Bill > SF308

This bill modifies the interest rate calculation for confessions of judgments on homestead property taxes in Minnesota. Currently, the interest rate is set at the greater of five percent or two percent above the prime rate charged by banks, but the bill removes the "two percent above" language, instead setting the rate at the greater of five percent or the prime rate charged by banks. The prime rate is defined as the average predominant rate quoted by commercial banks to large businesses, as determined by the Federal Reserve Board. The bill maintains existing provisions that cap the interest rate at a maximum annual rate and requires the commissioner of revenue to determine and certify the rate annually by October 15 and November 1, respectively. The interest rate established when the judgment is initially confessed will remain fixed for the duration of the judgment. The bill applies to property owners making tax payment arrangements through a confession of judgment, allowing them to pay delinquent taxes in installments over nine years with annual interest. The changes are effective the day following final enactment, providing a slight modification to how interest rates are calculated for homestead property tax payment plans.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0308&ssn=0&y=2025