297A.91 Seizure; court review. 

    Subdivision 1.    Seizure of property used in illegal 
 transport.  (a) If the retailer does not have a sales or use 
 tax permit and has been engaging in transporting personal 
 property into the state without payment of the tax, the 
 commissioner of revenue or the commissioner's agents may seize 
 in the name of the state any truck, automobile, or means of 
 transportation not owned or operated by a common carrier, used 
 in the illegal importation and transportation of any tangible 
 personal property by a retailer or the retailer's agent or 
 employee.  The commissioner may demand the forfeiture and sale 
 of the truck, automobile, or other means of transportation 
 together with the property being transported illegally, unless 
 the owner establishes to the satisfaction of the commissioner or 
 the court that the owner had no notice or knowledge or reason to 
 believe that the vehicle was used or intended to be used in any 
 such violation. 

    (b) Within two days after the seizure, the person making 
 the seizure shall deliver an inventory of the vehicle and 
 property seized to the person from whom the seizure was made, if 
 known, and to any person known or believed to have any right, 
 title, interest, or lien on the vehicle or property.  The person 
 making the seizure shall also file a copy of the inventory with 
 the commissioner.  

    Subd. 2.    Court review of forfeiture.  (a) Within ten 
 days after the date of service of the inventory, the person from 
 whom the vehicle and property were seized or any person claiming 
 an interest in the vehicle or property may file with the 
 commissioner a demand for a judicial determination of the 
 question of whether the vehicle or property was lawfully subject 
 to seizure and forfeiture.  The commissioner, within 30 days, 
 shall institute an action in the district court of the county 
 where the seizure was made to determine the issue of forfeiture. 

    (b) The action must be brought in the name of the state and 
 prosecuted by the county attorney or the attorney general.  The 
 court shall hear the action without a jury and shall determine 
 the issues of fact and law involved.  If a judgment of 
 forfeiture is entered and is not stayed pending an appeal, the 
 commissioner may have the forfeited vehicle and property sold at 
 public auction as provided by law.  

    Subd. 3.    Treatment of seized property.  If a demand 
 for judicial determination is made and no action is commenced as 
 provided in this subdivision, the vehicle and property must be 
 released by the commissioner and redelivered to the person 
 entitled to it.  If no demand is made, the vehicle and property 
 seized are considered forfeited to the state by operation of law 
 and may be disposed of by the commissioner as if there were a 
 judgment of forfeiture.  The forfeiture and sale of the 
 automobile, truck, or other means of transportation, and of the 
 property being transported illegally in it, are a penalty for 
 the violation of this chapter.  After deducting the expense of 
 keeping the vehicle and property, the fee for seizure, and the 
 costs of the sale, the commissioner shall pay liens from the 
 funds collected.  The commissioner shall pay all liens, 
 according to their priority, that are established at the hearing 
 as being bona fide and as existing without the lienor having any 
 notice or knowledge that the vehicle or property was being used 
 or was intended to be used for or in connection with any such 
 violation as specified in the order of the court.  The 
 commissioner shall pay the balance of the proceeds into the 
 state treasury to be credited to the general fund.  The state is 
 not liable for any liens in excess of the proceeds from the sale 
 after allowable deductions.  A sale under this section frees the 
 vehicle and property sold from all liens.  The order of the 
 district court may be appealed as in other civil cases.  

    HIST: 2000 c 418 art 1 s 34 

*   NOTE:  This section, as added by Laws 2000, chapter 418, 
*article 1, section 34, is effective for seizures after June 30, 
*2001.  Laws 2000, chapter 418, article 1, section 46.