Minnesota Legislature
HF 1741
as introduced - 90th Legislature (2017 - 2018) Posted on 02/27/2017 01:49pm
Current Version - as introduced
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A bill for an act
relating to taxation; property; requiring counties to forward certain multiple county
mortgage tax payments to the commissioner of revenue for distribution; amending
Minnesota Statutes 2016, section 287.08.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 287.08, is amended to read:
287.08 TAX, HOW PAYABLE; RECEIPTS.
(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any
county in this state in which the real property or some part is located at or before the time
of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and
the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes
any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall
be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from
taxation the endorsement shall, in substance, be "exempt from registration tax." In either
case the receipt must be signed by the treasurer. In case the treasurer is unable to determine
whether a claim of exemption should be allowed, the tax must be paid as in the case of a
taxable mortgage. For documents submitted electronically, the endorsements and tax amount
shall be affixed electronically and no signature by the treasurer will be required. The actual
payment method must be arranged in advance between the submitter and the receiving
county.
(b) The county treasurer may refund in whole or in part any mortgage registry tax
overpayment if a written application by the taxpayer is submitted to the county treasurer
within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
of the application, the taxpayer may bring an action in Tax Court in the county in which
the tax was paid at any time after the expiration of six months from the time that the
application was submitted. A denial of refund may be appealed within 60 days from the
date of the denial by bringing an action in Tax Court in the county in which the tax was
paid. The action is commenced by the serving of a petition for relief on the county treasurer,
and by filing a copy with the court. The county attorney shall defend the action. The county
treasurer shall notify the treasurer of each county that has or would receive a portion of the
tax as paid.
(c) If the county treasurer determines a refund should be paid, or if a refund is ordered
by the court, the county treasurer of each county that actually received a portion of the tax
shall immediately pay a proportionate share of three percent of the refund using any available
county funds. The county treasurer of each county that received, or would have received,
a portion of the tax shall also pay their county's proportionate share of the remaining 97
percent of the court-ordered refund on or before the 20th day of the following month using
solely the mortgage registry tax funds that would be paid to the commissioner of revenue
on that date under section 287.12. If the funds on hand under this procedure are insufficient
to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in
which the action was brought shall file a claim with the commissioner of revenue under
section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the
remaining portion upon receipt of a warrant from the state issued pursuant to the claim.
(d) When any mortgage covers real property located in more than one county in this
state the total tax must be paid to the treasurer of the county where the mortgage is first
presented for recording, and the payment must be receipted as provided in paragraph (a).
If the principal debt or obligation secured by such a multiple county mortgage exceeds
$10,000,000, new text begin the tax collected shall be forwarded by the county treasurer receiving it to the
commissioner of revenue and new text end the nonstate portion of the tax must be divided and paid over
by the deleted text begin county treasurer receiving itdeleted text end new text begin commissioner of revenuenew text end , on or before the 20th day of
each month after receipt, to the county or counties entitled in the ratio that the estimated
market value of the real property covered by the mortgage in each county bears to the
estimated market value of all the real property in this state described in the mortgage. In
making the division and payment the deleted text begin county treasurerdeleted text end new text begin commissioner of revenuenew text end shall send
a statement giving the description of the real property described in the mortgage and the
estimated market value of the part located in each county. For this purpose, the deleted text begin treasurer of
any countydeleted text end new text begin commissioner of revenuenew text end may require the treasurer of any deleted text begin otherdeleted text end county to certify
to the former the estimated market value of any tract of real property in any mortgagenew text begin in
the countynew text end .
(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee
may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee
has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax
collected for that purpose and the mortgagor is relieved of any further obligation to pay the
tax as to the amount collected by the mortgagee for this purpose.