HF 3706

as introduced - 89th Legislature (2015 - 2016) Posted on 03/30/2016 10:53am

A bill for an act
relating to taxation; property; providing for payments of homestead taxes to be
made over eight monthly installments per year; amending Minnesota Statutes
2014, section 279.01, subdivision 1, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:

Subdivision 1.

Due dates; penalties.

Except as provided in subdivisions 3 to deleted text begin 5 deleted text end new text begin 6 new text end , 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. deleted text begin The penalty is
at a rate of two percent on homestead property until May 31 and four percent on June 1.
deleted text end 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,
deleted text begin for both homestead and nonhomestead property, deleted text end 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 deleted text begin a penalty of two percent accrues thereon
for homestead property and deleted text end a penalty of four percent new text begin accrues new text end on nonhomestead property.
deleted text begin 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. deleted text end 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.

This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.

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.

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. 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
new text end

Sec. 2.

Minnesota Statutes 2014, section 279.01, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Due dates and penalties; homestead property. new text end

new text begin In the case of property
classified as residential homestead, one-eighth of the property tax amount is due on May
15, with an additional one-eighth due on the 15th day of each succeeding month through
December; provided, however, that no property tax payments are due prior to 21 days
following the postmarked date of the property tax statement. For each payment that is not
made by the due date, a penalty of two percent is imposed on the day following the due
date, with an additional two percent imposed on the first day of the following month, and
an additional one percent on the first day of each succeeding month, until paid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
new text end