Minnesota SF 308: Minneapolis public housing renovation bond issue and appropriation

Bill Text

1.1 A bill for an act​
1.2 relating to taxation; property; modifying interest rate charged on confessions of​
1.3 judgments for homestead property; amending Minnesota Statutes 2024, section​
1.4 279.37, subdivision 2.​
1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.6 Section 1. Minnesota Statutes 2024, section 279.37, subdivision 2, is amended to read:​
1.7 Subd. 2.Installment payments.(a) The owner of any such parcel, or any person to​
1.8 whom the right to pay taxes has been given by statute, mortgage, or other agreement, may​
1.9 make and file with the county auditor of the county in which the parcel is located a written​
1.10 offer to pay the current taxes each year before they become delinquent, or to contest the​
1.11 taxes under chapter 278 and agree to confess judgment for the amount provided, as​
1.12 determined by the county auditor. By filing the offer, the owner waives all irregularities in​
1.13 connection with the tax proceedings affecting the parcel and any defense or objection which​
1.14 the owner may have to the proceedings, and also waives the requirements of any notice of​
1.15 default in the payment of any installment or interest to become due pursuant to the composite​
1.16 judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer,​
1.17 the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty,​
1.18 and interest, and (ii) tender all current year taxes and penalty due at the time the confession​
1.19 of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal​
1.20 installments, with interest as provided in section 279.03, payable annually on installments​
1.21 remaining unpaid from time to time, on or before December 31 of each year following the​
1.22 year in which judgment was confessed.​
1​Section 1.​
25-00556 as introduced​11/15/24 REVISOR MS/BM​
SENATE​
STATE OF MINNESOTA​
S.F. No. 308​NINETY-FOURTH SESSION​
(SENATE AUTHORS: DRAZKOWSKI and Klein)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​114​01/21/2025​
Referred to Taxes​
See First Special Session, HF9​

2.1 (b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), each​
2.2 year the commissioner shall set the interest rate for offers made under paragraph (a) at the​
2.3 greater of five percent or two percent above the prime rate charged by banks during the​
2.4 six-month period ending on September 30 of that year, rounded to the nearest full percent,​
2.5 provided that the rate must not exceed the maximum annum rate specified under section​
2.6 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the immediately​
2.7 succeeding year. The commissioner's determination under this subdivision is not a rule​
2.8 subject to the Administrative Procedure Act in chapter 14, including section 14.386. If a​
2.9 default occurs in the payments under any confessed judgment entered under this paragraph,​
2.10 the taxes and penalties due are subject to the interest rate specified in section 279.03.​
2.11 For the purposes of this subdivision:​
2.12 (1) the term "prime rate charged by banks" means the average predominant prime rate​
2.13 quoted by commercial banks to large businesses, as determined by the Board of Governors​
2.14 of the Federal Reserve System; and​
2.15 (2) "default" means the cancellation of the confession of judgment due to nonpayment​
2.16 of the current year tax or failure to make any installment payment required by this confessed​
2.17 judgment within 60 days from the date on which payment was due.​
2.18 (c) The interest rate established at the time judgment is confessed is fixed for the duration​
2.19 of the judgment. By October 15 of each year, the commissioner of revenue must determine​
2.20 the rate of interest as provided under paragraph (b) and, by November 1 of each year, must​
2.21 certify the rate to the county auditor.​
2.22 (d) A qualified property owner eligible to enter into a second confession of judgment​
2.23 may do so at the interest rate provided in paragraph (b).​
2.24 (e) Repurchase agreements or contracts for repurchase for properties being repurchased​
2.25 under section 282.261 are not eligible to receive the interest rate under paragraph (b).​
2.26 (f) The offer must be substantially as follows:​
2.27 "To the court administrator of the district court of ........... county, I, ....................., am​
2.28 the owner of the following described parcel of real estate located in .................... county,​
2.29 Minnesota:​
2.30 .............................. Upon that real estate there are delinquent taxes for the year ........., and​
2.31 prior years, as follows: (here insert year of delinquency and the total amount of delinquent​
2.32 taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in​
2.33 the sum of $...... and waive all irregularities in the tax proceedings affecting