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SF308 (Legislative Session 94 (2025-2026))

Homestead property confessions of judgements interest rates charged modification

Related bill: HF364

AI Generated Summary

This bill seeks to modify the interest rate associated with confessions of judgment for homestead properties in Minnesota. Specifically, it lays out a system where property owners who are late on their taxes can confess judgment and agree to pay off their tax debts in installments. The confession of judgment waives irregularities related to the tax proceedings and any defenses against it.

Under this bill, the interest rate for these installment payments will be the greater of two options: 1. A fixed rate of 5%. 2. A rate that is 2% higher than the prime rate charged by banks, as averaged during the previous six-month period ending on September 30 of each year.

However, the interest rate charged cannot exceed the maximum annual rate that is already specified under existing laws (Minnesota Statutes section 279.03, subdivision 1a). Each year, the commissioner of revenue will set this interest rate by November 1, and it will become effective on January 1 of the following year. This interest rate remains fixed for the duration of the judgment.

The property owner must pay 10% of the owed amounts initially, along with all current taxes due at that time. The remainder of the debt is then payable in either nine or four annual installments, with interest charged on the unpaid balance each year.

Notably, repurchase agreements or property repurchases that are under different statutes are not eligible for the interest rate specified in this bill.

This update aims to provide a consistent and potentially more manageable method for homeowners to resolve their delinquent property taxes and to know in advance the financial commitments involved in confessing judgment on those taxes.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 20, 2025HouseFloorActionIntroduction and first reading
January 20, 2025SenateFloorActionIntroduction and first reading
January 20, 2025HouseFloorActionReferred toTaxes
January 20, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies procedure and terms for installment payments on delinquent taxes."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the interest rate charged on confessions of judgments for homestead property under section 279.37, subdivision 2.",
      "modified": [
        "Adjusts the interest rate calculation for property tax judgment confessions.",
        "Specifies interest rate conditions and procedures set by the commissioner."
      ]
    },
    "citation": "279.37",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references interest calculation related to confessions of judgments under section 279.03, subdivision 2.",
      "modified": [
        "Includes references to prime rate for interest calculations on delinquent taxes.",
        "Clarifies interest rate application for confessed judgments."
      ]
    },
    "citation": "279.03",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill indicates that the commissioner's determination of interest rates is not a rule subject under section 14.386.",
      "modified": [
        ""
      ]
    },
    "citation": "14.386",
    "subdivision": ""
  }
]

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