SF 1501

as introduced - 91st Legislature (2019 - 2020) Posted on 02/21/2019 02:24pm

A bill for an act
relating to taxation; property; modifying distribution of certain penalties, interest,
and costs; amending Minnesota Statutes 2018, section 276.131.

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

Section 1.

Minnesota Statutes 2018, section 276.131, is amended to read:

276.131 DISTRIBUTION OF PENALTIES, INTEREST, AND COSTS.

new text begin Subdivision 1. new text end

new text begin Distribution. new text end

new text begin Except as provided in subdivision 2, new text end the penalties, interest,
and costs collected on special assessments and real and personal property taxes must be
distributed as follows:

(1) all penalties and interest collected on special assessments against real or personal
property must be distributed to the taxing jurisdiction that levied the assessment;

(2) 50 percent of all penalties collected on real and personal property taxes must be
distributed to the school districts within the county, and the remaining 50 percent must be
distributed to the county;

(3) in the case of interest on taxes that have been delinquent for a period of one year or
less, (a) 50 percent of the interest must be distributed to the school districts within the county
and (b) the remaining 50 percent shall be distributed to the county;

(4) in the case of interest on taxes that have been delinquent for a period of more than
one year, (a) 50 percent of the interest must be distributed to the school districts within the
county and (b) the remaining 50 percent must be distributed as follows: (i) the city or town
where the property is located shall receive a share of the amount of interest equal to the
proportion that the city's or town's local tax rate for the year that the interest was collected,
is to the sum of the city's or town's local tax rate and the county's local tax rate for the year
that the interest was collected and (ii) the balance must be distributed to the county; and

(5) all costs collected by the county on special assessments and on delinquent real and
personal property taxes must be distributed to the county in which the property is located.

new text begin Subd. 2. new text end

new text begin Distribution of certain production taxes. new text end

new text begin The penalties, interest, and costs
collected on real and personal property taxes imposed under sections 272.029 and 272.0295
must be distributed to the same local taxing jurisdictions and in the same percentages as
provided for the revenues of the original taxes imposed under sections 272.029 and 272.0295.
new text end

new text begin Subd. 3. new text end

new text begin Distribution to school district. new text end

The distribution of all penalties and interest
to the school district must be in accordance with the provisions of section 127A.34.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for penalties, interest, and costs collected
on taxes payable in 2020 and thereafter.
new text end