Minneapolis landlord, business charged with multiple felony tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Hennepin County Attorney’s Office recently charged Steven Finley Meldahl, of Minneapolis, and his business SJM Properties each with three felony counts of failing to pay sales tax and two felony counts of filing false or fraudulent sales tax documents.

According to the complaints, Mr. Meldahl used false sales tax exemption certificates claiming that his business, SJM Properties, was a nonprofit that was exempt from paying sales tax to retailers including Menards, Home Depot, and Best Buy. However, the complaints state that his business was not registered as nonprofit or charity with the Internal Revenue Service, the Minnesota Department of Revenue, or the Minnesota Attorney General’s Office. Mr. Meldahl allegedly made multiple sales tax-exempt transactions between October 2017 and December 2022 and evaded paying over $19,000 in sales tax. 

Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. Defendants are presumed innocent unless and until proven guilty.

Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.

Many of the department’s criminal case referrals come from public tips. There is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

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