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.
1.5BE 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
1.8whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
1.9make and file with the county auditor of the county in which the parcel is located a written
1.10offer to pay the current taxes each year before they become delinquent, or to contest the
1.11taxes under chapter 278 and agree to confess judgment for the amount provided, as
1.12determined by the county auditor. By filing the offer, the owner waives all irregularities in
1.13connection with the tax proceedings affecting the parcel and any defense or objection which
1.14the owner may have to the proceedings, and also waives the requirements of any notice of
1.15default in the payment of any installment or interest to become due pursuant to the composite
1.16judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer,
1.17the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty,
1.18and interest, and (ii) tender all current year taxes and penalty due at the time the confession
1.19of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal
1.20installments, with interest as provided in section 279.03, payable annually on installments
1.21remaining unpaid from time to time, on or before December 31 of each year following the
1.22year in which judgment was confessed.
1Section 1.
25-00556 as introduced11/15/24 REVISOR MS/BM
SENATE
STATE OF MINNESOTA
S.F. No. 308NINETY-FOURTH SESSION
(SENATE AUTHORS: DRAZKOWSKI and Klein)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/21/2025
Referred to Taxes 2.1 (b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), each
2.2year the commissioner shall set the interest rate for offers made under paragraph (a) at the
2.3greater of five percent or two percent above the prime rate charged by banks during the
2.4six-month period ending on September 30 of that year, rounded to the nearest full percent,
2.5provided that the rate must not exceed the maximum annum rate specified under section
2.6279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the immediately
2.7succeeding year. The commissioner's determination under this subdivision is not a rule
2.8subject to the Administrative Procedure Act in chapter 14, including section 14.386. If a
2.9default occurs in the payments under any confessed judgment entered under this paragraph,
2.10the 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
2.13quoted by commercial banks to large businesses, as determined by the Board of Governors
2.14of the Federal Reserve System; and
2.15 (2) "default" means the cancellation of the confession of judgment due to nonpayment
2.16of the current year tax or failure to make any installment payment required by this confessed
2.17judgment 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
2.19of the judgment. By October 15 of each year, the commissioner of revenue must determine
2.20the rate of interest as provided under paragraph (b) and, by November 1 of each year, must
2.21certify the rate to the county auditor.
2.22 (d) A qualified property owner eligible to enter into a second confession of judgment
2.23may do so at the interest rate provided in paragraph (b).
2.24 (e) Repurchase agreements or contracts for repurchase for properties being repurchased
2.25under 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
2.28the owner of the following described parcel of real estate located in .................... county,
2.29Minnesota:
2.30.............................. Upon that real estate there are delinquent taxes for the year ........., and
2.31prior years, as follows: (here insert year of delinquency and the total amount of delinquent
2.32taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
2.33the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
2Section 1.
25-00556 as introduced11/15/24 REVISOR MS/BM 3.1any defense or objection which I may have to them, and direct judgment to be entered for
3.2the amount stated above, minus the sum of $............, to be paid with this document, which
3.3is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
3.4I agree to pay the balance of the judgment in nine or four equal, annual installments, with
3.5interest as provided in section 279.03, payable annually, on the installments remaining
3.6unpaid. I agree to pay the installments and interest on or before December 31 of each year
3.7following the year in which this judgment is confessed and current taxes each year before
3.8they become delinquent, or within 30 days after the entry of final judgment in proceedings
3.9to contest the taxes under chapter 278.
3.10 Dated .............., ......."
3.11 EFFECTIVE DATE.This section is effective the day following final enactment.
3Section 1.
25-00556 as introduced11/15/24 REVISOR MS/BM