if the taxpayer 
 pays the delinquent obligation, enters into an agreement to pay, 
 or provides information establishing that subdivision 2 
 prohibits publication of the taxpayer's name. 

    (b) After at least 30 days has elapsed since the notice was 
 mailed and the delinquent tax or fee has not been paid and the 
 taxpayer has not proved to the commissioner that subdivision 2 
 prohibits publication, the commissioner may publish in a list of 
 delinquent taxpayers the information about the taxpayer that is 
 listed in subdivision 4. 

    Subd. 4.    Form of list.  The list may be published by 
 any medium or method.  The list must contain the name, address, 
 type of tax or fee, and period for which payment is due for each 
 liability, including penalties, interest, and other charges owed 
 by each listed delinquent taxpayer. 

    Subd. 5.    Removal from list.  The commissioner shall 
 remove the name of a taxpayer from the list of delinquent 
 taxpayers after the commissioner receives written notice of and 
 verifies any of the following facts about the liability in 
 question: 

    (1) the taxpayer has contacted the commissioner and 
 arranged resolution of the liability; 

    (2) an active bankruptcy proceeding has been initiated for 
 the liability; 

    (3) a bankruptcy proceeding concerning the liability has 
 resulted in discharge of the liability; or 

    (4) the commissioner has written off the liability. 

    Subd. 6.    Names published in error.  If the 
 commissioner publishes a name under subdivision 1 in error, the 
 taxpayer whose name was erroneously published has a right to 
 request a retraction and apology.  If the taxpayer so requests, 
 the commissioner shall publish a retraction and apology 
 acknowledging that the taxpayer's name was published in error.  
 The retraction and apology must appear in the same medium and 
 the same format as the original list that contained the name 
 listed in error. 

    Subd. 7.    Payment of damages.  Actions against the 
 commissioner of revenue or the state of Minnesota arising out of 
 the implementation of this program must be brought under section 
 270.276.  If an action results in damages awarded to a taxpayer, 
 the damages must be paid out of the Department of Revenue 
 operating budget rather than in accordance with section 3.736, 
 subdivision 7. 

    Subd. 8. Repealed, 2003 c 127 art 8 s 13 

    HIST: 1Sp2001 c 5 art 20 s 9; 2002 c 377 art 9 s 2 

     270.70 Levy and distraint. 

    Subdivision 1.    Authority of commissioner.  If any tax 
 payable to the commissioner of revenue or to the Department of 
 Revenue is not paid when due, such tax may be collected by the 
 commissioner of revenue within five years after the date of 
 assessment of the tax, or if a lien has been filed, during the 
 period the lien is enforceable, or if the tax judgment has been 
 filed, within the statutory period of enforcement of a valid tax 
 judgment, by a levy upon all property and rights to property, 
 including any property in the possession of law enforcement 
 officials, of the person liable for the payment or collection of 
 such tax (except that which is exempt from execution pursuant to 
 section 550.37 and amounts received under United States Code, 
 title 29, chapter 19, as amended through December 31, 1989) or 
 property on which there is a lien provided in section 270.69.  
 For this purpose, the term "tax" shall include any penalty, 
 interest, and costs properly payable.  The term "levy" includes 
 the power of distraint and seizure by any means; provided, no 
 entry can be made upon the business premises or residence of a 
 taxpayer in order to seize property without first obtaining a 
 writ of entry listing the property to be seized and signed by a 
 judge of the district court of the district in which the 
 business premises or residence is located. 

    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.  The notice required under this 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 or by filing a lien under section 
 270.69.  

    Subd. 3.    Manner of execution and sale.  In making the 
 execution of the levy and in collecting the taxes due, the 
 commissioner shall have all of the powers provided in chapter 
 550 and in any other law for purposes of effecting an execution 
 against property in this state.  The sale of property levied 
 upon, and the time and manner of redemption therefrom, shall, to 
 the extent not provided in sections 270.701 to 270.709, be 
 governed by chapter 550.  The seal of the court, subscribed by 
 the court administrator, as provided in section 550.04, shall 
 not be required. The levy for collection of taxes may be made 
 whether or not the commissioner has commenced a legal action for 
 collection of such taxes.  

    Subd. 4.    Stay of sale.  (a) Where a jeopardy 
 assessment or any other assessment has been made by the 
 commissioner, the property seized for collection of the tax 
 shall not be sold until the time has expired for filing an 
 appeal of the assessment with the Tax Court pursuant to chapter 
 271.  If an appeal has been filed, no sale shall be made unless 
 the taxes remain unpaid for a period of more than 30 days after 
 final determination of the appeal by the Tax Court or by the 
 appropriate judicial forum. 

    (b) Notwithstanding clause (a), seized property may be sold 
 if 

    (i) the taxpayer consents in writing to the sale, or 

    (ii) the commissioner determines that the property is 
 perishable or may become greatly reduced in price or value by 
 keeping, or that such property cannot be kept without great 
 expense. 

    The Tax Court has jurisdiction to review a determination 
 made under clause (b)(ii).  Review is commenced by motion of the 
 commissioner or the taxpayer.  The order of the court in 
 response to the motion is reviewable in the same manner as any 
 other decision of the Tax Court. 

    Subd. 5.    Probate proceedings.  Where a levy has been 
 made to collect taxes pursuant to this section and the property 
 seized is properly included in a formal proceeding commenced 
 under sections 524.3-401 to 524.3-505 and maintained under full 
 supervision of the court, such property shall not be sold until 
 the probate proceedings are completed or until the court so 
 orders.  

    Subd. 6.    Bond or security to release seizure.  The 
 property seized shall be returned by the commissioner if the 
 owner gives a surety bond equal to the appraised value of the 
 owner's interest in the property, as determined by the 
 commissioner, or deposits with the commissioner security in such 
 form and amount as the commissioner deems necessary to insure 
 payment of the liability, but not more than twice the liability. 

    Subd. 7.    Injunction.  Notwithstanding any other 
 provision to the contrary, if a levy or sale pursuant to this 
 section would irreparably injure rights in property which the 
 court determines to be superior to rights of the state in such 
 property, the district court may grant an injunction to prohibit 
 the enforcement of such levy or to prohibit such sale. 

    Subd. 8. Repealed, 1995 c 264 art 13 s 23 

    Subd. 9. Repealed, 1995 c 264 art 13 s 23 

    Subd. 10. Repealed, 1995 c 264 art 13 s 23 

    Subd. 11.    Optional remedy.  Any action taken by the 
 commissioner pursuant to this section shall not constitute an 
 election by the state to pursue a remedy to the exclusion of any 
 other remedy. 

    Subd. 12.    Equitable relief.  After the commissioner 
 has seized the property of any person, that person may, upon 
 giving 48 hours notice to the commissioner and to the court, 
 bring a claim for equitable relief before the district court for 
 the release of the property to the taxpayer upon such terms and 
 conditions as the court may deem equitable. 

    Subd. 13.    Levy and sale by sheriff.  If any tax 
 payable to the commissioner of revenue or to the Department of 
 Revenue is not paid as provided in subdivision 2, the 
 commissioner may, within the time periods provided in 
 subdivision 1 for collection of taxes, delegate the authority 
 granted by subdivision 1, by means of issuing a warrant to the 
 sheriff of any county of the state commanding the sheriff, as 
 agent for the commissioner, to levy upon and sell the real and 
 personal property of the person liable for the payment or 
 collection of the tax and to levy upon the rights to property of 
 that person within the county, or to levy upon and seize any 
 property within the county on which there is a lien provided in 
 section 270.69, and to return the warrant to the commissioner 
 and pay to the commissioner the money collected by virtue 
 thereof by a time to be therein specified not less than 60 days 
 from the date of the warrant.  The sheriff shall proceed 
 thereunder to levy upon and seize any property of the person and 
 to levy upon the rights to property of the person within the 
 county (except the person's homestead or that property which is 
 exempt from execution pursuant to section 550.37), or to levy 
 upon and seize any property within the county on which there is 
 a lien provided in section 270.69.  For purposes of the 
 preceding sentence, the term "tax" shall include any penalty, 
 interest and costs properly payable.  The sheriff shall then 
 sell so much of the property levied upon as is required to 
 satisfy the taxes, interest, and penalties, together with the 
 sheriff's costs; but the sales, and the time and manner of 
 redemption therefrom, shall, to the extent not provided in 
 sections 270.701 to 270.709, be governed by chapter 550.  The 
 proceeds of the sales, less the sheriff's costs, shall be turned 
 over to the commissioner, who shall then apply the proceeds as 
 provided in section 270.708. 

