Collecting outstanding fees

One way to put more money in the state coffers is to make sure outstanding taxes and fees are actually paid.

Since 1998, a unit of the Minnesota State Patrol has investigated collection of unpaid motor vehicle taxes and dealer fraud as it relates to registration fees and taxes. Currently, however, Matthew Hodapp, a 28-year State Patrol veteran, is the unit.

Sponsored by Rep. Debra Hilstrom (DFL-Brooklyn Center), HF3310 would fund at least eight additional troopers to investigate sales tax liabilities from individuals and businesses that currently do not pay all taxes owed; and illegal or improper activity related to sales, transfer, titles and registration of motor vehicles. Hilstrom said the organization previously generated enough revenue to pay its own way. Awaiting a fiscal note, she said that only enough troopers would be hired to ensure the unit is self-supporting.

The bill was approved by the House Transportation Finance and Policy Division March 18 and sent to the House Finance Committee.

When the unit began as a pilot program, there were four officers assigned, but as retirements occurred, officers were not replaced.

One of the tax compliance issues the unit investigates is Minnesota residents who register their vehicles in another state because the fees are less expensive.

A companion, SF3156, sponsored by Sen. Steve Murphy (DFL-Red Wing), awaits action by the Senate Transportation Budget and Policy Division.