Paying taxes is one of those things that everybody hates doing. Income tax, sales tax, property tax – it seems like every time you turn around, the government has their hand in your pocket! Of course, there’s not much we can do about this. But there’s one tax that people sometimes think they can get around – Minnesota’s motor vehicle registration tax. This post explores Minnesota’s Intent to Escape Tax Law and explains why trying to skip this tax is a very bad idea.
Minnesota’s Vehicle Taxation System
Most people are familiar with the way tax is collected on motor vehicles in Minnesota. Every year, for every vehicle you own, you’ll receive a notice from the state informing you that your registration tax is due. When you pay it, you get small stickers to place on your license plates, often referred to as “tabs”. That sticker displays the next year that your tax is due, and signals to police officers and others that the registration tax has been paid. The amount of tax you pay on a vehicle is based on the vehicle’s value and age.
Unfortunately, this system leads some people to a very bad idea. They think that all they need to do is get a sticker that shows their registration is current, without actually paying the taxes for that sticker. Some people do this by purchasing tabs for a different, less valuable vehicle, and then placing that sticker onto the license plate of a more valuable car. Or, worse yet, they’ll obtain a sticker some other way and use that instead. This might seem like a great idea – you get a sticker showing you paid the full tax amount without having to shell out the money! But in reality, it’s not that easy.
Although having current tabs makes it appear as though you’ve paid the registration tax, the state’s computer system will still show that the registration is expired. If a police officer happens to randomly run your license plate – which happens far more often than most people realize! – the officer’s computer will tell them that the registration is expired. This type of mismatch, where vehicles display current tabs but the computer says the registration has not been paid, is a red flag for officers and likely to result in you being pulled over.
Vehicle Registration Penalties
Driving a vehicle with expired tabs is a relatively minor offense. It’s a petty misdemeanor, generally with a fine of around $115. Sometimes these tickets are even dismissed if you bring proof that you’ve purchased current tabs to court.
However, this does not apply to someone who intentionally tries to avoid paying the tax by using incorrect or fake tabs! If police catch you driving a car with incorrect tabs, you can expect to be charged with Intent to Escape Tax. This is a gross misdemeanor level offense, and depending on the circumstances, you may even find yourself arrested and taken to jail!
Defending an Intent to Escape Tax Case in Minnesota
Luckily, with a skilled lawyer these types of cases can often be defended, because there are several parts of the law that a good lawyer can use. Here’s what the statute says:
Any person who shall, with intent to escape payment of any tax on a motor vehicle, as herein provided, delay or neglect to properly list and apply to register the same, or, with intent to prevent the payment or collection of the proper tax, fee, or lien thereon, violate or neglect to comply with any of the provisions of this chapter, shall be guilty of a gross misdemeanor. Minnesota Statute 168.35
Notice that the law requires proof that you committed an act to intentionally evade taxes (that’s what “with the intent to escape payment…” part of the statute means). If the incorrect tabs accidentally got placed on your car, then your attorney may be able to prove that there was no intent in your case. There are also issues in these cases regarding whether the owner is the person driving the car, and who was ultimately responsible for placing the incorrect tabs on the vehicle. A good defense lawyer can help you use these issues to fight your case.
During my time as a prosecutor, I frequently handled intent to escape tax cases. I know the ins and outs of these cases and what the government will try to do to prosecute you for this offense. If you find yourself or someone close to you facing accusations like this, contact me today for a free consultation to see how I can help.