    Subd. 14.    Priority of levy.  Notwithstanding section 
 52.12, a levy by the commissioner made pursuant to the 
 provisions of this section upon a taxpayer's funds on deposit in 
 a financial institution located in this state, shall have 
 priority over any unexercised right of setoff of the financial 
 institution to apply the levied funds toward the balance of an 
 outstanding loan or loans owed by the taxpayer to the financial 
 institution.  A claim by the financial institution that it 
 exercised its right to setoff prior to the levy by the 
 commissioner must be substantiated by evidence of the date of 
 the setoff, and shall be verified by the sworn statement of a 
 responsible corporate officer of the financial institution.  
 Furthermore, for purposes of determining the priority of any 
 levy made under this section, the levy shall be treated as if it 
 were an execution made pursuant to chapter 550. 

    Subd. 15.    Effect of honoring levy.  Any person in 
 possession of (or obligated with respect to) property or rights 
 to property subject to levy upon which a levy has been made who, 
 upon demand by the commissioner, surrenders the property or 
 rights to property (or who pays a liability under section 
 270.7002, subdivision 1) shall be discharged from any obligation 
 or liability to the person liable for the payment or collection 
 of the delinquent tax with respect to the property or rights to 
 property so surrendered or paid.  

    Subd. 16.    Notice of levy.  Notwithstanding any other 
 provision of law to the contrary, the notice of any levy 
 authorized by this section may be served by mail or by delivery 
 by an employee or agent of the Department of Revenue.  

    Subd. 17.    Uneconomical levy.  No levy may be made on 
 property if the amount of the expenses that the commissioner 
 estimates would be incurred by the department with respect to 
 the levy and sale of the property exceeds the fair market value 
 of the property at the anticipated time of levy. 

    Subd. 18.    Levy on appearance date of subpoena.  No 
 levy may be made on the property of a person on the day on which 
 the person, or an officer or employee of the person, is required 
 to appear in response to a subpoena issued by the commissioner 
 to collect unpaid taxes, unless the commissioner determines that 
 the collection of the tax is in jeopardy. 

    HIST: 1975 c 377 s 6; 1976 c 134 s 78; 1977 c 307 s 29; 1982 c 
 523 art 2 s 9-16; 1983 c 180 s 7-9; 1985 c 101 s 10,11; 1986 c 
 444; 1Sp1986 c 3 art 1 s 82; 1988 c 719 art 19 s 11; 1990 c 480 
 art 2 s 14; 1990 c 604 art 1 s 11-16; 1991 c 291 art 16 s 5; 
 1993 c 375 art 10 s 8; 1994 c 510 art 4 s 5; 1995 c 189 s 8; 
 1996 c 277 s 1; 1996 c 471 art 13 s 9; 1998 c 300 art 3 s 3; 
 1Sp2001 c 5 art 7 s 6 

     270.7001 Continuous levy. 

    Subdivision 1.    Authority.  The commissioner may, 
 within five years after the date of assessment of the tax, or if 
 a lien has been filed under section 270.69, within the statutory 
 period for enforcement of the lien, give notice to a person, 
 officer, or political subdivision or agency of the state to 
 withhold the amount of any tax, interest, or penalties due from 
 a taxpayer, or the amount due from an employer or person who has 
 failed to withhold and transmit amounts due from any payments to 
 the taxpayer, employer, or person.  The amounts withheld shall 
 be transmitted to the commissioner at the times the commissioner 
 designates. 

    Subd. 2.    Levy continuous.  The levy made under 
 subdivision 1 is continuous from the date the notice is received 
 until (1) the amount due stated on the notice has been withheld 
 or (2) the notice has been released by the commissioner under 
 section 270.709, whichever occurs first. 

    Subd. 3.    Amount to be withheld.  The amount required 
 to be withheld under this section is the least of: 

    (1) the amount stated on the notice; 

    (2) if the taxpayer, employer, or person is not a natural 
 person, 100 percent of the payment; 

    (3) if the taxpayer, employer, or person is an individual, 
 25 percent of the payment. 

    Subd. 4.    Payments covered.  For purposes of this 
 section, the term payments does not include wages as defined in 
 section 290.92 or funds in a deposit account as defined in 
 section 336.9-102(a)(29).  The term payments does include the 
 following: 

    (1) payments due for services of independent contractors, 
 dividends, rents, royalties, residuals, patent rights, and 
 mineral or other natural resource rights; 

    (2) payments or credits under written or oral contracts for 
 services or sales whether denominated as wages, salary, 
 commission, bonus, or otherwise, if the payments are not covered 
 by section 290.92, subdivision 23; and 

    (3) any other periodic payments or credits resulting from 
 an enforceable obligation to the taxpayer, employer, or person. 

    Subd. 5.    Determination of status; effect.  A 
 determination of a person's status as an independent contractor 
 under this section does not affect the determination of the 
 person's status for the purposes of any other law or rule. 

    HIST: 1993 c 375 art 10 s 9; 2001 c 195 art 2 s 14 

     270.7002 Personal liability for failure to honor a levy. 

    Subdivision 1.    Surrender of property subject to levy. 
  A person who fails or refuses to surrender property or rights 
 to property subject to a levy served on the person under section 
 270.70, 270.7001, or 290.92, subdivision 23, is liable in an 
 amount equal to the value of the property or rights not 
 surrendered, or the amount of taxes, penalties, and interest for 
 the collection of which the levy was made, whichever is less.  A 
 financial institution need not surrender funds on deposit until 
 ten days after service of the levy. 

    Subd. 2.    Penalty.  In addition to the personal 
 liability imposed by subdivision 1, if a person required to 
 surrender property or rights to property fails to do so without 
 reasonable cause, the person is liable for a penalty equal to 25 
 percent of the amount under subdivision 1. 

    Subd. 3.    Person defined.  The term "person" as used 
 in this section includes an officer or employee of a corporation 
 or a member or employee of a partnership, who as such officer, 
 employee, or member is under a duty to surrender the property or 
 rights to property or to respond to the levy. 

    Subd. 4.    Order assessing liability.  The liability 
 imposed by this section may, after demand to honor a levy has 
 been made, be assessed by the commissioner within 60 days after 
 service of the demand.  The assessment may be based on 
 information available to the commissioner.  The assessment is 
 presumed to be valid, and the burden is on the person assessed 
 to show it is incorrect or invalid.  An order assessing 
 liability for failure to honor a levy is reviewable 
 administratively under section 289A.65, and is appealable to Tax 
 Court under chapter 271.  The amount assessed, plus interest at 
 the rate specified in section 270.75, may be collected by any 
 remedy available to the commissioner for the collection of 
 taxes.  The proceeds collected are applied first to the 
 liability of the original taxpayer to the extent of the 
 liability under subdivision 1 plus interest, and then to the 
 penalty under subdivision 2. 

    HIST: 1995 c 264 art 13 s 4 

     270.701 Sale of seized property. 

    Subdivision 1.    Notice of seizure.  As soon as 
 practicable after seizure of property, notice in writing shall 
 be given by the commissioner of revenue to the owner of the 
 property (or, in the case of personal property, the possessor 
 thereof), and shall be served in like manner as a summons in a 
 civil action in the district court.  If the owner cannot be 
 readily located, or has no dwelling or place of business within 
 this state, the notice may be mailed to the last known address.  
 The notice shall specify the sum demanded and shall contain, in 
 the case of personal property, an account of the property seized 
 and, in the case of real property, a description with reasonable 
 certainty of the property seized.  

    Subd. 2.    Notice of sale.  The commissioner shall as 
 soon as practicable after the seizure of the property give 
 notice of sale of the property to the owner, in the manner of 
 service prescribed in subdivision 1.  In the case of personal 
 property, the notice shall be served at least 10 days prior to 
 the sale.  In the case of real property, the notice shall be 
 served at least four weeks prior to the sale.  The commissioner 
 shall also cause public notice of each sale to be made.  In the 
 case of personal property, notice shall be posted at least 10 
 days prior to the sale at the county courthouse for the county 
 where the seizure is made, and in not less than two other public 
 places.  For purposes of this requirement, the Internet is a 
 public place for posting the information.  In the case of real 
 property, six weeks' published notice shall be given prior to 
 the sale, in a newspaper published or generally circulated in 
 the county.  The notice of sale provided in this subdivision 
 shall specify the property to be sold, and the time, place, 
 manner and conditions of the sale.  Whenever levy is made 
 without regard to the 30-day period provided in section 270.70, 
 subdivision 2, public notice of sale of the property seized 
 shall not be made within the 30-day period unless section 
 270.702 (relating to sale of perishable goods) is applicable.  

    Subd. 3.    Sale of indivisible property.  If any 
 property liable to levy is not divisible, so as to enable the 
 commissioner by sale of a part thereof to raise the whole amount 
 of the tax and expenses, the whole of the property shall be sold.

