2000 Minnesota Statutes

     270.69 Lien for taxes. 

    Subdivision 1.    Creation of lien.  The tax imposed by 
 any chapter administered by the commissioner of revenue, and 
 interest and penalties imposed with respect thereto, including 
 any recording fees, sheriff fees, or court costs that may 
 accrue, shall become a lien upon all the property within this 
 state, both real and personal, of the person liable for the 
 payment or collection of the tax, except property exempt under 
 subdivision 3, from and after the date of assessment of the tax. 

    Subd. 2.    Filing of liens necessary for enforceability 
 against certain persons; methods of filing; fees.  (a) The 
 lien imposed by subdivision 1 is not enforceable against any 
 purchaser, mortgagee, pledgee, holder of a Uniform Commercial 
 Code security interest, mechanic's lienor, or judgment lien 
 creditor whose interest has been duly perfected or is entitled 
 to protection under applicable provisions of state law, until a 
 notice of lien has been filed by the commissioner of revenue in 
 the office of the county recorder of the county in which real 
 property is situated, or in the case of personal property 
 belonging to an individual who is not a resident of this state 
 or to a corporation, partnership, or other organization, in the 
 office of the secretary of state, or in the case of personal 
 property belonging to a resident individual, in the office of 
 the county recorder of the county of residence of the individual.

    (b)(1) Notices of liens, and lien releases, transcriptions, 
 and renewals, in a form prescribed by the commissioner of 
 revenue, may be filed with the county recorder or the secretary 
 of state by mail, personal delivery, or by electronic 
 transmission by the commissioner or a delegate into the 
 computerized filing system of the secretary of state authorized 
 under section 336.9-411.  The secretary of state shall transmit 
 the notice electronically to the office of the county recorder, 
 if that is the place of filing, in the county or counties shown 
 on the computer entry.  The filing officer, whether the county 
 recorder or the secretary of state, shall endorse and index a 
 printout of the notice in the same manner as if the notice had 
 been mailed or delivered.  

    (2) County recorders and the secretary of state shall enter 
 information relative to lien notices, transcriptions, renewals, 
 and releases filed in their offices into the central database of 
 the secretary of state.  For notices filed electronically with 
 the county recorders, the date and time of receipt of the notice 
 and county recorder's file number, and for notices filed 
 electronically with the secretary of state, the secretary of 
 state's recording information, must be entered by the filing 
 officer into the central database before the close of the 
 working day following the day of the original data entry by the 
 department of revenue.  

    The filing and indexing of all notices must be in 
 accordance with the filing and indexing of notices of federal 
 liens, certificates of release, and refiled notices under 
 section 272.483.  

    (c) Notwithstanding any other law to the contrary, the 
 department of revenue is exempt from payment of fees when a 
 lien, lien renewal, or lien transcription is offered for 
 recording.  The recording fees must be paid along with the 
 release fee at the end of the month in which the release of lien 
 is recorded, after receipt of a monthly statement from a county 
 recorder or the secretary of state.  The department of revenue 
 shall add the recording fees to the delinquent tax liability of 
 the taxpayer.  Notwithstanding any other law to the contrary, 
 the fee for filing or recording a notice of lien, or lien 
 release, transcription, or renewal is $15.  

    (d) There is appropriated to the commissioner of revenue an 
 amount representing the cost of payment of recording fees to the 
 county recorders and the secretary of state.  The commissioner 
 shall keep a separate accounting of the costs and of payments 
 for recording fees remitted by taxpayers, and make the records 
 available to the legislature upon request.  

    Subd. 3.    Exempt property.  The lien imposed on 
 personal property by this section, even though properly filed, 
 is not enforceable:  (1) against a purchaser with respect to 
 tangible personal property purchased at retail in the ordinary 
 course of the seller's trade or business, unless at the time of 
 purchase the purchaser intends the purchase to or knows the 
 purchase will hinder, evade, or defeat the collection of a tax; 
 or (2) against the personal property listed as exempt in 
 sections 550.37, 550.38, and 550.39. 

    Subd. 4.    Period of limitations.  The lien imposed by 
 this section shall, notwithstanding any other provision of law 
 to the contrary, be enforceable from the time the lien arises 
 and for ten years from the date of filing the notice of lien, 
 which must be filed by the commissioner within five years after 
 the date of assessment of the tax or final administrative or 
 judicial determination of the assessment.  A notice of lien 
 filed in one county may be transcribed to any other county 
 within ten years after the date of its filing, but the 
 transcription shall not extend the period during which the lien 
 is enforceable.  A notice of lien may be renewed by the 
 commissioner before the expiration of the ten-year period for an 
 additional ten years.  The taxpayer must receive written notice 
 of the renewal. 

    Subd. 5. Repealed, 1985 c 101 s 17 

    Subd. 6.    Enforceability of lien.  The lien imposed by 
 this section shall be enforceable by levy as authorized in 
 section 270.70, or by judgment lien foreclosure as authorized in 
 chapter 550.  

    Subd. 7.    Notice of mortgage foreclosure or contract 
 termination.  In the case of a mortgage foreclosure upon real 
 property commenced under chapter 580, or a termination of 
 contract of sale of real property commenced under section 
 559.21, if the commissioner has filed a lien under this section 
 before the foreclosure sale or date of termination, notice of 
 the mortgage foreclosure or termination of contract of sale 
 shall be mailed to the commissioner not less than 25 days prior 
 to the foreclosure sale or date of termination.  Provided, 
 notice need not be given pursuant to this subdivision if the 
 lien of the commissioner has been filed within 30 days or less 
 prior to the foreclosure sale or date of termination.  The 
 notice must contain the following information:  (1) the name and 
 address of the taxpayer; (2) a copy of the notice of mortgage 
 foreclosure or contract for deed cancellation; (3) a copy of the 
 lien filed by the commissioner; (4) the total unpaid balance of 
 the mortgage or contract for deed; (5) a legal description of 
 the property; and (6) the fair market value of the property.  

