Bill Text: MN HF451 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Property tax late payment penalties modified.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Introduced - Dead) 2014-03-27 - Author added Simon [HF451 Detail]
Download: Minnesota-2013-HF451-Introduced.html
1.2relating to taxation; property; modifying the penalties for late payment;amending
1.3Minnesota Statutes 2012, section 279.01, subdivision 1; repealing Minnesota
1.4Statutes 2012, section 279.01, subdivision 4.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:
1.7 Subdivision 1. Due dates; penalties. Except as provided in subdivision 3or 4, on
1.8May 16 or 21 days after the postmark date on the envelope containing the property tax
1.9statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
1.10taxes on real estate on the current lists in the hands of the county treasurer. The penalty is at
1.11a rate of two percenton homestead property until May 31 and four percent on June 1. The
1.12penalty on nonhomestead property is at a rate of four percent until May 31 and eight percent
1.13on June 1. This penalty does not accrue until June 1 of each year, or 21 days after the
1.14postmark date on the envelope containing the property tax statements, whichever is later,
1.15on commercial use real property used for seasonal residential recreational purposes and
1.16classified as class 1c or 4c, and on other commercial use real property classified as class 3a,
1.17provided that over 60 percent of the gross income earned by the enterprise on the class 3a
1.18property is earned during the months of May, June, July, and August. In order for the first
1.19half of the tax due on class 3a property to be paid after May 15 and before June 1, or 21 days
1.20after the postmark date on the envelope containing the property tax statement, whichever
1.21is later, without penalty, the owner of the property must attach an affidavit to the payment
1.22attesting to compliance with the income provision of this subdivision. Thereafter,for both
1.23homestead and nonhomestead property, on the first day of each month beginning July 1, up
1.24to and including October 1 following, an additional penalty of one percent for each month
2.1accrues and is charged on all such unpaid taxes provided that if the due date was extended
2.2beyond May 15 as the result of any delay in mailing property tax statements no additional
2.3penalty shall accrue if the tax is paid by the extended due date. If the tax is not paid by the
2.4extended due date, then all penalties that would have accrued if the due date had been
2.5May 15 shall be charged. When the taxes against any tract or lot exceed $100, one-half
2.6thereof may be paid prior to May 16 or 21 days after the postmark date on the envelope
2.7containing the property tax statement, whichever is later; and, if so paid, no penalty
2.8attaches; the remaining one-half may be paid at any time prior to October 16 following,
2.9without penalty; but, if not so paid, then a penalty of two percent accruesthereon for
2.10homestead property and a penalty of four percent on nonhomestead property. Thereafter,
2.11for homestead property, on the first day of November an additional penalty of four two
2.12percent accrues and on the first day of December following, an additional penalty of two
2.13percent accrues and is charged on all such unpaid taxes.Thereafter, for nonhomestead
2.14property, on the first day of November and December following, an additional penalty of
2.15four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
2.16such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
2.17containing the property tax statement, whichever is later, the same may be paid at any time
2.18prior to October 16, with accrued penalties to the date of payment added, and thereupon
2.19no penalty attaches to the remaining one-half until October 16 following.
2.20 This section applies to payment of personal property taxes assessed against
2.21improvements to leased property, except as provided by section277.01, subdivision 3 .
2.22 A county may provide by resolution that in the case of a property owner that has
2.23multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
2.24installments as provided in this subdivision.
2.25 The county treasurer may accept payments of more or less than the exact amount of
2.26a tax installment due. Payments must be applied first to the oldest installment that is due
2.27but which has not been fully paid. If the accepted payment is less than the amount due,
2.28payments must be applied first to the penalty accrued for the year or the installment being
2.29paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
2.30payment required as a condition for filing an appeal under section278.03 or any other law,
2.31nor does it affect the order of payment of delinquent taxes under section280.39 .
2.32EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
2.33thereafter.
2.34 Sec. 2. REPEALER.
2.35Minnesota Statutes 2012, section 279.01, subdivision 4, is repealed.
3.1EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
3.2thereafter.
1.3Minnesota Statutes 2012, section 279.01, subdivision 1; repealing Minnesota
1.4Statutes 2012, section 279.01, subdivision 4.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:
1.7 Subdivision 1. Due dates; penalties. Except as provided in subdivision 3
1.8May 16 or 21 days after the postmark date on the envelope containing the property tax
1.9statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
1.10taxes on real estate on the current lists in the hands of the county treasurer. The penalty is at
1.11a rate of two percent
1.12
1.13
1.14postmark date on the envelope containing the property tax statements, whichever is later,
1.15on commercial use real property used for seasonal residential recreational purposes and
1.16classified as class 1c or 4c, and on other commercial use real property classified as class 3a,
1.17provided that over 60 percent of the gross income earned by the enterprise on the class 3a
1.18property is earned during the months of May, June, July, and August. In order for the first
1.19half of the tax due on class 3a property to be paid after May 15 and before June 1, or 21 days
1.20after the postmark date on the envelope containing the property tax statement, whichever
1.21is later, without penalty, the owner of the property must attach an affidavit to the payment
1.22attesting to compliance with the income provision of this subdivision. Thereafter,
1.23
1.24to and including October 1 following, an additional penalty of one percent for each month
2.1accrues and is charged on all such unpaid taxes provided that if the due date was extended
2.2beyond May 15 as the result of any delay in mailing property tax statements no additional
2.3penalty shall accrue if the tax is paid by the extended due date. If the tax is not paid by the
2.4extended due date, then all penalties that would have accrued if the due date had been
2.5May 15 shall be charged. When the taxes against any tract or lot exceed $100, one-half
2.6thereof may be paid prior to May 16 or 21 days after the postmark date on the envelope
2.7containing the property tax statement, whichever is later; and, if so paid, no penalty
2.8attaches; the remaining one-half may be paid at any time prior to October 16 following,
2.9without penalty; but, if not so paid, then a penalty of two percent accrues
2.10
2.11
2.12percent accrues and on the first day of December following, an additional penalty of two
2.13percent accrues and is charged on all such unpaid taxes.
2.14
2.15
2.16such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
2.17containing the property tax statement, whichever is later, the same may be paid at any time
2.18prior to October 16, with accrued penalties to the date of payment added, and thereupon
2.19no penalty attaches to the remaining one-half until October 16 following.
2.20 This section applies to payment of personal property taxes assessed against
2.21improvements to leased property, except as provided by section
2.22 A county may provide by resolution that in the case of a property owner that has
2.23multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
2.24installments as provided in this subdivision.
2.25 The county treasurer may accept payments of more or less than the exact amount of
2.26a tax installment due. Payments must be applied first to the oldest installment that is due
2.27but which has not been fully paid. If the accepted payment is less than the amount due,
2.28payments must be applied first to the penalty accrued for the year or the installment being
2.29paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
2.30payment required as a condition for filing an appeal under section
2.31nor does it affect the order of payment of delinquent taxes under section
2.32EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
2.33thereafter.
2.34 Sec. 2. REPEALER.
2.35Minnesota Statutes 2012, section 279.01, subdivision 4, is repealed.
3.1EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
3.2thereafter.
