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Minnesota Legislature

Office of the Revisor of Statutes

HF 364

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/10/2003

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to taxation; delaying date by which taxes on 
  1.3             certain resort property must be paid; amending 
  1.4             Minnesota Statutes 2002, sections 278.03, subdivision 
  1.5             1; 279.01, subdivision 1, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 278.03, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [REAL PROPERTY.] In the case of real 
  1.10  property, If the proceedings instituted by the filing of the 
  1.11  petition have not been completed before the 16th day of May next 
  1.12  following the filing or, in the case of class 1c property or 
  1.13  class 4c resort property before the 16th day of July, the 
  1.14  petitioner shall pay to the county treasurer 50 percent of the 
  1.15  tax levied for such year against the property involved, unless 
  1.16  permission to continue prosecution of the petition without such 
  1.17  payment is obtained as herein provided. If the proceedings 
  1.18  instituted by the filing of the petition have not been completed 
  1.19  by the next October 16, or, in the case of class 1b agricultural 
  1.20  homestead, class 2a agricultural homestead, and class 2b(2) 
  1.21  agricultural nonhomestead property, November 16, the petitioner 
  1.22  shall pay to the county treasurer 50 percent of the unpaid 
  1.23  balance of the taxes levied for the year against the property 
  1.24  involved if the unpaid balance is $2,000 or less and 80 percent 
  1.25  of the unpaid balance if the unpaid balance is over $2,000, 
  2.1   unless permission to continue prosecution of the petition 
  2.2   without payment is obtained as herein provided.  The petitioner, 
  2.3   upon ten days' notice to the county attorney and to the county 
  2.4   auditor, given at least ten days prior to the 16th day of 
  2.5   May or, in the case of class 1c or class 4c resort property, the 
  2.6   16th day of July, or the 16th day of October, or, in the case of 
  2.7   class 1b agricultural homestead, class 2a agricultural 
  2.8   homestead, and class 2b(2) agricultural nonhomestead property, 
  2.9   the 16th day of November, may apply to the court for permission 
  2.10  to continue prosecution of the petition without payment; and, if 
  2.11  it is made to appear 
  2.12     (1) that the proposed review is to be taken in good faith; 
  2.13     (2) that there is probable cause to believe that the 
  2.14  property may be held exempt from the tax levied or that the tax 
  2.15  may be determined to be less than 50 percent of the amount 
  2.16  levied; and 
  2.17     (3) that it would work a hardship upon petitioner to pay 
  2.18  the taxes due, 
  2.19     the court may permit the petitioner to continue prosecution 
  2.20  of the petition without payment, or may fix a lesser amount to 
  2.21  be paid as a condition of continuing the prosecution of the 
  2.22  petition. 
  2.23     Failure to make payment of the amount required when due 
  2.24  shall operate automatically to dismiss the petition and all 
  2.25  proceedings thereunder unless the payment is waived by an order 
  2.26  of the court permitting the petitioner to continue prosecution 
  2.27  of the petition without payment.  The petition shall be 
  2.28  automatically reinstated upon payment of the entire tax plus 
  2.29  interest and penalty if the payment is made within one year of 
  2.30  the dismissal.  The county treasurer shall, upon request of the 
  2.31  petitioner, issue duplicate receipts for the tax payment, one of 
  2.32  which shall be filed by the petitioner in the proceeding. 
  2.33     [EFFECTIVE DATE.] This section is effective for taxes 
  2.34  payable in 2004 and thereafter. 
  2.35     Sec. 2.  Minnesota Statutes 2002, section 279.01, 
  2.36  subdivision 1, is amended to read: 
  3.1      Subdivision 1.  [DUE DATES; PENALTIES.] Except as provided 
  3.2   in subdivision 3 or 4 this section, on May 16 or 21 days after 
  3.3   the postmark date on the envelope containing the property tax 
  3.4   statement, whichever is later, a penalty shall accrue and 
  3.5   thereafter be charged upon all unpaid taxes on real estate on 
  3.6   the current lists in the hands of the county treasurer.  The 
  3.7   penalty shall be at a rate of two percent on homestead property 
  3.8   until May 31 and four percent on June 1.  The penalty on 
  3.9   nonhomestead property shall be at a rate of four percent until 
  3.10  May 31 and eight percent on June 1.  This penalty shall not 
  3.11  accrue until June 1 of each year, or 21 days after the postmark 
  3.12  date on the envelope containing the property tax statements, 
  3.13  whichever is later, on commercial use real property used for 
  3.14  seasonal residential recreational purposes and classified as 
  3.15  class 1c or 4c, and on other commercial use real property 
  3.16  classified as class 3a, provided that over 60 percent of the 
  3.17  gross income earned by the enterprise on the class 3a property 
