HF 2106

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; transferring the legal incidence 
  1.3             of the mortgage registry tax from the mortgagee to the 
  1.4             mortgagor; amending Minnesota Statutes 2000, sections 
  1.5             287.035; 287.08; 287.13, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 287.035, is 
  1.8   amended to read: 
  1.9      287.035 [IMPOSITION OF TAX.] 
  1.10     A tax of 23 cents is imposed upon each $100, or fraction 
  1.11  thereof, of the debt or portion of a debt that is secured by any 
  1.12  recorded mortgage of real property located in this state.  The 
  1.13  person liable for the tax is the mortgagee mortgagor.  The tax 
  1.14  is not imposed on the lawful interest amounts that may accrue 
  1.15  with respect to a debt. 
  1.16     [EFFECTIVE DATE.] This section is effective for mortgages 
  1.17  recorded after June 30, 2001. 
  1.18     Sec. 2.  Minnesota Statutes 2000, section 287.08, is 
  1.19  amended to read: 
  1.20     287.08 [TAX, HOW PAYABLE; RECEIPTS.] 
  1.21     (a) The tax imposed by sections 287.01 to 287.12 must be 
  1.22  paid to the treasurer of any county in this state in which the 
  1.23  real property or some part is located at or before the time of 
  1.24  filing the mortgage for record.  The treasurer shall endorse 
  1.25  receipt on the mortgage and the receipt is conclusive proof that 
  2.1   the tax has been paid in the amount stated and authorizes any 
  2.2   county recorder or registrar of titles to record the mortgage.  
  2.3   Its form, in substance, shall be "registration tax hereon of 
  2.4   ..................... dollars paid."  If the mortgage is exempt 
  2.5   from taxation the endorsement shall, in substance, be "exempt 
  2.6   from registration tax."  In either case the receipt must be 
  2.7   signed by the treasurer.  In case the treasurer is unable to 
  2.8   determine whether a claim of exemption should be allowed, the 
  2.9   tax must be paid as in the case of a taxable mortgage.  
  2.10     (b) Upon written application of the taxpayer, the county 
  2.11  treasurer may refund in whole or in part any tax that has been 
  2.12  erroneously paid, or a person having paid a mortgage registry 
  2.13  tax amount may seek a refund of the tax, or other appropriate 
  2.14  relief, by bringing an action in tax court in the county in 
  2.15  which the tax was paid, within 60 days of the payment.  The 
  2.16  action is commenced by the serving of a petition for relief on 
  2.17  the county treasurer, and by filing a copy with the court.  The 
  2.18  county attorney shall defend the action.  The county treasurer 
  2.19  shall notify the treasurer of each county that has or would 
  2.20  receive a portion of the tax as paid.  
  2.21     (c) If the county treasurer determines a refund should be 
  2.22  paid, or if a refund is ordered by the court, the county 
  2.23  treasurer of each county that actually received a portion of the 
  2.24  tax shall immediately pay a proportionate share of three percent 
  2.25  of the refund using any available county funds.  The county 
  2.26  treasurer of each county that received, or would have received, 
  2.27  a portion of the tax shall also pay their county's proportionate 
  2.28  share of the remaining 97 percent of the court-ordered refund on 
  2.29  or before the 20th day of the following month using solely the 
  2.30  mortgage registry tax funds that would be paid to the 
  2.31  commissioner of revenue on that date under section 287.12.  If 
  2.32  the funds on hand under this procedure are insufficient to fully 
  2.33  fund 97 percent of the court-ordered refund, the county 
  2.34  treasurer of the county in which the action was brought shall 
  2.35  file a claim with the commissioner of revenue under section 
  2.36  16A.48 for the remaining portion of 97 percent of the refund, 
  3.1   and shall pay over the remaining portion upon receipt of a 
  3.2   warrant from the state issued pursuant to the claim. 
  3.3      (d) When any mortgage covers real property located in more 
  3.4   than one county in this state the total tax must be paid to the 
  3.5   treasurer of the county where the mortgage is first presented 
  3.6   for recording, and the payment must be receipted as provided in 
  3.7   paragraph (a).  If the principal debt or obligation secured by 
  3.8   such a multiple county mortgage exceeds $1,000,000, the nonstate 
  3.9   portion of the tax must be divided and paid over by the county 
  3.10  treasurer receiving it, on or before the 20th day of each month 
  3.11  after receipt, to the county or counties entitled in the ratio 
  3.12  that the market value of the real property covered by the 
  3.13  mortgage in each county bears to the market value of all the 
  3.14  real property in this state described in the mortgage.  In 
  3.15  making the division and payment the county treasurer shall send 
  3.16  a statement giving the description of the real property 
  3.17  described in the mortgage and the market value of the part 
  3.18  located in each county.  For this purpose, the treasurer of any 
  3.19  county may require the treasurer of any other county to certify 
  3.20  to the former the market valuation of any tract of real property 
  3.21  in any mortgage. 
  3.22     (e) The mortgagor must pay the tax imposed by sections 
  3.23  287.01 to 287.12.  The mortgagee may undertake to collect and 
  3.24  remit the tax on behalf of the mortgagor.  If the mortgagee 
  3.25  collects money from the mortgagor to remit the tax on behalf of 
  3.26  the mortgagor, the mortgagee has a fiduciary duty to remit the 
  3.27  tax on behalf of the mortgagor as to the amount of the tax 
  3.28  collected for that purpose and the mortgagor is relieved of any 
  3.29  further obligation to pay the tax as to the amount collected by 
  3.30  the mortgagee for this purpose. 
  3.31     [EFFECTIVE DATE.] This section is effective for mortgages 
  3.32  recorded after June 30, 2001. 
  3.33     Sec. 3.  Minnesota Statutes 2000, section 287.13, is 
  3.34  amended by adding a subdivision to read: 
  3.35     Subd. 3.  [PAYMENT TO MORTGAGEE.] If a mortgagee undertakes 
  3.36  to collect from the mortgagor the amount of the tax due under 
  4.1   sections 287.01 to 287.12 as provided in section 287.08, 
  4.2   paragraph (e), the mortgagor is not subject to the penalties 
  4.3   under this section and the mortgagee is subject to the 
  4.4   provisions of this section. 
  4.5      [EFFECTIVE DATE.] This section is effective for mortgages 
  4.6   recorded after June 30, 2001.