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Madd Max 
Group: Members
Posts: 1345
Joined: Aug. 2003
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Posted on: Nov. 29 2007,1:49 pm |
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According to a letter sent to Gov. Tim Pawlenty and obtained by 5 EYEWITNESS NEWS, the state’s in violation of Federal regulations. It said if Minnesota doesn’t make changes, and make them fast, the state could lose millions in highways funds.
The problems center on the way Minnesota polices commercial licenses for commercial truck drivers.
In 2004, the Federal government ordered the Minnesota Department of Public Safety to fix more than 70 problems.
But when the auditors checked this past August, they found nearly half had still not been fixed after three years.
"The audit has offered us an opportunity to look at the areas that we really need to focus in on," said Patricia McCormack of the Minnesota Department of Public Safety.
One of those unfixed problems could carry a hefty price tag. Right now, when a commercial driver gets a ticket or causes an accident in Minnesota, a paper record is sent to the Feds.
But officials want those records sent electronically. And if Minnesota doesn't start doing that by the end of next September, the state could lose $22 million in federal highway funds.
"Many people are talking about additional state taxes in order to increase funding for transportation," said Phil Krinkie of the Taxpayers League of Minnesota. "Seems to me that it should be a high priority within the administration...to get into compliance."
At a time when Minnesota is so focused on fixing roads and bridges, the timing couldn't be worse.
Minnesota is one of 11 states currently at risk of losing Federal funding.
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Heck, if crazy were a pre-existing condition, the GOP wouldn't be able to get insurance. James Carville
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Madd Max
Group: Members
Posts: 1345
Joined: Aug. 2003
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Posted on: Nov. 29 2007,1:51 pm |
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Here is a link to the Fed's Letter to T-Paw.
http://kstp.com/kstpImages/MN.pdf
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Heck, if crazy were a pre-existing condition, the GOP wouldn't be able to get insurance. James Carville
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jimhanson
Group: Moderator
Posts: 8491
Joined: Aug. 2003
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Posted on: Nov. 29 2007,6:03 pm |
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So far, it looks like their biggest beef is that they don't like the way that the State is reporting. The State is making the reports, it's just that it is doing it by paper.
Businesses also get threatening letters from government bureaucrats, threatening dire consequences if they don't knuckle under and do things the way the bureaucrats want it--the latest being electronic submission of required forms.
Federal transportation folks have a long history of browbeating states and businesses. Recall that a few years ago, the FAA was conducting "regulation by press release"--charging Northwest Airlines with several hundred violations of the Federal Aviation Regulations--and releasing their charges to the press--even before the airline could respond. As it turned out, all but a few of the hundreds of "violations" were for the same thing--operating one airplane with one of the toilets inoperative. Every time the airplane took off, the FAA charged Northwest with a maintenance violation. Never mind that the toilet was sealed off and couldn't be used--that the aircraft had more than the required number of toilets--that the problem was scheduled for maintenance at the next inspection--that safety of flight was not compromised. When the idiocy of the regulators was finally disclosed, everyone in the industry got a good laugh at the FAA--but to those who only read the Red Star, all they remember is "Northwest maintenance violations." The government charges in public, and apologizes in private. 
Another example of Dept. of Transportation overzealous prosecution. Recall when the speed limit was lowered to 55? The DOT issued similar stern warnings to States--if you don't comply and lower your speed limits, you may lose Federal funds. Several states refused to charge speeders unless they were GROSSLY over the speed limit--they were charged only with "wasting gas". The law proved unenforceable, and the speed limit was raised.
Personally, I dislike the government collecting tax dollars from us, then threatening severe consequences if we don't voluntarily comply.
Who do they think they are, the School Administration?  
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"If you want to anger a Conservative, tell him a lie. If you want to anger a LIBERAL, tell him the TRUTH!"
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grassman
Group: Members
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Joined: Mar. 2006
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Posted on: Nov. 29 2007,6:19 pm |
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I HAVE to file my MN sales tax on line, not that I mind but they are assuming every buisness owner has a computer. I believe if they are making everything computer oriented that should probably make everything more efficient, hence not as many paper pushers. It always means less personel in the buisness world, does it mean the same in the public financed govt. body?
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git er done!
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jimhanson
Group: Moderator
Posts: 8491
Joined: Aug. 2003
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Posted on: Nov. 30 2007,12:18 pm |
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QUOTE It always means less personel in the buisness world, does it mean the same in the public financed govt. body? That would be a RHETORICAL QUESTION--neither expecting or deserving of an answer! 
Speaking of sales tax filing--we got hit with a sales tax audit about a month ago. Most of it went fine--we deal mainly in fuel and maintenance, and mainly to repeat customers. The auditor spent 3 days examining the last 4 years--it took us over 40 hours to find and submit the required documentation. No major issues, but did find some surprising items--
The volume of the pop machine--THERE's a good one. Measured how much we bought, vs. how much sold. The difference--how much was consumed on airplanes. We probably spent 8 man-hours accounting for the pop machine.
