HF 379

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to mortgage registry and deed taxes; making 
  1.3             technical and clarifying changes; defining terms; 
  1.4             amending Minnesota Statutes 1998, sections 270.101, 
  1.5             subdivision 1; 287.01; 287.04; 287.05; 287.08; 287.10; 
  1.6             287.11; 287.12; 287.13, subdivision 1; 287.21, 
  1.7             subdivision 1; 287.22; 287.23; 287.24; 287.241; 
  1.8             287.29, subdivision 1; 287.30; 287.31; and 287.33; 
  1.9             proposing coding for new law in Minnesota Statutes, 
  1.10            chapter 287; repealing Minnesota Statutes 1998, 
  1.11            sections 287.06; 287.07; 287.09; 287.21, subdivisions 
  1.12            2 and 4; 287.34; 287.35; and 287.36. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1998, section 270.101, 
  1.15  subdivision 1, is amended to read: 
  1.16     Subdivision 1.  [LIABILITY IMPOSED.] A person who, either 
  1.17  singly or jointly with others, has the control of, supervision 
  1.18  of, or responsibility for filing returns or reports, paying 
  1.19  taxes, or collecting or withholding and remitting taxes and who 
  1.20  fails to do so, or a person who is liable under any other law, 
  1.21  is liable for the payment of taxes, penalties, and interest 
  1.22  arising under chapters 295, 296A, 297, 297A, and 297C, or 
  1.23  sections 287.21 to 287.37, 290.92, and 297E.02. 
  1.24     Sec. 2.  Minnesota Statutes 1998, section 287.01, is 
  1.25  amended to read: 
  1.26     287.01 [DEFINITIONS.] 
  1.27     Subdivision 1.  [WORDS, TERMS, AND PHRASES.] Unless the 
  1.28  language or context clearly indicates that a different meaning 
  1.29  is intended, the following words, terms, and phrases, for the 
  2.1   purposes of sections 287.01 to 287.12 287.13, shall be 
  2.2   given have the meanings subjoined to given them in this 
  2.3   section. 
  2.4      Subd. 2.  [REAL PROPERTY, REAL ESTATE, AND LAND AMENDMENT.] 
  2.5   "Real property," "real estate," and "land," in addition to the 
  2.6   meaning thereof contained in chapter 500, include all property a 
  2.7   conveyance whereof may be recorded or registered by a county 
  2.8   recorder under existing law. "Amendment" means generally a 
  2.9   document that alters an existing mortgage without securing a 
  2.10  new, or increased amount of principal indebtedness; and, that 
  2.11  does not result in an increased percentage of the real estate 
  2.12  encumbered by the mortgage being located in this state.  
  2.13  Specifically, a document is considered an amendment to the 
  2.14  extent it merely does any one or any combination of the 
  2.15  following:  (i) extends the time for payment of the unpaid 
  2.16  portion of the original principal debt; (ii) changes the rate of 
  2.17  interest applicable to the unpaid portion of the original 
  2.18  principal debt; (iii) adds additional real estate as security 
  2.19  for the unpaid portion of the original principal debt; (iv) 
  2.20  releases real estate serving as security for the unpaid portion 
  2.21  of the oringinal principal debt; (v) replaces real estate 
  2.22  serving as security for the unpaid portion of the original 
  2.23  principal debt with real estate of substantially equivalent 
  2.24  value; (vi) replaces a party previously bound by the mortgage 
  2.25  with a new party who becomes bound by the same amended mortgage; 
  2.26  or, (vii) reduces the amount of the principal debt secured by 
  2.27  real estate located in this state. 
  2.28     Subd. 3.  [MORTGAGE DEBT.] "Mortgage" means any instrument, 
  2.29  including a decree of marriage dissolution or an instrument made 
  2.30  pursuant to it, creating or evidencing a lien of any kind on 
  2.31  property, given or taken as security for a debt, notwithstanding 
  2.32  such debt may also be secured in part by a lien upon 
  2.33  personalty. "Debt" means the principal amount of an obligation 
  2.34  to pay money or to perform or refrain from performing an act 
  2.35  that is secured in whole or in part by a mortgage of an interest 
  2.36  in real property. 
  3.1      Subd. 4.  [DECREE OF MARRIAGE DISSOLUTION.] "Decree of 
  3.2   marriage dissolution" includes a summary real estate disposition 
  3.3   judgment or an instrument made pursuant to under it. 
  3.4      Subd. 5.  [EXTENSION.] "Extension" means any document that 
  3.5   alters an existing mortgage by extending the time for repayment 
  3.6   without increasing the principal indebtedness or the percentage 
  3.7   of Minnesota real estate as compared to the total real estate 
  3.8   encumbered by the mortgage. 
  3.9      Subd. 6.  [MORTGAGE.] "Mortgage" means any instrument, 
  3.10  including a decree of marriage dissolution or an instrument made 
  3.11  under it, creating or evidencing a lien of any kind on real 
  3.12  property, given by an owner of real property as security for a 
  3.13  debt, notwithstanding that such debt may also be secured in part 
  3.14  by a lien upon personalty. 
  3.15     Subd. 7.  [PERSON.] "Person" includes any individual, 
  3.16  partner, officer, director, firm, partnership, joint venture, 
  3.17  limited liability company, association, cooperative, social 
  3.18  club, fraternal organization, municipal or private corporation, 
  3.19  whether organized for profit or not, estate, trusts, business 
  3.20  trusts, receiver, trustee, syndicate, the United States, a 
  3.21  state, any political subdivision of a state, or any group or 
  3.22  combination acting as a unit, and the plural as well as the 
  3.23  singular.  The term includes directors and officers of 
  3.24  corporations, governors and managers of a limited liability 
  3.25  company, or members of partnerships who, either individually or 
  3.26  jointly with others, have control, supervision, or 
  3.27  responsibility of making or authorizing payment of the tax 
  3.28  imposed by section 287.035.  The term includes any agent of any 
  3.29  individual or organization enumerated in this subdivision. 
  3.30     Subd. 8.  [REAL PROPERTY, REAL ESTATE, AND LAND.] "Real 
  3.31  property," "real estate," and "land," have the meaning contained 
  3.32  in chapter 500, and include all interests in real property that 
  3.33  can be conveyed by a document which may be recorded. 
  3.34     Subd. 9.  [RECORD.] "Record," "recorded," and "recording" 
  3.35  each mean that a document has been delivered to and filed in the 
  3.36  office of the county recorder or registrar of titles, whichever 
  4.1   office maintains the records for the real property described in 
  4.2   
  4.3   the document. 
