2001 Minnesota Statutes

     268.053 Payment to fund by nonprofit organizations. 

    Subdivision 1.    Election.  (a) Any nonprofit 
 organization that has employees in covered employment shall pay 
 taxes on a quarterly basis pursuant to section 268.051 unless it 
 elects to make payments in lieu of taxes to the fund the amount 
 of unemployment benefits charged to its reimbursable account 
 under section 268.047. 

    The organization may elect to make payments in lieu of 
 taxes for a period of not less than two calendar years beginning 
 with the date that the organization was determined to be an 
 employer with covered employment by filing a notice of election 
 not later than 30 calendar days after the date of the 
 determination. 

    (b) Any nonprofit organization that makes an election will 
 continue to be liable for payments in lieu of taxes until it 
 files a notice terminating its election not later than 30 
 calendar days before the beginning of the calendar year the 
 termination is to be effective.  

    (c) A nonprofit organization that has been making payments 
 in lieu of taxes that files a notice of termination of election 
 shall be assigned the new employer tax rate under section 
 268.051, subdivision 5, for the calendar year of the termination 
 of election and until it qualifies for an experience rating 
 under section 268.051, subdivision 3. 

    (d) Any nonprofit organization that has been paying taxes 
 may elect to make payments in lieu of taxes by filing no less 
 than 30 calendar days before January 1 of any calendar year a 
 notice of election.  Upon election, the commissioner shall 
 establish a reimbursable account for the nonprofit 
 organization.  An election shall be allowed only if the 
 nonprofit organization has, since the beginning of the 
 experience rating period under section 268.051, subdivision 3, 
 paid taxes and made voluntary payments under section 268.051, 
 subdivision 7, equal to or more than 125 percent of the 
 unemployment benefits used in computing the experience rating.  
 In addition, any unemployment benefits paid after the experience 
 rating period shall be transferred to the new reimbursable 
 account of the nonprofit organization.  If the amount of taxes 
 and voluntary payments paid since the beginning of the 
 experience rating period exceeds 125 percent of the amount of 
 unemployment benefits paid during the experience rating period, 
 that amount in excess shall be applied against any unemployment 
 benefits paid after the experience rating period.  The election 
 shall not be terminable by the organization for that and the 
 next calendar year. 

    (e) The commissioner may for good cause extend the period 
 that a notice of election, or a notice of termination, must be 
 filed and may permit an election to be retroactive. 

    (f) The commissioner may allow a notice of election or 
 notice terminating election to be filed by mail or electronic 
 transmission. 

    Subd. 2.    Determination and appeal.  The commissioner 
 shall notify each nonprofit organization by mail or electronic 
 transmission of any determination of its status as an employer 
 with covered employment and of the effective date of any 
 election or termination of election.  The determinations shall 
 be final unless an appeal is filed within 30 calendar days after 
 sending of the determination.  Proceedings on the appeal shall 
 be conducted in accordance with section 268.105. 

    Subd. 3.    Payments.  (a) Payments in lieu of taxes, in 
 the amount of unemployment benefits charged to the reimbursable 
 account, during a calendar quarter, shall be made on or before 
 the last day of the month following the month that the notice of 
 unemployment benefits paid is sent pursuant to section 268.047, 
 subdivision 5.  

    (b) Past due payments in lieu of taxes shall be subject to 
 the same interest charges and collection procedures that apply 
 to past due taxes. 

    (c) If any nonprofit organization is delinquent in making 
 payments in lieu of taxes, the commissioner may terminate the 
 organization's election to make payments in lieu of taxes as of 
 the beginning of the next calendar year, and the termination 
 shall be effective for that and the following calendar year.  A 
 nonprofit organization that has its election terminated under 
 this paragraph shall be assigned the new employer tax rate under 
 section 268.051, subdivision 5, until the organization qualifies 
 for an experience rating under section 268.051, subdivision 3. 

    Subd. 4.    Application.  For purposes of this section, 
 a nonprofit organization is an organization, or group of 
 organizations, described in United States Code, title 26, 
 section 501(c)(3) of the Internal Revenue Code that is exempt 
 from income tax under section 501(a). 

    Subd. 5.    Compromise.  The compromise authority set 
 out in section 268.067 applies to this section. 

    HIST: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 
 554 s 3; 1943 c 650 s 2; 1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 
 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s 
 3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 
 1955 c 380 s 2-4,6; 1957 c 25 s 1; 1957 c 873 s 2; 1959 c 702 s 
 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 
 617 s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 
 854 s 6; 1971 c 860 s 1; 1971 c 942 s 3-6; 1973 c 254 s 3; 1973 
 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 
 6-11; 1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 
 1979 c 181 s 4-8; 1980 c 508 s 2-7; 1Sp1982 c 1 s 5-12; 1983 c 
 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 
 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 
 c 242 s 1; 1987 c 362 s 9-12; 1987 c 385 s 10-18; 1989 c 65 s 
 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 
 1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 
 s 25,79,80; 1999 c 107 s 30; 2000 c 343 s 2-4; 2001 c 175 s 
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