Bill Text: MN HF563 | 2013-2014 | 88th Legislature | Introduced

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Bill Title: Property tax additional charges partial payments provided.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2013-02-22 - Referred by Chair to Property and Local Tax Division [HF563 Detail]

Download: Minnesota-2013-HF563-Introduced.html

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A bill for an act

relating to taxation; providing for partial payments for additional charges
collected along with property taxes;amending Minnesota Statutes 2012, section
279.01, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:
    Subdivision 1. Due dates; penalties. (a) Except as provided in subdivision 3 or 4,
on May 16 or 21 days after the postmark date on the envelope containing the property tax
statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
taxes on real estate on the current lists in the hands of the county treasurer. The penalty is
at a rate of two percent on homestead property until May 31 and four percent on June 1.
The penalty on nonhomestead property is at a rate of four percent until May 31 and eight
percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after
the postmark date on the envelope containing the property tax statements, whichever is
later, on commercial use real property used for seasonal residential recreational purposes
and classified as class 1c or 4c, and on other commercial use real property classified as
class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
class 3a property is earned during the months of May, June, July, and August. In order for
the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
or 21 days after the postmark date on the envelope containing the property tax statement,
whichever is later, without penalty, the owner of the property must attach an affidavit
to the payment attesting to compliance with the income provision of this subdivision.
Thereafter, for both homestead and nonhomestead property, on the first day of each month
beginning July 1, up to and including October 1 following, an additional penalty of one
percent for each month accrues and is charged on all such unpaid taxes provided that if the
due date was extended beyond May 15 as the result of any delay in mailing property tax
statements no additional penalty shall accrue if the tax is paid by the extended due date. If
the tax is not paid by the extended due date, then all penalties that would have accrued if
the due date had been May 15 shall be charged. When the taxes against any tract or lot
exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
date on the envelope containing the property tax statement, whichever is later; and, if so
paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
16 following, without penalty; but, if not so paid, then a penalty of two percent accrues
thereon for homestead property and a penalty of four percent on nonhomestead property.
Thereafter, for homestead property, on the first day of November an additional penalty of
four percent accrues and on the first day of December following, an additional penalty of
two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
property, on the first day of November and December following, an additional penalty of
four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, the same may be paid at any time
prior to October 16, with accrued penalties to the date of payment added, and thereupon
no penalty attaches to the remaining one-half until October 16 following.
    (b) This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.
    (c) A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
installments as provided in this subdivision.
    (d) The county treasurer may accept payments of more or less than the exact amount
of a tax installment due. Payments must be applied first to the oldest installment that is due
but which has not been fully paid. If the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year or the installment being
paid. If the payment is accompanied by a written notice providing that payment is being
withheld for a past or current special assessment or other charge, the amount paid must
not be credited to the assessment or charge indicated in the written notice. Acceptance
of partial payment of tax does not constitute a waiver of the minimum payment required
as a condition for filing an appeal under section 278.03 or any other law, nor does it
affect the order of payment of delinquent taxes under section 280.39. For purposes of
this paragraph, "charge" means any item on the property tax statement other than (i) the
property tax submitted by the county auditor under section 275.28, and (ii) penalties or
interest on past due property taxes.
EFFECTIVE DATE.This section applies to payments received after June 30, 2013.