HF 4485

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/18/2026 11:50 a.m.

A bill for an act
relating to local government; establishing a land monument protection fund for
the public land survey system monument grant program; setting new fee for
registration of a mortgage or deed; amending Minnesota Statutes 2024, sections
287.035; 287.21, subdivision 1; proposing coding for new law in Minnesota
Statutes, chapter 287.

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

Section 1.

Minnesota Statutes 2024, section 287.035, is amended to read:

287.035 IMPOSITION OF TAX.

A tax is imposed on the privilege of recording a mortgage. The tax rate is .0023 of the
debt or portion of a debt that is secured by any recorded mortgage of real property located
in this state. The person liable for the tax is the mortgagor. The tax is not imposed on the
lawful interest amounts that may accrue with respect to a debt. new text begin The county recorder or
registrar of titles must charge a fee of $....... for each recording of a mortgage and deposit
the revenue into the land monument protection fund under section 287.40. This fee is separate
from fees charged under sections 357.18, 508.81, and 508A.82.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 287.21, subdivision 1, is amended to read:

Subdivision 1.

Determination of tax.

(a) A tax is imposed on each deed or instrument
by which any real property in this state is granted, assigned, transferred, or otherwise
conveyed. The tax applies against the net consideration. For purposes of the tax, the
conversion of a corporation to a limited liability company, a limited liability company to a
corporation, a partnership to a limited partnership, a limited partnership to another limited
partnership or other entity, or a similar conversion of one entity to another does not grant,
assign, transfer, or convey real property.

(b) The tax is determined in the following manner: (1) when transfers are made by
instruments pursuant to (i) consolidations or mergers, or (ii) designated transfers, the tax is
$1.65; (2) when there is no consideration or when the consideration, exclusive of the value
of any lien or encumbrance remaining thereon at the time of sale, is $3,000 or less, the tax
is $1.65; or (3) when the consideration, exclusive of the value of any lien or encumbrance
remaining at the time of sale, exceeds $3,000, the tax is .0033 of the net consideration.

(c) If, within six months from the date of a designated transfer, an ownership interest in
the grantee entity is transferred by an initial owner to any person or entity with the result
that the designated transfer would not have been a designated transfer if made to the grantee
entity with its subsequent ownership, then a tax is imposed at .0033 of the net consideration
for the designated transfer. If the subsequent transfer of ownership interests was reasonably
expected at the time of the designated transfer, the applicable penalty under section 287.31,
subdivision 1, must be paid. The deed tax imposed under this paragraph is due within 30
days of the subsequent transfer that caused the tax to be imposed under this paragraph.
Involuntary transfers of ownership shall not be considered transfers of ownership under this
paragraph. The commissioner may adopt rules defining the types of transfers to be considered
involuntary.

(d) The tax is due at the time a taxable deed or instrument is presented for recording,
except as provided in paragraph (c). The commissioner may require the tax to be documented
in a manner prescribed by the commissioner, and may require that the documentation be
attached to and recorded as part of the deed or instrument. The county recorder or registrar
of titles shall accept the attachment for recording as part of the deed or instrument and may
not require, as a condition of recording a deed or instrument, evidence that a transfer is a
designated transfer in addition to that required by the commissioner. Such an attachment
shall not, however, provide actual or constructive notice of the information contained therein
for purposes of determining any interest in the real property. The commissioner shall
prescribe the manner in which the tax due under paragraph (c) is to be paid and may require
grantees of designated transfers to file with the commissioner subsequent statements verifying
that the tax provided under paragraph (c) does not apply.

new text begin (e) The county recorder or registrar of titles must charge a fee of $....... for each recording
of a transfer under this section and deposit the revenue into the land monument protection
fund under section 287.40. This fee is separate from fees charged under sections 357.18,
508.81, and 508A.82.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 3.

new text begin [287.40] LAND MONUMENT PROTECTION FUND.
new text end

new text begin A land monument protection fund is established in the state treasury. The fund consists
of all fees assessed and collected for deposit into the land monument protection fund under
sections 287.035 and 287.21, and any other money donated, allotted, transferred, or otherwise
provided to the fund. Revenue from the fund is annually appropriated to the commissioner
of information technology services for the public land survey system monument grant
program under section 381.125.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end