    Subd. 4.    Time and place of sale.  The time of sale 
 shall be after the expiration of the notice periods prescribed 
 in subdivision 2.  The place of sale shall be within the county 
 in which the property is seized, except by special order of the 
 commissioner.  

    Subd. 5.    Manner and conditions of sale.  (a) Before 
 the sale the commissioner shall determine a minimum price for 
 which the property shall be sold, and if no person offers for 
 the property at the sale the amount of the minimum price, the 
 property shall be declared to be purchased at the minimum price 
 for the state of Minnesota; otherwise the property shall be 
 declared to be sold to the highest bidder.  In determining the 
 minimum price, the commissioner shall take into account the 
 expense of making the levy and sale.  The announcement of the 
 minimum price determined by the commissioner may be delayed 
 until the receipt of the highest bid.  

    (b) The sale shall not be conducted in any manner other 
 than:  

    (i) by public auction, 

    (ii) by public sale under sealed bids, or 

    (iii) in the case of items which individually or in usually 
 marketable units have a value of $50 or less, by public or 
 private proceedings as a unit or in parcels at any time and 
 place and on any terms, but every aspect of the disposition 
 including the method, manner, time, place, and terms must be 
 commercially reasonable.  

    (c) In the case of seizure of several items of property, 
 the items may be offered separately, in groups, or in the 
 aggregate, and shall be sold under whichever method produces the 
 highest aggregate amount, except that sales under paragraph (b), 
 item (iii), must produce a reasonable amount under the 
 circumstances.  

    (d) Payment in full shall be required at the time of 
 acceptance of a bid, except that a part of the payment may be 
 deferred by the commissioner for a period not to exceed 30 days. 

    (e) Other methods (including advertising) in addition to 
 those prescribed in subdivision 2 may be used in giving notice 
 of the sale.  

    (f) The commissioner may adjourn the sale from time to time 
 for a period not to exceed 30 days.  

    (g) If payment in full is required at the time of 
 acceptance of a bid and is not then and there paid, the 
 commissioner shall forthwith proceed to again sell the property 
 in the manner provided in this section.  If the conditions of 
 the sale permit part of the payment to be deferred, and if the 
 part is not paid within the prescribed period, suit may be 
 instituted against the purchaser for the purchase price or that 
 part thereof as has not been paid, together with interest at the 
 rate specified in section 549.09 from the date of the sale; or, 
 in the discretion of the commissioner, the sale may be declared 
 by the commissioner to be null and void for failure to make full 
 payment of the purchase price and the property may again be 
 advertised and sold as provided in this section.  In the event 
 of a readvertisement and sale, any new purchaser shall receive 
 the property or rights to property free and clear of any claim 
 or right of the former defaulting purchaser, of any nature 
 whatsoever, and the amount paid upon the bid price by the 
 defaulting purchaser shall be forfeited.  

    Subd. 6.    Right to request sale of seized property 
 within 60 days.  The owner of property seized by levy may 
 request that the commissioner offer to sell the property within 
 60 days after the request, or within a longer period requested 
 by the owner.  The request must be complied with unless the 
 commissioner determines and notifies the owner within that 
 period that compliance is not in the best interests of the state 
 of Minnesota.  A determination by the commissioner not to comply 
 with the request is appealable to the Tax Court in the manner 
 provided by law. 

    Subd. 7.    Sale of seized securities.  (a) At the time 
 of levy on securities, the commissioner shall provide notice to 
 the taxpayer that the securities may be sold after ten days from 
 the date of seizure.  

    (b) If the commissioner levies upon nonexempt publicly 
 traded securities and the value of the securities is less than 
 or equal to the total obligation for which the levy is done, 
 after ten days the person who possesses or controls the 
 securities shall liquidate the securities in a commercially 
 reasonable manner.  After liquidation, the person shall transfer 
 the proceeds to the commissioner, less any applicable 
 commissions or fees, or both, which are charged in the normal 
 course of business.  

    (c) If the commissioner levies upon nonexempt publicly 
 traded securities and the value of the securities exceeds the 
 total amount of the levy, the owner of the securities may, 
 within seven days after receipt of the department's notice of 
 levy given pursuant to subdivision 1, instruct the person who 
 possesses or controls the securities which securities are to be 
 sold to satisfy the obligation.  If the owner does not provide 
 instructions for liquidation, the person who possesses or 
 controls the securities shall liquidate the securities in an 
 amount sufficient to pay the obligation, plus any applicable 
 commissions or fees, or both, which are charged in the normal 
 course of business, beginning with the nonexempt securities 
 purchased most recently.  After liquidation, the person who 
 possesses or controls the securities shall transfer to the 
 commissioner the amount of money needed to satisfy the levy. 

    HIST: 1982 c 523 art 2 s 17; 1986 c 444; 1990 c 604 art 1 s 
 17; 1997 c 84 art 5 s 4,5; 1998 c 300 art 3 s 4; 2003 c 127 art 
 8 s 3,4 

     270.702 Sale of perishable goods. 

    If the commissioner determines that any property seized is 
 liable to perish or become greatly reduced in price or value by 
 keeping, or that the property cannot be kept without great 
 expense, the commissioner shall appraise the value of the 
 property, and if the owner of the property can be readily found, 
 the commissioner shall give the owner notice of the 
 determination of the appraised value of the property.  The 
 property shall be returned to the owner if, within the time 
 specified in the notice, the owner (a) pays to the commissioner 
 an amount equal to the appraised value, or (b) gives bond in the 
 form, with the sureties, and in the amount as the commissioner 
 prescribes to pay the appraised amount at the time the 
 commissioner determines to be appropriate in the circumstances.  
 If the owner does not pay the amount or furnish the bond in 
 accordance with this section, the commissioner shall as soon as 
 practicable make public sale of the property in accordance with 
 section 270.701.  

    HIST: 1982 c 523 art 2 s 18; 1986 c 444 

     270.703 Redemption of property. 

    Subdivision 1.    Before sale.  Any person whose 
 property has been levied upon shall have the right to pay the 
 amount due, together with the expenses of the proceeding, if 
 any, to the commissioner at any time prior to the sale thereof, 
 and upon payment the commissioner shall restore the property to 
 the person, and all further proceedings in connection with the 
 levy on the property shall cease from the time of payment.  

    Subd. 2.    Redemption of real estate after sale.  The 
 owners of any real property sold as provided in this section, 
 their heirs, executors, or administrators, or any person having 
 any interest therein, or a lien thereon, or any person in their 
 behalf, shall be permitted to redeem the property sold, or any 
 particular tract of the property, at any time within six months, 
 or in case the real property sold exceeds ten acres in size, at 
 any time within 12 months, after the sale thereof.  The property 
 or tract of property shall be permitted to be redeemed upon 
 payment to the purchaser (or if not found in the county in which 
 the property to be redeemed is situated, then to the 
 commissioner, for the use of the purchaser, or the purchaser's 
 heirs or assigns) of the amount paid by the purchaser together 
 with interest at the rate of 20 percent per annum.  

    Subd. 3.    Record.  When any lands sold are redeemed as 
 provided in this section, the commissioner shall cause entry of 
 the fact to be made upon the record required by section 270.706 
 and the entry shall be evidence of the redemption.  

    HIST: 1982 c 523 art 2 s 19; 1986 c 444; 1991 c 291 art 16 s 6 

     270.704 Certificate of sale. 

    In the case of property sold as provided in section 
 270.701, the commissioner shall give to the purchaser a 
 certificate of sale upon payment in full of the purchase price.  
 In the case of real property the certificate shall set forth the 
 real property purchased, for whose taxes the property was sold, 
 the name of the purchaser, and the price paid.  If real property 
 is declared purchased by the state of Minnesota, the 
 commissioner shall within ten days from the sale cause the 
 certificate of sale to be duly recorded by the county recorder 
 of the county in which the real property is located.  

    HIST: 1982 c 523 art 2 s 20 

     270.705 Effect of certificate of sale. 

    Subdivision 1.    Personal property.  (a) In all cases 
 of sale pursuant to section 270.701 of personal property, the 
 certificate of sale given pursuant to section 270.704 shall be 
 prima facie evidence of the right of the commissioner to make 
 the sale, and conclusive evidence of the regularity of the 
 proceedings in making the sale.  The certificate shall transfer 
 to the purchaser all right, title, and interest of the party 
 delinquent in and to the property sold.  