  3.18  is earned during the months of May, June, July, and August.  Any 
  3.19  property owner of such class 3a property who pays the first half 
  3.20  of the tax due on the property after May 15 and before June 1, 
  3.21  or 21 days after the postmark date on the envelope containing 
  3.22  the property tax statement, whichever is later, shall attach an 
  3.23  affidavit to the payment attesting to compliance with the income 
  3.24  provision of this subdivision.  Thereafter, for both homestead 
  3.25  and nonhomestead property, on the first day of each month 
  3.26  beginning July 1, up to and including October 1 following, an 
  3.27  additional penalty of one percent for each month shall accrue 
  3.28  and be charged on all such unpaid taxes provided that if the due 
  3.29  date was extended beyond May 15 as the result of any delay in 
  3.30  mailing property tax statements no additional penalty shall 
  3.31  accrue if the tax is paid by the extended due date.  If the tax 
  3.32  is not paid by the extended due date, then all penalties that 
  3.33  would have accrued if the due date had been May 15 shall be 
  3.34  charged.  When the taxes against any tract or lot exceed $50, 
  3.35  one-half thereof may be paid prior to May 16 or 21 days after 
  3.36  the postmark date on the envelope containing the property tax 
  4.1   statement, whichever is later; and, if so paid, no penalty shall 
  4.2   attach; the remaining one-half shall be paid at any time prior 
  4.3   to October 16 following, without penalty; but, if not so paid, 
  4.4   then a penalty of two percent shall accrue thereon for homestead 
  4.5   property and a penalty of four percent on nonhomestead 
  4.6   property.  Thereafter, for homestead property, on the first day 
  4.7   of November an additional penalty of four percent shall accrue 
  4.8   and on the first day of December following, an additional 
  4.9   penalty of two percent shall accrue and be charged on all such 
  4.10  unpaid taxes.  Thereafter, for nonhomestead property, on the 
  4.11  first day of November and December following, an additional 
  4.12  penalty of four percent for each month shall accrue and be 
  4.13  charged on all such unpaid taxes.  If one-half of such taxes 
  4.14  shall not be paid prior to May 16 or 21 days after the postmark 
  4.15  date on the envelope containing the property tax statement, 
  4.16  whichever is later, the same may be paid at any time prior to 
  4.17  October 16, with accrued penalties to the date of payment added, 
  4.18  and thereupon no penalty shall attach to the remaining one-half 
  4.19  until October 16 following.  
  4.20     This section applies to payment of personal property taxes 
  4.21  assessed against improvements to leased property, except as 
  4.22  provided by section 277.01, subdivision 3. 
  4.23     A county may provide by resolution that in the case of a 
  4.24  property owner that has multiple tracts or parcels with 
  4.25  aggregate taxes exceeding $50, payments may be made in 
  4.26  installments as provided in this subdivision. 
  4.27     The county treasurer may accept payments of more or less 
  4.28  than the exact amount of a tax installment due.  If the accepted 
  4.29  payment is less than the amount due, payments must be applied 
  4.30  first to the penalty accrued for the year the payment is made.  
  4.31  Acceptance of partial payment of tax does not constitute a 
  4.32  waiver of the minimum payment required as a condition for filing 
  4.33  an appeal under section 278.03 or any other law, nor does it 
  4.34  affect the order of payment of delinquent taxes under section 
  4.35  280.39. 
  4.36     [EFFECTIVE DATE.] This section is effective for taxes 
  5.1   payable in 2004 and thereafter. 
  5.2      Sec. 3.  Minnesota Statutes 2002, section 279.01, is 
  5.3   amended by adding a subdivision to read: 
  5.4      Subd. 5.  [SEASONAL RESIDENTIAL RECREATIONAL PROPERTY USED 
  5.5   FOR COMMERCIAL PURPOSES.] In the case of class 1c property and 
  5.6   class 4c seasonal residential recreational property used for 
  5.7   commercial purposes, no penalties shall accrue to the first 
  5.8   one-half property tax payment as provided in this section if 
  5.9   paid by July 15.  On July 16, a penalty shall accrue and 
  5.10  thereafter be charged upon all unpaid taxes.  On class 1c 
  5.11  property the penalty is at a rate of two percent until July 31, 
  5.12  and four percent on August 1.  On class 4c seasonal residential 
  5.13  recreational property used for commercial purposes, the penalty 
  5.14  is four percent until July 31 and eight percent August 1.  
  5.15  Thereafter, for both class 1c and class 4c seasonal residential 
  5.16  recreational property used for commercial purposes, on the first 
  5.17  day of September and on the first day of October, an additional 
  5.18  penalty of one percent shall accrue and be charged on unpaid 
  5.19  taxes.  The remaining one-half property taxes must be paid and 
  5.20  penalties accrue as provided in subdivision 1. 
  5.21     [EFFECTIVE DATE.] This section is effective for taxes 
  5.22  payable in 2004 and thereafter.