1.1                          A bill for an act 
  1.2             relating to mortgage registry and deed taxes; making 
  1.3             technical and clarifying changes; defining terms; 
  1.4             amending Minnesota Statutes 1998, sections 287.01; 
  1.5             287.04; 287.05; 287.08; 287.10; 287.11; 287.12; 
  1.6             287.13, subdivision 1; 287.21, subdivision 1; 287.22; 
  1.7             287.23; 287.24; 287.241; 287.29, subdivision 1; 
  1.8             287.30; 287.31; and 287.33; proposing coding for new 
  1.9             law in Minnesota Statutes, chapter 287; repealing 
  1.10            Minnesota Statutes 1998, sections 287.06; 287.07; 
  1.11            287.09; 287.21, subdivisions 2 and 4; 287.34; 287.35; 
  1.12            and 287.36. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1998, section 287.01, is 
  1.15  amended to read: 
  1.16     287.01 [DEFINITIONS; MORTGAGE REGISTRY TAX.] 
  1.17     Subdivision 1.  [WORDS, TERMS, AND PHRASES.] Unless the 
  1.18  language or context clearly indicates that a different meaning 
  1.19  is intended, the following words, terms, and phrases, for the 
  1.20  purposes of sections 287.01 to ~~287.12~~ 287.13, ~~shall be~~ 
  1.21  ~~given~~ have the meanings ~~subjoined to~~ given them in this 
  1.22  section. 
  1.23     Subd. 2.  [~~REAL PROPERTY, REAL ESTATE, AND LAND~~ AMENDMENT.] 
  1.24  ~~"Real property," "real estate," and "land," in addition to the~~ 
  1.25  ~~meaning thereof contained in chapter 500, include all property a~~ 
  1.26  ~~conveyance whereof may be recorded or registered by a county~~ 
  1.27  ~~recorder under existing law.~~ "Amendment" means generally a 
  1.28  document that alters an existing mortgage without securing a new 
  1.29  debt, or increasing the amount of an existing debt; and, that 
  2.1   does not, in the case of a multistate mortgage described in 
  2.2   section 287.05, subdivision 1, paragraph (b), result in an 
  2.3   increased percentage of the real property encumbered by the 
  2.4   mortgage being located in this state.  Specifically, a document 
  2.5   is considered an amendment to the extent it merely does any one 
  2.6   or any combination of the following:  (i) extends the time for 
  2.7   payment of the unpaid portion of the original debt; (ii) changes 
  2.8   the rate of interest applicable to the unpaid portion of the 
  2.9   original debt; (iii) adds additional real property as security 
  2.10  for the unpaid portion of the original debt; (iv) releases some 
  2.11  but not all of the real property serving as security for the 
  2.12  unpaid portion of the debt; (v) replaces all the real property 
  2.13  serving as security for the unpaid portion of the debt with 
  2.14  other real property regardless of value; (vi) replaces a party 
  2.15  previously bound by the mortgage with a new party who becomes 
  2.16  bound by the same amended mortgage; or (vii) reduces the amount 
  2.17  of the debt secured by real property located in this state, or 
  2.18  in the case of a multistate mortgage described in section 
  2.19  287.05, subdivision 1, paragraph (b), reduces the percentage of 
  2.20  real property encumbered by the mortgage that is located in this 
  2.21  state.  
  2.22     Subd. 3.  [~~MORTGAGE~~ DEBT.] ~~"Mortgage" means any instrument,~~ 
  2.23  ~~including a decree of marriage dissolution or an instrument made~~ 
  2.24  ~~pursuant to it, creating or evidencing a lien of any kind on~~ 
  2.25  ~~property, given or taken as security for a debt, notwithstanding~~ 
  2.26  ~~such debt may also be secured in part by a lien upon~~ 
  2.27  ~~personalty.~~ "Debt" means the principal amount of an obligation 
  2.28  to pay money or to perform or refrain from performing an act 
  2.29  that is secured in whole or in part by a mortgage of an interest 
  2.30  in real property. 
  2.31     Subd. 4.  [DECREE OF MARRIAGE DISSOLUTION.] "Decree of 
  2.32  marriage dissolution" includes a summary real estate disposition 
  2.33  judgment or an instrument made ~~pursuant to~~ under it. 
  2.34     Subd. 5.  [EXTENSION.] "Extension" means any document that 
  2.35  alters an existing mortgage by extending the time for repayment 
  2.36  without increasing the amount of debt secured by real property 
  3.1   that is located in this state. 
  3.2      Subd. 6.  [MORTGAGE.] "Mortgage" means any instrument, 
  3.3   including a decree of marriage dissolution or an instrument made 
  3.4   under it, creating or evidencing a lien of any kind on real 
  3.5   property, given by an owner of real property as security for a 
  3.6   debt, notwithstanding that the debt may also be secured in part 
  3.7   by a lien upon personalty. 
  3.8      Subd. 7.  [MULTISTATE MORTGAGE.] "Multistate mortgage" 
  3.9   means a mortgage that encumbers real property located both in 
  3.10  and outside of this state. 
  3.11     Subd. 8.  [PERSON.] "Person" includes any individual, 
  3.12  partner, officer, director, firm, partnership, joint venture, 
  3.13  limited liability company, association, cooperative, social 
  3.14  club, fraternal organization, municipal or private corporation, 
  3.15  whether organized for profit or not, estate, trusts, business 
  3.16  trusts, receiver, trustee, syndicate, the United States, a 
  3.17  state, any political subdivision of a state, or any group or 
  3.18  combination acting as a unit, and the plural as well as the 
  3.19  singular.  The term includes any agent of any individual or 
  3.20  organization enumerated in this subdivision. 
  3.21     Subd. 9.  [REAL PROPERTY, REAL ESTATE, AND LAND.] "Real 
  3.22  property," "real estate," and "land" have the meaning contained 
  3.23  in chapter 500, and include all interests in real property that 
  3.24  can be conveyed by a document which may be recorded. 
  3.25     Subd. 10.  [RECORD, RECORDED, AND RECORDING.] "Record," 
  3.26  "recorded," and "recording" each mean that a document has been 
  3.27  delivered to and filed in the office of the county recorder or 
  3.28  registrar of titles, whichever office maintains the records for 
  3.29  the real property described in the document. 
  3.30     Sec. 2.  [287.035] [IMPOSITION OF TAX.] 
  3.31     A tax of 23 cents is imposed upon each $100, or fraction 
  3.32  thereof, of the debt or portion of a debt that is secured by any 
  3.33  recorded mortgage of real property located in this state.  The 
  3.34  person liable for the tax is the mortgagee.  The tax is not 
  3.35  imposed on the lawful interest amounts that may accrue with 
  3.36  respect to a debt. 
  4.1      Sec. 3.  Minnesota Statutes 1998, section 287.04, is 
  4.2   amended to read: 
  4.3      287.04 [EXEMPTIONS.] 
  4.4      ~~Subdivision 1.  [GENERALLY.]~~ The tax imposed by section 
  4.5   287.035 does not apply to:  
  4.6      (a) A decree of marriage dissolution or an instrument made 
  4.7   pursuant to it ~~or a~~.  
  4.8      (b) A mortgage given to correct a misdescription of the 
  4.9   mortgaged property~~, or to include~~. 