    (b) If the property consists of stocks, the certificate of 
 sale shall be notice, when received, to any corporation, 
 company, or association of the transfer, and shall be authority 
 to the corporation, company, or association to record the 
 transfer on its books and records in the same manner as if the 
 stocks were transferred or assigned by the party holding the 
 same, in lieu of any original or prior certificate, which shall 
 be void, whether canceled or not.  

    (c) If the subject of sale is securities or other evidences 
 of debt, the certificate of sale shall be a good and valid 
 receipt to the person holding the same, as against any person 
 holding or claiming to hold possession of the securities or 
 other evidences of debt.  

    (d) If the property consists of a motor vehicle, the 
 certificate of sale shall be notice, when received, to the 
 registrar of motor vehicles of this state of the transfer, and 
 shall be authority to the registrar to record the transfer on 
 the books and records in the same manner as if the certificate 
 of title to the motor vehicle were transferred or assigned by 
 the party holding the same, in lieu of any original or prior 
 certificate, which shall be void, whether canceled or not.  

    Subd. 2.    Real property.  In the case of the sale of 
 real property pursuant to section 270.701, the certificate of 
 sale given pursuant to section 270.704 shall be prima facie 
 evidence of the facts therein stated, and shall be considered 
 and operate as a conveyance of all the right, title, and 
 interest the party delinquent had in and to the real property 
 thus sold at the time the lien of the state of Minnesota 
 attached thereto.  

    Subd. 3.    Junior encumbrances.  A certificate of sale 
 of personal property or real property given pursuant to section 
 270.704 shall discharge the property from all liens, 
 encumbrances, and titles over which the lien of the state of 
 Minnesota with respect to which the levy was made had priority.  

    HIST: 1982 c 523 art 2 s 21; 1986 c 444 

     270.706 Records of sale. 

    The commissioner shall, for the Department of Revenue, keep 
 a record of all sales of property under section 270.701 and of 
 redemptions of real property.  The record shall set forth the 
 tax for which the sale was made, the dates of seizure and sale, 
 the name of the party assessed and all proceedings in making the 
 sale, the amount of expenses, the names of the purchasers, and 
 the date of the certificate of sale.  A copy of the record, or 
 any part thereof, certified by the commissioner shall be 
 evidence in any court of the truth of the facts therein stated.  

    HIST: 1982 c 523 art 2 s 22 

     270.707 Expense of levy and sale. 

    The commissioner shall determine the expenses to be allowed 
 in all cases of levy and sale.  

    HIST: 1982 c 523 art 2 s 23 

     270.708 Application of proceeds of levy. 

    Subdivision 1.    Collection of liability.  Any money 
 realized by proceedings under this chapter, whether by seizure, 
 by surrender under section 270.70, by sale of seized property, 
 by sale of property redeemed by the state of Minnesota (if the 
 interest of the state of Minnesota in the property was a lien 
 arising under the provisions of section 270.69), or by 
 agreement, arrangement, or any other means shall be applied as 
 follows: 

    (a) First, against the expenses of the proceedings; then 

    (b) If the property seized and sold is subject to a tax 
 administered by the commissioner of revenue which has not been 
 paid, the amount remaining after applying clause (a) shall next 
 be applied against the tax liability (and, if the tax was not 
 previously assessed, it shall then be assessed); and 

    (c) The amount, if any, remaining after applying clauses 
 (a) and (b) shall be applied against the tax liability in 
 respect of which the levy was made or the sale was conducted. 

    Subd. 2.    Surplus proceeds.  Any surplus proceeds 
 remaining after the application of subdivision 1 shall, upon 
 application and satisfactory proof in support thereof, be 
 credited or refunded by the commissioner to the person or 
 persons legally entitled thereto.  

    HIST: 1982 c 523 art 2 s 24; 1997 c 84 art 5 s 6; 2002 c 379 
 art 1 s 63 

     270.709 Authority to release levy and return property. 

    Subdivision 1.    Release of levy.  The commissioner 
 shall release a levy on all or part of the property or rights to 
 property levied on and shall promptly notify the person on whom 
 the levy was made that the levy has been released if:  (1) the 
 liability for which the levy was made is satisfied or has become 
 unenforceable by lapse of time; (2) release of the levy will 
 facilitate collection of the liability; (3) the taxpayer has 
 entered into an installment payment agreement under section 
 270.67, subdivision 2, unless the agreement provides otherwise, 
 or unless release of the levy will jeopardize the status of the 
 department as a secured creditor; or (4) the fair market value 
 of the property exceeds the liability, and release of the levy 
 on a part of the property can be made without hindering 
 collection.  In the case of tangible personal property essential 
 in carrying on the trade or business of the taxpayer, the 
 commissioner shall provide for an expedited determination under 
 this subdivision.  A release of levy under this subdivision does 
 not prevent a subsequent levy on the property released. 

    Subd. 2.    Return of property.  If the commissioner 
 determines that property has been wrongfully levied upon, it 
 shall be lawful for the commissioner to return:  

    (a) The specific property levied upon, at any time; 

    (b) An amount of money equal to the amount of money levied 
 upon, at any time before the expiration of nine months from the 
 date of the levy; or 

    (c) An amount of money equal to the amount of money 
 received by the state of Minnesota from a sale of the property, 
 at any time before the expiration of nine months from the date 
 of the sale.  

    For purposes of clause (c), if property is declared 
 purchased by the state of Minnesota at a sale pursuant to 
 section 270.701, subdivision 5 (relating to manner and 
 conditions of sale), the state of Minnesota shall be treated as 
 having received an amount of money equal to the minimum price 
 determined pursuant to section 270.701, subdivision 5 or, if 
 larger, the amount received by the state of Minnesota from the 
 resale of the property.  

    HIST: 1982 c 523 art 2 s 25; 1990 c 604 art 1 s 18 

     270.71 Acquisition and resale of seized property. 

    For the purpose of enabling the commissioner of revenue to 
 purchase or redeem seized property in which the state of 
 Minnesota has an interest arising from a lien for unpaid taxes, 
 or to provide for the operating costs of collection activities 
 of the Department of Revenue, there is appropriated to the 
 commissioner an amount representing the cost of such purchases, 
 redemptions, or collection activities.  Seized property acquired 
 by the state of Minnesota to satisfy unpaid taxes shall be 
 resold by the commissioner.  The commissioner shall preserve the 
 value of seized property while controlling it, including but not 
 limited to the procurement of insurance.  For the purpose of 
 refunding the proceeds from the sale of levied or redeemed 
 property which are in excess of the actual tax liability plus 
 costs of acquiring the property, there is hereby created a 
 levied and redeemed property refund account in the agency fund.  
 All amounts deposited into this account are appropriated to the 
 commissioner of revenue.  The commissioner shall report 
 quarterly on the status of this program to the chairs of the 
 house Taxes and Ways and Means Committees and senate Taxes and 
 Tax Laws and Finance Committees. 

    HIST: 1982 c 523 art 2 s 26; 1986 c 444; 1992 c 513 art 4 s 35; 
 2004 c 284 art 2 s 18 

     270.72 Tax clearance; issuance of licenses. 

    Subdivision 1.    Tax clearance required.  The state or 
 a political subdivision of the state may not issue, transfer, or 
 renew, and must revoke, 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, renew, or not revoke 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. 

    Subd. 2.    Definitions.  For purposes of this section, 
 the following terms have the meanings given.  

    (a) "Taxes" mean all taxes payable to the commissioner 
 including penalties and interest due on the taxes. 

    (b) "Delinquent taxes" do not include a tax liability if 
 (i) an administrative or court action which contests the amount 
 or validity of the liability has been filed or served, (ii) the 
 appeal period to contest the tax liability has not expired, or 
 (iii) the applicant has entered into a payment agreement and is 
 current with the payments.  

    (c) "Applicant" means an individual if the license is 
 issued to or in the name of an individual or the corporation or 
 partnership if the license is issued to or in the name of a 
 corporation or partnership.  "Applicant" also means an officer 
 of a corporation, a member of a partnership, or an individual 
 who is liable for delinquent taxes, either for the entity for 
 which the license is at issue or for another entity for which 
 the liability was incurred, or personally as a licensee.  In the 
 case of a license transfer, "applicant" also means both the 
 transferor and the transferee of the license.  "Applicant" also 
 means any holder of a license. 

    (d) "License" means any permit, registration, 
 certification, or other form of approval authorized by statute 
 or rule to be issued by the state or a political subdivision of 
 the state as a condition of doing business or conducting a 
 trade, profession, or occupation in Minnesota, specifically 
 including, but not limited to, a contract for space rental at 
 the Minnesota state fair and authorization to operate 
 concessions or rides at county and local fairs, festivals, or 
 events. 

    (e) "Licensing authority" includes the Minnesota State Fair 
 Board and county and local boards or governing bodies. 