  4.4      Sec. 3.  [287.035] [IMPOSITION OF TAX.] 
  4.5      A tax of 23 cents is imposed upon each $100, or fraction 
  4.6   thereof, of the principal debt or portion of a debt that is 
  4.7   secured by any recorded mortgage of real property located in the 
  4.8   state.  The person liable for the tax is the mortgagee.  The tax 
  4.9   is not imposed on the lawful interest amounts that may accrue 
  4.10  with respect to a principal debt. 
  4.11     Sec. 4.  Minnesota Statutes 1998, section 287.04, is 
  4.12  amended to read: 
  4.13     287.04 [EXEMPTIONS.] 
  4.14     Subdivision 1.  [GENERALLY.] The tax imposed by section 
  4.15  287.035 shall not apply to:  
  4.16     (a) A decree of marriage dissolution or an instrument made 
  4.17  pursuant to it or a.  
  4.18     (b) A mortgage given to correct a misdescription of the 
  4.19  mortgaged property, or to include. 
  4.20     (c) A mortgage or other instrument that adds additional 
  4.21  security for the same indebtedness on which a mortgage 
  4.22  registration tax has been paid, are not subject to the tax 
  4.23  imposed by this chapter except as provided in section 287.05, 
  4.24  subdivision 2, paragraph (b).  
  4.25     (d) A contract for the conveyance of any interest in real 
  4.26  estate, including a contract for deed. 
  4.27     (e) A mortgage secured by real estate subject to the 
  4.28  minerals production tax of section 298.24 to 298.28. 
  4.29     Subd. 2.  [MORTGAGES ON PUBLIC PROPERTY.] No tax is imposed 
  4.30  upon (f) The principal amount of bonds or other obligations 
  4.31  issued by the St. Paul port authority under its common revenue 
  4.32  bond fund if each of the following conditions are met. 
  4.33     (a) (1) The bonds or other obligations are secured by a 
  4.34  mortgage on property, title to which is held by the political 
  4.35  subdivision. 
  4.36     (b) (2) The mortgage is recorded or registered after the 
  4.37  date of enactment May 19, 1993. 
  5.1      (c) (3) The bonds or other obligations are either (i)  
  5.2   outstanding on the date of enactment May 19, 1993, or (ii) 
  5.3   issued in exchange for or to otherwise refund bonds or other 
  5.4   obligations the original series of which were issued before the 
  5.5   date of enactment May 19, 1993. 
  5.6      (g) Mortgages taken in good faith by persons or 
  5.7   corporations whose property is expressly exempted from taxation 
  5.8   by section 272.02, subdivision 1, clauses (1) to (7), or 
  5.9   mortgagees that are fraternal benefit societies subject to 
  5.10  section 64B.24. 
  5.11     (h) A mortgage amendment, as defined in section 287.01, 
  5.12  subdivision 2. 
  5.13     Sec. 5.  Minnesota Statutes 1998, section 287.05, is 
  5.14  amended to read: 
  5.15     287.05 [DETERMINATION OF TAX ON RECORDATION OR 
  5.16  REGISTRATION; SUPPLEMENTAL MORTGAGES; REVERSE MORTGAGES IN 
  5.17  SPECIAL SITUATIONS.] 
  5.18     Subdivision 1.  [TAX IMPOSED REAL ESTATE OUTSIDE 
  5.19  MINNESOTA.] A tax of 23 cents is imposed upon each $100, or 
  5.20  fraction thereof, of the principal debt or obligation which is 
  5.21  or may be secured by any mortgage of real property situated 
  5.22  within the state executed, delivered, and recorded or 
  5.23  registered; provided, however, that the tax shall be imposed but 
  5.24  once upon any mortgage and extension thereof.  If the a mortgage 
  5.25  describes real estate situated outside of this state, the 
  5.26  tax shall be imposed is based upon that proportion portion of 
  5.27  the whole debt secured thereby as the value of the real estate 
  5.28  therein described situated in this state bears to the value of 
  5.29  the whole of the real estate described therein.  The tax imposed 
  5.30  by this section shall not apply to a contract for the conveyance 
  5.31  of any interest in secured by real estate that is equal to a 
  5.32  fraction the numerator of which is the value of the real estate 
  5.33  located in this state described in the mortgage and the 
  5.34  denominator of which is the value of all the real estate 
  5.35  described in the mortgage.  
  5.36     Subd. 1a.  [REAL ESTATE SECURES PORTION OF DEBT.] When the 
  6.1   real estate identified in a mortgage is intended to secure only 
  6.2   a portion of a debt amount recited or referred to in the 
  6.3   mortgage, the mortgage may contain the following limiting 
  6.4   statement on its first page:  "The real estate encumbered by 
  6.5   this mortgage secures payment of a principal debt amount of 
  6.6   $........  This amount represents only a portion of the total 
  6.7   debt amount that is recited, or referred to, in this mortgage 
  6.8   document."  In such cases, the tax shall be imposed based only 
  6.9   on the amount of debt so stated to be secured by real estate; 
  6.10  and, the effect of the mortgage document, or any related 
  6.11  document, as evidence in any court, or as notice for any 
  6.12  purpose, shall be limited to the debt amount contained in the 
  6.13  statement and for which the tax has been paid.  In all other 
  6.14  cases, a mortgage will be taxed under sections 287.01 to 287.13 
  6.15  as if the real estate identified in the mortgage secures payment 
  6.16  of the largest debt amount referred to, or incorporated by 
  6.17  reference, in the mortgage document or documents. 
  6.18     Subd. 2.  [SUPPLEMENTAL MORTGAGES.] Except for mortgage 
  6.19  amendments and revisions to a reverse mortgage as described 
  6.20  under subdivision 6, any supplemental document that alters an 
  6.21  existing mortgage, not including revisions to a reverse mortgage 
  6.22  as described under subdivision 6, securing a portion or all of 
  6.23  the same indebtedness, whether or not additional security is 
  6.24  included, by providing for an increase in the principal 
  6.25  indebtedness secured by real estate or an increase in the 
  6.26  percentage of Minnesota real estate as compared to the total 
  6.27  real estate that is encumbered by the mortgage shall be taxed in 
  6.28  the following manner: 
  6.29     (a) Any additional indebtedness shall be taxed on the ratio 
  6.30  that the value of the real estate therein described in this 
  6.31  state bears to the value of the whole of the real estate 
  6.32  described therein.  The tax shall be based upon that portion of 
  6.33  the increase in indebtedness that is secured by real estate 
  6.34  equal to a fraction the numerator of which is the value of the 
  6.35  real estate located in this state described in the mortgage and 
  6.36  the denominator of which is the value of all the real estate 
  7.1   described in the mortgage. 
