HF 2137

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 03:14pm

A bill for an act
relating to taxation; property tax due dates; modifying penalties; amending
Minnesota Statutes 2012, sections 273.125, subdivision 3; 277.01, subdivision 1;
Minnesota Statutes 2013 Supplement, section 279.01, subdivision 1.

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

Section 1.

Minnesota Statutes 2012, section 273.125, subdivision 3, is amended to read:

Subd. 3.

Tax statements; penalties; collections.

Not later than July 15 in the year
of assessment the county treasurer shall mail to the taxpayer a statement of tax due on
a manufactured home. The taxes are due on the last day of August, or 20 days after the
postmark date on the envelope containing the property tax statement, whichever is later,
except that if the tax exceeds $50, one-half of the amount due may be paid on August 31,
or 20 days after the postmark date on the envelope containing the property tax statement,
whichever is later, and the remainder on November 15. Taxes remaining unpaid after
the due date are delinquent, and a penalty of deleted text begin eight deleted text end new text begin six new text end percent must be assessed and
collected as part of the unpaid taxes. The tax statement must contain a sentence notifying
the taxpayer that the title to the manufactured home cannot be transferred unless the
property taxes are paid.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes assessed on or after January
1, 2015.
new text end

Sec. 2.

Minnesota Statutes 2012, section 277.01, subdivision 1, is amended to read:

Subdivision 1.

Due dates; penalty.

Except as provided in this subdivision and
subdivision 3, all unpaid personal property taxes shall be deemed delinquent on May 16
next after they become due or 21 days after the postmark date on the envelope containing
the property tax statement, whichever is later, and thereupon a penalty of deleted text begin eight deleted text end new text begin six new text end percent
shall attach and be charged upon all such taxes. In the case of unpaid personal property
taxes due and owing under section 272.01, subdivision 2, or 273.19, the first half shall
become delinquent if not paid before May 16 or 21 days after the postmark date on the
envelope containing the property tax statement, whichever is later, and the second half
shall become delinquent if not paid before October 16; penalties for unpaid tax on such
property are imposed under section 279.01, subdivision 1. This section shall not apply to
property taxed under section 273.125, subdivision 8, paragraph (c).

A county may provide by resolution that in the case of a property owner that has
multiple personal property tax statements with the aggregate taxes exceeding $50,
payments may be made in installments as provided in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes assessed on or after January
1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2013 Supplement, section 279.01, subdivision 1, is
amended to read:

Subdivision 1.

Due dates; penalties.

Except as provided in subdivisions 3 to 5, on
May 16 or 21 days after the postmark date on the envelope containing the property tax
statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
taxes on real estate on the current lists in the hands of the county treasurer. The penalty is
at a rate of two percent on homestead property until May 31 and four percent on June 1.
The penalty on nonhomestead property is at a rate of four percent until May 31 and deleted text begin eight
deleted text end new text begin six new text end percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days
after the postmark date on the envelope containing the property tax statements, whichever
is later, on commercial use real property used for seasonal residential recreational purposes
and classified as class 1c or 4c, and on other commercial use real property classified as
class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
class 3a property is earned during the months of May, June, July, and August. In order for
the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
or 21 days after the postmark date on the envelope containing the property tax statement,
whichever is later, without penalty, the owner of the property must attach an affidavit to the
payment attesting to compliance with the income provision of this subdivision. Thereafter,
for both homestead and nonhomestead property, on the first day of each month beginning
July 1, up to and including October 1 following, an additional penalty of one percent for
each month accrues and is charged on all such unpaid taxes provided that if the due date
was extended beyond May 15 as the result of any delay in mailing property tax statements
no additional penalty shall accrue if the tax is paid by the extended due date. new text begin No penalty
calculated under this subdivision upon any class of property shall exceed six percent. new text end If
the tax is not paid by the extended due date, then all penalties that would have accrued if
the due date had been May 15 shall be charged. When the taxes against any tract or lot
exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
date on the envelope containing the property tax statement, whichever is later; and, if so
paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
16 following, without penalty; but, if not so paid, then a penalty of two percent accrues
thereon for homestead property and a penalty of four percent on nonhomestead property.
Thereafter, for homestead property, on the first day of November an additional penalty of
four percent accrues deleted text begin and on the first day of December following, an additional penalty of
two percent accrues deleted text end and is charged on all such unpaid taxes. Thereafter, for nonhomestead
property, on the first day of November deleted text begin and December deleted text end following, an additional penalty
of deleted text begin four deleted text end new text begin two new text end percent deleted text begin for each month deleted text end accrues and is charged on all such unpaid taxes. If
one-half of such taxes are not paid prior to May 16 or 21 days after the postmark date on
the envelope containing the property tax statement, whichever is later, the same may be
paid at any time prior to October 16, with accrued penalties to the date of payment added,
and thereupon no penalty attaches to the remaining one-half until October 16 following.

This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.

A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
installments as provided in this subdivision.

The county treasurer may accept payments of more or less than the exact amount of
a tax installment due. Payments must be applied first to the oldest installment that is due
but which has not been fully paid. If the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year or the installment being
paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
payment required as a condition for filing an appeal under section 278.03 or any other law,
nor does it affect the order of payment of delinquent taxes under section 280.39.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes assessed on or after January
1, 2015.
new text end