  4.10     (c) A mortgage or other instrument that adds additional 
  4.11  security for the same ~~indebtedness on~~ debt for which ~~a~~ mortgage 
  4.12  ~~registration~~ registry tax has been paid~~, are not subject to the~~ 
  4.13  ~~tax imposed by this chapter except as provided in section~~ 
  4.14  ~~287.05, subdivision 2, paragraph (b)~~.  
  4.15     (d) A contract for the conveyance of any interest in real 
  4.16  property, including a contract for deed. 
  4.17     (e) A mortgage secured by real property subject to the 
  4.18  minerals production tax of sections 298.24 to 298.28. 
  4.19     ~~Subd. 2.  [MORTGAGES ON PUBLIC PROPERTY.] No tax is imposed~~ 
  4.20  ~~upon~~ (f) The principal amount of bonds or other obligations 
  4.21  issued by the St. Paul port authority under its common revenue 
  4.22  bond fund if each of the following conditions are met. 
  4.23     ~~(a)~~ (1) The bonds or other obligations are secured by a 
  4.24  mortgage on property, title to which is held by the political 
  4.25  subdivision. 
  4.26     ~~(b)~~ (2) The mortgage is recorded ~~or registered~~ after ~~the~~ 
  4.27  ~~date of enactment~~ May 19, 1993. 
  4.28     ~~(c)~~ (3) The bonds or other obligations are either (i)  
  4.29  outstanding on ~~the date of enactment~~ May 19, 1993, or (ii) 
  4.30  issued in exchange for or to otherwise refund bonds or other 
  4.31  obligations the original series of which were issued before ~~the~~ 
  4.32  ~~date of enactment~~ May 19, 1993. 
  4.33     (g) Mortgages taken in good faith by persons or 
  4.34  corporations whose property is expressly exempted from taxation 
  4.35  by section 272.02, subdivision 1, clauses (1) to (7), or 
  4.36  mortgagees that are fraternal benefit societies subject to 
  5.1   section 64B.24. 
  5.2      (h) A mortgage amendment or extension, as defined in 
  5.3   section 287.01. 
  5.4      Sec. 4.  Minnesota Statutes 1998, section 287.05, is 
  5.5   amended to read: 
  5.6      287.05 [DETERMINATION OF TAX ~~ON RECORDATION OR~~ 
  5.7   ~~REGISTRATION; SUPPLEMENTAL MORTGAGES; REVERSE MORTGAGES~~ IN 
  5.8   SPECIAL SITUATIONS.] 
  5.9      Subdivision 1.  [~~TAX IMPOSED~~ REAL PROPERTY OUTSIDE 
  5.10  MINNESOTA.] ~~A tax of 23 cents is imposed upon each $100, or~~ 
  5.11  ~~fraction thereof, of the principal debt or obligation which is~~ 
  5.12  ~~or may be secured by any mortgage of real property situated~~ 
  5.13  ~~within the state executed, delivered, and recorded or~~ 
  5.14  ~~registered; provided, however, that the tax shall be imposed but~~ 
  5.15  ~~once upon any mortgage and extension thereof.  If the mortgage~~ 
  5.16  ~~describes real estate situated outside of this state, the tax~~ 
  5.17  ~~shall be imposed upon that proportion of the whole debt secured~~ 
  5.18  ~~thereby as the value of the real estate therein described~~ 
  5.19  ~~situated in this state bears to the value of the whole of the~~ 
  5.20  ~~real estate described therein.  The tax imposed by this section~~ 
  5.21  ~~shall not apply to a contract for the conveyance of any interest~~ 
  5.22  ~~in real estate~~ (a) When a multistate mortgage is intended to 
  5.23  secure only a portion of a debt amount recited or referred to in 
  5.24  the mortgage, the mortgage may contain the following statement, 
  5.25  or its equivalent, on the first page:  "Enforcement of this 
  5.26  mortgage in Minnesota is limited to a debt amount of $....... 
  5.27  under chapter 287 of Minnesota Statutes."  In such case, the tax 
  5.28  shall be imposed based only on the amount of debt so stated to 
  5.29  be secured by real property located in this state; and, the 
  5.30  effect of the mortgage, or any amendment or extension, as 
  5.31  evidence in any court in this state, or as notice for any 
  5.32  purpose in this state, shall be limited to the amount contained 
  5.33  in the statement and for which the tax has been paid.  
  5.34     (b) All multistate mortgages not taxed under paragraph (a) 
  5.35  shall be taxed under sections 287.01 to 287.13 as if the real 
  5.36  property identified in the mortgage secures payment of that 
  6.1   portion of the maximum debt amount referred to, or incorporated 
  6.2   by reference, in the mortgage that is equal to a fraction the 
  6.3   numerator of which is the value of the real property described 
  6.4   in the mortgage that is located in this state and the 
  6.5   denominator of which is the value of all the real property 
  6.6   described in the mortgage.  
  6.7      Subd. 1a.  [REAL PROPERTY IN THIS STATE SECURES PORTION OF 
  6.8   DEBT.] (a) When the real property identified in a mortgage is 
  6.9   located entirely in this state and is intended to secure only a 
  6.10  portion of a debt amount recited or referred to in the mortgage, 
  6.11  the mortgage may contain the following statement, or its 
  6.12  equivalent, on the first page:  "Enforcement of this mortgage is 
  6.13  limited to a debt amount of $....... under chapter 287 of 
  6.14  Minnesota Statutes."  In such case, the tax shall be imposed 
  6.15  based only on the amount of debt so stated to be secured by real 
  6.16  property; and, the effect of the mortgage, or any amendment or 
  6.17  extension, as evidence in any court in this state, or as notice 
  6.18  for any purpose in this state, shall be limited to the amount 
  6.19  contained in the statement and for which the tax has been paid.  
  6.20     (b) All mortgages that are not multistate mortgages and 
  6.21  that are not taxed under paragraph (a) shall be taxed under 
  6.22  sections 287.01 to 287.13 as if the real property identified in 
  6.23  the mortgage secures payment of the maximum debt amount referred 
  6.24  to, or incorporated by reference, in the mortgage. 
  6.25     Subd. 2.  [SUPPLEMENTAL MORTGAGES.] Except for an amendment 
  6.26  or a revision to a reverse mortgage as described under 
  6.27  subdivision 6, any ~~supplemental~~ document that alters an existing 
  6.28  mortgage, ~~not including revisions to a reverse mortgage as~~ 
  6.29  ~~described under subdivision 6, securing a portion or all of the~~ 
  6.30  ~~same indebtedness, whether or not additional security is~~ 
  6.31  ~~included,~~ by providing for an increase in the amount of debt 
  6.32  secured by real property located in this state, or, in the case 
  6.33  of a multistate mortgage described in subdivision 1, paragraph 
  6.34  (b), an increase in the percentage of Minnesota real estate as 
  6.35  compared to the total real estate that is encumbered by the 
  6.36  mortgage shall be taxed ~~in the following manner:~~ 
  7.1      ~~(a) Any additional indebtedness shall be taxed on the ratio~~ 
  7.2   ~~that the value of the real estate therein described in this~~ 
  7.3   ~~state bears to the value of the whole of the real estate~~ 
  7.4   ~~described therein.~~ based upon the increase in the amount of the 
  7.5   debt determined to be secured by real property located in this 
  7.6   state under either subdivision 1 or 1a. 
