2007 Minnesota Statutes

270C.722 REVOCATION OF SALES TAX PERMITS.
    Subdivision 1. Notice of revocation; hearings. (a) If: (1) a person fails to comply with
chapter 297A or the sales and use tax provisions of chapter 289A or the rules related to sales tax, or
(2) any retailer purchases for resale from an unlicensed seller more than 20,000 cigarettes or $500
or more worth of tobacco products, without reasonable cause, the commissioner may give the
person 30 days' notice in writing, specifying the violations, and stating that based on the violations
the commissioner intends to revoke the person's permit issued under section 297A.84. The notice
must also advise the person of the right to contest the revocation under this subdivision. It must
also explain the general procedures for a contested case hearing under chapter 14. The notice may
be served personally or by mail in the manner prescribed for service of an order of assessment.
(b) If the person does not request a hearing within 30 days after the date of the notice of
intent, the commissioner may serve a notice of revocation of permit upon the person, and the
permit is revoked. If a hearing is timely requested, and held, the permit is revoked after the
commissioner serves an order of revocation of permit under section 14.62, subdivision 1.
    Subd. 2. New permits after revocation. (a) The commissioner shall not issue a new
permit after revocation or reinstate a revoked permit unless the taxpayer applies for a permit and
provides reasonable evidence of intention to comply with the sales and use tax laws and rules.
The commissioner may require the applicant to provide security, in addition to that authorized by
section 297A.92, in an amount reasonably necessary to ensure compliance with the sales and use
tax laws and rules. If the commissioner issues or reinstates a permit not in conformance with the
requirements of this subdivision or applicable rules, the commissioner may cancel the permit upon
notice to the permit holder. The notice must be served by first class and certified mail at the permit
holder's last known address. The cancellation shall be effective immediately, subject to the right
of the permit holder to show that the permit was issued in conformance with the requirements of
this subdivision and applicable rules. Upon such showing, the permit must be reissued.
(b) If a taxpayer has had a permit or permits revoked three times in a five-year period, the
commissioner may refuse to issue a new permit or reinstate the revoked permit until 24 months
have elapsed after revocation and the taxpayer has satisfied the conditions for reinstatement of
a revoked permit or issuance of a new permit imposed by this section and rules adopted under
this section.
(c) For purposes of this subdivision, "taxpayer" means:
(1) an individual, if a revoked permit was issued to or in the name of an individual, or a
corporation or partnership, if a revoked permit was issued to or in the name of a corporation or
partnership; and
(2) an officer of a corporation, a member of a partnership, or an individual who is liable for
delinquent sales taxes, either for the entity for which the new or reinstated permit is at issue, or for
another entity for which a permit was previously revoked, or personally as a permit holder.
History: 2005 c 151 art 1 s 89; 2006 c 259 art 3 s 1