Lower Courts and the Appeals Courts | Minnesota Bankruptcy Courts

Lower Courts and the Appeals Courts | Minnesota Bankruptcy Courts

Bankruptcy provides individuals and entities with an opportunity to get back on top of debt. This opportunity may be provided through liquidation of assets, or through the creation of a reasonable repayment plan through which the individual or entity can comply. Federal Bankruptcy Courts and Litigation Each of the 94 federal judicial districts handles bankruptcy…

Minnesota Bankruptcy for Servicemembers: Protections for Servicemembers Under the SCRA

Minnesota Bankruptcy for Servicemembers: Protections for Servicemembers Under the SCRA

The SCRA applies to all members of the United States military on active duty, and to U.S. citizens serving in the military of United States allies in the prosecution of a war or military action. The provisions of the SCRA generally end when a servicemember is discharged from active duty or within 90 days of…

Minnesota Bankruptcy Discharge: Discharge and Timing

Minnesota Bankruptcy Discharge: Discharge and Timing

The ultimate benefit in bankruptcy proceedings is probably the discharge or the permission from the bankruptcy court not to repay certain debts. The bankruptcy court eliminates these debts so that: The debt no longer legally needs to be repaid, and The creditors of that debt are not permitted to attempt to collect that debt. There…

Minnesota Bankruptcy Discharge: Prohibition on Collection Efforts of Creditors

Minnesota Bankruptcy Discharge: Prohibition on Collection Efforts of Creditors

A bankruptcy case normally begins by the debtor filing a petition with the bankruptcy court. A petition may be filed by an individual, by a husband and wife together, or by a corporation or other entity. Statements Filed by the Debtor The debtor is also required to file statements listing assets, income, liabilities, and the…

The Benefits & Oversight of Chapter 11 Bankruptcy in Minnesota

The Benefits & Oversight of Chapter 11 Bankruptcy in Minnesota

“Chapter 11 bankruptcy” refers to a bankruptcy petition filed under Chapter 11 of the United States Bankruptcy Code. Chapter 11 differs in many ways from other chapters under the Bankruptcy Code under which bankruptcy petitions may be filed. For instance, Chapter 7 bankruptcy petitions begin a liquidation process for nonexempt assets of the debtor, to…

Minnesota Bankruptcy Trustee: Chapter 13 and the Trustee

Minnesota Bankruptcy Trustee: Chapter 13 and the Trustee

In Chapter 13 bankruptcy, the United States Trustee supervises the private trustees who administer Chapter 13 cases. In this chapter, the trustee does not liquidate the debtor’s assets, but instead evaluates the debtor’s financial affairs and makes recommendations to the court regarding the debtor’s proposed repayment plan. This Chapter is for individuals who have a…

Minnesota Chapter 7 Bankruptcy: The Trustee in Action

Minnesota Chapter 7 Bankruptcy: The Trustee in Action

More Chapter 7 bankruptcy petitions are filed more than any other type of bankruptcy proceedings. Additionally, more individual consumers file bankruptcy cases than businesses. Roughly seventy percent of bankruptcy filings are Chapter 7 petitions filed by individual consumers. Power of the United States Trustee In Chapter 7 cases, the United States Trustee litigates issues that…

Item 23: Receipts | Franchise Disclosure Documents

Item 23: Receipts | Franchise Disclosure Documents

This article explains requirements for a franchisor starting a franchise in Minnesota. If you buying a franchise, visit tips on buying a franchise in Minnesota. Item 23: Receipts Like the UFOC Guidelines, the amended Rule requires franchisors to obtain a signed receipt for the disclosure document furnished to each prospective franchisee. To facilitate electronic disclosures, the definition…

MN Local Sales Taxes Authorized But Not Yet Imposed

MN Local Sales Taxes Authorized But Not Yet Imposed

Taxing Jurisdiction & Year Authorized Rate Approval required Use of Revenues/Other Comments Bloomington – 2008 0.5% – 1.0% City council must charter a special taxing district The city of Bloomington is allowed to charter a special taxing district in the Mall of America area and impose a sales tax in the district to fund parking…

MN Authorized Local Sales Taxes That Were Never Imposed

MN Authorized Local Sales Taxes That Were Never Imposed

Taxing Jurisdiction & Year Authorized Rate Approval required Use of Revenues/Other Comments Bloomington – 1986 1.0% City council approval Mall of America site improvements. This tax was only authorized for sales at the Mall of America site. The city did not impose the tax before legislative authority was repealed in 1987. Thief River Falls –…

Local Sales Taxes That Were Imposed But Have Expired in Minnesota

Local Sales Taxes That Were Imposed But Have Expired in Minnesota

Taxing Jurisdiction & Year Authorized Rate Approval required Use of Revenues/Other Comments Cook County – 1993 1.0% Required voter approval at a general or special election Originally set to expire when $4 million was raised for the Cook County hospital. Extended in 1997 to allow an additional $2.2 million to be raised for the North…

Currently Imposed Local Sales Taxes in Minnesota

Currently Imposed Local Sales Taxes in Minnesota

Taxing Jurisdiction & Year Authorized Rate Approval required Use of Revenues / Other Comments Duluth – 1973 1.0% City council approval The tax may be used for any city purpose, as determined by the city council. No expiration date. Rochester – 1983 0.5% All but 1989 extension required voter approval at a general or special…