  7.2      (b) If there is no additional indebtedness secured by real 
  7.3   estate but the percentage of the Minnesota real estate as 
  7.4   compared to the total real estate secured by the previous 
  7.5   mortgage given as security is increased, the tax shall must be 
  7.6   recomputed and paid on the remaining indebtedness multiplied by 
  7.7   the difference between that percentage of Minnesota real estate 
  7.8   included in the supplemental mortgage and that percentage 
  7.9   included in any previous mortgage.  
  7.10     (c) In the event of both an increase in the 
  7.11  indebtedness secured by real estate and a change in the 
  7.12  Minnesota percentage of real estate given as security, the 
  7.13  tax shall must be recomputed on the portion representing new 
  7.14  indebtedness in the manner provided in paragraph (a) and in the 
  7.15  event of an increase in the percentage of Minnesota property 
  7.16  included as security, the tax shall must be computed on the 
  7.17  remaining portion of the indebtedness secured by real estate as 
  7.18  provided in paragraph (b).  
  7.19     Subd. 3.  [REVOLVING LINES OF CREDIT.] When a mortgage, 
  7.20  including a reverse mortgage, secures a revolving line of credit 
  7.21  under which advances, payments, and readvances may be made from 
  7.22  time to time, the tax imposed under subdivision 1 shall section 
  7.23  287.035 must be paid on the maximum amount of the line of credit 
  7.24  which that may be secured at any one time, as expressed in the 
  7.25  mortgage, regardless of the time or amount of advances, 
  7.26  payments, or readvances.  
  7.27     Subd. 4.  [ADVANCES BY MORTGAGEE.] No The tax under 
  7.28  subdivision 1 section 287.035 shall be paid on the indeterminate 
  7.29  amount which that may be advanced by the mortgagee in protection 
  7.30  of the mortgaged premises or the mortgage, including taxes, 
  7.31  assessments, charges, claims, fines, impositions, and insurance 
  7.32  premiums,; the amounts due upon prior or superior mortgages and 
  7.33  other prior or superior liens, encumbrances, and interests,; and 
  7.34  , legal expenses and attorneys' fees.  
  7.35     Subd. 5.  [INDETERMINATE AMOUNTS.] When a mortgage secures 
  7.36  an indeterminate amount other than those described in 
  8.1   subdivision 3, 4, or 6, no tax shall be paid at the time the 
  8.2   mortgage is recorded or registered, but the tax must be paid at 
  8.3   the time of recording or filing an affidavit or other document 
  8.4   stating the amount and time of the actual advance.  
  8.5      Subd. 6.  [REVERSE MORTGAGES.] If real property secures a 
  8.6   reverse mortgage, the principal debt or obligation to which 
  8.7   mortgage registry tax applies is the expected total 
  8.8   disbursements or cash equivalent to be made under the terms of 
  8.9   the loan.  Interest accruing on the disbursements made is not 
  8.10  subject to mortgage registry tax.  In the case of periodic 
  8.11  payments made for an indefinite length of time, the expected 
  8.12  total disbursements must equal the product of the periodic 
  8.13  payment amounts and the number of payments and, if applicable, 
  8.14  the amount of cash distribution or its equivalent.  The number 
  8.15  of payments must be based upon the life expectancy assumption 
  8.16  used in determining the payment amount.  In the case of reverse 
  8.17  mortgages made as part of the Housing and Community Development 
  8.18  Act of 1987, section 255 of the National Housing Act, and 
  8.19  administered by the Department of Housing and Urban Development 
  8.20  (HUD), mortgage registry tax must not be assessed on Federal 
  8.21  Housing Administration mortgage insurance premiums, monthly 
  8.22  lender service fees, or payments to be distributed to the 
  8.23  borrower by HUD.  
  8.24     Subd. 7.  [MORTGAGES TO SECURE OBLIGATIONS TO BE 
  8.25  ISSUED.] If a mortgage is made to a mortgagee in trust to secure 
  8.26  the payment of bonds or other obligations yet to be issued, a 
  8.27  statement may be incorporated in the mortgage stating the amount 
  8.28  of such obligations already issued or yet to be issued, and the 
  8.29  tax to be paid on filing such mortgage for recording shall be 
  8.30  computed upon the amount so stated.  The statement shall be 
  8.31  binding and conclusive upon all persons claiming through or 
  8.32  under the mortgage, and no such obligation issued in excess of 
  8.33  the aggregate so fixed is valid for any purpose unless the 
  8.34  additional tax is paid and receipted by the proper county 
  8.35  treasurer. 
  8.36     Sec. 6.  Minnesota Statutes 1998, section 287.08, is 
  9.1   amended to read: 
  9.2      287.08 [TAX, HOW PAYABLE; RECEIPTS.] 
  9.3      (a) The tax imposed by sections 287.01 to 287.12 shall be 
  9.4   paid to the treasurer of the any county in this state in which 
  9.5   the mortgaged land or some part thereof is situated located at 
  9.6   or before the time of filing the mortgage for record or 
  9.7   registration.  The treasurer shall endorse receipt on the 
  9.8   mortgage, countersigned by the county auditor, who shall charge 
  9.9   the amount to the treasurer and such the receipt shall be 
  9.10  recorded with the mortgage, and such receipt of the record 
  9.11  thereof shall be is conclusive proof that the tax has been 
  9.12  paid to in the amount therein stated and authorize authorizes 
  9.13  any county recorder to record the mortgage.  Its form, in 
  9.14  substance, shall be "registration tax hereon of 
  9.15  ..................... dollars paid."  If the mortgages 
  9.16  be mortgage is exempt from taxation the endorsement shall be 
  9.17  "exempt from registration tax,." to In either case the receipt 
  9.18  must be signed in either case by the treasurer as such, and in 
  9.19  case of payment to be countersigned by the auditor.  In case the 
  9.20  treasurer shall be is unable to determine whether a claim of 
  9.21  exemption should be allowed, the tax shall must be paid as in 
  9.22  the case of a taxable mortgage.  
  9.23     (b) Upon written application of the taxpayer, the county 
  9.24  treasurer may refund in whole or in part any tax which that has 
  9.25  been erroneously paid, or a person having paid a mortgage 
  9.26  registry tax amount may seek a refund of such tax, or other 
  9.27  appropriate relief, by bringing an action in tax court in the 
  9.28  county in which the tax was paid, within 60 days of the 
  9.29  payment.  The action is commenced by the serving of a petition 
  9.30  for relief on the county treasurer, and by filing a copy with 
  9.31  the court.  The county attorney shall defend the action.  The 
  9.32  county treasurer shall notify the treasurer of each county that 
  9.33  has or would receive a portion of the tax as paid.  
