SF 3566

as introduced - 89th Legislature (2015 - 2016) Posted on 04/22/2016 09:13am

A bill for an act
relating to tax forfeiture; amending the period of redemption; giving county
auditors additional authority; allowing counties to sell tax-forfeited lands
online; allowing an eviction action when an individual holds over real property
after a real estate tax judgment sale; allowing a landlord to dispose of an
evicted tenant's property; making technical and conforming changes; amending
Minnesota Statutes 2014, sections 281.17; 281.23, by adding a subdivision;
282.01, by adding a subdivision; 282.02; 282.241, subdivision 1; 282.322;
504B.285, subdivision 1; 504B.365, subdivision 3; proposing coding for new
law in Minnesota Statutes, chapter 281; repealing Minnesota Statutes 2014,
section 281.22.

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

Section 1.

Minnesota Statutes 2014, section 281.17, is amended to read:

281.17 PERIOD deleted text begin FOR deleted text end new text begin OF new text end REDEMPTION.

new text begin (a) new text end Except for properties new text begin described in paragraphs (b) and (c), or properties new text end for which
the period of redemption has been limited under sections 281.173 and 281.174, the
deleted text begin following periods for deleted text end new text begin period of new text end redemption deleted text begin apply.
deleted text end

deleted text begin The period of redemption deleted text end for deleted text begin all deleted text end lands sold to the state at a tax judgment sale shall
be three years from the date of sale to the state of Minnesota.

deleted text begin The period of redemption for homesteaded lands as defined in section 273.13,
subdivision 22, located in a targeted neighborhood as defined in Laws 1987, chapter
386, article 6, section 4, and sold to the state at a tax judgment sale is three years from
the date of sale. deleted text end

new text begin (b) new text end The period of redemption for all lands located in a targeted deleted text begin neighborhood deleted text end new text begin
community new text end as defined in deleted text begin Laws 1987, chapter 386, article 6, section 4 deleted text end new text begin section 469.201,
subdivision 10 new text end , except homesteaded lands as defined in section 273.13, subdivision 22, is
one year from the date of sale.

new text begin (c) new text end The period of redemption for all real property constituting a mixed municipal
solid waste disposal facility that is a qualified facility under section 115B.39, subdivision
1, is one year from the date of the sale to the state of Minnesota.

new text begin (d) In determining the period of redemption, the county must use the property's
classification and homestead classification for the assessment year on which the tax
judgment is based. Any change in the property's classification or homestead classification
after the assessment year on which the tax judgment is based does not affect the period
of redemption.
new text end

Sec. 2.

Minnesota Statutes 2014, section 281.23, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Business to cease operations after notice. new text end

new text begin (a) After the execution of a
certificate pursuant to subdivision 9, the county auditor may direct a business located on
a parcel of tax-forfeited property to immediately cease operations while the title to the
parcel is held by the state in trust for the local taxing districts.
new text end

new text begin (b) If the county auditor directs a business to cease operations under this subdivision,
the county and state are not liable for any loss of business, damages, or other costs or
expenses that result from the direction to cease operations.
new text end

Sec. 3.

new text begin [281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS.
new text end

new text begin If the county auditor provides notice as required by section 281.23, the state, agency,
political subdivision, or other entity that becomes the fee owner or manager of a property as
a result of forfeiture due to nonpayment of real property taxes is not bound by any servitude,
agreement, easement, or other encumbrance affecting the property that requires the
expenditure of public funds. The fee owner or manager of a property may, at its discretion,
spend public funds necessary for the maintenance, security, or management of the property.
new text end

Sec. 4.

new text begin [281.70] LIMITED RIGHT OF ENTRY.
new text end

new text begin Subdivision 1. new text end

new text begin Limited right of entry. new text end

new text begin If premises described in a real estate tax
judgment sale are vacant or unoccupied, the county auditor or a person acting on behalf of
the county auditor may, but is not obligated to, enter the premises to protect the premises
from waste or trespass until the county auditor is notified that the premises are occupied.
An affidavit of the sheriff, the county auditor, or a person acting on behalf of the county
auditor describing the premises and stating that the premises are vacant and unoccupied is
prima facie evidence of the facts stated in the affidavit. If the affidavit contains a legal
description of the premises, the affidavit may be recorded in the office of the county
recorder or the registrar of titles in the county where the premises are located.
new text end

new text begin Subd. 2. new text end

new text begin Authorized actions. new text end

new text begin (a) The county auditor may take one or more of the
following actions to protect the premises from waste or trespass:
new text end

new text begin (1) install or change locks on doors and windows;
new text end

new text begin (2) board windows; and
new text end

new text begin (3) other actions to prevent or minimize damage to the premises from the elements,
vandalism, trespass, or other illegal activities.
new text end