  7.7      ~~(b) If there is no additional indebtedness but the~~ 
  7.8   ~~percentage of the Minnesota real estate as compared to the total~~ 
  7.9   ~~real estate secured by the previous mortgage is increased, the~~ 
  7.10  ~~tax shall be recomputed and paid on the remaining indebtedness~~ 
  7.11  ~~multiplied by the difference between that percentage of~~ 
  7.12  ~~Minnesota real estate included in the supplemental mortgage and~~ 
  7.13  ~~that percentage included in any previous mortgage.~~  
  7.14     ~~(c) In the event of both an increase in the indebtedness~~ 
  7.15  ~~and a change in the Minnesota percentage of real estate given as~~ 
  7.16  ~~security, the tax shall be recomputed on the portion~~ 
  7.17  ~~representing new indebtedness in the manner provided in (a) and~~ 
  7.18  ~~in the event of an increase in the percentage of Minnesota~~ 
  7.19  ~~property included as security, the tax shall be computed on the~~ 
  7.20  ~~remaining portion of the indebtedness as provided in (b).~~  
  7.21     Subd. 3.  [REVOLVING LINES OF CREDIT.] When a mortgage, 
  7.22  including a reverse mortgage, secures a revolving line of credit 
  7.23  under which advances, payments, and readvances may be made from 
  7.24  time to time, the tax imposed under ~~subdivision 1 shall~~ section 
  7.25  287.035 must be paid on the maximum amount of the line of credit 
  7.26  ~~which~~ that may be secured at any one time, as expressed in the 
  7.27  mortgage, regardless of the time or amount of advances, 
  7.28  payments, or readvances.  
  7.29     Subd. 4.  [ADVANCES BY MORTGAGEE.] No tax under ~~subdivision~~ 
  7.30  ~~1~~ section 287.035 shall be paid on the indeterminate 
  7.31  amount ~~which~~ that may be advanced by the mortgagee in protection 
  7.32  of the mortgaged premises or the mortgage, including taxes, 
  7.33  assessments, charges, claims, fines, impositions, and insurance 
  7.34  premiums~~,~~; the amounts due upon prior or superior mortgages and 
  7.35  other prior or superior liens, encumbrances, and interests~~,~~; and 
  7.36  legal expenses and attorneys' fees.  
  8.1      Subd. 5.  [INDETERMINATE AMOUNTS.] When a mortgage secures 
  8.2   an indeterminate amount other than those described in 
  8.3   subdivision 3, 4, or 6, no tax shall be paid at the time the 
  8.4   mortgage is recorded ~~or registered~~, but the tax must be paid at 
  8.5   the time of recording ~~or filing~~ an affidavit or other document 
  8.6   stating the amount and time of the actual advance.  
  8.7      Subd. 6.  [REVERSE MORTGAGES.] If real property secures a 
  8.8   reverse mortgage, the principal debt or obligation to which 
  8.9   mortgage registry tax applies is the expected total 
  8.10  disbursements or cash equivalent to be made under the terms of 
  8.11  the loan.  Interest accruing on the disbursements made is not 
  8.12  subject to mortgage registry tax.  In the case of periodic 
  8.13  payments made for an indefinite length of time, the expected 
  8.14  total disbursements must equal the product of the periodic 
  8.15  payment amounts and the number of payments and, if applicable, 
  8.16  the amount of cash distribution or its equivalent.  The number 
  8.17  of payments must be based upon the life expectancy assumption 
  8.18  used in determining the payment amount.  In the case of reverse 
  8.19  mortgages made as part of the Housing and Community Development 
  8.20  Act of 1987, section 255 of the National Housing Act, and 
  8.21  administered by the Department of Housing and Urban Development 
  8.22  (HUD), mortgage registry tax must not be assessed on Federal 
  8.23  Housing Administration mortgage insurance premiums, monthly 
  8.24  lender service fees, or payments to be distributed to the 
  8.25  borrower by HUD.  
  8.26     Subd. 7.  [MORTGAGES TO SECURE OBLIGATIONS TO BE 
  8.27  ISSUED.] If a mortgage is made to a mortgagee in trust to secure 
  8.28  the payment of bonds or other obligations yet to be issued, a 
  8.29  statement may be incorporated in the mortgage stating the amount 
  8.30  of the obligations already issued or yet to be issued, and the 
  8.31  tax to be paid on filing the mortgage for recording must be 
  8.32  computed upon the amount so stated.  The statement must be 
  8.33  binding and conclusive upon all persons claiming through or 
  8.34  under the mortgage, and no such obligation issued in excess of 
  8.35  the aggregate so fixed is valid for any purpose unless the 
  8.36  additional tax is paid and receipted by the proper county 
  9.1   treasurer. 
  9.2      Subd. 8.  [AMENDMENTS.] An amendment may contain the 
  9.3   following statement, or its equivalent, on its first page:  
  9.4   "This is a mortgage amendment, as defined in Minnesota Statutes, 
  9.5   section 287.01, subdivision 2, and as such it does not secure a 
  9.6   new or an increased amount of debt."  In such cases, the 
  9.7   document will be treated as a mortgage amendment, as defined in 
  9.8   section 287.01, subdivision 2, for all purposes and does not 
  9.9   serve to secure a new or an increased amount of debt. 
  9.10     Sec. 5.  Minnesota Statutes 1998, section 287.08, is 
  9.11  amended to read: 
  9.12     287.08 [TAX, HOW PAYABLE; RECEIPTS.] 
  9.13     (a) The tax imposed by sections 287.01 to 287.12 ~~shall~~ must 
  9.14  be paid to the treasurer of ~~the~~ any county in this state in 
  9.15  which the ~~mortgaged land~~ real property or some part ~~thereof~~ is 
  9.16  ~~situated~~ located at or before the time of filing the mortgage 
  9.17  for record ~~or registration~~.  The treasurer shall endorse receipt 
  9.18  on the mortgage~~, countersigned by the county auditor, who shall~~ 
  9.19  ~~charge the amount to the treasurer~~ and ~~such~~ the receipt ~~shall be~~ 
  9.20  ~~recorded with the mortgage, and such receipt of the record~~ 
  9.21  ~~thereof shall be~~ is conclusive proof that the tax has been 
  9.22  paid ~~to~~ in the amount ~~therein~~ stated and ~~authorize~~ authorizes 
  9.23  any county recorder or registrar of titles to record the 
  9.24  mortgage.  Its form, in substance, shall be "registration tax 
  9.25  hereon of ..................... dollars paid."  If the ~~mortgages~~ 
  9.26  ~~be~~ mortgage is exempt from taxation the endorsement shall, in 
  9.27  substance, be "exempt from registration tax~~,~~." ~~to~~ In either 
  9.28  case the receipt must be signed ~~in either case~~ by the treasurer 
  9.29  ~~as such, and in case of payment to be countersigned by the~~ 
  9.30  ~~auditor~~.  In case the treasurer ~~shall be~~ is unable to determine 
  9.31  whether a claim of exemption should be allowed, the tax ~~shall~~ 
  9.32  must be paid as in the case of a taxable mortgage.  
