Bill Text: MN HF2517 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Interest rate payments on delinquent taxes modified.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-03-21 - Author added Kresha [HF2517 Detail]
Download: Minnesota-2013-HF2517-Introduced.html
1.2relating to taxation; property; modifying provisions for interest rate payments
1.3on delinquent taxes; amending Minnesota Statutes 2013 Supplement, section
1.4279.37, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is
1.7amended to read:
1.8 Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to
1.9whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
1.10make and file with the county auditor of the county in which the parcel is located a written
1.11offer to pay the current taxes each year before they become delinquent, or to contest the
1.12taxes under Minnesota Statutes 1941, sections278.01 to
278.13 , and agree to confess
1.13judgment for the amount provided, as determined by the county auditor. By filing the
1.14offer, the owner waives all irregularities in connection with the tax proceedings affecting
1.15the parcel and any defense or objection which the owner may have to the proceedings, and
1.16also waives the requirements of any notice of default in the payment of any installment or
1.17interest to become due pursuant to the composite judgment to be so entered. Unless the
1.18property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of
1.19the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current
1.20year taxes and penalty due at the time the confession of judgment is entered. In the offer,
1.21the owner shall agree to pay the balance in nine equal installments, with interest as provided
1.22in section279.03 , payable annually on installments remaining unpaid from time to time, on
1.23or before December 31 of each year following the year in which judgment was confessed.
2.1(b) If any part of the parcel consists of real estate classified as 1a or 1b and used as
2.2the primary homestead by the owner of the property, the interest rate on offers made under
2.3paragraph (a) shall be set annually by the commissioner of revenue at the greater of five
2.4percent or two percent above the prime rate charged by banks during the six-month period
2.5ending on September 30 of that year, rounded to the nearest full percent. The rate of
2.6interest becomes effective on January 1 of the immediately succeeding year. For purposes
2.7of this subdivision, the term "prime rate charged by banks" means the average predominant
2.8prime rate quoted by commercial banks to large businesses, as determined by the Board
2.9of Governors of the Federal Reserve System. The determination of the commissioner
2.10pursuant to this subdivision shall not be considered a "rule" and is not subject to the
2.11Administrative Procedure Act contained in chapter 14. In the event of default occurring in
2.12the payments to be made under any confessed judgment entered pursuant to this paragraph,
2.13the taxes and penalties due are subject to the interest rate specified in section 279.03.
2.14(c) The interest rate established at the time the judgment is confessed shall remain
2.15for the duration of that judgment. By October 15 of each year, the commissioner of
2.16revenue must determine the rate of interest as provided under paragraph (b) and, by
2.17November 1 of each year, must certify the rate to the county auditor.
2.18(d) The offer must be substantially as follows:
2.19"To the court administrator of the district court of ........... county, I, .....................,
2.20am the owner of the following described parcel of real estate located in ....................
2.21county, Minnesota:
2.22.............................. Upon that real estate there are delinquent taxes for the year ........., and
2.23prior years, as follows: (here insert year of delinquency and the total amount of delinquent
2.24taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
2.25the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
2.26any defense or objection which I may have to them, and direct judgment to be entered for
2.27the amount stated above, minus the sum of $............, to be paid with this document, which
2.28is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
2.29I agree to pay the balance of the judgment in nine or four equal, annual installments, with
2.30interest as provided in section279.03 , payable annually, on the installments remaining
2.31unpaid. I agree to pay the installments and interest on or before December 31 of each year
2.32following the year in which this judgment is confessed and current taxes each year before
2.33they become delinquent, or within 30 days after the entry of final judgment in proceedings
2.34to contest the taxes under Minnesota Statutes, sections278.01 to
278.13 .
2.35Dated .............., ......."
1.3on delinquent taxes; amending Minnesota Statutes 2013 Supplement, section
1.4279.37, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is
1.7amended to read:
1.8 Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to
1.9whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
1.10make and file with the county auditor of the county in which the parcel is located a written
1.11offer to pay the current taxes each year before they become delinquent, or to contest the
1.12taxes under Minnesota Statutes 1941, sections
1.13judgment for the amount provided, as determined by the county auditor. By filing the
1.14offer, the owner waives all irregularities in connection with the tax proceedings affecting
1.15the parcel and any defense or objection which the owner may have to the proceedings, and
1.16also waives the requirements of any notice of default in the payment of any installment or
1.17interest to become due pursuant to the composite judgment to be so entered. Unless the
1.18property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of
1.19the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current
1.20year taxes and penalty due at the time the confession of judgment is entered. In the offer,
1.21the owner shall agree to pay the balance in nine equal installments, with interest as provided
1.22in section
1.23or before December 31 of each year following the year in which judgment was confessed.
2.1(b) If any part of the parcel consists of real estate classified as 1a or 1b and used as
2.2the primary homestead by the owner of the property, the interest rate on offers made under
2.3paragraph (a) shall be set annually by the commissioner of revenue at the greater of five
2.4percent or two percent above the prime rate charged by banks during the six-month period
2.5ending on September 30 of that year, rounded to the nearest full percent. The rate of
2.6interest becomes effective on January 1 of the immediately succeeding year. For purposes
2.7of this subdivision, the term "prime rate charged by banks" means the average predominant
2.8prime rate quoted by commercial banks to large businesses, as determined by the Board
2.9of Governors of the Federal Reserve System. The determination of the commissioner
2.10pursuant to this subdivision shall not be considered a "rule" and is not subject to the
2.11Administrative Procedure Act contained in chapter 14. In the event of default occurring in
2.12the payments to be made under any confessed judgment entered pursuant to this paragraph,
2.13the taxes and penalties due are subject to the interest rate specified in section 279.03.
2.14(c) The interest rate established at the time the judgment is confessed shall remain
2.15for the duration of that judgment. By October 15 of each year, the commissioner of
2.16revenue must determine the rate of interest as provided under paragraph (b) and, by
2.17November 1 of each year, must certify the rate to the county auditor.
2.18(d) The offer must be substantially as follows:
2.19"To the court administrator of the district court of ........... county, I, .....................,
2.20am the owner of the following described parcel of real estate located in ....................
2.21county, Minnesota:
2.22.............................. Upon that real estate there are delinquent taxes for the year ........., and
2.23prior years, as follows: (here insert year of delinquency and the total amount of delinquent
2.24taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
2.25the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
2.26any defense or objection which I may have to them, and direct judgment to be entered for
2.27the amount stated above, minus the sum of $............, to be paid with this document, which
2.28is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
2.29I agree to pay the balance of the judgment in nine or four equal, annual installments, with
2.30interest as provided in section
2.31unpaid. I agree to pay the installments and interest on or before December 31 of each year
2.32following the year in which this judgment is confessed and current taxes each year before
2.33they become delinquent, or within 30 days after the entry of final judgment in proceedings
2.34to contest the taxes under Minnesota Statutes, sections
2.35Dated .............., ......."
