HF 1507

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:51am

A bill for an act
relating to taxation; mortgage tax; exempting certain residential mortgages from
the mortgage tax; amending Minnesota Statutes 2008, section 287.04.

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

Section 1.

Minnesota Statutes 2008, section 287.04, is amended to read:

287.04 EXEMPTIONS.

The tax imposed by section 287.035 does not apply to:

(a) A decree of marriage dissolution or an instrument made pursuant to it.

(b) A mortgage given to correct a misdescription of the mortgaged property.

(c) A mortgage or other instrument that adds additional security for the same debt
for which mortgage registry tax has been paid.

(d) A contract for the conveyance of any interest in real property, including a
contract for deed.

(e) A mortgage secured by real property subject to the minerals production tax of
sections 298.24 to 298.28.

(f) The principal amount of a mortgage loan made under a low and moderate
income or other affordable housing program, if the mortgagee is a federal, state, or local
government agency.

(g) Mortgages granted by fraternal benefit societies subject to section 64B.24.

(h) A mortgage amendment or extension, as defined in section 287.01.

(i) An agricultural mortgage if the proceeds of the loan secured by the mortgage are
used to acquire or improve real property classified under section 273.13, subdivision 23,
paragraph (a), or (b), clause (1), (2), or (3).

(j) A mortgage on an armory building as set forth in section 193.147.

new text begin (k) The first $400,000 of a mortgage granted by an individual, or by the individual
and the individual's spouse, on real property constituting their principal residence.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases made on or after July
1, 2009.
new text end