REVOCATION OR PREVENTION OF LICENSE ISSUANCE OR RENEWAL
Existing licenses can be revoked if the Minnesota Department of Revenue notifies the licensing authority that the license holder owes the state for back taxes, penalties or interest. The Commissioner of Revenue is authorized to stop, by issuing a Notice of Requirement for Tax Clearance, the issuance or renewal of any business, trade, occupational or professional license issued by the state, a county or a municipality to businesses that have a state tax liability of more than $500 (Minn. Stat. § 270C.72). If a licensing agency receives a Notice of Requirement for Tax Clearance for a business, a license may not be issued, renewed or transferred until the agency receives a tax clearance certificate from the Commissioner of Revenue. A tax clearance certificate is issued only upon resolution of the tax delinquency. The Commissioner of Revenue is responsible for all negotiations, disputes and appeals resulting from a license denial under this statute. Further information regarding the requirements or application of this law may be obtained from the Minnesota Department of Revenue’s Collection Enforcement group, at the address and telephone number provided in the Resource Directory section of this Guide.
UNEMPLOYMENT INSURANCE TAXES
Unemployment insurance taxes, paid by the employers, are funds used to pay unemployment benefits. The amount of tax paid by Minnesota employers is based on their unemployment history. Unemployment benefits provide a temporary partial wage replacement to those Minnesota workers who become unemployed through no fault of their own. These payments are an economic stabilizer/stimulator in times of economic downturn, and help to maintain an available skilled workforce for Minnesota employers. Federal unemployment tax (generally referred to as FUTA tax) is a separate tax used to fund the administration of the program at both the federal and state levels. FUTA taxes are collected by the Internal Revenue Service on behalf of the U.S. Department of Labor, Employment Standards Administration. State unemployment insurance taxes and the Minnesota Unemployment Insurance Law are administered by the Minnesota Unemployment Insurance Program, a division of the Department of Employment and Economic Development. Information on the federal and state programs may be obtained from the U.S. Department of Labor (federal program) and the Minnesota Unemployment Insurance Program (state program) at the addresses and telephone numbers provided in the Resource Directory section of this Guide. Both the federal and the state unemployment insurance taxes are employer-funded. Therefore, no deductions for it may be made from employees’ wages.
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