Tax on freight. When we send out a customers part, we recapture the cost of the freight. They say that in MN. it is now taxable. I told them that when I take something to UPS, they don't charge me tax--they said it is taxable because we are reselling it to the customer--even if we don't mark it up. Consequently, we simply charge the customer the labor we use to send the part.
The State wants to charge tax on labor used to repair parts. I said that I thought labor was usually not subject to tax--the triggering item was the work order statement that we "fabricated" a part--and fabrication was taxable. I explained that the FAA requires that we identify the source of all parts, and thus the use of the term "fabricate"--even though the parts fabricated were to repair a larger part. Caught between two government agencies.
We pay for temporary help in mowing and snow blowing. We pay the self-employed person, we issue a 1099 (equivalent to a W-2)--but the State says that while snow removal is not taxable, mowing IS. I asked about turf maintenance using large farm tractors--farming is NOT, but the tax auditor couldn't give an answer for turf maintenance. What's the difference between lawn mowing and snow blowing?
I asked our accountant if she knew about these items--she did not--but related an even bigger horror story. A retail firm in town sells at retail, but also has a consulting business. They had not been charging sales tax on their consulting labor, as labor is generally tax exempt. They were charged a HUGE amount--though the State does generally exempt labor, they had changed the law about 3 years ago in an unpublished "opinion", stating that consulting labor was now taxable. Of course, the company couldn't go back and charge tax to their clients retroactively. 
It was more of a nuisance than a financial cost. Once again, it's cheaper to just pay the tax than to fight with them--and the tax people COUNT on that. I asked our accountant why so many business people were getting audited--this is the first in 25 years for us. She said that the State of Minnesota hired 44 new auditors for sales tax--it was easier to concentrate on businesses than individuals.
Who pays for these extra taxes? Not the businesses--the cost is passed on to the consumer--unless the business decides to relocate across the border. No WONDER that Sioux Falls regularly advertises on Minnesota radio stations to "move your business to South Dakota."
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"If you want to anger a Conservative, tell him a lie. If you want to anger a LIBERAL, tell him the TRUTH!"
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TameThaTane
Group: Members
Posts: 6300
Joined: May 2005
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Posted on: Nov. 30 2007,12:29 pm |
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Reminds of the time MN attempted to collect sales tax from MN patients who saw a doctor in Northwood. The IA doctor refused to collect and pay that tax and I never heard another thing about it. Can you imagine? The state wanted to collect sales tax from another state.
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My choice is what I choose to do,
And if I'm causing no harm, it shouldn't bother you.
Your choice is who you choose to be,
And if you're causin' no harm, then you're alright with me.
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Botto 82
Group: Members
Posts: 6293
Joined: Jan. 2005
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Posted on: Nov. 30 2007,12:43 pm |
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Simple solution: Stop paying taxes.
They can't put us all in jail.
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Dear future generations: Please accept our apologies. We were rolling drunk on petroleum.
- Kurt Vonnegut
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TameThaTane
Group: Members
Posts: 6300
Joined: May 2005
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Posted on: Nov. 30 2007,12:48 pm |
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That's why they take it out of your check before you get it.
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My choice is what I choose to do,
And if I'm causing no harm, it shouldn't bother you.
Your choice is who you choose to be,
And if you're causin' no harm, then you're alright with me.
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Botto 82
Group: Members
Posts: 6293
Joined: Jan. 2005
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Posted on: Nov. 30 2007,1:15 pm |
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Not if you claim a gadzillion exemptions.
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Dear future generations: Please accept our apologies. We were rolling drunk on petroleum.
- Kurt Vonnegut
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hymiebravo
Group: Members
Posts: 4989
Joined: Jan. 2006
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Posted on: Dec. 02 2007,12:50 pm |
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QUOTE The volume of the pop machine--THERE's a good one. Measured how much we bought, vs. how much sold. The difference--how much was consumed on airplanes. We probably spent 8 man-hours accounting for the pop machine.
I could see why they would look. A high volume machine could generate a nice little supplemental stream of unreported fun money.
Paticularly your $1.00 and up a pop softdrink/soda machines.
Or " pop" if you live in Minnesota.
QUOTE The State wants to charge tax on labor used to repair parts. I said that I thought labor was usually not subject to tax--the triggering item was the work order statement that we "fabricated" a part--and fabrication was taxable. I explained that the FAA requires that we identify the source of all parts, and thus the use of the term "fabricate"--even though the parts fabricated were to repair a larger part. Caught between two government agencies.
I guess I could see how everything could be considered fabricating.
QUOTE What's the difference between lawn mowing and snow blowing?
About 70 degrees farenheit or so. lol
I would imagine a great deal of lawnmowning goes unreported.
QUOTE They had not been charging sales tax on their consulting labor
Hard to muster up any sympathy for people who get paid for telling other people what to do. IMO Its like feeling sorry for a guy who has his own plane. lol
It would be a lot nicer to see substantial advancements and cuts in places related to goverment waste and innefficiencies.
But until then...
That little kid with that Lemonade stand on the corner better watch out. Hes probably next on the list. lol
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