Minnesota Legislature
HF 1055
as introduced - 90th Legislature (2017 - 2018) Posted on 02/09/2017 01:50pm
Current Version - as introduced
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A bill for an act
relating to taxation; property; modifying due dates and penalties; amending
Minnesota Statutes 2016, section 279.01, subdivisions 1, 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read:
Subdivision 1.
Due dates; penalties.
deleted text begin Except as provided in subdivisions 3 to 5, 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. Thedeleted text end new text begin (a) When the taxes against
any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May
16, and the remaining one-half must be paid prior to the following October 16. If either tax
amount is unpaid as of its due date, anew text end penalty is new text begin imposed new text end at a rate of two percent on homestead
property deleted text begin until May 31deleted text end and fournew text begin percent on nonhomestead property. If complete payment
has not been made by the first day of the month following either due date, an additional
penalty of twonew text end percent on deleted text begin June 1. The penalty on nonhomestead property is at a rate of four
percent until May 31deleted text end new text begin homestead property new text end and deleted text begin eightdeleted text end new text begin fournew text end percent on deleted text begin 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 subdivisiondeleted text end new text begin nonhomestead property is imposednew text end . Thereafter,
for both homestead and nonhomestead property, on the first day of each new text begin subsequent new text end month
deleted text begin beginning July 1, up to and including October 1 followingdeleted text end new text begin through Decembernew text end , an additional
penalty of one percent for each month accrues and is charged on all such unpaid taxes
provided that deleted text begin 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 followingdeleted text end new text begin the penalty must not exceed eight percent in the case of homestead property,
or 12 percent in the case of nonhomestead propertynew text end .
new text begin
(b) If the property tax statement was not postmarked prior to April 25, the first half
payment due date in paragraph (a) shall be 21 days from the postmark date of the property
tax statement, and all penalties referenced in paragraph (a) shall be determined with regard
to the later due date.
new text end
new text begin
(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as
specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount
of the tax due.
new text end
new text begin
(d) For 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, the first half
payment is due prior to June 1. For a class 3a property to qualify for the later due date, the
owner of the property must attach an affidavit to the payment attesting to compliance with
the income requirements of this paragraph.
new text end
new text begin (e) new text end This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.
new text begin (f) new text end 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.
new text begin (g) new text end 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 2018.
new text end
Sec. 2.
Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read:
Subd. 3.
Agricultural property.
deleted text begin (a)deleted text end In the case of class 1b agricultural homestead, class
2a agricultural homestead property, and class 2a agricultural nonhomestead property, no
penalties shall attach to the second one-half property tax payment as provided in this section
if paid by November 15. Thereafter deleted text begin for class 1b agricultural homestead and class 2a
homestead property, on November 16 following, a penalty of six percent shall accrue and
be charged on all such unpaid taxes and on December 1 following, an additional two percent
shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural nonhomestead
property, on November 16 following, a penalty of eight percent shall accrue and be charged
on all such unpaid taxes and on December 1 following, an additional four percent shall be
charged on all such unpaid taxesdeleted text end new text begin , penalties shall attach as provided in subdivision 1new text end .
If the owner of class 1b agricultural homestead or class 2a agricultural property receives
a consolidated property tax statement that shows only an aggregate of the taxes and special
assessments due on that property and on other property not classified as class 1b agricultural
homestead or class 2a agricultural property, the aggregate tax and special assessments shown
due on the property by the consolidated statement will be due on November 15.
deleted text begin
(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b
property that was subject to a second-half due date of November 15 for taxes payable in
2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of
those that would apply as if the second-half due date were November 15.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end