Bill > HF364

This bill modifies the interest rate calculation for confessions of judgments on homestead property taxes in Minnesota. Currently, the interest rate for these tax payment arrangements is set at the greater of five percent or two percent above the prime rate charged by banks. The bill changes this to remove the "two percent above" language, effectively allowing the interest rate to be set at the greater of five percent or the prime rate itself. The prime rate is defined as the average predominant rate quoted by commercial banks to large businesses, as determined by the Federal Reserve Board. When a homeowner wants to pay delinquent taxes through a confession of judgment, they must pay one-tenth of the total amount upfront and agree to pay the remaining balance in nine equal annual installments with interest. The commissioner of revenue must determine and certify this interest rate annually by October 15 and November 1, respectively. The interest rate established at the time of judgment will remain fixed for the duration of the judgment. The bill becomes effective the day following final enactment, potentially providing more favorable interest rate terms for homeowners seeking to manage their property tax debt.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0364&ssn=0&y=2025