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HF238 (Legislative Session 94 (2025-2026))

Unpaid special assessment interest accrual rate modified, refunds on interest payments required, and technical changes made.

Related bill: SF1709

AI Generated Summary

This legislative bill aims to amend the current taxation laws concerning special assessments in Minnesota. Specifically, it addresses the interest rates applied to unpaid special assessments and the process for objections and refunds related to these assessments. Key features of the bill include:

  1. Interest Rate Adjustments: The bill modifies how interest on unpaid special assessments is calculated and potentially applies changes to accrued interest charges.

  2. Objection Hearings: Property owners can object to proposed assessments at a designated meeting or any continuation of this meeting. The council must consider all objections, and adjustments to assessments can be made based on these objections.

  3. Notice and Documentation: If there are changes from the initially proposed assessment, the property owner must be notified about the amount of the adopted assessment and any changes in interest rates or prepayment conditions.

  4. Payment and Liens: Special assessments, once adopted, will be a lien on the property from the date the resolution is adopted, paralleling general tax liens, and are payable in installments over a period not exceeding 30 years. There are specific provisions for property in targeted neighborhoods and options for deferring payments under certain conditions.

  5. Refunds: If the interest added to an installment exceeds the accrued amount by the payment date, the excess will be treated as an overpayment and will be eligible for a refund.

Overall, the bill focuses on ensuring clear procedures for special tax assessments, offering transparency and fairness in how these assessments are levied and managed.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 09, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A procedure for notifying property owners of changes to interest rates and prepayment requirements."
      ],
      "removed": [
        "Certain barriers to appealing the amount of an assessment."
      ],
      "summary": "This bill modifies the conditions and processes concerning special assessments and related interest under section 429.061.",
      "modified": [
        "Adjustments to handling liens and deferments on public and private property."
      ]
    },
    "citation": "429.061"
  },
  {
    "analysis": {
      "added": [
        "Clarification on assessment recovery specific to publicly-owned property under current statutes."
      ],
      "removed": [],
      "summary": "This bill references the process for recovering assessments against publicly-owned property as described in section 435.19.",
      "modified": []
    },
    "citation": "435.19"
  },
  {
    "analysis": {
      "added": [
        "Provision for claiming refunds on interest overpayments when they exceed accrued interest."
      ],
      "removed": [],
      "summary": "This bill references section 276.19 in the context of handling interest overpayments as refunds.",
      "modified": []
    },
    "citation": "276.19"
  }
]

Sponsors