HF4485

Purpose

• Establish a Land Monument Protection Fund to support the Public Land Survey System monument grant program.
• Create or specify a new fee for recording mortgages or deeds.
• Amend Minnesota statutes related to mortgage recording and related fees, and provide a coding framework for new law in chapter 287.1.

Main Provisions

• Mortgage Recording Tax: A tax is imposed on the privilege of recording a mortgage, at a rate of 0.23% of the debt (or portion of a debt) secured by any recorded mortgage of real property located in Minnesota.
• Responsible Party: The mortgagor (the borrower) is liable for the recording tax.
• Interest Exemption: The tax does not apply to the lawful interest amounts that may accrue with respect to the debt.
• New Recording Fee: The county recorder or registrar of titles must charge a per-recording fee for each mortgage recording. The revenue from this fee must be deposited into the Land Monument Protection Fund established under section 287.40.
• Fund用途: Revenue from the new recording fee supports the Land Monument Protection Fund, which funds the Public Land Survey System monument grant program.
• Fee Separation: The new recording fee is separate from existing fees charged under sections 357.18, 508.81, and 508A.82.
• Codification: The bill proposes coding for new law in Minnesota Statutes chapter 287.1 and amends sections 287.035 and 287.21, subdivision 1 (though the excerpt provides details only for 287.035).

Changes to Law

• Amends Minnesota Statutes 2024 section 287.035 to create and fund the Land Monument Protection Fund from mortgage recording activity.
• Establishes a dedicated revenue stream from mortgage recording tax and recording fees to support monument-related programs.
• Explicitly separates the new fee from other mortgage-related fees already in law.

Financial/Administrative Impact

• New revenue source: Mortgage recording tax (0.23%) plus a per-recording fee to fund the Land Monument Protection Fund.
• Administrative responsibility lies with county recorders or registrars of titles to collect the tax and the recording fee.
• Revenue dedicated to the Land Monument Protection Fund, not mingled with general funds.

Status/Process

• The bill was introduced in the House (H. F. No. 4485) and referred to the Committee on Elections Finance and Government Operations for consideration.

Significant Changes Highlight

• Creates a dedicated funding mechanism (Land Monument Protection Fund) linked to mortgage recording activities.
• Establishes a fixed recording tax rate (0.23%) and directs funds to a specific program (Public Land Survey System monument grant program).
• Introduces and separates a new recording fee from existing real estate recording fees.

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Relevant Terms

• Land Monument Protection Fund
• Public Land Survey System monument grant program
• mortgage recording tax
• mortgagor
• recording tax rate 0.23% (0.0023)
• debt secured by mortgage
• real property
• county recorder
• registrar of titles
• recording fee
• section 287.40
• Minnesota Statutes 2024 section 287.035
• Minnesota Statutes 2024 section 287.21, subdivision 1
• Minnesota Statutes chapter 287.1
• separate from fees in sections 357.18, 508.81, 508A.82
• recording of a mortgage