  9.33     (b) Upon written application of the taxpayer, the county 
  9.34  treasurer may refund in whole or in part any tax ~~which~~ that has 
  9.35  been erroneously paid, or a person having paid a mortgage 
  9.36  registry tax amount may seek a refund of ~~such~~ the tax, or other 
 10.1   appropriate relief, by bringing an action in tax court in the 
 10.2   county in which the tax was paid, within 60 days of the 
 10.3   payment.  The action is commenced by the serving of a petition 
 10.4   for relief on the county treasurer, and by filing a copy with 
 10.5   the court.  The county attorney shall defend the action.  The 
 10.6   county treasurer shall notify the treasurer of each county that 
 10.7   has or would receive a portion of the tax as paid.  
 10.8      (c) If the county treasurer determines a refund should be 
 10.9   paid, or if a refund is ordered by the court, the county 
 10.10  treasurer of each county that actually received a portion of the 
 10.11  tax shall immediately pay a proportionate share of three percent 
 10.12  of the refund using any available county funds.  The county 
 10.13  treasurer of each county ~~which~~ that received, or would have 
 10.14  received, a portion of the tax shall also pay their county's 
 10.15  proportionate share of the remaining 97 percent of the 
 10.16  court-ordered refund on or before the ~~tenth~~ 20th day of the 
 10.17  following month using solely the mortgage registry tax funds 
 10.18  that would be paid to the commissioner of revenue on that date 
 10.19  under section 287.12.  If the funds on hand under this procedure 
 10.20  are insufficient to fully fund 97 percent of the court-ordered 
 10.21  refund, the county treasurer of the county in which the action 
 10.22  was brought shall file a claim with the commissioner of revenue 
 10.23  under section 16A.48 for the remaining portion of 97 percent of 
 10.24  the refund, and shall pay over the remaining portion upon 
 10.25  receipt of a warrant from the state issued pursuant to the claim.
 10.26     (d) When any ~~such~~ mortgage covers real property ~~situate~~ 
 10.27  located in more than one county in this state the ~~whole of such~~ 
 10.28  total tax ~~shall~~ must be paid to the treasurer of the county 
 10.29  where the mortgage is first presented for ~~record or registration~~ 
 10.30  recording, and the payment ~~shall~~ must be receipted ~~and~~ 
 10.31  ~~countersigned~~ as ~~above~~ provided in paragraph (a).  If the 
 10.32  principal debt or obligation secured by such a multiple county 
 10.33  mortgage exceeds $1,000,000, the nonstate portion of the tax 
 10.34  ~~shall~~ must be divided and paid over by the county treasurer 
 10.35  receiving ~~the same~~ it, on or before the ~~tenth~~ 20th day of each 
 10.36  month after receipt ~~thereof~~, to the county or counties 
 11.1   entitled ~~thereto~~ in the ratio ~~which~~ that the market value of the 
 11.2   real property covered by the mortgage in each county bears to 
 11.3   the market value of all the real property in this state 
 11.4   described in the mortgage.  In making ~~such~~ the division and 
 11.5   payment the county treasurer shall send ~~therewith~~ a statement 
 11.6   giving the description of the real property described in the 
 11.7   mortgage and the market value of the part ~~thereof situate~~ 
 11.8   located in each county.  For ~~the~~ this purpose ~~aforesaid~~, the 
 11.9   treasurer of any county may require the treasurer of any other 
 11.10  county to certify to the former the market valuation of any 
 11.11  tract of ~~land~~ real property in any ~~such~~ mortgage. 
 11.12     Sec. 6.  Minnesota Statutes 1998, section 287.10, is 
 11.13  amended to read: 
 11.14     287.10 [PREPAYMENT OF TAX; EVIDENCE; NOTICE.] 
 11.15     A mortgage or ~~papers~~ documents relating to its foreclosure, 
 11.16  assignment, or satisfaction, must not be recorded ~~or registered~~ 
 11.17  unless the tax has been paid.  ~~A~~ Except as provided in section 
 11.18  582.25, a document or any record of the mortgage may not be 
 11.19  received in evidence in any court, and is not valid notice, 
 11.20  unless the tax has been paid.  If the tax is paid, an error in 
 11.21  computation or ascertainment of the amount does not affect the 
 11.22  validity of the mortgage or the record or foreclosure.  This 
 11.23  section does not apply to a mortgage that is exempt 
 11.24  from ~~taxation~~ the tax imposed under section ~~287.04 or 287.05,~~ 
 11.25  ~~subdivision 1~~ 287.035.  
 11.26     Sec. 7.  Minnesota Statutes 1998, section 287.11, is 
 11.27  amended to read: 
 11.28     287.11 [MORTGAGES RECORDED OR REGISTERED PRIOR TO PASSAGE 
 11.29  OF SECTIONS 287.01 TO 287.12.] 
 11.30     All mortgages of real ~~estate~~ property recorded ~~or~~ 
 11.31  ~~registered~~ prior to the passage of sections 287.01 to 
 11.32  287.12 ~~shall be~~ are taxable ~~as provided by law~~ under the 
 11.33  provisions of law ~~relating thereto~~ existing prior to the 
 11.34  enactment ~~hereof~~ of sections 287.01 to 287.12; provided, that 
 11.35  the holder of any such mortgage may pay to the treasurer of the 
 11.36  proper county, ~~or the state treasurer, or both,~~ the tax ~~therein~~ 
 12.1   ~~prescribed~~ based upon the amount of the debt secured by ~~such~~ the 
 12.2   mortgage at the time of ~~such~~ the payment as stated by the 
 12.3   affidavit of the owner of ~~such~~ the mortgage~~, to~~.  The affidavit 
 12.4   may be filed with the county treasurer, ~~and have~~ in which case 
 12.5   the treasurer's receipt~~, countersigned by the auditor,~~ must be 
 12.6   endorsed ~~thereon~~ on it.  The county recorder ~~or secretary of~~ 
 12.7   ~~state, as the case may be,~~ or registrar of titles on 
 12.8   presentation of ~~such~~ the receipt, shall ~~note on the margin of~~ 
 12.9   ~~the mortgage~~ make a record of the date and amount of ~~such~~ the 
 12.10  payment.  Thereafter ~~such~~ the mortgage ~~debt~~ lien shall not be 
 12.11  otherwise taxable. 
 12.12     Sec. 8.  Minnesota Statutes 1998, section 287.12, is 
 12.13  amended to read: 
 12.14     287.12 [TAXES, HOW APPORTIONED.] 
 12.15     (a) All taxes paid to the county treasurer under the 
 12.16  provisions of sections 287.01 to 287.12 ~~shall~~ must be 
 12.17  apportioned, 97 percent to the general fund of the state, and 
 12.18  three percent to the county revenue fund. 
 12.19     (b) On or before the ~~tenth~~ 20th day of each month the 
 12.20  county treasurer shall determine and pay to the commissioner of 
 12.21  revenue for deposit in the state treasury and credit to the 
 12.22  general fund the state's portion of the receipts from the 
 12.23  mortgage ~~registration~~ registry tax during the preceding month 
 12.24  subject to the electronic funds transfer requirements of section 
 12.25  270.771.  The county treasurer shall provide any related reports 
 12.26  requested by the commissioner of revenue. 
