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Office of the Revisor of Statutes

295.57 COLLECTION AND ENFORCEMENT; REFUNDS; APPLICATION OF OTHER
CHAPTERS; ACCESS TO RECORDS; INTEREST ON OVERPAYMENTS.
    Subdivision 1. Application of other chapters. Unless specifically provided otherwise by
sections 295.50 to 295.59, the interest, criminal penalties, and refunds provisions in chapter 289A,
the civil penalty provisions applicable to withholding and sales taxes under section 289A.60, and
the audit, assessment, appeal, collection, enforcement, and administrative provisions of chapters
270C and 289A, apply to taxes imposed under sections 295.50 to 295.59.
    Subd. 2. Access to records. For purposes of administering the taxes imposed by sections
295.50 to 295.59, the commissioner may access patients' records that contain billing or other
financial information without prior consent from the patients. The data collected is classified as
private or nonpublic data.
    Subd. 3. Interest on overpayments. Interest must be paid on an overpayment refunded or
credited to the taxpayer from the date of payment of the tax until the date the refund is paid or
credited. For purposes of this subdivision, the date of payment is the due date of the return or the
date of actual payment of the tax, whichever is later.
    Subd. 4. Sampling techniques. The commissioner may use statistical or other sampling
techniques consistent with generally accepted auditing standards in examining returns or records
and making assessments.
    Subd. 5. Exemption for amounts paid for legend drugs. If a hospital or health care provider
cannot determine the actual cost or reimbursement of legend drugs under the exemption provided
in section 295.53, subdivision 1, paragraph (a), clause (6), the following method must be used:
A hospital or health care provider must determine the amount paid for legend drugs used
during the month or quarter and multiply that amount by a ratio, the numerator of which is the total
amount received for taxable patient services, and the denominator of which is the total amount
received for all patient services, including amounts exempt under section 295.53, subdivision 1.
The result represents the allowable exemption for the monthly or quarterly cost of drugs.
History: 1992 c 549 art 9 s 11; 1993 c 345 art 13 s 20; 1995 c 234 art 9 s 12; 1995 c 264 art
18 s 6; 1999 c 243 art 8 s 6; 1Sp2001 c 5 art 14 s 7; 2002 c 377 art 9 s 8; 2005 c 151 art 2 s 11