  9.34     (c) If the county treasurer determines a refund should be 
  9.35  paid, or if a refund is ordered, the county treasurer of each 
  9.36  county that actually received a portion of the tax shall 
 10.1   immediately pay a proportionate share of three percent of the 
 10.2   refund using any available county funds.  The county treasurer 
 10.3   of each county which that received, or would have received, a 
 10.4   portion of the tax shall also pay their county's proportionate 
 10.5   share of the remaining 97 percent of the court-ordered refund on 
 10.6   or before the tenth day of the following month using solely the 
 10.7   mortgage registry tax funds that would be paid to the 
 10.8   commissioner of revenue on that date under section 287.12.  If 
 10.9   the funds on hand under this procedure are insufficient to fully 
 10.10  fund 97 percent of the court-ordered refund, the county 
 10.11  treasurer of the county in which the action was brought shall 
 10.12  file a claim with the commissioner of revenue under section 
 10.13  16A.48 for the remaining portion of 97 percent of the refund, 
 10.14  and shall pay over the remaining portion upon receipt of a 
 10.15  warrant from the state issued pursuant to the claim.  
 10.16     (d) When any such mortgage covers real property situate 
 10.17  located in more than one county in this state the whole of such 
 10.18  total tax shall must be paid to the treasurer of the county 
 10.19  where the mortgage is first presented for record or registration 
 10.20  recording, and the payment shall must be receipted and 
 10.21  countersigned as above provided in paragraph (a).  If the 
 10.22  principal debt or obligation secured by such a multiple county 
 10.23  mortgage exceeds $1,000,000, the nonstate portion of the tax 
 10.24  shall must be divided and paid over by the county treasurer 
 10.25  receiving the same it, on or before the tenth 20th day of each 
 10.26  month after receipt thereof, to the county or counties 
 10.27  entitled thereto in the ratio which that the market value of the 
 10.28  real property covered by the mortgage in each county bears to 
 10.29  the market value of all the real property in this state 
 10.30  described in the mortgage.  In making such the division and 
 10.31  payment the county treasurer shall must send therewith a 
 10.32  statement giving the description of the property described in 
 10.33  the mortgage and the market value of the part thereof situate 
 10.34  located in each county.  For the this purpose aforesaid, the 
 10.35  treasurer of any county may require the treasurer of any other 
 10.36  county to certify to the former the market valuation of any 
 11.1   tract of land in any such mortgage. 
 11.2      Sec. 7.  Minnesota Statutes 1998, section 287.10, is 
 11.3   amended to read: 
 11.4      287.10 [PREPAYMENT OF TAX; EVIDENCE; NOTICE.] 
 11.5      A mortgage or papers documents relating to its foreclosure, 
 11.6   assignment, or satisfaction, must not be recorded or registered 
 11.7   unless the tax has been paid.  A Except as provided in section 
 11.8   582.25, a document or any record of the mortgage may not be 
 11.9   received in evidence in any court, and is not valid notice, 
 11.10  unless the tax has been paid.  If the tax is paid, an error in 
 11.11  computation or ascertainment of the amount does not affect the 
 11.12  validity of the mortgage or the record or foreclosure.  This 
 11.13  section does not apply to a mortgage that is exempt 
 11.14  from taxation the tax imposed under section 287.04 or 287.05, 
 11.15  subdivision 1 287.035.  
 11.16     Sec. 8.  Minnesota Statutes 1998, section 287.11, is 
 11.17  amended to read: 
 11.18     287.11 [MORTGAGES RECORDED OR REGISTERED PRIOR TO PASSAGE 
 11.19  OF SECTIONS 287.01 TO 287.12.] 
 11.20     All mortgages of real estate recorded or registered prior 
 11.21  to the passage of sections 287.01 to 287.12 shall be are taxable 
 11.22  as provided by law under the provisions of law relating thereto 
 11.23  existing prior to the enactment hereof of sections 287.01 to 
 11.24  287.12; provided, that the holder of any such mortgage may pay 
 11.25  to the treasurer of the proper county, or the state treasurer, 
 11.26  or both, the tax therein prescribed based upon the amount of the 
 11.27  debt secured by such the mortgage at the time of such the 
 11.28  payment as stated by the affidavit of the owner of such the 
 11.29  mortgage, to be filed with the county treasurer, and have the 
 11.30  treasurer's receipt, countersigned by the auditor, endorsed 
 11.31  thereon.  The county recorder or secretary of state, as the case 
 11.32  may be, on presentation of such the receipt, shall note on the 
 11.33  margin of the mortgage make a record of the date and amount of 
 11.34  such the payment.  Thereafter such the mortgage debt lien 
 11.35  shall not be otherwise taxable. 
 11.36     Sec. 9.  Minnesota Statutes 1998, section 287.12, is 
 12.1   amended to read: 
 12.2      287.12 [TAXES, HOW APPORTIONED.] 
 12.3      (a) All taxes paid to the county treasurer under the 
 12.4   provisions of sections 287.01 to 287.12 shall must be 
 12.5   apportioned, 97 percent to the general fund of the state, and 
 12.6   three percent to the county revenue fund. 
 12.7      (b) On or before the tenth 20th day of each month the 
 12.8   county treasurer shall determine and pay to the commissioner of 
 12.9   revenue for deposit in the state treasury and credit to the 
 12.10  general fund the state's portion of the receipts from the 
 12.11  mortgage registration tax during the preceding month subject to 
 12.12  the electronic funds transfer requirements of section 270.771.  
 12.13  The county treasurer shall provide any related reports requested 
 12.14  by the commissioner of revenue. 
 12.15     Sec. 10.  Minnesota Statutes 1998, section 287.13, 
 12.16  subdivision 1, is amended to read: 
 12.17     Subdivision 1.  [FAILURE TO PAY FULL AMOUNT.] Any person 
 12.18  liable for the tax imposed by section 287.05 287.035 who fails 
 12.19  to pay the full amount of mortgage registry tax imposed under 
 12.20  sections 287.01 to 287.12 this chapter, unless such the failure 
 12.21  is shown to be due to reasonable cause, is liable for a civil 
 12.22  penalty of $250 or 100 percent of the tax for each such failure, 
 12.23  whichever is less. 
