HF 722

as introduced - 88th Legislature (2013 - 2014) Posted on 02/21/2013 08:45am

A bill for an act
relating to taxation; modifying property tax due dates; amending Minnesota
Statutes 2012, sections 279.01, subdivision 1, by adding a subdivision; 279.02.

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 deleted text begin subdivision deleted text end new text begin subdivisions
new text end 3 deleted text begin or 4 deleted text end new text begin to 5 new 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 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
eight 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. 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 and on the first day of December following, an additional penalty of
two percent accrues and is charged on all such unpaid taxes. 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. 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.

Sec. 2.

Minnesota Statutes 2012, section 279.01, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Federal active service exception. new text end

new text begin In the case of a homestead property
owned by an individual who is on federal active service, as defined in section 190.05,
subdivision 5c, a six-month grace period is granted for complying with the due dates
imposed by subdivision 1. During this period, no late fees or penalties shall accrue against
the property. The due date for property taxes owed under this chapter for an individual
covered by this subdivision shall be November 16 for taxes due on May 16, and April
16 of the following year for taxes due on October 16. A taxpayer making a payment
under this subdivision must accompany the payment with a signed copy of the taxpayer's
orders or form DD214 showing the dates of active service which clearly indicate that the
taxpayer was in active service on the date the payment was due. This grace period applies
to all homestead property owned by individuals on federal active service, as defined in
section 190.05, subdivision 5c, for all of that property's due dates which fall on a day that
is included in the taxpayer's federal active service.
new text end

Sec. 3.

Minnesota Statutes 2012, section 279.02, is amended to read:

279.02 DUTIES OF COUNTY AUDITOR AND TREASURER.

new text begin Subdivision 1. new text end

new text begin Delinquent property; rates. new text end

On the first business day in January, of
each year, the county treasurer shall return the tax lists on hand to the county auditor, who
shall compare the same with the statements receipted for by the treasurer on file in the
auditor's office and each tract or lot of real property against which the taxes, or any part
thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty
of two percent on the amount of the original tax remaining unpaid shall immediately
accrue and thereafter be charged upon all such delinquent taxes; and any auditor who
shall make out and deliver any statement of delinquent taxes without including therein
the penalties imposed by law, and any treasurer who shall receive payment of such taxes
without including in such payment all items as shown on the auditor's statement, shall be
liable to the county for the amounts of any items omitted.

new text begin Subd. 2. new text end

new text begin Federal active service exception. new text end

new text begin Notwithstanding subdivision 1, a
homestead property owned by an individual who is on federal active service, as defined
in section 190.05, subdivision 5c, shall not be deemed delinquent under this section if
the due dates imposed under section 279.01 fall on a day in which the individual was
on federal active service.
new text end