    Subd. 3.    Notice and hearing.  (a) The commissioner, 
 on notifying a licensing authority pursuant to subdivision 1 not 
 to issue, transfer, or renew a license, must send a copy of the 
 notice to the applicant.  If the applicant requests, in writing, 
 within 30 days of the date of the notice a hearing, a contested 
 case hearing must be held.  The hearing must be held within 45 
 days of the date the commissioner refers the case to the Office 
 of Administrative Hearings.  Notwithstanding any law to the 
 contrary, the applicant must be served with 20 days' notice in 
 writing specifying the time and place of the hearing and the 
 allegations against the applicant.  The notice may be served 
 personally or by mail.  

    (b) Prior to notifying a licensing authority pursuant to 
 subdivision 1 to revoke a license, the commissioner must send a 
 notice to the applicant of the commissioner's intent to require 
 revocation of the license and of the applicant's right to a 
 hearing under paragraph (a).  A license is subject to revocation 
 when 30 days have passed following the date of the notice in 
 this paragraph without the applicant requesting a hearing, or, 
 if a hearing is timely requested, upon final determination of 
 the hearing under section 14.62, subdivision 1.  A license shall 
 be revoked by the licensing authority within 30 days after 
 receiving notice from the commissioner to revoke. 

    (c) A hearing under this subdivision is in lieu of any 
 other hearing or proceeding provided by law arising from any 
 action taken under subdivision 1. 

    Subd. 4.    Licensing authority; duties.  All licensing 
 authorities must require the applicant to provide the 
 applicant's Social Security number and Minnesota business 
 identification number on all license applications.  Upon request 
 of the commissioner, the licensing authority must provide the 
 commissioner with a list of all applicants, including the name, 
 address, business name and address, Social Security number, and 
 business identification number of each applicant.  The 
 commissioner may request from a licensing authority a list of 
 the applicants no more than once each calendar year.  

    Subd. 5. Repealed, 1Sp1986 c 1 art 7 s 37 

    HIST: 1984 c 502 art 8 s 2; 1984 c 655 art 2 s 10 subd 1; 1986 
 c 444; 1Sp1986 c 1 art 7 s 15-17; 1987 c 268 art 17 s 6,7; 1989 
 c 184 art 2 s 14; 1994 c 510 art 4 s 6; 1995 c 264 art 13 s 5-7; 2003 c 
 127 art 8 s 5 

     270.721 Revocation of certificates of authority to do 
  business in this state. 

    When a foreign corporation authorized to do business in 
 this state under chapter 303, or a foreign limited liability 
 company or partnership authorized to do business in this state 
 under chapter 322B, fails to comply with any tax laws 
 administered by the commissioner of revenue, the commissioner 
 may serve the secretary of state with a certified copy of an 
 order finding such failure to comply.  The secretary of state, 
 upon receipt of the order, shall revoke the certificate of 
 authority to do business in this state, and shall reinstate the 
 certificate under section 303.19 or section 322B.960, 
 subdivision 6, only when the corporation or limited liability 
 company or partnership has obtained from the commissioner an 
 order finding that the corporation or limited liability company 
 or partnership is in compliance with state tax law.  An order 
 requiring revocation of a certificate shall not be issued unless 
 the commissioner gives the corporation or limited liability 
 company or partnership 30 days' written notice of the proposed 
 order, specifying the violations of state tax law, and affording 
 an opportunity to request a contested case hearing under chapter 
 14. 

    HIST: 1995 c 264 art 13 s 8; 1997 c 84 art 5 s 7 

     270.73 Posting of tax delinquency; sale of liquor or 
  beer. 

    Subdivision 1.    Posting, notice.  Pursuant to the 
 authority to disclose under section 270B.12, subdivision 4, the 
 commissioner shall, by the 15th of each month, submit to the 
 commissioner of public safety a list of all taxpayers who are 
 required to pay, withhold, or collect the tax imposed by section 
 290.02, 290.0922, 290.92, 290.9727, 290.9728, 290.9729, or 
 297A.62, or local sales and use tax payable to the commissioner 
 of revenue, or a local option tax administered and collected by 
 the commissioner of revenue, and who are ten days or more 
 delinquent in either filing a tax return or paying the tax. 

    The commissioner of revenue is under no obligation to list 
 a taxpayer whose business is inactive.  At least ten days before 
 notifying the commissioner of public safety, the commissioner of 
 revenue shall notify the taxpayer of the intended action. 

    The commissioner of public safety shall post the list in 
 the same manner as provided in section 340A.318, subdivision 3.  
 The list will prominently show the date of posting.  If a 
 taxpayer previously listed files all returns and pays all taxes 
 then due, the commissioner shall notify the commissioner of 
 public safety within two business days. 

    Subd. 2.    Sales prohibited.  Beginning the third 
 business day after the list is posted, no wholesaler, 
 manufacturer, or brewer may sell or deliver any product to a 
 taxpayer included on the posted list. 

    Subd. 3.    Penalty.  A wholesaler, manufacturer, or 
 brewer of intoxicating liquor or 3.2 percent malt liquor who 
 violates subdivision 2 is subject to the penalties provided in 
 section 340A.304.  

    HIST: 1Sp1986 c 1 art 7 s 29; 1987 c 268 art 17 s 26,41; 1989 
 c 184 art 2 s 15; 1990 c 480 art 2 s 15; art 10 s 1; 1991 c 249 
 s 31; 1997 c 84 art 5 s 8; 2000 c 418 art 1 s 44; 1Sp2001 c 5 
 art 7 s 7 

     270.74 Financial transaction cards; payment of state 
  taxes. 

    (a) The commissioner of revenue may allow taxpayers to use 
 financial transaction cards, as defined in section 325G.02, 
 subdivision 2, to pay any of the following which are payable to 
 the commissioner: 

    (1) state taxes; 

    (2) estimated tax deposits; 

    (3) penalties; 

    (4) interest; 

    (5) additions to taxes; and 

    (6) fees. 

    (b) The commissioner may impose a fee on each transaction 
 under paragraph (a).  The fee is equal to the fee the 
 commissioner is required to pay for the taxpayer's use of the 
 financial transaction card.  This fee must be deposited in the 
 general fund and is appropriated to the commissioner for the 
 purpose of paying the transaction card fee. 

    (c) The types of financial transaction cards that will be 
 accepted shall be determined solely by the commissioner.  The 
 selection of transaction card vendors shall be made through a 
 request for proposals process.  Before issuing a request for 
 proposals, the commissioner shall review the request for 
 proposals and any specifications with the commissioner of 
 finance.  The commissioner shall select the transaction card 
 vendors from among those which meet the operational and cost 
 requirements of the Department of Revenue.  The commissioner may 
 limit the number of different types of financial transaction 
 cards that will be accepted. 

    (d) If the commissioner allows taxpayers to pay taxes with 
 financial transaction cards, the commissioner shall report 
 quarterly on the status of this program to the chairs of the 
 house tax and appropriations committees and the chairs of the 
 senate tax and finance committees.  

    HIST: 1991 c 345 art 1 s 84; 2003 c 112 art 2 s 50 

     270.75 Interest payable to commissioner. 

    Subdivision 1.    Interest; rate.  If any tax payable to 
 the commissioner of revenue or to the Department of Revenue is 
 not paid within the time specified by law for payment, the 
 unpaid tax shall bear interest beginning February 1, 1982 at the 
 rate of 20 percent per annum from the date such tax should have 
 been paid until the date that the tax was paid, unless otherwise 
 provided by law. 

    Subd. 2.    Extension of time.  When an extension of 
 time has been granted by the commissioner, interest shall be 
 paid beginning February 1, 1982 at the rate of 20 percent per 
 annum from the date such payment should have been made, if no 
 extension had been granted, until the date of payment of such 
 tax. 

    Subd. 3.    Penalty.  If any penalty payable to the 
 commissioner of revenue shall by law bear interest, such penalty 
 shall bear interest beginning February 1, 1982 at the rate of 20 
 percent per annum from the date the penalty was assessable until 
 the date that such penalty was paid, unless a different rate of 
 interest is otherwise provided by law. 

    Subd. 4.    Underpayment of estimated tax.  There shall 
 be added to the amount of any underpayment of estimated income 
 tax, computed pursuant to chapter 289A, an amount in lieu of 
 interest.  The amount in lieu of interest for that taxable year 
 shall be the amount determined in subdivision 5 for January 1 on 
 which begins the taxable year or precedes the beginning of the 
 taxable year.  The amount in lieu of interest does not bear 
 interest after the due date of the return for that taxable year. 

