HF 2517

as introduced - 88th Legislature (2013 - 2014) Posted on 02/27/2014 03:27pm

A bill for an act
relating to taxation; property; modifying provisions for interest rate payments
on delinquent taxes; amending Minnesota Statutes 2013 Supplement, section
279.37, subdivision 2.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is
amended to read:

Subd. 2.

Installment payments.

new text begin (a) new text end The owner of any such parcel, or any person to
whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
make and file with the county auditor of the county in which the parcel is located a written
offer to pay the current taxes each year before they become delinquent, or to contest the
taxes under Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to confess
judgment for the amount provided, as determined by the county auditor. By filing the
offer, the owner waives all irregularities in connection with the tax proceedings affecting
the parcel and any defense or objection which the owner may have to the proceedings, and
also waives the requirements of any notice of default in the payment of any installment or
interest to become due pursuant to the composite judgment to be so entered. Unless the
property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of
the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current
year taxes and penalty due at the time the confession of judgment is entered. In the offer,
the owner shall agree to pay the balance in nine equal installments, with interest as provided
in section 279.03, payable annually on installments remaining unpaid from time to time, on
or before December 31 of each year following the year in which judgment was confessed.

new text begin (b) If any part of the parcel consists of real estate classified as 1a or 1b and used as
the primary homestead by the owner of the property, the interest rate on offers made under
paragraph (a) shall be set annually by the commissioner of revenue at the greater of five
percent or two percent above the prime rate charged by banks during the six-month period
ending on September 30 of that year, rounded to the nearest full percent. The rate of
interest becomes effective on January 1 of the immediately succeeding year. For purposes
of this subdivision, the term "prime rate charged by banks" means the average predominant
prime rate quoted by commercial banks to large businesses, as determined by the Board
of Governors of the Federal Reserve System. The determination of the commissioner
pursuant to this subdivision shall not be considered a "rule" and is not subject to the
Administrative Procedure Act contained in chapter 14. In the event of default occurring in
the payments to be made under any confessed judgment entered pursuant to this paragraph,
the taxes and penalties due are subject to the interest rate specified in section 279.03.
new text end

new text begin (c) The interest rate established at the time the judgment is confessed shall remain
for the duration of that judgment. By October 15 of each year, the commissioner of
revenue must determine the rate of interest as provided under paragraph (b) and, by
November 1 of each year, must certify the rate to the county auditor.
new text end

new text begin (d) new text end The offer must be substantially as follows:

"To the court administrator of the district court of ........... county, I, .....................,
am the owner of the following described parcel of real estate located in ....................
county, Minnesota:

.............................. Upon that real estate there are delinquent taxes for the year ........., and
prior years, as follows: (here insert year of delinquency and the total amount of delinquent
taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
any defense or objection which I may have to them, and direct judgment to be entered for
the amount stated above, minus the sum of $............, to be paid with this document, which
is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
I agree to pay the balance of the judgment in nine or four equal, annual installments, with
interest as provided in section 279.03, payable annually, on the installments remaining
unpaid. I agree to pay the installments and interest on or before December 31 of each year
following the year in which this judgment is confessed and current taxes each year before
they become delinquent, or within 30 days after the entry of final judgment in proceedings
to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13.

Dated .............., ......."