Transportation Local Sales Taxes Authorized by Statute in Minnesota

Transportation Local Sales Taxes Authorized by Statute in Minnesota

In 2008, the legislature enacted two new statutes to allow counties to impose local sales taxes to help fund transportation. In the Twin Cities seven-county metropolitan area, a county may join the Metropolitan Transportation Area, which imposes a tax in the area to fund transit projects. The remaining 80 counties in the state, plus any…

Summary of the Local Sales Tax Provisions in Minnesota

Summary of the Local Sales Tax Provisions in Minnesota

Local Taxes Subject to the Statutory Provisions The statutory provisions apply to all local sales taxes authorized after June 2, 1997, unless the enabling legislation specifically exempts the local authority from these rules by reference. Starting January 1, 2000, the statutory provisions apply to and preempt any contrary provisions of all local sales taxes authorized…

Minnesota Codified Local Sales Tax Rules

Minnesota Codified Local Sales Tax Rules

History of Minnesota Local Sales Tax In 1997, the sales tax advisory council—a group of legislators, administration staff, and representatives of the business community—recommended that the legislature adopt model statutory language for the imposition and administration of local sales taxes. The goal was to create consistency in the application of new and existing local taxes…

Local Sales Taxes in Minnesota

Local Sales Taxes in Minnesota

This information brief is divided into two sections—the first summarizes the codified rules for local sales taxes, and the second discusses the authorized local sales taxes and includes tables of local sales taxes authorized by special law. This brief only covers the issue of general local sales taxes; liquor, restaurant, lodging, and entertainment taxes are…

Internet Taxation

Internet Taxation

New laws may affect the accuracy of the information below. Please see: Minnesota Affiliate Marketing Law & Affiliate Nexus Tax Hurts Bloggers Minnesota Computer Software Sales Tax Sheet Internet taxation generally refers to taxes applied to Internet access fees or to sales and use taxes on sales made over the Internet (e-commerce). This information brief…

The Internet: A Primer

The Internet: A Primer

The Internet is a complicated and constantly evolving system of interconnected computer networks and related equipment, software, and transmission links. The Internet has or will have an impact on various public policy issues such as taxation, regulated industries, consumer protection, banking, and crime. Because of this, it is useful to have a basic understanding of…

Completing Schedule KS | Nonresident & Minnesota Shareholder Income Adjustment

Completing Schedule KS | Nonresident & Minnesota Shareholder Income Adjustment

Complete and provide Schedule KS to each nonresident shareholder and any Minnesota shareholder who has adjustments to income. Purpose An S corporation must provide each non-resident shareholder, and any Minnesota shareholder with adjustments to income, with enough information for them to complete a Minnesota income tax return and determine their correct Minnesota tax. Schedule KS…

Apportionment for Financial Institutions

Apportionment for Financial Institutions

In general, a financial institution is any national or state bank, bank holding company, savings and loan, or any other corporation that does business that a bank or other financial institution would be authorized to do. Financial institutions complete M8A the same way as other S corporations, except for lines 4 and 14. Line 4—Property…

Three-Factor Formula for QSSS Filers

Three-Factor Formula for QSSS Filers

If your federal Form 1120S includes a qualified subchapter S subsidiary (QSSS), you must file a single Form M8. However, for computing the minimum fee and allocating income for nonresidents, each entity must compute their own income, deductions, factors and credits separately. Provide a worksheet that separates these items for each entity. Also, attach a…

The First Steps Before Garnishing | Minnesota Debt Collection

The First Steps Before Garnishing | Minnesota Debt Collection

With certain exceptions, often involving fraud or deceit of the debtor, a creditor may not garnish assets of a debtor without first obtaining a judgment against the debtor. There are many other steps a debtor must take before garnishment, including docketing the judgment. A creditor also must find out where there are assets or finances…

How to Garnish a Debtor’s Account at a Financial Institution

How to Garnish a Debtor’s Account at a Financial Institution

  If you have a judgment you are trying to collect, and the debtor has funds at a bank or other financial institution, you may garnish the debtor’s account. Obtaining the judgment and finding out where the debtor has assets is probably the most difficult and expensive part of debt collection. In order to garnish…

No-Fault Insurance in Minnesota

No-Fault Insurance in Minnesota

Summary of Minnesota No-Fault Automobile Insurance An automobile insurance policy covers several types of claims arising from accidents with cars. Some coverages are required by state law and some are optional. Liability protects your assets when you are legally liable for an accident. The insurance pays, on your behalf, for injuries to people and damage…

What You Need to Know About Minnesota Home Insurance

What You Need to Know About Minnesota Home Insurance

A home is often a person’s most valuable possession, yet many homeowners have only a vague idea of what their home insurance policy covers. And too often, it is not until disaster strikes that they find their insurance coverage is inadequate. A recent case: After tornadoes badly damaged or destroyed many homes in St. Peter…

Flexible Benefits Health Insurance Law: Questions and Answers | Minnesota Health Insurance Law

Flexible Benefits Health Insurance Law: Questions and Answers | Minnesota Health Insurance Law

This informational post summarizes a Minnesota law enacted in 2005 that allows small employers to buy group health coverage that does not include all mandated benefits otherwise required by state law. The information brief does not cover every detail of the new law, and employers should obtain advice from a knowledgeable insurance professional. What is…