new text begin (b) If the county auditor installs or changes locks on premises under paragraph (a),
the county auditor must promptly deliver a key to the premises to the taxpayer or any
person lawfully claiming through the taxpayer upon request.
new text end

new text begin Subd. 3. new text end

new text begin Costs. new text end

new text begin Costs incurred by the county auditor in protecting the premises from
waste or trespass under this section may be added to the delinquent taxes due. The costs may
bear interest to the extent provided, and interest may be added to the delinquent taxes due.
new text end

new text begin Subd. 4. new text end

new text begin Scope. new text end

new text begin The actions authorized under this section are in addition to, and do
not limit or replace, any other rights or remedies available to the county auditor under
Minnesota law.
new text end

Sec. 5.

Minnesota Statutes 2014, section 282.01, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Online auction. new text end

new text begin A county board, or a county auditor if the auditor has
been delegated such authority under section 282.135, may sell tax-forfeited lands through
an online auction. When an online auction is used to sell tax-forfeited lands, the county
auditor shall post a physical notice of the online auction and shall publish a notice of the
online auction on its Web site not less than ten days before the online auction begins,
in addition to any other notice required.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales of tax-forfeited property
that occur on or after August 1, 2016.
new text end

Sec. 6.

Minnesota Statutes 2014, section 282.02, is amended to read:

282.02 LIST OF LANDS FOR SALE; NOTICE new text begin ; ONLINE AUCTIONS
PERMITTED new text end .

new text begin (a) new text end Immediately after classification and appraisal of the land, and after approval
by the commissioner of natural resources when required pursuant to section 282.01,
subdivision 3, the county board shall provide and file with the county auditor a list of
parcels of land to be offered for sale. This list shall contain a description of the parcels of
land and the appraised value thereof. The auditor shall publish a notice of the intended
public sale of such parcels of land and a copy of the resolution of the county board fixing
the terms of the sale, if other than for cash only, by publication once a week for two weeks
in the official newspaper of the county, the last publication to be not less than ten days
previous to the commencement of the sale.

new text begin (b) new text end The notice shall include the parcel's description and appraised value. The notice
shall also indicate the amount of any special assessments which may be the subject of a
reassessment or new assessment or which may result in the imposition of a fee or charge
pursuant to sections 429.071, subdivision 4, 435.23, and 444.076. The county auditor shall
also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this
section, "owner" means the taxpayer as listed in the records of the county auditor.

new text begin (c) new text end If the county board deleted text begin of St. Louis or Koochiching Counties deleted text end determines that the
sale shall take place in a county facility other than the courthouse, the notice shall specify
the facility and its location. new text begin If the county board determines that the sale shall take place
as an online auction under section 282.01, subdivision 13, the notice shall specify the
auction Web site and the date of the auction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales of tax-forfeited property
that occur on or after August 1, 2016.
new text end

Sec. 7.

Minnesota Statutes 2014, section 282.241, subdivision 1, is amended to read:

Subdivision 1.

Repurchase requirements.

The owner at the time of forfeiture, or
the owner's heirs, devisees, or representatives, or any person to whom the right to pay
taxes was given by statute, mortgage, or other agreement, may repurchase any parcel
of land claimed by the state to be forfeited to the state for taxes unless before the time
repurchase is made the parcel is sold under installment payments, or otherwise, by the
state as provided by law, or is under mineral prospecting permit or lease, or proceedings
have been commenced by the state or any of its political subdivisions or by the United
States to condemn the parcel of land. The parcel of land may be repurchased for the sum
of all delinquent taxes and assessments computed under section 282.251, together with
penalties, interest, and costs, that accrued or would have accrued if the parcel of land
had not forfeited to the state. Except for property which was homesteaded on the date
of forfeiture, repurchase is permitted during deleted text begin one year deleted text end new text begin six months new text end only from the date of
forfeiture, and in any case only after the adoption of a resolution by the board of county
commissioners determining that by repurchase undue hardship or injustice resulting from
the forfeiture will be corrected, or that permitting the repurchase will promote the use of
the lands that will best serve the public interest. If the county board has good cause to
believe that a repurchase installment payment plan for a particular parcel is unnecessary
and not in the public interest, the county board may require as a condition of repurchase
that the entire repurchase price be paid at the time of repurchase. A repurchase is subject
to any easement, lease, or other encumbrance granted by the state before the repurchase,
and if the land is located within a restricted area established by any county under Laws
1939, chapter 340, the repurchase must not be permitted unless the resolution approving
the repurchase is adopted by the unanimous vote of the board of county commissioners.

