1.1 	A bill for an act
1.2 	relating to taxation; property; requiring that current property taxes be paid before 
1.3 	recording deeds or other conveyances on certain types of property;amending 
1.4 	Minnesota Statutes 2004, section 272.12.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 272.12, is amended to read:
1.7 	272.12 CONVEYANCES, TAXES PAID BEFORE RECORDING.
1.8 	(a) When:
1.9 	~~(a)~~ (1) a deed or other instrument conveying land,
1.10 	~~(b)~~ (2) a plat of any town site or addition thereto,
1.11 	~~(c)~~ (3) a survey required pursuant to section  508.47, 
1.12 	~~(d)~~ (4) a condominium plat subject to chapter 515 or 515A or a declaration that 
1.13 	contains such a plat, or
1.14 	~~(e)~~ (5) a common interest community plat subject to chapter 515B or a declaration 
1.15 	that contains such a plat,
1.16 	is presented to the county auditor for transfer, the auditor shall ascertain from the records 
1.17 	if there ~~be~~ are taxes ~~delinquent~~ upon the land described therein, or if it has been sold for 
1.18 	taxes. An assignment of a sheriff's or referee's certificate of sale, when the certificate of 
1.19 	sale describes real estate, and certificates of redemption from mortgage or lien foreclosure 
1.20 	sales, when the certificate of redemption encompasses real estate and is issued to a junior 
1.21 	creditor, are considered instruments conveying land for the purposes of this section and 
1.22 	section  272.121. 
1.23 	(b) If there are:
2.1 	(1) current or delinquent taxes on property classified as homestead under section 
2.2 	273.13, subdivision 22, paragraphs (a) and (b), or property classified as commercial or 
2.3 	industrial under section 273.13, subdivision 24, whose estimated market value for the 
2.4 	previous assessment year is equal to or less than $250,000, the auditor shall certify to the 
2.5 	same, and upon payment of the taxes, or if there are no delinquent taxes and the current 
2.6 	year's taxes have been paid, shall transfer the land upon the books of the auditor's office, 
2.7 	and note upon the instrument, over the official signature, the words "current taxes paid, no 
2.8 	delinquent taxes, and transfer entered," or
2.9 	 ~~there are taxes~~ (2) delinquent taxes on any other property not included in clause (1), 
2.10 	the auditor shall certify to the same; and upon payment of ~~such~~ the taxes, or in case no 
2.11 	taxes are delinquent, shall transfer the land upon the books of the auditor's office, and 
2.12 	note upon the instrument, over official signature, the words, "no delinquent taxes and 
2.13 	transfer entered~~,~~." ~~or,~~
2.14 	(c) If the land described paragraph (b), clause (1) or (2) has been sold or assigned to 
2.15 	an actual purchaser for taxes, the words "paid by sale of land described within;" and, unless 
2.16 	such statement is made upon such instrument, the county recorder or the registrar of titles 
2.17 	shall refuse to receive or record the same; provided, that sheriff's or referees' certificates 
2.18 	of sale on execution or foreclosure of a lien or mortgage, certificates of redemption from 
2.19 	mortgage or lien foreclosure sales issued to the redeeming mortgagor or lienee, deeds 
2.20 	of distribution made by a personal representative in probate proceedings, decrees and 
2.21 	judgments, receivers receipts, patents, and copies of town or statutory city plats, in case 
2.22 	the original plat filed in the office of the county recorder has been lost or destroyed, and 
2.23 	the instruments releasing, removing and discharging reversionary and forfeiture provisions 
2.24 	affecting title to land and instruments releasing, removing or discharging easement rights 
2.25 	in land or building or other restrictions, may be recorded without such certificate; and, 
2.26 	provided that instruments conveying land and, as appurtenant thereto an easement over 
2.27 	adjacent tract or tracts of land, may be recorded without such certificate as to the land 
2.28 	covered by such easement; and provided further, that any instrument granting an easement 
2.29 	made in favor of any public utility or pipe line for conveying gas, liquids or solids in 
2.30 	suspension, in the nature of a right-of-way over, along, across or under a tract of land may 
2.31 	be recorded without such certificate as to the land covered by such easement. Documents 
2.32 	governing homeowners associations of condominiums, townhouses, common interest 
2.33 	ownership communities, and other planned unit developments may be recorded without 
2.34 	the auditor's certificate to the extent provided in section  515B.1-116(f). 
2.35 	(d) A deed of distribution made by a personal representative in a probate proceeding, 
2.36 	a decree, or a judgment that conveys land shall be presented to the county auditor, who 
3.1 	shall transfer the land upon the books of the auditor's office and note upon the instrument, 
3.2 	over official signature, the words, "transfer entered", and the instrument may then be 
3.3 	recorded. A decree or judgment that affects title to land but does not convey land may be 
3.4 	recorded without presentation to the auditor.
3.5 	(e) A violation of this section by the county recorder or the registrar of titles shall 
3.6 	be a gross misdemeanor, and, in addition to the punishment therefor, the recorder or 
3.7 	registrar shall be liable to the grantee of any instrument so recorded for the amount of 
3.8 	any damages sustained.
3.9 	(f) When, as a condition to permitting the recording of deed or other instrument 
3.10 	affecting the title to real estate previously forfeited to the state under the provisions of 
3.11 	sections  281.16 to  281.25, county officials, after such real estate has been purchased or 
3.12 	repurchased, have required the payment of taxes erroneously assumed to have accrued 
3.13 	against such real estate after forfeiture and before the date of purchase or repurchase, the 
3.14 	sum required to be so paid shall be refunded to the persons entitled thereto out of moneys 
3.15 	in the funds in which the sum so paid was placed. Delinquent taxes are those taxes deemed 
3.16 	delinquent under section  279.02. 

3.17 	EFFECTIVE DATE. This section is effective for deeds or other conveyances 
3.18 	recorded on or after July 1, 2006.