2006 Minnesota Statutes

270C.65 RIGHT OF SETOFF.
    Subdivision 1. Certification by commissioner. The commissioner of revenue is authorized
to certify to the commissioner of finance, or to any state agency described in subdivision 3 which
disburses its own funds, that a taxpayer has an uncontested delinquent tax liability owed to
the commissioner of revenue. The certification must be made within ten years after the date of
assessment of the tax. Once certification is made, the commissioner of finance or the state agency
shall apply to the delinquent tax liability funds sufficient to satisfy the unpaid tax liability from
funds appropriated for payment of an obligation of the state or any of its agencies that are due
and owing the taxpayer. No setoff shall be made against any funds exempt under section 550.37
or those funds owed an individual taxpayer who receives assistance under the provisions of
chapter 256.
    Subd. 2. Setoff satisfies state obligation. All funds, whether general or dedicated, shall be
subject to setoff in the manner herein provided. Transfer of funds as herein provided is payment
of the obligation of the state or any of its agencies to such taxpayer and any actions for said
funds, if any, shall be had against the Department of Revenue on the issue of such tax liability.
Nothing in this section shall be construed to limit the previously existing right of the state or
any of its agencies to setoff.
    Subd. 3. Agencies shall maintain records. Notwithstanding any provision to the contrary,
every person, organization, or corporation doing business (hereafter called vendor) with the
state of Minnesota or any of its departments, agencies, or educational institutions including the
University of Minnesota (all hereafter called agency) shall provide that agency with either their
Social Security number, federal taxpayer identification number, or Minnesota tax identification
number. The commissioner may verify to the agency the identifying information provided by
a vendor. The agency shall maintain records of this information, and shall make these records
available, on request, to the commissioner for the sole purpose of identifying people who have not
filed state tax returns or who have not paid uncontested tax liabilities (hereafter called delinquent
taxpayer). When an agency is notified by the commissioner that a vendor is a delinquent taxpayer,
payments shall not be made by the agency to the vendor until the commissioner notifies the
agency that the vendor no longer is a delinquent taxpayer. Furthermore, if the vendor has an
uncontested delinquent tax liability, the setoff provided in subdivision 1 may be implemented. The
commissioner shall determine that a vendor no longer is a delinquent taxpayer when the vendor
has filed all delinquent returns and (1) paid all uncontested tax liabilities or (2) entered into an
agreement with the commissioner which provides for the payment of these liabilities.
History: 2005 c 151 art 1 s 71