1998 Minnesota Statutes

     279.37 Confession of judgment for delinquent taxes. 

    Subdivision 1.    Composition into one item.  Delinquent 
 taxes upon any parcel of real estate may be composed into one 
 item or amount by confession of judgment at any time prior to 
 the forfeiture of the parcel of land to the state for taxes, for 
 the aggregate amount of all the taxes, costs, penalties, and 
 interest accrued against the parcel, as hereinafter provided.  
 Taxes upon property which, for the previous year's assessment, 
 was classified as mineral property, employment property, or 
 commercial or industrial property shall only be eligible to be 
 composed into any confession of judgment under this section as 
 provided in subdivision 1a.  Delinquent taxes on unimproved land 
 are eligible to be composed into a confession of judgment only 
 if the land is classified as homestead, agricultural, or 
 timberland in the previous year or is eligible for installment 
 payment under subdivision 1a.  The entire parcel is eligible for 
 the ten-year installment plan as provided in subdivision 2 if 25 
 percent or more of the market value of the parcel is eligible 
 for confession of judgment under this subdivision. 

    Subd. 1a.    Class 3a property.  The delinquent taxes 
 upon a parcel of property which was classified class 3a, for the 
 previous year's assessment and had a total market value of less 
 than $200,000 for that same assessment shall be eligible to be 
 composed into a confession of judgment.  Property qualifying 
 under this subdivision shall be subject to the same provisions 
 as provided in this section except as herein provided. 

    (a) The down payment shall include all special assessments 
 due in the current tax year, all delinquent special assessments, 
 and 20 percent of the ad valorem tax, penalties, and interest 
 accrued against the parcel.  The balance remaining shall be 
 payable in four equal annual installments; and 

    (b) The amounts entered in judgment shall bear interest at 
 the rate provided in section 279.03, subdivision 1a, commencing 
 with the date the judgment is entered.  The interest rate is 
 subject to change each year on the unpaid balance in the manner 
 provided in section 279.03, subdivision 1a. 

    Subd. 2.    Installment payments.  The owner of any such 
 parcel, or any person to whom the right to pay taxes has been 
 given by statute, mortgage, or other agreement, may make and 
 file with the county auditor of the county wherein the parcel is 
 located a written offer to pay the current taxes each year 
 before they become delinquent, or to contest the taxes under 
 Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to 
 confess judgment for the amount hereinbefore provided, as 
 determined by the county auditor, and shall thereby waive all 
 irregularities in connection with the tax proceedings affecting 
 the parcel and any defense or objection which the owner may have 
 to the proceedings, and shall thereby waive the requirements of 
 any notice of default in the payment of any installment or 
 interest to become due pursuant to the composite judgment to be 
 so entered, and shall tender therewith one-tenth of the amount 
 of the delinquent taxes, costs, penalty, and interest, and agree 
 therein to pay the balance in nine equal installments, with 
 interest as provided in section 279.03, payable annually on 
 installments remaining unpaid from time to time, on or before 
 December 31 of each year following the year in which judgment 
 was confessed, which offer shall be substantially as follows: 

    "To the court administrator of the district court of 
 ...........  county, I, ....................., owner of the 
 following described parcel of real estate situate in 
 .................... county, Minnesota, to-wit: 
 .............................. upon which there are delinquent 
 taxes for the year ........., and prior years, as follows:  
 (here insert year of delinquency and the total amount of 
 delinquent taxes, costs, interest, and penalty) do hereby offer 
 to confess judgment in the sum of $...... and hereby waive all 
 irregularities in the tax proceedings affecting such taxes and 
 any defense or objection which I may have thereto, and direct 
 judgment to be entered for the amount hereby confessed, less the 
 sum of $............, hereby tendered, being one-tenth of the 
 amount of said taxes, costs, penalty, and interest; I agree to 
 pay the balance of said judgment in nine equal, annual 
 installments, with interest as provided in section 279.03, 
 payable annually, on the installments remaining unpaid from time 
 to time, said installments and interest to be paid on or before 
 December 31 of each year following the year in which this 
 judgment is confessed and current taxes each year before they 
 become delinquent, or within 30 days after the entry of final 
 judgment in proceedings to contest such taxes under Minnesota 
 Statutes 1941, sections 278.01 to 278.13. 

    Dated this .............., ......." 

    Subd. 3.    Notice and recording of offer and confession 
 of judgment.  Upon the receipt of the offer and payment of the 
 sum required, the auditor shall notify the county board of the 
 offer.  The auditor shall record it and shall file the offer and 
 confession of judgment with the court administrator of the 
 district court of the county who is directed to enter judgment 
 in accordance with the offer.  