 12.24     Sec. 11.  [287.20] [DEFINITIONS.] 
 12.25     Subdivision 1.  [WORDS, TERMS, AND PHRASES.] Unless the 
 12.26  language or context clearly indicates that a different meaning 
 12.27  is intended, the following words, terms, and phrases, for the 
 12.28  purposes of sections 287.21 to 287.37, have the meanings given 
 12.29  to them in this section. 
 12.30     Subd. 2.  [CONSIDERATION.] (a) "Consideration" means 
 12.31  generally the total monetary value that is given in return for a 
 12.32  conveyance of lands or realty in this state and includes all 
 12.33  lump-sum payments, all prior or future installment payments that 
 12.34  are required under the agreement between the parties, and the 
 12.35  fair market value of any property taken, or to be taken, in 
 12.36  exchange. 
 13.1      (b) Consideration also includes the fair market value of 
 13.2   any and all improvements located on the real property being 
 13.3   conveyed by a taxable deed or instrument. 
 13.4      (c) Consideration does not include the reasonable and 
 13.5   lawful amounts of interest paid for the privilege of paying the 
 13.6   purchase price in installments and the fair market value of any 
 13.7   items of intangible personal property that are conveyed by the 
 13.8   taxable instrument. 
 13.9      (d) Consideration does not include the amount paid for the 
 13.10  personal property located on the real property being conveyed if 
 13.11  the sale involves substantial amounts of personal property.  In 
 13.12  order to qualify under the preceding sentence, the real property 
 13.13  being conveyed must not be used primarily for residential 
 13.14  purposes by the grantee; at least 40 percent of the 
 13.15  consideration attributable to both the real property and the 
 13.16  personal property must be for the personal property; and, the 
 13.17  personal property located on the real property must be conveyed 
 13.18  by a bill of sale, or a similar document, and not by operation 
 13.19  of the involved deed. 
 13.20     (e) Consideration is determined at the time that the 
 13.21  taxable instrument is executed and delivered. 
 13.22     (f) "Total consideration" has the same meaning as 
 13.23  consideration. 
 13.24     (g) "Consideration, exclusive of the value of any lien or 
 13.25  encumbrance remaining thereon at the time of sale" or "net 
 13.26  consideration" means the amount of consideration as reduced by 
 13.27  the monetary value of any lien that attached to the property 
 13.28  prior to the time of sale and that is not removed or satisfied 
 13.29  as a result of the sale.  The time of sale for this purpose is 
 13.30  the time when a fully executed conveyance document is delivered 
 13.31  to the grantee. 
 13.32     Subd. 3.  [CONSOLIDATION OR MERGER.] "Consolidation" or 
 13.33  "merger" means the combination of all of the assets of two or 
 13.34  more corporations, whether or not title to the assets is taken 
 13.35  by a newly created corporation or by a preexisting corporation 
 13.36  that survives the consolidation or merger in an altered form. 
 14.1      Subd. 4.  [DOCUMENTARY STAMPS.] "Documentary stamps" means 
 14.2   all stamps issued by the county for use in payment of the taxes 
 14.3   imposed by sections 287.21 to 287.37. 
 14.4      Subd. 5.  [LIEN.] "Lien" means any legal claim, other than 
 14.5   an easement, created by contract, statute, or law on the 
 14.6   property of another as security for a debt or obligation.  For 
 14.7   purposes of the deed tax, the term "encumbrance" is synonymous 
 14.8   with the term "lien" and an easement is not a lien.  
 14.9      Subd. 6.  [PERSON.] "Person" includes any individual, 
 14.10  partner, officer, director, firm, partnership, joint venture, 
 14.11  limited liability company, association, cooperative, social 
 14.12  club, fraternal organization, municipal or private corporation, 
 14.13  whether organized for profit or not, estate, trusts, business 
 14.14  trusts, receiver, trustee, syndicate, the United States, a 
 14.15  state, any political subdivision of a state, or any group or 
 14.16  combination acting as a unit, and the plural as well as the 
 14.17  singular.  The term includes directors and officers of 
 14.18  corporations, governors and managers of a limited liability 
 14.19  company, or members of partnerships who, either individually or 
 14.20  jointly with others, have control, supervision, or 
 14.21  responsibility of making or authorizing payment of the tax 
 14.22  imposed by section 287.21.  The term includes any agent of any 
 14.23  individual or organization enumerated in this subdivision. 
 14.24     Subd. 7.  [RECORD.] "Record," "recorded," and "recording" 
 14.25  each mean that a document has been delivered to and filed in the 
 14.26  office of the county recorder or registrar of titles, whichever 
 14.27  office maintains the records for the real property described in 
 14.28  the document. 
 14.29     Subd. 8.  [REORGANIZATION.] "Reorganization" means the 
 14.30  transfer of substantially all of the assets of a corporation not 
 14.31  in the usual or regular course of business. 
 14.32     Sec. 12.  Minnesota Statutes 1998, section 287.21, 
 14.33  subdivision 1, is amended to read: 
 14.34     Subdivision 1.  [DETERMINATION OF TAX.] There (a) A tax is 
 14.35  hereby imposed on each deed, or instrument, or writing by which 
 14.36  any lands, tenements, or other realty in this state shall be are 
 15.1   granted, assigned, transferred, or otherwise conveyed, a tax 
 15.2   determined in the following manner.  The tax applies against the 
 15.3   net consideration. 
 15.4      (b) The tax is determined in the following manner:  (1) 
 15.5   when transfers are made by instruments pursuant to mergers, 
 15.6   consolidations, sales, or transfers of substantially all of the 
 15.7   assets of corporations pursuant to plans of reorganization or, 
 15.8   the tax is $1.65; (2) when there is no consideration or when the 
 15.9   consideration, exclusive of the value of any lien or encumbrance 
 15.10  remaining thereon at the time of sale, is $500 or less, the 
 15.11  tax shall be is $1.65.; or (3) when the consideration, exclusive 
 15.12  of the value of any lien or encumbrance remaining thereon at the 
 15.13  time of sale, exceeds $500, the tax shall be is $1.65 plus $1.65 
 15.14  for each additional $500 or fraction of that amount. 
 15.15     The tax applies against the total consideration, including 
 15.16  the fair market value consideration for any personal property 
 15.17  located on the real property conveyed by the deed and 
 15.18  transferred as part of the total consideration, but excluding 
 15.19  the value of any lien or encumbrance remaining on the property 
 15.20  at the time of sale. 
 15.21     (c) The tax is due at the time a taxable deed or instrument 
 15.22  is presented for recording. 
 15.23     Sec. 13.  Minnesota Statutes 1998, section 287.22, is 
 15.24  amended to read: 
 15.25     287.22 [EXCEPTIONS EXEMPTIONS.] 
