HF 3766

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; imposing back taxes on certain transfers of exempt
property; proposing coding for new law in Minnesota Statutes, chapter 273.

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

Section 1.

new text begin [273.167] TAX; TRANSFERS OF EXEMPT PROPERTY.
new text end

new text begin new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section applies to transfers of property that meet the
following conditions:
new text end new text begin new text end

new text begin (1) the property was exempt from taxation under section 272.02, subdivision 4 or 7,
for at least one year during the three-year period before the transfer;
new text end

new text begin (2) the transferring entity, or a predecessor to the entity, received the property under
a gift or a transfer for less than full consideration, and the entity that received the gift is
principally engaged in operating a hospital or other health care facility or both; and
new text end

new text begin (3) the owner sells or transfers property for valuable consideration to a buyer for a
use or with the reasonable expectation that the property will be used for a purpose other
than as a hospital or other health care facility.
new text end

new text begin Subd. 2. new text end

new text begin Imposition of tax. new text end

new text begin (a) Prior to a transfer of property subject to this section,
the transferor shall pay to the county treasurer the tax as determined under this section.
new text end

new text begin (b) If the property will remain exempt from taxation after the transfer, a tax is
imposed equal to:
new text end

new text begin (1) one percent of the lesser of (i) the most recent assessment of the property's value
under section 273.18 or (ii) the property's sale price; multiplied by
new text end

new text begin (2) the lesser of (i) three or (ii) the number of the immediately preceding property
tax payable years the property was exempt from taxation.
new text end

new text begin (c) If the property will become taxable after the transfer, a tax is imposed in an
amount determined by multiplying the most recent assessment of the property's market
value under section 273.18 by:
new text end

new text begin (1) a class rate of 1.5 percent;
new text end

new text begin (2) the current year tax rates for the city or town, county, school district, and each
special taxing district in which the property is located; and
new text end

new text begin (3) the lesser of (i) three or (ii) the number of the immediately preceding property
tax payable years the property was exempt from taxation.
new text end

new text begin (d) If a deed or other instrument conveys a parcel of land that is subject to tax under
this section, the county auditor shall not transfer the land in the auditor's official records,
and the county recorder shall not file and record the instrument, unless the instrument of
conveyance contains a certification by the county treasurer that the taxes due under this
section have been paid.
new text end

new text begin Subd. 3. new text end

new text begin Distribution of proceeds. new text end

new text begin The county treasurer shall distribute the
proceeds of the tax under this section to each taxing district in proportion to its respective
tax rates. The treasurer shall include the payment with the next settlement payment under
section 276.09 or 276.111.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for transfers of property made after
March 1, 2006.
new text end