HF 451

as introduced - 88th Legislature (2013 - 2014) Posted on 02/18/2013 02:08pm

A bill for an act
relating to taxation; property; modifying the penalties for late payment; amending
Minnesota Statutes 2012, section 279.01, subdivision 1; repealing Minnesota
Statutes 2012, section 279.01, subdivision 4.

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

Section 1.

Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:

Subdivision 1.

Due dates; penalties.

Except as provided in subdivision 3 deleted text begin or 4 deleted text end , 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 deleted text begin on homestead property deleted text end until May 31 and four percent on June 1. deleted text begin The
penalty on nonhomestead property is at a rate of four percent until May 31 and eight percent
on June 1. deleted text end 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, deleted text begin for both
homestead and nonhomestead property, deleted text end 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. 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 deleted text begin thereon for
homestead property and a penalty of four percent on nonhomestead property deleted text end . Thereafter,
deleted text begin for homestead property, deleted text end on the first day of November an additional penalty of deleted text begin four deleted text end new text begin two
new text end percent accrues and on the first day of December following, an additional penalty of two
percent accrues and is charged on all such unpaid taxes. deleted text begin Thereafter, for nonhomestead
property, on the first day of November and December following, an additional penalty of
four percent for each month accrues and is charged on all such unpaid taxes. deleted text end 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 payable in 2016 and
thereafter.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 279.01, subdivision 4, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2016 and
thereafter.
new text end