 15.26     The tax imposed by section 287.21 shall not apply to: 
 15.27     A.  Any executory contract for the sale of land real 
 15.28  property under which the vendee purchaser is entitled to or does 
 15.29  take possession thereof of the real property, or any assignment 
 15.30  or cancellation thereof of the contract.  
 15.31     B.  Any mortgage or any amendment, assignment, extension, 
 15.32  partial release, or satisfaction thereof of a mortgage.  
 15.33     C.  Any will.  
 15.34     D.  Any plat.  
 15.35     E.  Any lease.  
 15.36     F.  Any deed, instrument, or writing in which the United 
 16.1   States or any agency or instrumentality thereof is the grantor, 
 16.2   assignor, transferor, conveyor, grantee, or assignee. 
 16.3      G.  Deeds for cemetery lots.  
 16.4      H.  Deeds of distribution by personal representatives.  
 16.5      I.  Deeds to or from coowners co-owners partitioning the 
 16.6   undivided interests in the same piece of property. 
 16.7      J.  Any deed or other instrument of conveyance issued 
 16.8   pursuant to a permanent school fund land exchange under section 
 16.9   92.121 and related laws.  
 16.10     K.  A referee's or sheriff's certificate of sale in a 
 16.11  mortgage or lien foreclosure sale. 
 16.12     L.  A referee's or sheriff's certificate of redemption from 
 16.13  a mortgage or lien foreclosure sale issued to the redeeming 
 16.14  mortgagor or lienee. 
 16.15     M.  Any deed, instrument, or writing which grants, creates, 
 16.16  modifies, or cancels terminates an easement. 
 16.17     N.  A decree of marriage dissolution, as defined in section 
 16.18  287.01, subdivision 4, or any deed or other instrument between 
 16.19  the parties to the dissolution made pursuant to the terms of the 
 16.20  decree. 
 16.21     Sec. 14.  [287.2205] [TAX-FORFEITED LAND.] 
 16.22     Before a state deed for tax-forfeited land may be issued, 
 16.23  the deed tax must be paid by the purchaser of tax-forfeited land 
 16.24  whether the purchase is the result of a public auction or 
 16.25  private sale or a repurchase of tax-forfeited land.  State 
 16.26  agencies and local units of government that acquire 
 16.27  tax-forfeited land by purchase or any other means are subject to 
 16.28  this section. 
 16.29     Sec. 15.  Minnesota Statutes 1998, section 287.23, is 
 16.30  amended to read: 
 16.31     287.23 [REAL ESTATE OUTSIDE COUNTY OR STATE.] 
 16.32     Subdivision 1.  [REAL ESTATE OUTSIDE COUNTY.] If any 
 16.33  taxable deed or instrument describes any real estate located in 
 16.34  more than one county in this state, all of the tax must be paid 
 16.35  to the treasurer of the county where the document is first 
 16.36  presented for recording, and the payment must be receipted as 
 17.1   provided in section 287.08.  If the net consideration exceeds 
 17.2   $700,000, the nonstate portion of the tax must be divided and 
 17.3   paid over by the county treasurer receiving it, on or before the 
 17.4   20th day of each month after receipt, to the county or counties 
 17.5   entitled in the ratio which the market value of the real 
 17.6   property covered by the document in each county bears to the 
 17.7   market value of all the property in this state described in the 
 17.8   document.  In making the division and payment the county 
 17.9   treasurer must send a statement giving the description of the 
 17.10  property described in the document and the market value of the 
 17.11  part located in each county.  The treasurer of any county may 
 17.12  require the treasurer of any other county to certify to the 
 17.13  former the market valuation of any tract of land in any document.
 17.14     Subd. 2.  [REAL ESTATE OUTSIDE STATE.] If any deed, 
 17.15  instrument, or writing shall describe describes any real 
 17.16  estate situate located outside of this state, the tax imposed by 
 17.17  section 287.21 shall must be measured upon such proportion of 
 17.18  the consideration, (exclusive of the value of any lien or 
 17.19  encumbrance remaining thereon at the time of sale), as the value 
 17.20  of the real estate therein described situate in this state bears 
 17.21  to the value of the whole of the real estate described therein.  
 17.22     Sec. 16.  Minnesota Statutes 1998, section 287.24, is 
 17.23  amended to read: 
 17.24     287.24 [PERSONS LIABLE.] 
 17.25     Any person who grants, assigns, transfers, or conveys any 
 17.26  land, tenement, or realty by a deed, writing, or instrument 
 17.27  subject to the tax imposed by section 287.21 shall be personally 
 17.28  liable for such tax; but no public official shall be personally 
 17.29  liable for a tax with respect to any instrument executed by the 
 17.30  official in connection with official duties.  
 17.31     Sec. 17.  Minnesota Statutes 1998, section 287.241, is 
 17.32  amended to read: 
 17.33     287.241 [STATEMENT OF TAX DUE OR EXEMPTION; RECORDING OR 
 17.34  REGISTERING OF DOCUMENTS.] 
 17.35     Subdivision 1.  [STATEMENT OF TAX DUE OR EXEMPTION.] No 
 17.36  deed, or instrument, or writing, taxable under the provisions of 
 18.1   section 287.21, shall be recorded or registered by the county 
 18.2   recorder or the registrar of titles unless it shall contain 
 18.3   contains the statement of the grantor or grantee, or any 
 18.4   successor in interest, setting forth the amount of tax due under 
 18.5   this chapter or that it is exempt from tax.  The statement is 
 18.6   not binding on the county treasurer, and the treasurer may 
 18.7   determine the tax owing without regard to the contents of the 
 18.8   statement when deemed appropriate by the treasurer.  The county 
 18.9   recorder or registrar of titles shall record or register any 
 18.10  such document deed or instrument when the treasurer's 
 18.11  determination, or if the treasurer does not make a 
 18.12  determination, the statement sets forth that the transfer is tax 
 18.13  exempt, and.  The county recorder or registrar shall refuse to 
 18.14  record or register any such document deed or instrument on which 
 18.15  either documentary stamps in the amount stated thereon have not 
 18.16  been affixed or the treasurer's receipt does not appear for the 
 18.17  amount of deed tax determined by the county treasurer, or as 
 18.18  recited in the statement if the treasurer does not make a 
 18.19  determination.  The validity or effectiveness of an a deed or 
 18.20  instrument as between the parties thereto, and as to any person 
 18.21  who would otherwise be bound thereby, shall is not be affected 
 18.22  by the failure to comply herewith; nor with this section.  If an 
 18.23  a deed or instrument is accepted for recording or filing 
 18.24  contrary to the provisions hereof this section, shall the 
 18.25  failure to comply herewith does not destroy or impair the record 
 18.26  thereof of the deed or instrument as notice. 