    Subd. 5.    Adjustment of rate.  The rates of interest 
 or amount in lieu of interest contained in subdivisions 1 to 4 
 shall be adjusted by the commissioner of revenue not later than 
 October 15 of 1983 and any year thereafter if the adjusted prime 
 rate charged by banks during the six-month period ending on 
 September 30 of that year, rounded to the nearest full percent, 
 is at least a full percentage point more or less than the 
 interest rate which is then in effect.  The adjusted rate of 
 interest or amount in lieu of interest shall be equal to the 
 adjusted prime rate charged by banks, rounded to the nearest 
 full percent, and shall become effective on January 1 of the 
 immediately succeeding year except as provided in subdivision 
 4.  For purposes of this subdivision, the term "adjusted prime 
 rate charged by banks" means the average predominant prime rate 
 quoted by commercial banks to large businesses, as determined by 
 the Board of Governors of the Federal Reserve System.  The 
 determination of the commissioner pursuant to this subdivision 
 shall not be considered a "rule" and shall not be subject to the 
 Administrative Procedure Act contained in chapter 14.  

    Subd. 6.    Unpaid judgment.  Notwithstanding section 
 549.09, if judgment is entered upon any tax payable to the 
 commissioner of revenue which has not been paid within the time 
 specified by law for payment, the unpaid judgment shall bear 
 interest at the rate specified in this section from the date 
 judgment is entered until the date of payment.  

    Subd. 7. Repealed, 1Sp1985 c 14 art 13 s 14 

    Subd. 8. Repealed, 1987 c 268 art 17 s 42 

    HIST: 1975 c 377 s 7; 1Sp1981 c 1 art 3 s 1; 3Sp1981 c 2 art 3 
 s 1; 1982 c 523 art 1 s 67,68; art 2 s 27; art 26 s 1; 1983 c 
 207 s 1; 1985 c 210 art 1 s 7; 1Sp1985 c 13 s 306; 1991 c 291 
 art 16 s 7 

     270.76 Interest on refunds. 

    When any tax payable to the commissioner of revenue or to 
 the Department of Revenue is overpaid and an amount is due the 
 taxpayer as a refund of the overpayment, the overpayment shall 
 bear interest from the date of payment of the tax until the date 
 the refund is paid or credit is made, unless another period for 
 computing interest is provided by law.  The interest rate per 
 annum on overpayments shall be the interest rate contained in 
 section 270.75, subdivision 5; the rate shall be adjusted 
 annually and become effective as provided in section 270.75, 
 subdivision 5.  The determination of the commissioner pursuant 
 to this subdivision is not a "rule" and is not subject to the 
 Administrative Procedure Act contained in chapter 14. 

    HIST: 1Sp1985 c 14 art 15 s 3; 1Sp1986 c 1 art 7 s 18 

  270.77 Repealed, 1990 c 480 art 1 s 45 

     270.771 Payments required to be made electronically. 

    (a) If a taxpayer is required to make payment of a tax to 
 the commissioner by electronic means, the taxpayer shall make 
 all payments of all taxes and fees paid to the commissioner by 
 electronic means. 

    (b) Paragraph (a) does not apply to payments required to be 
 made for individual income taxes under section 289A.20, 
 subdivision 1, paragraph (a), or 289A.25.  

    HIST: 1997 c 84 art 6 s 13; 1Sp2001 c 5 art 17 s 4 

     270.78 Penalty for failure to pay electronically. 

    In addition to other applicable penalties imposed by law, 
 after notification from the commissioner of revenue to the 
 taxpayer that payments for a tax administered by the 
 commissioner are required to be made by electronic means, and 
 the payments are remitted by some other means, there is a 
 penalty in the amount of five percent of each payment that 
 should have been remitted electronically.  After the 
 commissioner's initial notification to the taxpayer that 
 payments are required to be made by electronic means, the 
 commissioner is not required to notify the taxpayer in 
 subsequent periods if the initial notification specified the 
 amount of tax liability at which a taxpayer is required to remit 
 payments by electronic means.  The penalty can be abated under 
 the abatement procedures prescribed in section 270.07, 
 subdivision 6, if the failure to remit the payment 
 electronically is due to reasonable cause.  The penalty bears 
 interest at the rate specified in section 270.75 from the due 
 date of the payment of the tax to the date of payment of the 
 penalty. 

    HIST: 1993 c 375 art 10 s 10; 1994 c 587 art 12 s 3; 1999 c 
 243 art 16 s 7; 1Sp2001 c 5 art 17 s 5 

     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 five installments.  
 The first installment will be paid during the calendar year 
 following the later of the filing of the refund claim or the 
 final judicial determination and subsequent installments will be 
 paid at any time during each of the four succeeding calendar 
 years. 

    (c) The commissioner shall compute the annual refund 
 installment due under this subdivision, and notify the taxpayer 
 of the total amount of the claim for refund which has been 
 allowed. 

    (d) The installment paid each year equals 20 percent of the 
 refund allowed 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, they will be reduced pro rata with any balance 
 remaining due payable with the final refund installment. 

    (e) 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.  

    (f) The commissioner may establish a de minimis 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. 

    (g) If the commissioner of finance determines that it is in 
 the best interest of the state, refunds payable under this 
 section may be paid in fewer than five installments. 

    HIST: 1994 c 510 art 4 s 7; 1995 c 264 art 13 s 9 

RAILROADS

     270.80 Definitions. 

    Subdivision 1.    Applicability.  The following words 
 and phrases when used in Laws 1979, chapter 303, article 7, 
 sections 1 to 13, unless the context clearly indicates 
 otherwise, shall have the meanings ascribed to them in this 
 section.  

    Subd. 2.    Railroad company.  "Railroad company" means: 

    (1) any company which as a common carrier operates a 
 railroad or a line or lines of railway situated within or partly 
 within Minnesota; or 

    (2) any company owning or operating, other than as a common 
 carrier, a railway principally used for transportation of 
 taconite concentrates from the plant at which the taconite 
 concentrates are produced in shipping form to a point of 
 consumption or port for shipment beyond the state; or 

    (3) any company that produces concentrates from taconite 
 and transports that taconite in the course of the concentrating 
 process and before the concentrating process is completed to a 
 concentrating plant located within the state over a railroad 
 that is not a common carrier and shall not use a common carrier 
 or taconite railroad company as defined in clause (2) for the 
 movement of the concentrate to a point of consumption or port 
 for shipment beyond the state.  

    Subd. 3.    Operating property.  "Operating property" 
 means all property owned or used by a railroad company in the 
 performance of railroad transportation services, including 
 without limitation franchises, rights-of-way, bridges, trestles, 
 shops, docks, wharves, buildings and structures.  

    Subd. 4.    Nonoperating property.  "Nonoperating 
 property" means and includes all property other than property 
 defined in subdivision 3.  Nonoperating property shall include 
 real property which is leased or rented or available for lease 
 or rent to any person which is not a railroad company.  Vacant 
 land shall be presumed to be available for lease or rent if it 
 has not been used as operating property for a period of one year 
 preceding the valuation date.  Nonoperating property also 
 includes land which is not necessary and integral to the 
 performance of railroad transportation services and which is not 
 used on a regular and continual basis in the performance of 
 these services.  Nonoperating property also includes that 
 portion of a general corporation office building and its 
 proportionate share of land which is not used for railway 
 operation or purpose.  

    Subd. 5.    Commissioner.  "Commissioner" means the 
 commissioner of revenue. 

    HIST: 1979 c 303 art 7 s 1; 1984 c 502 art 9 s 1; 1987 c 268 
 art 9 s 6 

     270.81 Taxation and assessment of railroad company 
  property. 

    Subdivision 1.    Valuation of operating property.  The 
 operating property of every railroad company doing business in 
 Minnesota shall be valued by the commissioner in the manner 
 prescribed by Laws 1979, chapter 303, article 7, sections 1 to 
 13.  

    Subd. 2.    Assessment of nonoperating property.  The 
 nonoperating property of every railroad company doing business 
 in Minnesota shall be assessed as otherwise provided by law.  

    Subd. 3.    Determination of type of property.  The 
 commissioner shall have exclusive primary jurisdiction to 
 determine what is operating property and what is nonoperating 
 property.  In making such determination, the commissioner shall 
 solicit information and opinions from outside the department and 
 afford all interested persons an opportunity to submit data or 
 views on the subject in writing or orally.  Local assessors may 
 submit written requests to the commissioner, asking for a 
 determination of the nature of specific property owned by a 
 railroad and located within their assessing jurisdiction.  Any 
 determination made by the commissioner may be appealed by the 
 assessor to the Tax Court pursuant to chapter 271.  