 12.27     Sec. 9.  Minnesota Statutes 1998, section 287.13, 
 12.28  subdivision 1, is amended to read: 
 12.29     Subdivision 1.  [FAILURE TO PAY FULL AMOUNT.] Any person 
 12.30  liable for the tax imposed by section ~~287.05~~ 287.035 who fails 
 12.31  to pay the full amount of mortgage registry tax imposed under 
 12.32  ~~sections 287.01 to 287.12~~ this chapter, unless ~~such~~ the failure 
 12.33  is shown to be due to reasonable cause, is liable for a civil 
 12.34  penalty of $250 or 100 percent of the tax for each such failure, 
 12.35  whichever is less. 
 12.36     Sec. 10.  [287.20] [DEFINITIONS; DEED TAX.] 
 13.1      Subdivision 1.  [WORDS, TERMS, AND PHRASES.] Unless the 
 13.2   language or context clearly indicates that a different meaning 
 13.3   is intended, the following words, terms, and phrases, for the 
 13.4   purposes of sections 287.21 to 287.31, have the meanings given 
 13.5   to them in this section. 
 13.6      Subd. 2.  [CONSIDERATION.] (a) "Consideration" means 
 13.7   generally the total monetary value that is given in return for a 
 13.8   conveyance of real property in this state and includes all 
 13.9   lump-sum payments, all prior or future installment payments that 
 13.10  are required under the agreement between the parties, and the 
 13.11  fair market value of any property taken, or to be taken, in 
 13.12  exchange. 
 13.13     (b) Consideration does not include the reasonable and 
 13.14  lawful amounts of interest paid for the privilege of paying the 
 13.15  purchase price in installments and the fair market value of any 
 13.16  items of intangible personal property that are conveyed by the 
 13.17  taxable instrument. 
 13.18     (c) Consideration does not include the amount paid for the 
 13.19  personal property located on the real property being conveyed 
 13.20  and transferred as a part of the total consideration; except 
 13.21  that the amount paid for the personal property located on the 
 13.22  real property being conveyed must be included if the real 
 13.23  property being conveyed is a one-, two-, or three-unit 
 13.24  residential structure. 
 13.25     (d) When a conveyance of real property is made pursuant to 
 13.26  a contract for deed, the consideration is the price for the real 
 13.27  property reflected in the contract; except that, subject to the 
 13.28  limitations under section 287.221, when the conveyance is made 
 13.29  by a person engaged in the business of land sales or 
 13.30  construction of buildings and other improvements, or by an 
 13.31  affiliated person, then the consideration is the amount paid for 
 13.32  the land and the improvements.  By January 1, 2001, the 
 13.33  commissioner shall adopt rules that define the phrases "engaged 
 13.34  in the business of land sales or construction of buildings and 
 13.35  other improvements" and "affiliated person" as those phrases are 
 13.36  used in this paragraph. 
 14.1      (e) "Total consideration" has the same meaning as 
 14.2   consideration. 
 14.3      (f) "Consideration, exclusive of the value of any lien or 
 14.4   encumbrance remaining at the time of sale" or "net 
 14.5   consideration" means the amount of consideration as reduced by 
 14.6   the amount outstanding under any lien that attached to the real 
 14.7   property prior to the time of sale and that is not released or 
 14.8   satisfied as a result of the sale. 
 14.9      Subd. 3.  [CONSOLIDATION OR MERGER.] "Consolidation" or 
 14.10  "merger" means the combination of all of the assets of two or 
 14.11  more corporations, limited liability companies, or partnerships, 
 14.12  or any combination of these entities, whether or not title to 
 14.13  the assets is taken by a newly created entity or by a 
 14.14  preexisting entity that survives the consolidation or merger in 
 14.15  an altered form. 
 14.16     Subd. 4.  [DOCUMENTARY STAMPS.] "Documentary stamps" means 
 14.17  all stamps issued by the county for use in payment of the taxes 
 14.18  imposed by sections 287.21 to 287.37. 
 14.19     Subd. 5.  [LIEN.] "Lien" means any legal claim, other than 
 14.20  an easement, created by contract, statute, or law on the real 
 14.21  property of another as security for a debt or obligation.  For 
 14.22  purposes of the deed tax, the term "encumbrance" is synonymous 
 14.23  with the term "lien" and an easement is not a lien.  
 14.24     Subd. 6.  [PERSON.] "Person" includes any individual, 
 14.25  partner, officer, director, firm, partnership, joint venture, 
 14.26  limited liability company, association, cooperative, social 
 14.27  club, fraternal organization, municipal or private corporation, 
 14.28  whether organized for profit or not, estate, trusts, business 
 14.29  trusts, receiver, trustee, syndicate, the United States, a 
 14.30  state, any political subdivision of a state, or any group or 
 14.31  combination acting as a unit, and the plural as well as the 
 14.32  singular.  The term includes directors and officers of 
 14.33  corporations, governors and managers of a limited liability 
 14.34  company, or members of partnerships who, either individually or 
 14.35  jointly with others, have control, supervision, or 
 14.36  responsibility of making or authorizing payment of the tax 
 15.1   imposed by section 287.21.  The term includes any agent of any 
 15.2   individual or organization enumerated in this subdivision. 
 15.3      Subd. 7.  [REAL PROPERTY, REAL ESTATE, AND LAND.] "Real 
 15.4   property," "real estate," and "land" mean any fee simple estate, 
 15.5   and any estate for life, as defined in chapter 500, and the 
 15.6   purchaser's interest under a contract for the conveyance of such 
 15.7   an estate. 
 15.8      Subd. 8.  [RECORD, RECORDED, AND RECORDING.] "Record," 
 15.9   "recorded," and "recording" each mean that a document has been 
 15.10  delivered to and filed in the office of the county recorder or 
 15.11  registrar of titles, whichever office maintains the records for 
 15.12  the real property described in the document. 
 15.13     Subd. 9.  [REORGANIZATION.] "Reorganization" means the 
 15.14  transfer of substantially all of the assets of a corporation, a 
 15.15  limited liability company, or a partnership not in the usual or 
 15.16  regular course of business. 
 15.17     Sec. 11.  Minnesota Statutes 1998, section 287.21, 
 15.18  subdivision 1, is amended to read: 
 15.19     Subdivision 1.  [DETERMINATION OF TAX.] ~~There~~ (a) A tax is 
 15.20  ~~hereby~~ imposed on each deed~~,~~ or instrument~~, or writing~~ by which 
 15.21  any ~~lands, tenements, or other realty~~ real property in this 
 15.22  state ~~shall be~~ is granted, assigned, transferred, or otherwise 
 15.23  conveyed~~, a tax determined in the following manner~~.  The tax 
 15.24  applies against the net consideration. 
 15.25     (b) The tax is determined in the following manner:  (1) 
 15.26  when transfers are made by instruments pursuant to mergers, 
 15.27  consolidations, sales, or transfers of substantially all of the 
 15.28  assets of ~~corporations~~ the entities as defined in section 
 15.29  287.20, subdivision 9, pursuant to plans of reorganization ~~or~~, 
 15.30  the tax is $1.65; (2) when there is no consideration or when the 
 15.31  consideration, exclusive of the value of any lien or encumbrance 
 15.32  remaining thereon at the time of sale, is $500 or less, the 
 15.33  tax ~~shall be~~ is $1.65~~.~~; or (3) when the consideration, exclusive 
 15.34  of the value of any lien or encumbrance remaining ~~thereon~~ at the 
 15.35  time of sale, exceeds $500, the tax ~~shall be~~ is $1.65 plus $1.65 
 15.36  for each additional $500 or fraction of that amount. 