    Subd. 4.    Judgment in rem; redemption period 
 computation.  The auditor shall immediately deliver to the 
 treasurer the initial payments received by the auditor.  The 
 judgment so rendered shall not constitute a personal judgment 
 against the party or parties therein and shall be a judgment in 
 rem.  For the purpose of computing the applicable period of 
 redemption pursuant to section 281.17, lands included in a 
 confession of judgment will be deemed to be sold to the state at 
 the first tax judgment sale following the entry of judgment. 

    Subd. 5.    Suspension of proceedings; satisfaction of 
 judgment.  Upon the entry of said judgment, all the interest 
 on the taxes embraced within said judgment shall be waived, 
 except as herein provided, and further proceedings shall be 
 suspended on any judgment for taxes embraced in said confessed 
 judgment as long as no default exists.  Upon the payment in full 
 of the amounts required to be paid under the confessed judgment, 
 except the then current taxes not yet delinquent, the original 
 judgment shall be satisfied.  

    Subd. 6.    Notice of payment due.  The county auditor 
 shall give notice by mail not later than November 30 of each 
 year to the person or persons making such confession of judgment 
 at the address given therein of the payment due under the 
 confession on the following December 31.  If the county auditor 
 has not received the installment payment by December 31, the 
 auditor shall give notice by certified mail at the last known 
 address of the person making the confession of judgment, without 
 regard to the county or state of the person's residency.  This 
 notice shall state that the property shall be subject to the tax 
 forfeiture laws if payment is not made within 60 days from the 
 preceding December 31.  Failure to send or receive the notice 
 shall not operate to postpone any payment or excuse any default 
 under the confession of judgment.  Proof of such mailing shall 
 be made by the certificate of the auditor filed in the auditor's 
 office.  

    Subd. 7.    Payment of deferred installment; distribution. 
  The county auditor's statement and county treasurer's receipt 
 issued for payment of a deferred installment, as herein provided 
 for, shall not read for any specific year's taxes, but shall 
 read for partial or full release of judgment, as the case may 
 be, and shall show the year that such judgment was entered.  In 
 distributing the taxes collected in this manner, the county 
 auditor shall apply the same in the inverse order to that in 
 which such taxes were levied.  All penalties and interest 
 collected under the provisions of this section shall be 
 apportioned by the county auditor in accordance with section 
 276.131.  A duplicate treasurer's receipt for payment of a 
 deferred installment, as hereinafter provided, shall be 
 delivered to the court administrator of the district court, and 
 the court administrator of the district court shall credit the 
 amount so paid upon the judgment entered. 

    Subd. 8.    Fees.  The party or parties making such 
 confession of judgment shall pay the county auditor a fee as set 
 by the county board to defray the costs of processing the 
 confession of judgment and making the annual billings required.  
 Fees as set by the county board shall be paid to the court 
 administrator of the court for entry of judgment and for the 
 entry of each full or partial release thereof.  The fees paid to 
 the court administrator under this section are in lieu of the 
 fees provided for in section 357.021.  Fees collected under this 
 section shall be credited to the general revenue fund of the 
 county.  

    Subd. 9.    Applicability; default.  This section shall 
 not apply to any parcel of land which has become or hereafter 
 may become the absolute property of the state in fee or in trust 
 under the provisions of any law declaring a forfeiture of lands 
 to the state for taxes.  Failure to make any payment required by 
 this confessed judgment within 60 days from the date on which 
 payment was due shall constitute a default.  In the event of 
 default occurring in the payments to be made under any confessed 
 judgment entered pursuant hereto, the interest waived under the 
 terms of subdivision 5 shall be reinstated and the lands 
 described in such confessed judgment shall thereupon be subject 
 to forfeiture according to the provisions of law applicable 
 thereto.  

    Subd. 10.    No more than two confessions of judgment 
 allowed.  Not more than two confessions of judgment and 
 agreement to pay in installments under this section affecting 
 the same taxes or any portion thereof may be made by or on 
 behalf of any owner of any particular right, title, interest in, 
 or lien upon, any given parcel of land, or the owner's heirs, 
 representatives, or assigns.  

    Subd. 11.    Not applicable if shortened redemption 
 period.  This section shall not apply in cases where the 
 redemption period has been shortened under sections 281.173 and 
 281.174. 

    HIST: 1945 c 121 s 1-7; 1975 c 339 s 8; 1980 c 437 s 12; 
 1Sp1981 c 1 art 2 s 16; 1982 c 523 art 39 s 3,4; 1984 c 502 art 
 3 s 18,19; 1Sp1985 c 14 art 20 s 7-11; 1986 c 444; 1Sp1986 c 3 
 art 1 s 82; 1989 c 277 art 2 s 45; 1990 c 480 art 8 s 13; 1992 c 
 511 art 4 s 17; 1993 c 375 art 10 s 12; 1994 c 416 art 1 s 35; 
 1996 c 471 art 3 s 27; 1998 c 254 art 1 s 107