 18.27     Subd. 2.  [NOTICE OF CERTIFICATE OF VALUE.] No deed or 
 18.28  instrument providing for the transfer of title to real estate as 
 18.29  subject to the tax as provided in section 287.21 and no 
 18.30  executory contract for the sale of land shall be recorded in the 
 18.31  office of the county recorder or the registrar of titles unless 
 18.32  such deed or instrument shall be is accompanied by a notice from 
 18.33  the county auditor that a certificate of value was filed in the 
 18.34  auditor's office as provided in section 272.115. 
 18.35     Sec. 18.  Minnesota Statutes 1998, section 287.29, 
 18.36  subdivision 1, is amended to read: 
 19.1      Subdivision 1.  [APPOINTMENT AND PAYMENT OF TAX PROCEEDS.] 
 19.2   (a) The proceeds of the taxes levied and collected under 
 19.3   sections 287.21 to 287.36 must be apportioned, 97 percent to the 
 19.4   general fund of the state, and three percent to the county 
 19.5   revenue fund. 
 19.6      (b) On or before the tenth 20th day of each month, the 
 19.7   county treasurer shall determine and pay to the commissioner of 
 19.8   revenue for deposit in the state treasury and credit to the 
 19.9   general fund the state's portion of the receipts for deed tax 
 19.10  from the sale of documentary stamps during the preceding month 
 19.11  subject to the electronic transfer requirements of section 
 19.12  270.771.  The county treasurer shall provide any related reports 
 19.13  requested by the commissioner of revenue. 
 19.14     Sec. 19.  Minnesota Statutes 1998, section 287.30, is 
 19.15  amended to read: 
 19.16     287.30 [COUNTY TREASURER; DUTIES.] 
 19.17     The care of documentary stamps entrusted to county 
 19.18  treasurers and the duties imposed upon county treasurers by 
 19.19  sections 287.21 to 287.33 shall be this chapter are within the 
 19.20  duties of such office and shall be are within the coverage of 
 19.21  any official bond delivered to the state, conditioned that any 
 19.22  such officer shall faithfully execute the duties of office.  The 
 19.23  county board may by resolution require the county auditor to 
 19.24  perform any duty imposed on the county treasurer under this 
 19.25  chapter. 
 19.26     Sec. 20.  Minnesota Statutes 1998, section 287.31, is 
 19.27  amended to read: 
 19.28     287.31 [VIOLATIONS; CIVIL PENALTIES.] 
 19.29     Subdivision 1.  [FAILURE TO COMPLY PAY FULL AMOUNT.] Any 
 19.30  person liable for the tax imposed by section 287.21 who fails to 
 19.31  comply with the provisions of section 287.25 pay the full amount 
 19.32  of deed tax imposed under this chapter, unless such failure is 
 19.33  shown to be due to reasonable cause, shall be is liable to a 
 19.34  civil penalty of $250, or 100 percent of the tax, for each such 
 19.35  failure, whichever is less. 
 19.36     Subd. 2.  [WILLFUL EVASION.] Any person who willfully 
 20.1   attempts in any manner to evade or defeat any such tax or the 
 20.2   payment thereof, shall is, in addition to other penalties 
 20.3   provided by law, be liable to a penalty of 50 percent of the 
 20.4   total amount of the underpayment of the tax.  
 20.5      Sec. 21.  [287.325] [VIOLATIONS; CRIMINAL PENALTIES.] 
 20.6      Any person who in any manner intentionally attempts to 
 20.7   evade a tax imposed by this chapter, or who intentionally aids 
 20.8   or abets in the evasion or attempted evasion of such tax is 
 20.9   guilty of a gross misdemeanor. 
 20.10     Sec. 22.  Minnesota Statutes 1998, section 287.33, is 
 20.11  amended to read: 
 20.12     287.33 [EXPENSES OF ADMINISTRATION.] 
 20.13     Expenses of administration of sections 287.21 to 287.34 
 20.14  this chapter to be paid out of county funds include fees and 
 20.15  expenses incurred by the county attorney in connection 
 20.16  with sections 287.21 to 287.34 this chapter and all other costs 
 20.17  and expenses.  
 20.18     Sec. 23.  [287.38] [LIMITATIONS ON TIME FOR ASSESSMENT OF 
 20.19  TAX.] 
 20.20     Subdivision 1.  [GENERAL RULE.] Except as otherwise 
 20.21  provided in this section, the amount of taxes assessable under 
 20.22  this chapter must be assessed within 3-1/2 years after the date 
 20.23  the document is recorded. 
 20.24     Subd. 2.  [OMISSION IN EXCESS OF 25 PERCENT.] Additional 
 20.25  taxes may be assessed within 6-1/2 years after the document was 
 20.26  recorded, if the taxpayer underpays the tax due on the filing of 
 20.27  that document by more than 25 percent or the document was 
 20.28  erroneously treated as exempt. 
 20.29     Subd. 3.  [FRAUD.] Notwithstanding the limitations under 
 20.30  subdivision 1, additional taxes may be assessed at any time if a 
 20.31  document is presented for recording with a fraudulent intent to 
 20.32  underpay the taxes imposed by this chapter.  
 20.33     Sec. 24.  [287.385] [INTEREST.] 
 20.34     Subdivision 1.  [INTEREST RATE.] If an interest assessment 
 20.35  is required under this section, interest is computed at the rate 
 20.36  specified in section 270.75. 
 21.1      Subd. 2.  [LATE PAYMENT.] If a tax is not paid within the 
 21.2   time specified by law for payment, the unpaid tax bears interest 
 21.3   from the date the tax should have been paid until the date the 
 21.4   tax is paid. 
 21.5      Subd. 3.  [EXTENSIONS.] If an extension of time for payment 
 21.6   has been granted, interest must be paid from the date the 
 21.7   payment should have been made if no extension had been granted, 
 21.8   until the date the tax is paid. 
 21.9      Subd. 4.  [ADDITIONAL ASSESSMENTS.] If a taxpayer is liable 
 21.10  for additional taxes because of a redetermination by the 
 21.11  commissioner of revenue, or for any other reason, the additional 
 21.12  taxes bear interest from the time the tax should have been paid, 
 21.13  without regard to any extension allowed, until the date the tax 
 21.14  is paid. 
 21.15     Subd. 5.  [REFUNDS.] (a) Interest must be paid at the rate 
 21.16  specified in section 270.75 on an overpayment that is refunded 
 21.17  or credited to a taxpayer more than 30 days after a refund 
 21.18  request is made.  Interest shall not be paid during, or for, the 
 21.19  30-day period. 