 16.1      ~~The tax applies against the total consideration, including~~ 
 16.2   ~~the fair market value consideration for any personal property~~ 
 16.3   ~~located on the real property conveyed by the deed and~~ 
 16.4   ~~transferred as part of the total consideration, but excluding~~ 
 16.5   ~~the value of any lien or encumbrance remaining on the property~~ 
 16.6   ~~at the time of sale.~~ 
 16.7      (c) The tax is due at the time a taxable deed or instrument 
 16.8   is presented for recording. 
 16.9      Sec. 12.  Minnesota Statutes 1998, section 287.22, is 
 16.10  amended to read: 
 16.11     287.22 [~~EXCEPTIONS~~ EXEMPTIONS.] 
 16.12     The tax imposed by section 287.21 ~~shall~~ does not apply to: 
 16.13     A.  ~~Any~~ An executory contract for the sale of ~~land~~ real 
 16.14  property under which the ~~vendee~~ purchaser is entitled to or does 
 16.15  take possession ~~thereof~~ of the real property, or any assignment 
 16.16  or cancellation ~~thereof~~ of the contract.  
 16.17     B.  ~~Any~~ A mortgage or ~~any~~ an amendment, assignment, 
 16.18  extension, partial release, or satisfaction ~~thereof~~ of a 
 16.19  mortgage.  
 16.20     C.  ~~Any~~ A will.  
 16.21     D.  ~~Any~~ A plat.  
 16.22     E.  ~~Any~~ A lease, amendment of lease, assignment of lease, 
 16.23  or memorandum of lease.  
 16.24     F.  ~~Any~~ A deed, instrument, or writing in which the United 
 16.25  States or any agency or instrumentality thereof is the grantor, 
 16.26  assignor, transferor, conveyor, grantee, or assignee. 
 16.27     G.  ~~Deeds~~ A deed for a cemetery lot or lots.  
 16.28     H.  ~~Deeds~~ A deed of distribution by a personal 
 16.29  ~~representatives~~ representative.  
 16.30     I.  ~~Deeds~~ A deed to or from ~~coowners~~ a co-owner 
 16.31  partitioning their undivided ~~interests~~ interest in the same 
 16.32  piece of real property. 
 16.33     J.  ~~Any~~ A deed or other instrument of conveyance issued 
 16.34  pursuant to a permanent school fund land exchange under section 
 16.35  92.121 and related laws.  
 16.36     K.  A referee's or sheriff's certificate of sale in a 
 17.1   mortgage or lien foreclosure sale. 
 17.2      L.  A referee's ~~or~~, sheriff's, or certificate holder's 
 17.3   certificate of redemption from a mortgage or lien foreclosure 
 17.4   sale issued to the redeeming mortgagor or lienee. 
 17.5      M.  ~~Any~~ A deed, instrument, or writing which grants, 
 17.6   creates, modifies, or ~~cancels~~ terminates an easement. 
 17.7      N.  A decree of marriage dissolution, as defined in section 
 17.8   287.01, subdivision 4, or ~~any~~ a deed or other instrument between 
 17.9   the parties to the dissolution made pursuant to the terms of the 
 17.10  decree. 
 17.11     Sec. 13.  [287.2205] [TAX-FORFEITED LAND.] 
 17.12     Before a state deed for tax-forfeited land may be issued, 
 17.13  the deed tax must be paid by the purchaser of tax-forfeited land 
 17.14  whether the purchase is the result of a public auction or 
 17.15  private sale or a repurchase of tax-forfeited land.  State 
 17.16  agencies and local units of government that acquire 
 17.17  tax-forfeited land by purchase or any other means are subject to 
 17.18  this section. 
 17.19     Sec. 14.  Minnesota Statutes 1998, section 287.23, is 
 17.20  amended to read: 
 17.21     287.23 [REAL PROPERTY OUTSIDE COUNTY OR STATE.] 
 17.22     Subdivision 1.  [REAL PROPERTY OUTSIDE COUNTY.] If any 
 17.23  taxable deed or instrument describes any real property located 
 17.24  in more than one county in this state, the total tax must be 
 17.25  paid to the treasurer of the county where the document is first 
 17.26  presented for recording, and the payment must be receipted as 
 17.27  provided in section 287.08.  If the net consideration exceeds 
 17.28  $700,000, the nonstate portion of the tax must be divided and 
 17.29  paid over by the county treasurer receiving it, on or before the 
 17.30  20th day of each month after receipt, to the county or counties 
 17.31  entitled in the ratio which the market value of the real 
 17.32  property covered by the document in each county bears to the 
 17.33  market value of all the real property in this state described in 
 17.34  the document.  In making the division and payment the county 
 17.35  treasurer shall send a statement to the other involved counties 
 17.36  giving the description of the real property described in the 
 18.1   document and the market value of the part located in each 
 18.2   county.  The treasurer of any county may require the treasurer 
 18.3   of any other county to certify to the former the market 
 18.4   valuation of any parcel of real property for this purpose. 
 18.5      Subd. 2.  [REAL PROPERTY OUTSIDE STATE.] If any deed~~,~~ or 
 18.6   instrument~~, or writing shall describe~~ describes any real ~~estate~~ 
 18.7   ~~situate~~ property located outside of this state, the tax imposed 
 18.8   by section 287.21 ~~shall~~ must be measured upon such proportion of 
 18.9   the consideration, ~~(~~exclusive of the value of any lien or 
 18.10  encumbrance remaining ~~thereon~~ at the time of sale~~)~~, as the value 
 18.11  of the real ~~estate therein~~ property described ~~situate~~ in this 
 18.12  state bears to the value of the whole of the real ~~estate~~ 
 18.13  property described ~~therein~~ in the deed or instrument.  
 18.14     Sec. 15.  Minnesota Statutes 1998, section 287.24, is 
 18.15  amended to read: 
 18.16     287.24 [PERSONS LIABLE.] 
 18.17     Subdivision 1.  [GENERALLY.] Any person who grants, 
 18.18  assigns, transfers, or conveys any ~~land, tenement, or realty~~ 
 18.19  real property by a deed ~~, writing,~~ or instrument subject to the 
 18.20  tax imposed by section 287.21 shall be liable for such tax but 
 18.21  no public official shall be liable for a tax with respect to any 
 18.22  instrument executed by the official in connection with official 
 18.23  duties. 
 18.24     Subd. 2.  [OTHER RESPONSIBLE PERSONS.] If an underpayment 
 18.25  is assessable by the commissioner of revenue against a grantor 
 18.26  pursuant to section 287.37, and the grantor is a business entity 
 18.27  no longer in existence, any person who, either individually or 
 18.28  jointly with others, had control over, supervision of, or 
 18.29  responsibility for making the statement of tax due or exemption 
 18.30  from tax that was submitted to the county treasurer under 
 18.31  section 287.241, subdivision 1, can be assessed and held liable 
 18.32  by the commissioner for the underpayment. 