    Subd. 4.    Nontaxable property.  In no event shall 
 property owned or used by a railroad, whether operating property 
 or nonoperating property, be subject to tax hereunder unless 
 such property is of a character which would otherwise be subject 
 to tax under the provisions of chapter 272.  

    Subd. 5. Repealed, 1Sp1989 c 1 art 9 s 85 

    HIST: 1979 c 303 art 7 s 2; 1982 c 424 s 130; 1984 c 640 s 32; 
 1986 c 444 

     270.82 Reports of railroad companies. 

    Subdivision 1.    Annual report required.  Every 
 railroad company doing business in Minnesota shall annually file 
 with the commissioner on or before March 31 a report under oath 
 setting forth the information prescribed by the commissioner to 
 enable the commissioner to make the valuation and equalization 
 required by Laws 1979, chapter 303, article 7, sections 1 to 13. 

    Subd. 2.    Extension of time.  The commissioner for 
 good cause may extend for up to 15 days the time for filing the 
 report required by subdivision 1.  

    HIST: 1979 c 303 art 7 s 3; 1986 c 444; 1Sp1989 c 1 art 9 s 13 

     270.83 Examinations and investigations. 

    Subdivision 1.    Powers of commissioner.  The 
 commissioner shall have the power to examine or cause to be 
 examined any books, papers, records, or memoranda relevant to 
 the determination of the valuation of operating property as 
 herein provided.  The commissioner shall have the further power 
 to require the attendance of any person having knowledge or 
 information in the premises, to compel the production of books, 
 papers, records, or memoranda by persons so required to attend, 
 to take testimony on matters material to such determination and 
 administer oaths or affirmations.  

    Subd. 2.    Appointment of persons; subpoenas.  For the 
 purpose of making such examinations, the commissioner may 
 appoint such persons as the commissioner may deem necessary.  
 Such persons shall have the rights and powers of the examining 
 of books, papers, records or memoranda, and of subpoenaing 
 witnesses, administering oaths and affirmations, and taking of 
 testimony, which are conferred upon the commissioner hereby.  
 The court administrator of any court of record, upon demand of 
 any such person, shall issue a subpoena for the attendance of 
 any witness or the production of any books, papers, records, or 
 memoranda before such person.  The commissioner may also issue 
 subpoenas for the appearance of witnesses before the 
 commissioner or before such persons.  Disobedience of subpoenas 
 so issued shall be punished by the district court of the 
 district in which the subpoena is issued for a contempt of the 
 district court.  

    Subd. 3.    Failure to file report.  If any railroad 
 company shall refuse or neglect to make the report required by 
 this section to the commissioner, or shall refuse or neglect to 
 permit an inspection and examination of its property, records, 
 books, accounts or other papers when requested by the 
 commissioner, or shall refuse or neglect to appear before the 
 commissioner or a person appointed under subdivision 2 when 
 required so to do, the commissioner shall make the valuation 
 provided for by Laws 1979, chapter 303, article 7, sections 1 to 
 13 against the railroad company according to the commissioner's 
 best judgment on available information.  

    HIST: 1979 c 303 art 7 s 4; 1986 c 444; 1Sp1986 c 3 art 1 s 82 

     270.84 Annual valuation of operating property. 

    Subdivision 1.    Annual valuation; rules.  The 
 commissioner shall annually between March 31 and May 31 make a 
 determination of the fair market value of the operating property 
 of every railroad company doing business in this state as of 
 January 2 of the year in which the valuation is made.  In making 
 this determination, the commissioner shall employ generally 
 accepted appraisal principles and practices which may include 
 the unit method of determining value.  

    Subd. 2.    Notice.  The commissioner, after determining 
 the fair market value of the operating property of each railroad 
 company, shall give notice to the railroad company of the 
 valuation by first class mail, overnight delivery, or messenger 
 service.  

    HIST: 1979 c 303 art 7 s 5; 1984 c 502 art 9 s 2; 1984 c 640 s 
 32; 1985 c 248 s 46; 1986 c 444; 1Sp1989 c 1 art 9 s 14; 1996 c 
 305 art 2 s 56 

     270.85 Review of valuation. 

    A railroad company may within ten days of the date of the 
 notice of valuation file a written request for a conference with 
 the commissioner relating to the value of its operating 
 property.  The commissioner shall thereupon designate a time and 
 place for the conference which the commissioner shall conduct, 
 upon commissioner's entire files and records and such further 
 information as may be offered.  The conference must be held no 
 later than 20 days after the date of the commissioner's 
 valuation notice.  At a reasonable time after such conference 
 the commissioner shall make a final determination of the fair 
 market value of the operating property of the railroad company 
 and shall notify the company promptly of the determination.  

    HIST: 1979 c 303 art 7 s 6; 1986 c 444; 1Sp1989 c 1 art 9 s 15 

     270.86 Apportionment and equalization of valuation. 

    Subdivision 1.    Apportionment of value.  Upon 
 determining the fair market value of the operating property of 
 each railroad company, the commissioner shall apportion such 
 value to the respective counties and to the taxing districts 
 therein in conformity with fair and reasonable rules and 
 standards to be established by the commissioner pursuant to 
 notice and hearing, except as provided in section 270.81.  In 
 establishing such rules and standards the commissioner may 
 consider (a) the physical situs of all station houses, depots, 
 docks, wharves, and other buildings and structures with an 
 original cost in excess of $10,000; (b) the proportion that the 
 length and type of all the tracks used by the railroad in such 
 county and taxing district bears to the length and type of all 
 the track used in the state; and (c) other facts as will result 
 in a fair and equitable apportionment of value.  

    Subd. 2.    Equalized valuation.  After making the 
 apportionment provided in subdivision 1, the commissioner shall 
 determine the equalized valuation of the operating property in 
 each county by applying to the apportioned value an estimated 
 current year median sales ratio for all commercial and 
 industrial property in that county.  If the commissioner decides 
 there are insufficient sales to determine a median 
 commercial-industrial sales ratio, an estimated current year 
 countywide median sales ratio for all property shall be applied 
 to the apportioned value.  No equalization shall be made to the 
 market value of the operating property if the median sales ratio 
 determined pursuant to this subdivision is within five percent 
 of the assessment ratio of the railroad operating property.  

    HIST: 1979 c 303 art 7 s 7; 1984 c 502 art 9 s 3; 1986 c 444 

     270.87 Certification to county assessors. 

    After making an annual determination of the equalized fair 
 market value of the operating property of each company in each 
 of the respective counties, and in the taxing districts therein, 
 the commissioner shall certify the equalized fair market value 
 to the county assessor on or before June 30.  The equalized fair 
 market value of the operating property of the railroad company 
 in the county and the taxing districts therein is the value on 
 which taxes must be levied and collected in the same manner as 
 on the commercial and industrial property of such county and the 
 taxing districts therein.  

    HIST: 1979 c 303 art 7 s 8; 1984 c 502 art 9 s 4; 1986 c 444; 
 1987 c 268 art 7 s 24; 1Sp1989 c 1 art 9 s 16 

     270.88 Proceedings and appeals. 

    The commissioner's final determination under section 270.85 
 and certification to county assessors under section 270.87 shall 
 be final orders appealable to the Tax Court in accordance with 
 chapter 271.  Appeals by railroad companies under Laws 1979, 
 Chapter 303 shall be taken against the commissioner and not 
 against the county or taxing district to which payment is made.  
 Upon the filing of any appeal by a railroad company, the 
 commissioner shall give notice thereof by first class mail to 
 each county which would be affected by the appeal.  

    HIST: 1979 c 303 art 7 s 9; 1986 c 444 

  270.89 Repealed, 1987 c 268 art 4 s 25 

  270.90 Repealed, 1984 c 593 s 46 

CONTAMINATION TAX

     270.91 Contamination tax. 

    Subdivision 1.    Imposition.  A tax is annually imposed 
 on the contamination value of taxable real property in this 
 state. 

    Subd. 2.    Initial tax rates.  Unless the rates under 
 subdivision 3 or 4 apply, the tax imposed under this section 
 equals 100 percent of the class rate for the property under 
 section 273.13, multiplied by the contamination value of the 
 property. 

    Subd. 3.    Tax rates, nonresponsible party.  If neither 
 the owner nor the operator of the taxable real property, in the 
 assessment year, is a responsible person under chapter 115B or a 
 responsible party under chapter 18D for the presence of 
 contaminants on the property, unless subdivision 4 applies, the 
 tax imposed under this section equals 25 percent of the class 
 rate for the property under section 273.13, multiplied by the 
 contamination value of the property.  A determination under 
 section 115B.177 or other similar determination by the 
 commissioner of the Pollution Control Agency or by the 
 commissioner of agriculture for a release of agricultural 
 chemicals is dispositive of whether the owner or operator is not 
 a responsible person under chapter 18D or 115B for purposes of 
 this section.  To qualify under this subdivision, the property 
 owner must provide the assessor with a copy of the determination 
 by July 1 of the assessment year. 

