289A.50 CLAIMS FOR REFUNDS.
Subdivision 1. General right to refund.
(a) Subject to the requirements of this section and
, a taxpayer who has paid a tax in excess of the taxes lawfully due and who files
a written claim for refund will be refunded or credited the overpayment of the tax determined
by the commissioner to be erroneously paid.
(b) The claim must specify the name of the taxpayer, the date when and the period for
which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims was
erroneously paid, the grounds on which a refund is claimed, and other information relative to the
payment and in the form required by the commissioner. An income tax, estate tax, or corporate
franchise tax return, or amended return claiming an overpayment constitutes a claim for refund.
(c) When, in the course of an examination, and within the time for requesting a refund, the
commissioner determines that there has been an overpayment of tax, the commissioner shall
refund or credit the overpayment to the taxpayer and no demand is necessary. If the overpayment
exceeds $1, the amount of the overpayment must be refunded to the taxpayer. If the amount of the
overpayment is less than $1, the commissioner is not required to refund. In these situations, the
commissioner does not have to make written findings or serve notice by mail to the taxpayer.
(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent care
exceeds the tax against which the credit is allowable, the amount of the excess is considered
an overpayment. The refund allowed by section
290.06, subdivision 23
, is also considered an
overpayment. The requirements of section
do not apply to the refunding of such an
overpayment shown on the original return filed by a taxpayer.
(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes, penalties,
and interest reported in the return of the entertainment entity or imposed by section
excess must be refunded to the entertainment entity. If the excess is less than $1, the commissioner
need not refund that amount.
(f) If the surety deposit required for a construction contract exceeds the liability of the
out-of-state contractor, the commissioner shall refund the difference to the contractor.
(g) An action of the commissioner in refunding the amount of the overpayment does not
constitute a determination of the correctness of the return of the taxpayer.
(h) There is appropriated from the general fund to the commissioner of revenue the amount
necessary to pay refunds allowed under this section.
Subd. 1a. Refund form.
On or before January 1, 2000, the commissioner of revenue shall
prepare and make available to taxpayers a form for filing claims for refund of taxes paid in excess
of the amount due. The commissioner may require corporate franchise taxpayers claiming a
refund of corporate franchise taxes paid in excess of the amount lawfully due to include on
the claim for refund or amended return information necessary for payment of the taxes paid in
excess of taxes lawfully due by electronic means.
Subd. 2. Refund of sales tax to vendors; limitation.
If a vendor has collected from a
purchaser and remitted to the state a tax on a transaction that is not subject to the tax imposed by
chapter 297A, the tax is refundable to the vendor only if and to the extent that the tax and any
interest earned on the tax is credited to amounts due to the vendor by the purchaser or returned to
the purchaser by the vendor. In addition to the requirements of subdivision 1, a claim for refund
under this subdivision must state in writing that the tax and interest earned on the tax has been
or will be refunded or credited to the purchaser by the vendor.
Subd. 2a. Refund of sales tax to purchasers.
(a) If a vendor has collected from a purchaser
a tax on a transaction that is not subject to the tax imposed by chapter 297A, the purchaser may
apply directly to the commissioner for a refund under this section if:
(1) the purchaser is currently registered or was registered during the period of the claim,
to collect and remit the sales tax or to remit the use tax; and
(i) the amount of the refund to be applied for exceeds $500, or
(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser
also applies for a capital equipment claim at the same time, and the total of the two refunds
(b) The purchaser may not file more than two applications for refund under this subdivision
in a calendar year.
Subd. 2b. Certified service provider; bad debt claim.
A certified service provider, as
defined in section
297A.995, subdivision 2
, may claim on behalf of a taxpayer that is its client any
bad debt allowance provided by section
. The certified service provider must credit or
refund to its client the full amount of any bad debt allowance or refund received.
Subd. 2c. Notice from purchaser to vendor requesting refund.
(a) If a vendor has collected
from a purchaser a tax on a transaction that is not subject to the tax imposed by chapter 297A, the
purchaser may seek from the vendor a return of over-collected sales or use taxes as follows:
(1) the purchaser must provide written notice to the vendor;
(2) the notice to the vendor must contain the information necessary to determine the validity
of the request; and
(3) no cause of action against the vendor accrues until the vendor has had 60 days to respond
to the written notice.
(b) In connection with a purchaser's request from a vendor of over-collected sales or use
taxes, a vendor is presumed to have a reasonable business practice, if in the collection of such
sales or use taxes, the vendor: (1) uses a certified service provider as defined in section
a certified automated system, as defined in section
, or a proprietary system that is
certified by the state; and (2) has remitted to the state all taxes collected less any deductions,
credits, or collection allowances.
Subd. 3. Withholding tax and entertainer withholding tax refunds.
When there is an
overpayment of withholding tax by an employer or a person making royalty payments, or an
overpayment of entertainer withholding tax by the payor, a refund allowable under this section is
limited to the amount of the overpayment that was not deducted and withheld from employee
wages or from the royalty payments, or from the compensation of an entertainer.
Subd. 4. Notice of refund.
The commissioner shall determine the amount of refund, if any,
that is due, and notify the taxpayer of the determination as soon as practicable after a claim
has been filed.
Subd. 5. Withholding of refunds from child support and maintenance debtors.