 18.33     Sec. 16.  Minnesota Statutes 1998, section 287.241, is 
 18.34  amended to read: 
 18.35     287.241 [STATEMENT OF TAX DUE OR EXEMPTION; RECORDING OR 
 18.36  REGISTERING OF DOCUMENTS.] 
 19.1      Subdivision 1.  [STATEMENT OF TAX DUE OR EXEMPTION.] No 
 19.2   deed~~,~~ or instrument~~, or writing~~, taxable under the provisions of 
 19.3   section 287.21, shall be recorded ~~or registered by the county~~ 
 19.4   ~~recorder or the registrar of titles~~ unless it ~~shall contain~~ 
 19.5   contains the statement of the grantor or grantee, or any 
 19.6   successor in interest, setting forth the amount of tax due under 
 19.7   this chapter or that it is exempt from tax.  The county recorder 
 19.8   or registrar of titles shall record ~~or register~~ any ~~such~~ 
 19.9   ~~document~~ deed or instrument when the statement sets forth that 
 19.10  the transfer is tax exempt, ~~and shall refuse to record or~~ 
 19.11  ~~register any such document on which~~ or when documentary stamps 
 19.12  ~~in the amount stated thereon have not been affixed~~ or the 
 19.13  treasurer's receipt appear for the amount of deed tax recited in 
 19.14  the statement.  The validity or effectiveness of ~~an~~ a deed or 
 19.15  instrument as between the parties ~~thereto~~, and as to any person 
 19.16  who would otherwise be bound ~~thereby~~, ~~shall~~ is not ~~be~~ affected 
 19.17  by the failure to comply ~~herewith; nor~~ with this section.  If ~~an~~ 
 19.18  a deed or instrument is accepted for recording ~~or filing~~ 
 19.19  contrary to ~~the provisions hereof~~ this section, ~~shall~~ the 
 19.20  failure to comply ~~herewith~~ does not destroy or impair the record 
 19.21  ~~thereof~~ of the deed or instrument as notice. 
 19.22     Subd. 2.  [NOTICE OF CERTIFICATE OF VALUE.] No deed or 
 19.23  instrument providing for the transfer of title to real ~~estate as~~ 
 19.24  property that is subject to the tax as provided in section 
 19.25  287.21, and no executory contract for the sale of land, shall be 
 19.26  recorded ~~in the office of the county recorder or the registrar~~ 
 19.27  ~~of titles~~ unless such deed or instrument ~~shall be~~ is accompanied 
 19.28  by a notice from the county auditor that a certificate of value 
 19.29  was filed in the auditor's office as provided in section 272.115.
 19.30     Sec. 17.  Minnesota Statutes 1998, section 287.29, 
 19.31  subdivision 1, is amended to read: 
 19.32     Subdivision 1.  [APPOINTMENT AND PAYMENT OF TAX PROCEEDS.] 
 19.33  (a) The proceeds of the taxes levied and collected under 
 19.34  sections 287.21 to 287.36 must be apportioned, 97 percent to the 
 19.35  general fund of the state, and three percent to the county 
 19.36  revenue fund. 
 20.1      (b) On or before the ~~tenth~~ 20th day of each month, the 
 20.2   county treasurer shall determine and pay to the commissioner of 
 20.3   revenue for deposit in the state treasury and credit to the 
 20.4   general fund the state's portion of the receipts for deed tax 
 20.5   from ~~the sale of documentary stamps during~~ the preceding month 
 20.6   subject to the electronic transfer requirements of section 
 20.7   270.771.  The county treasurer shall provide any related reports 
 20.8   requested by the commissioner of revenue. 
 20.9      Sec. 18.  Minnesota Statutes 1998, section 287.30, is 
 20.10  amended to read: 
 20.11     287.30 [COUNTY TREASURER; DUTIES.] 
 20.12     The care of documentary stamps entrusted to county 
 20.13  treasurers and the duties imposed upon county treasurers by 
 20.14  ~~sections 287.21 to 287.33 shall be~~ this chapter are within the 
 20.15  duties of such office and ~~shall be~~ are within the coverage of 
 20.16  any official bond delivered to the state, conditioned that any 
 20.17  such officer shall faithfully execute the duties of office.  The 
 20.18  county board may by resolution require the county auditor to 
 20.19  perform any duty imposed on the county treasurer under this 
 20.20  chapter. 
 20.21     Sec. 19.  Minnesota Statutes 1998, section 287.31, is 
 20.22  amended to read: 
 20.23     287.31 [VIOLATIONS; CIVIL PENALTIES.] 
 20.24     Subdivision 1.  [FAILURE TO ~~COMPLY~~ PAY FULL AMOUNT.] Any 
 20.25  person liable for the tax imposed by section 287.21 who fails to 
 20.26  ~~comply with the provisions of section 287.25~~ pay the full amount 
 20.27  of deed tax imposed under this chapter, unless ~~such~~ the failure 
 20.28  is shown to be due to reasonable cause, ~~shall be~~ is liable to a 
 20.29  civil penalty of $250, or 100 percent of the tax, for each such 
 20.30  failure, whichever is less. 
 20.31     Subd. 2.  [WILLFUL EVASION.] Any person who willfully 
 20.32  attempts in any manner to evade or defeat any such tax or the 
 20.33  payment thereof, ~~shall~~ is, in addition to other penalties 
 20.34  provided by law, ~~be~~ liable to a penalty of 50 percent of the 
 20.35  total amount of the underpayment of the tax.  
 20.36     Sec. 20.  [287.325] [VIOLATIONS; CRIMINAL PENALTIES.] 
 21.1      Any person who in any manner intentionally attempts to 
 21.2   evade a tax imposed by this chapter, or who intentionally aids 
 21.3   or abets in the evasion or attempted evasion of such tax is 
 21.4   guilty of a gross misdemeanor. 
 21.5      Sec. 21.  Minnesota Statutes 1998, section 287.33, is 
 21.6   amended to read: 
 21.7      287.33 [EXPENSES OF ADMINISTRATION.] 
 21.8      Expenses of administration of ~~sections 287.21 to 287.34~~ 
 21.9   this chapter to be paid out of county funds include fees and 
 21.10  expenses incurred by the county attorney in connection 
 21.11  with ~~sections 287.21 to 287.34~~ this chapter and all other costs 
 21.12  and expenses.  
 21.13     Sec. 22.  [287.38] [LIMITATIONS ON TIME FOR ASSESSMENT OF 
 21.14  TAX.] 
 21.15     Subdivision 1.  [GENERAL RULE.] Except as otherwise 
 21.16  provided in this section, the amount of taxes assessable under 
 21.17  this chapter must be assessed within 3-1/2 years after the date 
 21.18  the document is recorded. 
 21.19     Subd. 2.  [OMISSION IN EXCESS OF 25 PERCENT.] Additional 
 21.20  taxes may be assessed within 6-1/2 years after the document was 
 21.21  recorded, if the taxpayer underpays the tax due on the filing of 
 21.22  that document by more than 25 percent or the document was 
 21.23  erroneously treated as exempt. 
 21.24     Subd. 3.  [FRAUD.] Notwithstanding the limitations under 
 21.25  subdivision 1, additional taxes may be assessed at any time if a 
 21.26  document is presented for recording with a fraudulent intent to 
 21.27  underpay the taxes imposed by this chapter.  
 21.28     Sec. 23.  [287.385] [INTEREST.] 
 21.29     Subdivision 1.  [INTEREST RATE.] If an interest assessment 
 21.30  is required under this section, interest is computed at the rate 
 21.31  specified in section 270.75. 
