Minnesota Legislature
SF 931
as introduced - 89th Legislature (2015 - 2016) Posted on 02/20/2015 09:00am
Current Version - as introduced
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A bill for an act
relating to taxation; property; modifying due dates and penalties; amending
Minnesota Statutes 2014, section 279.01, subdivisions 1, 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:
Subdivision 1.
Due dates; penalties.
deleted text begin Except as provided in subdivisions 3 to 5,
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. Thedeleted text end new text begin
(a) When the taxes against any tract or lot exceed $100, one-half of the amount of tax
due must be paid prior to May 16, and the remaining one-half must be paid prior to the
following October 16. If either tax amount is unpaid as of its due date, anew text end penalty is
new text begin imposed new text end at a rate of two percent on homestead property deleted text begin until May 31deleted text end and fournew text begin percent
on nonhomestead property. If complete payment has not been made by the first day of
the month following either due date, an additional penalty of twonew text end percent on deleted text begin June 1. The
penalty on nonhomestead property is at a rate of four percent until May 31deleted text end new text begin homestead
property new text end and deleted text begin eightdeleted text end new text begin fournew text end percent on deleted text begin 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 subdivisiondeleted text end new text begin nonhomestead property is imposednew text end . Thereafter,
for both homestead and nonhomestead property, on the first day of each new text begin subsequent
new text end month deleted text begin beginning July 1, up to and including October 1 followingdeleted text end new text begin through Decembernew text end , an
additional penalty of one percent for each month accrues and is charged on all such unpaid
taxes provided that deleted text begin 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 followingdeleted text end new text begin the penalty must not exceed eight percent in the case of homestead
property, or 12 percent in the case of nonhomestead propertynew text end .
new text begin
(b) If the property tax statement was not postmarked prior to April 25, the first
half payment due date in paragraph (a) shall be 21 days from the postmark date of the
property tax statement, and all penalties referenced in paragraph (a) shall be determined
with regard to the later due date.
new text end
new text begin
(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties
as specified in paragraph (a) or (b) for the first half payment shall apply to the entire
amount of the tax due.
new text end
new text begin
(d) For 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, the first half payment is due prior to June 1. For a class 3a property to qualify
for the later due date, the owner of the property must attach an affidavit to the payment
attesting to compliance with the income requirements of this paragraph.
new text end
new text begin (e) new text end This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.
new text begin (f) new text end 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.
new text begin (g) new text end 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 beginning with taxes payable in 2016.
new text end
Sec. 2.
Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read:
Subd. 3.
Agricultural property.
deleted text begin (a)deleted text end In the case of class 1b agricultural homestead,
class 2a agricultural homestead property, and class 2a agricultural nonhomestead property,
no penalties shall attach to the second one-half property tax payment as provided in this
section if paid by November 15. Thereafter deleted text begin for class 1b agricultural homestead and class
2a homestead property, on November 16 following, a penalty of six percent shall accrue
and be charged on all such unpaid taxes and on December 1 following, an additional two
percent shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural
nonhomestead property, on November 16 following, a penalty of eight percent shall accrue
and be charged on all such unpaid taxes and on December 1 following, an additional four
percent shall be charged on all such unpaid taxesdeleted text end new text begin , penalties shall attach as provided in
subdivision 1new text end .
If the owner of class 1b agricultural homestead or class 2a agricultural property
receives a consolidated property tax statement that shows only an aggregate of the taxes
and special assessments due on that property and on other property not classified as class
1b agricultural homestead or class 2a agricultural property, the aggregate tax and special
assessments shown due on the property by the consolidated statement will be due on
November 15.
deleted text begin
(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class
2b property that was subject to a second-half due date of November 15 for taxes payable
in 2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess
of those that would apply as if the second-half due date were November 15.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2016.
new text end