1997 Minnesota Statutes

     294.03 Failure to pay tax; penalties, interest. 

    Subdivision 1.  If any company, joint stock association, 
 copartnership, corporation, or individual required by law to pay 
 taxes to the state on a gross earnings basis shall fail to pay 
 such tax or gross earnings percentage within the time specified 
 by law for the payment thereof, or within 30 days after final 
 determination of an appeal to the Minnesota tax court relating 
 thereto, there shall be added a specific penalty equal to five 
 percent of the amount so remaining unpaid if the failure is for 
 not more than 30 days, with an additional penalty of five 
 percent of the amount of tax remaining unpaid during each 
 additional 30 days or fraction of 30 days during which the 
 failure continues, not exceeding 15 percent in the aggregate.  
 Such penalty shall be collected as part of said tax, and the 
 amount of said tax not timely paid, together with said penalty, 
 shall bear interest at the rate specified in section 270.75 from 
 the time such tax should have been paid until paid. 

    Subd. 2.  In case of any failure to make and file a return 
 as required by this chapter within the time prescribed by law or 
 prescribed by the commissioner in pursuance of law, a penalty is 
 imposed of five percent of the amount of tax not timely paid.  
 The amount so added to any tax shall be collected at the same 
 time and in the same manner and as a part of the tax, and the 
 amount of said tax together with the amount so added shall bear 
 interest at the rate specified in section 270.75 from the time 
 such tax should have been paid until paid unless the tax has 
 been paid before the discovery of the neglect, in which case the 
 amount so added shall be collected in the same manner as the tax.

    For purposes of this subdivision, the amount of any taxes 
 required to be shown on the return shall be reduced by the 
 amount of any part of the tax which is paid on or before the 
 date prescribed for payment of the tax and by the amount of any 
 credit against the tax which may be claimed upon the return. 

    Subd. 3.  Where any such company, joint stock association, 
 copartnership, corporation or individual, with intent to evade 
 the tax, shall fail to file any return required or shall with 
 such intent file a false or fraudulent return, there shall also 
 be imposed upon such company, joint stock association, 
 copartnership, corporation or individual an additional penalty 
 equal to 50 percent of any tax (less any amount paid on the 
 basis of such false or fraudulent return) found due for the 
 period to which such return related.  The penalty imposed by 
 this subdivision shall be collected as part of the tax and shall 
 be in addition to any other penalties provided by law. 

    Subd. 4.  If there is a pattern by a person of repeated 
 failures to timely file returns or timely pay taxes, and written 
 notice is given that a penalty will be imposed if such failures 
 continue, a penalty of 25 percent of the amount of tax not 
 timely paid as a result of each such subsequent failure is added 
 to the tax.  The penalty can be abated under the abatement 
 authority in section 270.07, subdivisions 1, paragraph (e), and 
 6. 

    HIST: (2235) 1913 c 487 s 3; 1967 c 821 s 3; 1969 c 1147 s 4; 
 1975 c 377 s 30,31; 1976 c 134 s 78; 1977 c 307 s 29; 1993 c 375 
 art 10 s 24-26; 1995 c 186 s 58