 21.32     Subd. 2.  [LATE PAYMENT.] If a tax is not paid within the 
 21.33  time specified by law for payment, the unpaid tax bears interest 
 21.34  from the date the tax should have been paid until the date the 
 21.35  tax is paid. 
 21.36     Subd. 3.  [EXTENSIONS.] If an extension of time for payment 
 22.1   has been granted, interest must be paid from the date the 
 22.2   payment should have been made if no extension had been granted, 
 22.3   until the date the tax is paid. 
 22.4      Subd. 4.  [ADDITIONAL ASSESSMENTS.] If a taxpayer is liable 
 22.5   for additional taxes because of a redetermination by the 
 22.6   commissioner of revenue, or for any other reason, the additional 
 22.7   taxes bear interest from the time the tax should have been paid, 
 22.8   without regard to any extension allowed, until the date the tax 
 22.9   is paid. 
 22.10     Subd. 5.  [REFUNDS.] (a) Interest must be paid at the rate 
 22.11  specified in section 270.75 on an overpayment that is refunded 
 22.12  or credited to a taxpayer more than 30 days after a refund 
 22.13  request is made.  Interest does not apply to the 30-day period. 
 22.14     (b) In the case of an erroneous refund, interest accrues 
 22.15  from the date the refund was paid unless the erroneous refund 
 22.16  results from a mistake of the department of revenue or the 
 22.17  county, then no interest or penalty is imposed unless the 
 22.18  deficiency assessment is not satisfied within 60 days of the 
 22.19  order. 
 22.20     Subd. 6.  [INTEREST ON JUDGMENTS.] Notwithstanding section 
 22.21  549.09, if judgment is entered in favor of the commissioner of 
 22.22  revenue or a county with regard to any tax under this chapter, 
 22.23  the judgment bears interest at the rate specified in section 
 22.24  270.75 from the date the judgment is entered until the date of 
 22.25  payment. 
 22.26     Subd. 7.  [INTEREST ON PENALTIES.] A penalty imposed under 
 22.27  this chapter bears interest from the date payment was required 
 22.28  to be paid, including any extensions, to the date of payment of 
 22.29  the penalty. 
 22.30     Sec. 24.  [287.39] [ADMINISTRATIVE REVIEW.] 
 22.31     Subdivision 1.  [TAXPAYER RIGHT TO RECONSIDERATION.] Under 
 22.32  this section, a taxpayer may obtain reconsideration by the 
 22.33  commissioner of revenue of:  (1) an order of the commissioner 
 22.34  assessing tax; (2) a denial by the commissioner of a request for 
 22.35  abatement of penalty; or (3) a denial by the commissioner of a 
 22.36  claim for refund of money paid to the commissioner as a result 
 23.1   of an assessment or order issued by the commissioner under this 
 23.2   chapter, by filing an administrative appeal as provided in 
 23.3   subdivision 4.  A taxpayer cannot obtain reconsideration if the 
 23.4   action taken by the commissioner of revenue is the outcome of an 
 23.5   administrative appeal. 
 23.6      Subd. 2.  [APPEAL BY TAXPAYER.] A taxpayer who wishes to 
 23.7   seek administrative review shall follow the procedure in 
 23.8   subdivision 4. 
 23.9      Subd. 3.  [NOTICE DATE.] For purposes of this section, 
 23.10  "notice date" means the date of the order adjusting the tax or 
 23.11  order denying a request for abatement or, in the case of a 
 23.12  denied refund, the date of the notice of denial. 
 23.13     Subd. 4.  [TIME AND CONTENT FOR ADMINISTRATIVE APPEAL.] 
 23.14  Within 60 days after the notice date, the taxpayer shall file a 
 23.15  written appeal with the commissioner of revenue.  The appeal 
 23.16  need not be in any particular form, but must contain the 
 23.17  following information: 
 23.18     (1) name and address of the taxpayer; 
 23.19     (2) if a corporation, the state of incorporation of the 
 23.20  taxpayer, and the principal place of business of the 
 23.21  corporation; 
 23.22     (3) the Minnesota identification number or social security 
 23.23  number of the taxpayer; 
 23.24     (4) the type of tax involved; 
 23.25     (5) the date; 
 23.26     (6) the tax periods involved and the amount of tax involved 
 23.27  for each period; 
 23.28     (7) the findings in the notice that the taxpayer disputes; 
 23.29     (8) a summary statement that the taxpayer relies on for 
 23.30  each exception; and 
 23.31     (9) the taxpayer's signature or the signature of the 
 23.32  taxpayer's duly authorized agent. 
 23.33     Subd. 5.  [EXTENSIONS.] If requested in writing and within 
 23.34  the time allowed for filing an administrative appeal, the 
 23.35  commissioner may extend the time for filing an appeal for a 
 23.36  period of not more that 30 days from the expiration of the 60 
 24.1   days from the notice date. 
 24.2      Subd. 6.  [DETERMINATION OF APPEAL.] On the basis of 
 24.3   applicable law and available information, the commissioner shall 
 24.4   determine the validity, if any, in whole or part of the appeal 
 24.5   and notify the taxpayer of the decision.  This notice must be in 
 24.6   writing and contain the basis for the determination. 
 24.7      Subd. 7.  [AGREEMENT DETERMINING TAX LIABILITY.] If the 
 24.8   commissioner determines that it is in the best interests of the 
 24.9   state, the commissioner may settle taxes, penalties, or interest 
 24.10  that the commissioner has under consideration by virtue of an 
 24.11  appeal filed under this section.  An agreement must be in 
 24.12  writing and signed by the commissioner and the taxpayer or the 
 24.13  taxpayer's representative authorized by the taxpayer to enter 
 24.14  into an agreement.  The agreement is final and conclusive and, 
 24.15  except upon a showing of fraud or malfeasance, or 
 24.16  misrepresentation of a material fact, the case shall not be 
 24.17  reopened as to the matters agreed upon. 
 24.18     Subd. 8.  [APPEAL OF AN ADMINISTRATIVE DETERMINATION.] 
 24.19  Following the determination of an appeal and notwithstanding any 
 24.20  period of limitations for making assessments or other 
 24.21  determinations to the contrary, the commissioner shall issue an 
 24.22  order reflecting that disposition.  If the statute of 
 24.23  limitations for making assessments or other determinations would 
 24.24  have expired before the issuance of this order, except for this 
 24.25  section, the order is limited to issues or matters contained in 
 24.26  the appealed determination.  The order is appealable to the 
 24.27  Minnesota tax court under section 271.06. 
 24.28     Subd. 9.  [APPEAL WHERE NO DETERMINATION.] If the 
 24.29  commissioner does not make a determination within six months of 
 24.30  the filing of an administrative appeal, the taxpayer may elect 
 24.31  to appeal to tax court. 
 24.32     Subd. 10.  [EXEMPTION FROM ADMINISTRATIVE PROCEDURE 
 24.33  ACT.] This section is not subject to chapter 14. 
 24.34     Sec. 25.  [REPEALER.] 
 24.35     Minnesota Statutes 1998, sections 287.06; 287.07; 287.09; 
 24.36  287.21, subdivisions 2 and 4; 287.34; 287.35; and 287.36, are 
 25.1   repealed. 
 25.2      Sec. 26.  [EFFECTIVE DATE.] 
 25.3      Sections 1 to 25 are effective for documents recorded or 
 25.4   registered after June 30, 1999.