(a) If a
court of this state finds that a person obligated to pay child support or maintenance is delinquent
in making payments, the amount of child support or maintenance unpaid and owing, including
attorney fees and costs incurred in ascertaining or collecting child support or maintenance, must
be withheld from a refund due the person under chapter 290. The public agency responsible for
child support enforcement or the parent or guardian of a child for whom the support, attorney
fees, and costs are owed or the party to whom maintenance, attorney fees, and costs are owed
may petition the district court for an order providing for the withholding of the amount of child
support, maintenance, attorney fees, and costs unpaid and owing as determined by court order.
The person from whom the refund may be withheld must be notified of the petition under the
Rules of Civil Procedure before the issuance of an order under this subdivision. The order may be
granted on a showing to the court that required support or maintenance payments, attorney fees,
and costs have not been paid when they were due.
(b) On order of the court, the commissioner shall withhold the money from the refund
due to the person obligated to pay the child support or maintenance. The amount withheld
shall be remitted to the public agency responsible for child support enforcement, the parent or
guardian petitioning on behalf of the child, or the party to whom maintenance is owed, after any
delinquent tax obligations of the taxpayer owed to the revenue department have been satisfied
and after deduction of the fee prescribed in section
270A.07, subdivision 1
. An amount received
by the responsible public agency, or the petitioning parent or guardian, or the party to whom
maintenance is owed, in excess of the amount of public assistance spent for the benefit of the
child to be supported, or the amount of any support, maintenance, attorney fees, and costs that had
been the subject of the claim under this subdivision that has been paid by the taxpayer before the
diversion of the refund, must be paid to the person entitled to the money. If the refund is based on
a joint return, the part of the refund that must be paid to the petitioner is the proportion of the
total refund that equals the proportion of the total federal adjusted gross income of the spouses
that is the federal adjusted gross income of the spouse who is delinquent in making the child
support or maintenance payments.
(c) A petition filed under this subdivision remains in effect with respect to any refunds due
under this section until the support or maintenance, attorney fees, and costs have been paid in full
or the court orders the commissioner to discontinue withholding the money from the refund due
the person obligated to pay the support or maintenance, attorney fees, and costs. If a petition is
filed under this subdivision concerning child support and a claim is made under chapter 270A with
respect to the individual's refund and notices of both are received before the time when payment
of the refund is made on either claim, the claim relating to the liability that accrued first in time
must be paid first. The amount of the refund remaining must then be applied to the other claim.
Subd. 6.[Repealed, 1998 c 389 art 6 s 20
Subd. 7. Remedies.
(a) If the taxpayer is notified by the commissioner that the refund claim
is denied in whole or in part, the taxpayer may:
(1) file an administrative appeal as provided in section
, or an appeal with the Tax
Court, within 60 days after issuance of the commissioner's notice of denial; or
(2) file an action in the district court to recover the refund.
(b) An action in the district court on a denied claim for refund must be brought within 18
months of the date of the denial of the claim by the commissioner.
(c) No action in the district court or the Tax Court shall be brought within six months of the
filing of the refund claim unless the commissioner denies the claim within that period.
(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial of the
claim, the taxpayer may bring an action in the district court or the Tax Court at any time after
the expiration of six months from the time the claim was filed.
(e) The commissioner and the taxpayer may agree to extend the period for bringing an
action in the district court.
(f) An action for refund of tax by the taxpayer must be brought in the district court of the
district in which lies the county of the taxpayer's residence or principal place of business. In the
case of an estate or trust, the action must be brought at the principal place of its administration.
Any action may be brought in the district court for Ramsey County.
Subd. 8. Mistake discovered by commissioner.
If money has been erroneously collected
from a taxpayer or other person, the commissioner shall, within the period named in section
for filing a claim for refund, and, subject to the provisions of chapter 270A, section
, and this section, grant a refund to that taxpayer or other person.
Subd. 9. Petition in Tax Court; refund of interest.
Notwithstanding any other law, within
one year after a decision of the Tax Court upholding an assessment of the commissioner of
revenue becomes final, if the taxpayer has paid the assessment in full, plus interest calculated
by the commissioner, the taxpayer may petition the Tax Court to reopen the case solely for
a determination that the interest paid exceeds the interest legally due, and if so, the amount
of the overpayment. A determination of overpayment of interest under this subdivision is a
determination of overpayment of tax under section
, and is reviewable in the same manner
as any other decision of the Tax Court.
Subd. 10. Limitation on refund.
If an addition to federal taxable income under section
290.01, subdivision 19a
, clause (1), is judicially determined to discriminate against interstate
commerce, the legislature intends that the discrimination be remedied by adding interest on
obligations of Minnesota governmental units and Indian tribes to federal taxable income. This
subdivision applies beginning with the taxable years that begin during the calendar year in which
the court's decision is final. Other remedies apply for previous taxable years.
History: 1990 c 480 art 1 s 23; 1990 c 604 art 1 s 21; 1991 c 291 art 6 s 15; 1992 c 511 art
7 s 12; 1993 c 322 s 6; 1993 c 375 art 8 s 4; 1995 c 264 art 1 s 1; art 19 s 5; 1996 c 471 art 2 s 8;
1999 c 243 art 16 s 17,18; 2001 c 7 s 58; 1Sp2001 c 5 art 7 s 33; art 12 s 3; 2003 c 127 art 1 s
5,6; art 6 s 1; 2005 c 151 art 2 s 17; art 6 s 7