The person seeking to repurchase under this section shall pay all maintenance costs
incurred by the county auditor during the time the property was tax-forfeited.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end

Sec. 8.

Minnesota Statutes 2014, section 282.322, is amended to read:

282.322 FORFEITED LANDS LIST.

The county board of any county may file a list of forfeited lands with the county
auditor, if the board is of the opinion that such lands may be acquired by the state or any
municipal subdivision deleted text begin thereof deleted text end new text begin of the state new text end for public purposes. Upon the filing of deleted text begin such deleted text end new text begin
the new text end list new text begin of forfeited lands, new text end the county auditor shall withhold said lands from repurchase.
If no proceeding deleted text begin shall be deleted text end new text begin is new text end started to acquire such lands by the state or some municipal
subdivision deleted text begin thereof deleted text end new text begin of the state new text end within one year after the filing of deleted text begin such deleted text end new text begin the new text end list new text begin of forfeited
lands, new text end the county board shall withdraw deleted text begin said deleted text end new text begin the new text end list and thereafter new text begin , if the property was
classified as nonhomestead at the time of forfeiture, new text end the owner shall have deleted text begin one year deleted text end new text begin not
more than six months new text end in which to repurchase.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end

Sec. 9.

Minnesota Statutes 2014, section 504B.285, subdivision 1, is amended to read:

Subdivision 1.

Grounds.

(a) The person entitled to the premises may recover
possession by eviction when:

(1) any person holds over real property:

(i) after a sale of the property on an execution or judgment; deleted text begin or
deleted text end

(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or
after termination of contract to convey the property; new text begin or
new text end

new text begin (iii) after the expiration of the time for redemption on a real estate tax judgment sale;
new text end

(2) any person holds over real property after termination of the time for which it is
demised or leased to that person or to the persons under whom that person holds possession,
contrary to the conditions or covenants of the lease or agreement under which that person
holds, or after any rent becomes due according to the terms of such lease or agreement; or

(3) any tenant at will holds over after the termination of the tenancy by notice to quit.

(b) A landlord may not commence an eviction action against a tenant or authorized
occupant solely on the basis that the tenant or authorized occupant has been the victim of
any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this
paragraph should be construed to prohibit an eviction action based on a breach of the lease.

Sec. 10.

Minnesota Statutes 2014, section 504B.365, subdivision 3, is amended to read:

Subd. 3.

Removal and storage of property.

(a) If the defendant's personal property
is to be stored in a place other than the premises, the officer shall remove all personal
property of the defendant at the expense of the plaintiff.

(b) The defendant must make immediate payment for all expenses of removing
personal property from the premises. If the defendant fails or refuses to do so, the plaintiff
has a lien on all the personal property for the reasonable costs and expenses incurred in
removing, caring for, storing, and transporting it to a suitable storage place.

(c) The plaintiff may enforce the lien by detaining the personal property until paid. If
no payment has been made for 60 days after the execution of the order to vacate, the plaintiff
may new text begin dispose of the property or new text end hold a public sale as provided in sections 514.18 to 514.22.

(d) If the defendant's personal property is to be stored on the premises, the officer
shall enter the premises, breaking in if necessary, and the plaintiff may remove the
defendant's personal property. Section 504B.271 applies to personal property removed
under this paragraph. The plaintiff must prepare an inventory and mail a copy of the
inventory to the defendant's last known address or, if the defendant has provided a
different address, to the address provided. The inventory must be prepared, signed, and
dated in the presence of the officer and must include the following:

(1) a list of the items of personal property and a description of their condition;

(2) the date, the signature of the plaintiff or the plaintiff's agent, and the name and
telephone number of a person authorized to release the personal property; and

(3) the name and badge number of the officer.

(e) The officer must retain a copy of the inventory.

(f) The plaintiff is responsible for the proper removal, storage, and care of the
defendant's personal property and is liable for damages for loss of or injury to it caused
by the plaintiff's failure to exercise the same care that a reasonably careful person would
exercise under similar circumstances.

(g) The plaintiff shall notify the defendant of the date and approximate time the
officer is scheduled to remove the defendant, family, and personal property from the
premises. The notice must be sent by first class mail. In addition, the plaintiff must make a
good faith effort to notify the defendant by telephone. The notice must be mailed as soon as
the information regarding the date and approximate time the officer is scheduled to enforce
the order is known to the plaintiff, except that the scheduling of the officer to enforce the
order need not be delayed because of the notice requirement. The notice must inform the
defendant that the defendant and the defendant's personal property will be removed from the
premises if the defendant has not vacated the premises by the time specified in the notice.

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 281.22, new text end new text begin is repealed.
new text end