Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF308 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property; modifying interest rate charged on confessions of
3	3	1.3 judgments for homestead property; amending Minnesota Statutes 2024, section
4	4	1.4 279.37, subdivision 2.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 279.37, subdivision 2, is amended to read:
7	7	1.7 Subd. 2.Installment payments.(a) The owner of any such parcel, or any person to
8	8	1.8whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
9	9	1.9make and file with the county auditor of the county in which the parcel is located a written
10	10	1.10offer to pay the current taxes each year before they become delinquent, or to contest the
11	11	1.11taxes under chapter 278 and agree to confess judgment for the amount provided, as
12	12	1.12determined by the county auditor. By filing the offer, the owner waives all irregularities in
13	13	1.13connection with the tax proceedings affecting the parcel and any defense or objection which
14	14	1.14the owner may have to the proceedings, and also waives the requirements of any notice of
15	15	1.15default in the payment of any installment or interest to become due pursuant to the composite
16	16	1.16judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer,
17	17	1.17the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty,
18	18	1.18and interest, and (ii) tender all current year taxes and penalty due at the time the confession
19	19	1.19of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal
20	20	1.20installments, with interest as provided in section 279.03, payable annually on installments
21	21	1.21remaining unpaid from time to time, on or before December 31 of each year following the
22	22	1.22year in which judgment was confessed.
23	23	1Section 1.
24	24	25-00556 as introduced11/15/24 REVISOR MS/BM
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 308NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: DRAZKOWSKI and Klein)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading01/21/2025
31	31	Referred to Taxes 2.1 (b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), each
32	32	2.2year the commissioner shall set the interest rate for offers made under paragraph (a) at the
33	33	2.3greater of five percent or two percent above the prime rate charged by banks during the
34	34	2.4six-month period ending on September 30 of that year, rounded to the nearest full percent,
35	35	2.5provided that the rate must not exceed the maximum annum rate specified under section
36	36	2.6279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the immediately
37	37	2.7succeeding year. The commissioner's determination under this subdivision is not a rule
38	38	2.8subject to the Administrative Procedure Act in chapter 14, including section 14.386. If a
39	39	2.9default occurs in the payments under any confessed judgment entered under this paragraph,
40	40	2.10the taxes and penalties due are subject to the interest rate specified in section 279.03.
41	41	2.11 For the purposes of this subdivision:
42	42	2.12 (1) the term "prime rate charged by banks" means the average predominant prime rate
43	43	2.13quoted by commercial banks to large businesses, as determined by the Board of Governors
44	44	2.14of the Federal Reserve System; and
45	45	2.15 (2) "default" means the cancellation of the confession of judgment due to nonpayment
46	46	2.16of the current year tax or failure to make any installment payment required by this confessed
47	47	2.17judgment within 60 days from the date on which payment was due.
48	48	2.18 (c) The interest rate established at the time judgment is confessed is fixed for the duration
49	49	2.19of the judgment. By October 15 of each year, the commissioner of revenue must determine
50	50	2.20the rate of interest as provided under paragraph (b) and, by November 1 of each year, must
51	51	2.21certify the rate to the county auditor.
52	52	2.22 (d) A qualified property owner eligible to enter into a second confession of judgment
53	53	2.23may do so at the interest rate provided in paragraph (b).
54	54	2.24 (e) Repurchase agreements or contracts for repurchase for properties being repurchased
55	55	2.25under section 282.261 are not eligible to receive the interest rate under paragraph (b).
56	56	2.26 (f) The offer must be substantially as follows:
57	57	2.27 "To the court administrator of the district court of ........... county, I, ....................., am
58	58	2.28the owner of the following described parcel of real estate located in .................... county,
59	59	2.29Minnesota:
60	60	2.30.............................. Upon that real estate there are delinquent taxes for the year ........., and
61	61	2.31prior years, as follows: (here insert year of delinquency and the total amount of delinquent
62	62	2.32taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
63	63	2.33the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
64	64	2Section 1.
65	65	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
66	66	3.2the amount stated above, minus the sum of $............, to be paid with this document, which
67	67	3.3is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
68	68	3.4I agree to pay the balance of the judgment in nine or four equal, annual installments, with
69	69	3.5interest as provided in section 279.03, payable annually, on the installments remaining
70	70	3.6unpaid. I agree to pay the installments and interest on or before December 31 of each year
71	71	3.7following the year in which this judgment is confessed and current taxes each year before
72	72	3.8they become delinquent, or within 30 days after the entry of final judgment in proceedings
73	73	3.9to contest the taxes under chapter 278.
74	74	3.10 Dated .............., ......."
75	75	3.11 EFFECTIVE DATE.This section is effective the day following final enactment.
76	76	3Section 1.
77	77	25-00556 as introduced11/15/24 REVISOR MS/BM