HF 2375

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to deed taxes; clarifying the definition of 
  1.3             consideration in certain cases; amending Minnesota 
  1.4             Statutes 2000, section 287.20, subdivision 2. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 287.20, 
  1.7   subdivision 2, is amended to read: 
  1.8      Subd. 2.  [CONSIDERATION.] (a) "Consideration" means 
  1.9   generally the total monetary value that is given in return for a 
  1.10  conveyance of real property in this state and includes all 
  1.11  lump-sum payments, all prior or future installment payments that 
  1.12  are required under the agreement between the parties, and the 
  1.13  fair market value of any property taken, or to be taken, in 
  1.14  exchange. 
  1.15     (b) Consideration does not include the reasonable and 
  1.16  lawful amounts of interest paid for the privilege of paying the 
  1.17  purchase price in installments and the fair market value of any 
  1.18  items of intangible personal property that are conveyed by the 
  1.19  taxable instrument. 
  1.20     (c) Consideration does not include the amount paid for the 
  1.21  personal property located on the real property being conveyed 
  1.22  and transferred as a part of the total consideration, except 
  1.23  that the amount paid for the personal property located on the 
  1.24  real property being conveyed must be included if the real 
  1.25  property being conveyed is a one-, two-, or three-unit 
  2.1   residential structure. 
  2.2      (d) When a conveyance of real property is made pursuant to 
  2.3   a contract for deed, the consideration is the price for the real 
  2.4   property reflected in the contract; except that, subject to the 
  2.5   limitations under section 287.221, when the conveyance is made 
  2.6   by a person engaged in the business of land sales or 
  2.7   construction of buildings and other improvements, or by an 
  2.8   affiliated person if the contract for deed, or other agreement 
  2.9   entered into as a condition to the seller executing the 
  2.10  contract, requires the property to be improved during the term 
  2.11  of the contract and the price of the real property as reflected 
  2.12  in the contract does not include the consideration for the 
  2.13  required improvements, then the consideration is the amount paid 
  2.14  for the land price for the real property as reflected in the 
  2.15  contract and the consideration for the required improvements 
  2.16  added during the term of the contract.  By January 1, 2001, the 
  2.17  commissioner shall adopt rules that define the phrases "engaged 
  2.18  in the business of land sales or construction of buildings and 
  2.19  other improvements" and "affiliated person" as those phrases are 
  2.20  used in this paragraph. 
  2.21     (e) "Total consideration" has the same meaning as 
  2.22  consideration. 
  2.23     (f) "Consideration, exclusive of the value of any lien or 
  2.24  encumbrance remaining at the time of sale" or "net 
  2.25  consideration" means the amount of consideration as reduced by 
  2.26  the amount outstanding under any lien that attached to the real 
  2.27  property prior to the time of sale and that is not released or 
  2.28  satisfied as a result of the sale. 
  2.29     [EFFECTIVE DATE.] This section is effective for deeds 
  2.30  recorded on or after July 1, 2001.