1997 Minnesota Statutes

     296.15 Nonpayment of tax, penalties. 

    Subdivision 1.    Penalty, interest.  (a) In case a 
 properly licensed distributor, special fuel dealer, bulk 
 purchaser or motor carrier does not pay any tax or inspection 
 fee when due, a penalty of one percent per day for the first ten 
 days of delinquency shall accrue, and thereafter the tax, fees 
 and penalty shall bear interest at the rate specified in section 
 270.75.  

    (b) If any person operates as a distributor, special fuel 
 dealer, bulk purchaser or motor carrier without first securing 
 the license required under this chapter, any tax or inspection 
 fee imposed by this chapter shall become immediately due and 
 payable.  A penalty of 25 percent shall be imposed upon the tax 
 and fee due thereon.  The tax, fees and penalty shall bear 
 interest at the rate specified in section 270.75.  

    Subd. 2.    Failure to pay taxes; proceedings.  Upon the 
 failure of any person to pay any tax or inspection fees within 
 the time provided by sections 296.01 to 296.421, all taxes and 
 inspection fees imposed by this chapter shall become immediately 
 due and payable, and may be collected as provided in chapter 270.

    Subd. 2a.    Imposition of civil penalty; dyed fuel.  
 (a) If any dyed fuel is sold or held for sale by a person for 
 any use which the person knows or has reason to know is not a 
 nontaxable use of the fuel; or if any dyed fuel is held for use 
 or used in a licensed motor vehicle or for any other use by a 
 person for a use other than a nontaxable use and the person 
 knew, or had reason to know, that the fuel was so dyed; or if a 
 person willfully alters, or attempts to alter, the strength or 
 composition of any dye or marking in any dyed fuel, then the 
 person shall pay a penalty in addition to the tax, if any. 

    (b) Except as provided in paragraph (c), the amount of 
 penalty under paragraph (a) for each act is the greater of 
 $1,000, or $10 for each gallon of dyed fuel involved. 

    (c) With regard to a multiple violation under paragraph 
 (a), the penalty shall be applied by increasing the amount in 
 paragraph (b) by the product of (1) such amount, and (2) the 
 number of prior penalties, if any, imposed by this section on 
 the person, or a related person, or any predecessor of the 
 person or related person. 

    (d) If a penalty is imposed under this section on a 
 business entity, each officer, employee, or agent of the entity 
 who willfully participated in any act giving rise to the penalty 
 is jointly and severally liable with the entity for the penalty. 

    Subd. 3. Repealed, 1994 c 510 art 5 s 36 

    Subd. 4.    Receiver, appointment.  In the event suit is 
 instituted as provided in subdivision 2, the court shall, upon 
 application, appoint a receiver of the property and business of 
 the delinquent defendant for the purpose of impounding the same 
 as security for any judgment which has been or may be recovered. 

    Subd. 5.    Sale prohibited under certain conditions.  
 No petroleum product shall be unloaded or sold by any person or 
 distributor whose tax and inspection fees are the basis for 
 collection action under subdivision 2.  

    Subd. 6.    Limitation of actions.  No action shall be 
 brought for the collection of delinquent excise taxes and 
 inspection fees under section 270.68 unless commenced within 
 five years after the date of assessment of the taxes and fees.  
 In the case of a false or fraudulent report with intent to evade 
 tax or inspection fee or of a failure to file a report, the 
 taxes or fees may be assessed at any time, and a proceeding in 
 court for their collection must be begun within five years after 
 the assessment.  

    The period of time during which a tax or fee must be 
 assessed under this chapter or collection proceedings commenced 
 under this subdivision is suspended during the period from the 
 date of filing of a petition in bankruptcy until 30 days after 
 the commissioner of revenue receives notice that the bankruptcy 
 proceedings have been closed or dismissed or the automatic stay 
 has been terminated or has expired. 

    The suspension of the statute of limitations under this 
 subdivision applies to the person against whom the petition in 
 bankruptcy is filed and all other persons who may also be wholly 
 or partially liable for the tax under this chapter. 

    HIST: 1941 c 495 s 13; 1943 c 320 s 11; 1949 c 143 s 8; 1951 c 
 87 s 9; 1953 c 41 s 9; 1963 c 66 s 15; 1971 c 673 s 1; 1973 c 
 105 s 1; 1975 c 377 s 32,33; 1980 c 509 s 117; 1985 c 101 s 15; 
 1994 c 510 art 5 s 26-29; 1996 c 471 art 5 s 13