MN Collects $1 Million in Sales Tax Crackdown
Posted at: 09/13/2012 11:05 AM
Minnesota says the departments of Revenue and Public Safety collected one million dollars in a project designed to get sales tax money that some people tried to avoid.
The project was called Better Government for a Better Minnesota and tried to make sure Minnesotans pay sales tax on purchases including motor homes, luxury cars, and aircraft.
According to a press release, many of the cases included a "tax evading system that involves setting up shell corporations in Montana to avoid Minnesota sales tax."
The Department of Revenue says that over the past year, it sent letters to taxpayers to increase compliance on motor vehicle excise taxes and successfully collected revenue from each letter sent.
The department says there may be more collections in the future as it continues an effort with the Department of Public Safety to identify hundreds of other potential tax evaders through motor vehicle registration.
According to Revenue Commissioner Myron Frans, “While the majority of Minnesota residents pay taxes when purchasing a vehicle, there is a small group that isn’t paying their share.” He said, “Through this project, we are ensuring all Minnesotans follow the rules and pay the taxes that they owe.”
Employees from both departments involved in the project were recently recognized by Governor Mark Dayton for their work and commitment to making government work better.