 21.20     (b) In the case of an erroneous refund, interest accrues 
 21.21  from the date the refund was paid unless the erroneous refund 
 21.22  results from a mistake of the department of revenue or the 
 21.23  county, then no interest or penalty is imposed unless the 
 21.24  deficiency assessment is not satisfied within 60 days of the 
 21.25  order. 
 21.26     Subd. 6.  [INTEREST ON JUDGMENTS.] Notwithstanding section 
 21.27  549.09, if judgment is entered in favor of the commissioner of 
 21.28  revenue or a county with regard to any tax under this chapter, 
 21.29  the judgment bears interest at the rate specified in section 
 21.30  270.75 from the date the judgment is entered until the date of 
 21.31  payment. 
 21.32     Subd. 7.  [INTEREST ON PENALTIES.] (a) A penalty imposed 
 21.33  under this chapter bears interest from the date payment was 
 21.34  required to be paid, including any extensions, to the date of 
 21.35  payment of the penalty. 
 21.36     (b) A penalty not included in paragraph (a) bears interest 
 22.1   only if it is not paid within ten days from the date of notice.  
 22.2   In that case interest is imposed from the date of notice to the 
 22.3   date of payment. 
 22.4      Sec. 25.  [287.39] [ADMINISTRATIVE REVIEW.] 
 22.5      Subdivision 1.  [TAXPAYER RIGHT TO RECONSIDERATION.] Under 
 22.6   this section, a taxpayer may obtain reconsideration by the 
 22.7   commissioner of revenue of:  (1) an order of the commissioner 
 22.8   assessing tax; (2) a denial by the commissioner of a request for 
 22.9   abatement of penalty; or (3) a denial by the commissioner of a 
 22.10  claim for refund of money paid to the commissioner as a result 
 22.11  of an assessment or order issued by the commissioner under this 
 22.12  chapter, by filing an administrative appeal as provided in 
 22.13  subdivision 4.  A taxpayer cannot obtain reconsideration if the 
 22.14  action taken by the commissioner of revenue is the outcome of an 
 22.15  administrative appeal. 
 22.16     Subd. 2.  [APPEAL BY TAXPAYER.] A taxpayer who wishes to 
 22.17  seek administrative review shall follow the procedure in 
 22.18  subdivision 4. 
 22.19     Subd. 3.  [NOTICE DATE.] For purposes of this section, 
 22.20  "notice date" means the date of the order adjusting the tax or 
 22.21  order denying a request for abatement or, in the case of a 
 22.22  denied refund, the date of the notice of denial. 
 22.23     Subd. 4.  [TIME AND CONTENT FOR ADMINISTRATIVE APPEAL.] 
 22.24  Within 60 days after the notice date, the taxpayer must file a 
 22.25  written appeal with the commissioner of revenue.  The appeal 
 22.26  need not be in any particular form, but must contain the 
 22.27  following information: 
 22.28     (1) name and address of the taxpayer; 
 22.29     (2) if a corporation, the state of incorporation of the 
 22.30  taxpayer, and the principal place of business of the 
 22.31  corporation; 
 22.32     (3) the Minnesota identification number or social security 
 22.33  number of the taxpayer; 
 22.34     (4) the type of tax involved; 
 22.35     (5) the date; 
 22.36     (6) the tax periods involved and the amount of tax involved 
 23.1   for each period; 
 23.2      (7) the findings in the notice that the taxpayer disputes; 
 23.3      (8) a summary statement that the taxpayer relies on for 
 23.4   each exception; and 
 23.5      (9) the taxpayer's signature or the signature of the 
 23.6   taxpayer's duly authorized agent. 
 23.7      Subd. 5.  [EXTENSIONS.] If requested in writing and within 
 23.8   the time allowed for filing an administrative appeal, the 
 23.9   commissioner may extend the time for filing an appeal for a 
 23.10  period of not more that 30 days from the expiration of the 60 
 23.11  days from the notice date. 
 23.12     Subd. 6.  [DETERMINATION OF APPEAL.] On the basis of 
 23.13  applicable law and available information, the commissioner shall 
 23.14  determine the validity, if any, in whole or part of the appeal 
 23.15  and notify the taxpayer of the decision.  This notice must be in 
 23.16  writing and contain the basis for the determination. 
 23.17     Subd. 7.  [AGREEMENT DETERMINING TAX LIABILITY.] If the 
 23.18  commissioner determines that it is in the best interests of the 
 23.19  state, the commissioner may settle taxes, penalties, or interest 
 23.20  that the commissioner has under consideration by virtue of an 
 23.21  appeal filed under this section.  An agreement must be in 
 23.22  writing and signed by the commissioner and the taxpayer or the 
 23.23  taxpayer's representative authorized by the taxpayer to enter 
 23.24  into an agreement.  The agreement is final and conclusive and, 
 23.25  except upon a showing of fraud or malfeasance, or 
 23.26  misrepresentation of a material fact, the case shall not be 
 23.27  reopened as to the matters agreed upon. 
 23.28     Subd. 8.  [APPEAL OF AN ADMINISTRATIVE DETERMINATION.] 
 23.29  Following the determination of an appeal and notwithstanding any 
 23.30  period of limitations for making assessments or other 
 23.31  determinations to the contrary, the commissioner must issue an 
 23.32  order reflecting that disposition.  If the statute of 
 23.33  limitations for making assessments or other determinations would 
 23.34  have expired before the issuance of this order, except for this 
 23.35  section, the order is limited to issues or matters contained in 
 23.36  the appealed determination.  The order is appealable to the 
 24.1   Minnesota tax court under section 271.06. 
 24.2      Subd. 9.  [APPEAL WHERE NO DETERMINATION.] If the 
 24.3   commissioner does not make a determination within six months of 
 24.4   the filing of an administrative appeal, the taxpayer may elect 
 24.5   to appeal to tax court. 
 24.6      Subd. 10.  [EXEMPTION FROM ADMINISTRATIVE PROCEDURE 
 24.7   ACT.] This section is not subject to chapter 14. 
 24.8      Sec. 26.  [REPEALER.] 
 24.9      Minnesota Statutes 1998, sections 287.06; 287.07; 287.09; 
 24.10  287.21, subdivisions 2 and 4; 287.34; 287.35; and 287.36, are 
 24.11  repealed. 
 24.12     Sec. 27.  [EFFECTIVE DATE.] 
 24.13     Sections 1 to 26 are effective for documents recorded or 
 24.14  registered after June 30, 1999.