2001 Minnesota Statutes

     287.20 Definitions; deed tax. 

    Subdivision 1.    Words, terms, and phrases.  Unless the 
 language or context clearly indicates that a different meaning 
 is intended, the following words, terms, and phrases, for the 
 purposes of sections 287.21 to 287.31, have the meanings given 
 to them in this section. 

    Subd. 2.    Consideration.  (a) "Consideration" means 
 generally the total monetary value that is given in return for a 
 conveyance of real property in this state and includes all 
 lump-sum payments, all prior or future installment payments that 
 are required under the agreement between the parties, and the 
 fair market value of any property taken, or to be taken, in 
 exchange. 

    (b) Consideration does not include the reasonable and 
 lawful amounts of interest paid for the privilege of paying the 
 purchase price in installments and the fair market value of any 
 items of intangible personal property that are conveyed by the 
 taxable instrument. 

    (c) Consideration does not include the amount paid for the 
 personal property located on the real property being conveyed 
 and transferred as a part of the total consideration, except 
 that the amount paid for the personal property located on the 
 real property being conveyed must be included if the real 
 property being conveyed is a one-, two-, or three-unit 
 residential structure. 

    (d) When a conveyance of real property is made pursuant to 
 a contract for deed, the consideration is the price for the real 
 property reflected in the contract; except that, subject to the 
 limitations under section 287.221, if the contract for deed, or 
 other agreement entered into as a condition to the seller 
 executing the contract, requires the property to be improved 
 during the term of the contract and the price of the real 
 property as reflected in the contract does not include the 
 consideration for the required improvements, then the 
 consideration is the price for the real property as reflected in 
 the contract and the consideration for the required improvements 
 added during the term of the contract.  

    (e) "Total consideration" has the same meaning as 
 consideration. 

    (f) "Consideration, exclusive of the value of any lien or 
 encumbrance remaining at the time of sale" or "net 
 consideration" means the amount of consideration as reduced by 
 the amount outstanding under any lien that attached to the real 
 property prior to the time of sale and that is not released or 
 satisfied as a result of the sale. 

    Subd. 3.    Consolidation or merger.  "Consolidation" or 
 "merger" means the combination of all of the assets of two or 
 more corporations, limited liability companies, or partnerships, 
 or any combination of these entities, whether or not title to 
 the assets is taken by a newly created entity or by a 
 preexisting entity that survives the consolidation or merger in 
 an altered form. 

    Subd. 4.    Documentary stamps.  "Documentary stamps" 
 means all stamps issued by the county for use in payment of the 
 taxes imposed by sections 287.21 to 287.37. 

    Subd. 5.    Lien.  "Lien" means any legal claim, other 
 than an easement, created by contract, statute, or law on the 
 real property of another as security for a debt or obligation.  
 For purposes of the deed tax, the term "encumbrance" is 
 synonymous with the term "lien" and an easement is not a lien.  

    Subd. 6.    Person.  "Person" includes any individual, 
 partner, officer, director, firm, partnership, joint venture, 
 limited liability company, association, cooperative, social 
 club, fraternal organization, municipal or private corporation, 
 whether organized for profit or not, estate, trusts, business 
 trusts, receiver, trustee, syndicate, the United States, a 
 state, any political subdivision of a state, or any group or 
 combination acting as a unit, and the plural as well as the 
 singular.  The term includes directors and officers of 
 corporations, governors and managers of a limited liability 
 company, or members of partnerships who, either individually or 
 jointly with others, have control, supervision, or 
 responsibility of making or authorizing payment of the tax 
 imposed by section 287.21.  The term includes any agent of any 
 individual or organization enumerated in this subdivision. 

    Subd. 7.    Real property, real estate, and land.  "Real 
 property," "real estate," and "land" mean any fee simple estate, 
 and any estate for life, as defined in chapter 500, and the 
 purchaser's interest under a contract for the conveyance of such 
 an estate. 

    Subd. 8.    Record, recorded, and recording.  "Record," 
 "recorded," and "recording" each mean that a document has been 
 delivered to and filed in the office of the county recorder or 
 registrar of titles, whichever office maintains the records for 
 the real property described in the document. 

    Subd. 9.    Reorganization.  "Reorganization" means the 
 transfer of substantially all of the assets of a corporation, a 
 limited liability company, or a partnership not in the usual or 
 regular course of business if at the time of the transfer the 
 transfer qualifies as:  (i) a corporate reorganization under 
 section 368(a) of the Internal Revenue Code of 1986, as amended 
 through December 31, 2000; or (ii) a transfer pursuant to the 
 continuation of an existing partnership under section 708 of the 
 Internal Revenue Code of 1986, as amended through December 31, 
 2000. 

    HIST: 1999 c 31 s 11; 1Sp2001 c 5 art 7 s 28,29