    Subd. 8.    Filing entitlement.  Execution of notices of 
 liens or of other notices affecting state tax liens by the 
 original or facsimile signature of the commissioner of revenue 
 or a delegate entitles them to be filed, and no other 
 attestation, certification, or acknowledgment is necessary.  For 
 purposes of this subdivision, transmission of notices under 
 subdivision 2, paragraph (b), clause (1), constitutes execution. 

    Subd. 9.    Lien search fees.  Upon request of any 
 person, the filing officer shall issue a certificate showing 
 whether there is recorded in that filing office, on the date and 
 hour stated in the certificate, any notice of lien or 
 certificate or notice affecting any lien filed on or after ten 
 years before the date of the search certificate, naming a 
 particular person, and giving the date and hour of filing of 
 each notice or certificate naming the person.  The fee for a 
 certificate shall be as provided by section 336.9-407 or 357.18, 
 subdivision 1, clause (3).  Upon request, the filing officer 
 shall furnish a copy of any notice of state lien, or notice or 
 certificate affecting a state lien, for a fee of 50 cents per 
 page. 

    Subd. 10.    Limitation for homestead property.  A lien 
 imposed under this section upon property defined as homestead 
 property in sections 510.01 and 510.02 may not be enforced 
 against homestead property by levy under section 270.70, or by 
 judgment lien foreclosure under chapter 550, but notwithstanding 
 section 510.07, is enforceable against the proceeds from the 
 sale, conveyance, or transfer of the homestead. 

    Subd. 11.    Erroneous liens.  After the filing of a 
 notice of lien under this section on the property or rights to 
 property of a person, the person may appeal to the commissioner, 
 in the form and at the time prescribed by the commissioner, 
 alleging an error in the filing of the lien and requesting its 
 release.  If the commissioner determines that the filing of the 
 notice of any lien was erroneous, within 14 days after the 
 determination, the commissioner must issue a certificate of 
 release of the lien.  The certificate must include a statement 
 that the filing of the lien was erroneous.  In the event that 
 the lien is erroneous and is not released within the 14-day 
 period, reasonable attorney fees shall be paid.  Damages must be 
 paid in accordance with section 3.736, subdivision 7.  Even if a 
 lien is not erroneous, the commissioner may withdraw the lien if 
 the filing of the lien was premature or not in accordance with 
 administrative procedures of the commissioner, or withdrawal of 
 the lien will facilitate the collection of the tax liability. 

    Subd. 12.    Lien release fee.  A fee of $25 must be 
 paid to the commissioner of revenue for each duplicate of an 
 original release of lien. 

    Subd. 13.    Forty-five day rule.  A notice of tax lien 
 filed under this section has priority over a security interest 
 arising under article 9 of the Uniform Commercial Code, codified 
 as sections 336.9-101 to 336.9-508, that is perfected before the 
 date of filing of the lien imposed by this section, but only if: 

    (1) the perfected security interest secures property 
 acquired by the taxpayer or advances made by the secured party 
 after the notice of tax lien is filed; and 

    (2) the property is acquired or the advance is made after 
 the 45th day following the day on which the notice of tax lien 
 is filed, or after the secured party has actual notice or 
 knowledge of the tax lien filing, whichever is earlier.  

    Subd. 14.    Registered land.  When a lien is filed with 
 a county recorder under subdivision 2, the county recorder shall 
 search the registered land records in that county and cause the 
 lien to be memorialized on every certificate of title or 
 certificate of possessory title of registered land in that 
 county which can be reasonably identified as owned by the 
 taxpayer who is named on the lien.  The fees for memorializing 
 the lien shall be paid in the manner prescribed by subdivision 
 2, paragraph (c).  The county recorders, and their employees and 
 agents, shall not be liable for any loss or damages arising from 
 failure to identify a parcel of registered land owned by the 
 taxpayer who is named on the lien. 

    Subd. 15.    Assignment of liens.  The commissioner may 
 sell and assign to a third party the right of redemption in 
 specific real property for liens filed under this section.  The 
 redemption in the hands of the assignee shall not be enforceable 
 by any of the collection remedies provided to the commissioner 
 by law.  The assignee is limited to the same rights of 
 redemption the commissioner would have in any mortgage 
 foreclosure proceeding, but in any bankruptcy proceeding does 
 not obtain the priority of the commissioner as a tax claimant.  
 Should the taxpayer or its assigns exercise the right of 
 redemption the assignment by the commissioner is extinguished. 

    HIST: 1982 c 523 art 2 s 8; 1983 c 180 s 3-6; 1985 c 101 s 
 6-9; 1985 c 281 s 2; 1986 c 444; 1Sp1986 c 1 art 7 s 11-14; 1989 
 c 324 s 6; 1990 c 480 art 2 s 9-13; 1990 c 604 art 1 s 10; 1991 
 c 291 art 16 s 4; art 18 s 2-4; 1992 c 511 art 9 s 5; 1994 c 510 
 art 4 s 3,4; 1995 c 186 s 52; 1995 c 264 art 19 s 1; 1997 c 84 
 art 6 s 12