    Subd. 4.    Tax rates after plan approval.  (a) The tax 
 imposed under this subdivision applies for the first assessment 
 year that begins after one of the following occurs: 

    (1) a response action plan for the property has been 
 approved by the commissioner of the Pollution Control Agency or 
 by the commissioner of agriculture for an agricultural chemical 
 release or incident subject to chapter 18D and work under the 
 plan has begun; or 

    (2) the contaminants are asbestos and the property owner 
 has in place an abatement plan for enclosure, removal, or 
 encapsulation of the asbestos.  To qualify under this clause, 
 the property owner must (i) have entered into a binding contract 
 with a licensed contractor for completion of the work, or (ii) 
 have obtained a license from the commissioner of health and 
 begun the work.  An abatement plan must provide for completion 
 of the work within a reasonable time period, as determined by 
 the assessors.  

    (b) To qualify under paragraph (a), the property owner must 
 provide the assessor with a copy of:  (1) the approved response 
 action plan; or (2) a copy of the asbestos abatement plan and 
 contract for completion of the work or the owner's license to 
 perform the work.  The property owner also must file with the 
 assessor an affidavit indicating when work under the response 
 action plan or asbestos abatement plan began. 

    (c) The tax imposed under this subdivision equals 50 
 percent of the class rate for the property under section 273.13, 
 multiplied by the contamination value of the property, unless 
 paragraph (d) applies.  

    (d) The tax imposed under this subdivision equals 12.5 
 percent of the class rate for the property under section 273.13, 
 multiplied by the contamination value of the property, if one of 
 the following conditions is satisfied: 

    (1) the contaminants are subject to chapter 115B and 
 neither the owner nor the operator of the taxable real property 
 in the assessment year is a responsible person under chapter 
 115B; 

    (2) the contaminants are subject to chapter 18D and neither 
 the owner nor the operator of the taxable real property in the 
 assessment year is a responsible party under chapter 18D. 

    HIST: 1993 c 375 art 12 s 1; 1994 c 587 art 12 s 4 

     270.92 Definitions. 

    Subdivision 1.    Scope of application.  For purposes of 
 sections 270.91 to 270.98, the following terms have the meanings 
 given. 

    Subd. 2.    Assessment year.  "Assessment year" means 
 the assessment year for purposes of general ad valorem property 
 taxes. 

    Subd. 3.    Contaminant.  "Contaminant" means a harmful 
 substance as defined in section 115B.25, subdivision 7a. 

    Subd. 4.    Contaminated market value.  "Contaminated 
 market value" is the amount determined under section 270.93. 

    Subd. 5.    Presence of contaminants.  "Presence of 
 contaminants" includes the release or threatened release, as 
 defined in section 115B.02, subdivision 15, of contaminants on 
 the property. 

    Subd. 6.    Response plan.  "Response plan" means:  (1) 
 a development action response plan, as defined in section 
 469.174, subdivision 17; (2) a response action plan under 
 chapter 115B or a corrective action plan under chapter 18D; (3) 
 a plan for corrective action approved by the commissioner of 
 agriculture under section 18D.105; or (4) a plan for corrective 
 action approved by the commissioner of the pollution control 
 agency under section 115C.03. 

    HIST: 1993 c 375 art 12 s 2 

     270.93 Tax base; contamination value. 

    The contamination value of a parcel of property is the 
 amount of the market value reduction, if any, that is granted 
 for general ad valorem property tax purposes for the assessment 
 year because of the presence of contaminants.  The contamination 
 value for a property may be no greater than the estimated cost 
 of implementing a reasonable response action plan or asbestos 
 abatement plan or management program for the property.  These 
 reductions in market value include those granted by a court, by 
 a board of review, by the assessor upon petition or request of a 
 property owner, or by the assessor.  Reductions granted by the 
 assessor are included only if the assessor reduced the 
 property's market value for the presence of contaminants using 
 an appraisal method or methods that are specifically designed or 
 intended to adjust for the valuation effects of the presence of 
 contaminants.  The contamination value for a parcel with a 
 reduction in value of less than $10,000 is zero. 

    HIST: 1993 c 375 art 12 s 3 

     270.94 Exemptions. 

    (a) The tax imposed by sections 270.91 to 270.98 does not 
 apply to the contamination value of a parcel of property 
 attributable to contaminants that were addressed by a response 
 action plan for the property, if the commissioner of the 
 Pollution Control Agency, or the commissioner of agriculture for 
 a release subject to chapter 18D, has determined that all the 
 requirements of the plan have been satisfied.  This exemption 
 applies beginning for the first assessment year after the 
 commissioner of the Pollution Control Agency, or the 
 commissioner of agriculture determines that the implementation 
 of a response action plan has been completed.  To qualify under 
 this paragraph, the property owner must provide the assessor 
 with a copy of the determination by the commissioner of the 
 Pollution Control Agency or the commissioner of agriculture of 
 the completion of the response action plan. 

    (b) The tax imposed by sections 270.91 to 270.98 does not 
 apply to the contamination value of a parcel that is 
 attributable to asbestos, if: 

    (1) the work has been completed under an asbestos abatement 
 plan or the property owner is implementing a proactive in-place 
 asbestos management program consistent with the rules, 
 requirements, and formal policies of the United States 
 Environmental Protection Agency; and 

    (2) the property owner provides the assessor with an 
 affidavit stating the work under the abatement plan has been 
 completed, or the asbestos management plan is being implemented, 
 and any other evidence or information the assessor requests. 

    HIST: 1993 c 375 art 12 s 4; 1994 c 587 art 12 s 5 

     270.95 Payment; administration. 

    The tax imposed under sections 270.91 to 270.98 is payable 
 at the same time and manner as the regular ad valorem property 
 tax.  The tax is subject to the penalty, interest, lien, 
 forfeiture, and any other rules for collection of the regular ad 
 valorem property tax.  If a reduction in market value that 
 creates contamination value is granted after the ad valorem 
 property tax has been paid, the contamination tax must be 
 subtracted from the amount to be refunded to the property owner. 

    HIST: 1993 c 375 art 12 s 5 

     270.96 Duties. 

    Subdivision 1.    Assessors.  Each assessor shall notify 
 the county auditor of the contamination value under section 
 270.91 by the separate tax rate categories under subdivisions 2, 
 3, and 4 for each parcel of property within the assessor's 
 jurisdiction.  The assessor shall provide notice of the 
 contamination value to the property owner by the later of June 1 
 of the assessment year or 30 days after the reduction in market 
 value is finally granted. 

    Subd. 2.    Auditor.  The county auditor shall prepare 
 separate lists of the contamination values for all property 
 located in the county that are taxed under section 270.91, 
 subdivisions 2, 3, and 4.  The commissioner shall prescribe the 
 form of the listing.  The auditor shall include the amount of 
 the contamination taxes on the contamination value for the 
 assessment year on the regular ad valorem property tax statement 
 under section 276.04. 

    Subd. 3.    Treasurer.  (a) The county treasurer shall 
 pay the proceeds of the tax imposed under section 270.91, 
 subdivision 4, less the amount retained by the county for the 
 cost of administration under section 270.98, to the commissioner 
 at the same times provided for the ad valorem property tax 
 distributions. 

    (b) The county treasurer shall pay the proceeds of the tax 
 imposed under section 270.91, subdivisions 2 and 3, to the local 
 taxing jurisdictions in the same manner provided for the 
 distribution of ad valorem property taxes. 

    Subd. 4.    Court ordered reductions in value.  If a 
 court orders a reduction in market value for purposes of the ad 
 valorem property tax because of the presence of contaminants on 
 the property, the court shall include in its order an offset for 
 payment of the tax on contaminated value under section 270.91. 

    HIST: 1993 c 375 art 12 s 6; 1994 c 416 art 1 s 8 

     270.97 Deposit of revenues. 

    The commissioner shall deposit all revenues derived from 
 the tax, interest, and penalties received from the county in the 
 contaminated site cleanup and development account in the general 
 fund. 

    HIST: 1993 c 375 art 12 s 7 

     270.98 Local administrative costs. 

    The county may retain five percent of the total revenues 
 derived from the tax imposed under section 270.91, subdivision 
 4, including interest and penalties, as compensation for 
 administering the tax.  The county board may reimburse 
 municipalities for the services provided by assessors employed 
 by the municipality in administering sections 270.91 to 270.98. 

    HIST: 1993 c 375 art 12 s 8