HF4798
Requirement to collect tax on certain undivided interest modified.
Legislative Session 94 (2025-2026)
Related bill: SF5049
AI Generated Summary
Purpose
This bill updates how property taxes are paid and recorded when multiple people hold an undivided interest in taxable real property. It clarifies who can pay those taxes, how payments are documented, and how paid vs. unpaid shares are treated in tax collection.
Main Provisions
- Allowable payers: A person who holds an undivided interest in taxable real property (including mortgagees, lessees, and others who by law or contract are required or entitled to pay taxes) may pay the taxes on the undivided interests to protect their rights, title, interest, claim, or lien.
- Receipts and recordkeeping: The county treasurer may issue a receipt for the amount paid and specify the interest paid. The treasurer must enter, on the tax list, the name of the person who paid and the undivided interest they paid for, and report the payment and the nature of the interest to the county auditor.
- Treatment of paid interests: If the taxes have been paid, those undivided interests are exempt from proceedings to enforce the same tax against other undivided interests that have not been paid.
- Treatment of unpaid interests: The tax on undivided interests that have not been paid may be collected as if the undivided interests were a separate description (i.e., treated more like distinct parcels for tax collection purposes).
Changes to Existing Law
- Expands who can pay taxes on undivided interests from potentially being limited to the primary owners to include other holders (mortgagees, lessees, and others with a legal or contractual right or obligation to pay).
- Introduces formal procedures for receipts and recording of such payments in the tax list and with the county auditor.
- Establishes a clearer distinction in enforcement between paid undivided interests (exempt from collection actions against unpaid interests) and unpaid undivided interests (collectable as if they were separate descriptions).
Significance
- Improves clarity for multi-owner properties and lien holders on who can fulfill tax obligations.
- Improves transparency in tax payments and recordkeeping for undivided interests.
- Affects how tax collection actions are pursued when some, but not all, undivided interests are paid.
Relevant Terms undivided interest; property taxes; Minnesota Statutes 2024; section 276.07; UNDIVIDED INTEREST PAYMENT AND RECEIPT; county treasurer; tax list; tax receipt; mortgagee; lessee; right title interest claim or lien; paid; unpaid; exempt from collection; separate description; county auditor; tax collection.
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| April 07, 2026 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Clarifies that the county treasurer may issue a receipt for the amount paid and specify the interest paid; requires the treasurer to enter on the tax list the name of the payer and the undivided interest, and to report the payment and nature of the interest to the county auditor.",
"Provides that if the taxes associated with an undivided interest have been paid, those interests are exempt from proceedings to enforce the collection of the same tax against other undivided interests.",
"Allows the tax on undivided interests that have not been paid to be collected as though those undivided interests were a separate description."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 276.07 (Undivided Interest Payment and Receipt) to specify how taxes payable by holders of undivided interests in taxable real property are paid, recorded, and enforced.",
"modified": [
"Revises the undivided interest payment and receipt provisions to clarify payment, recording, and collection procedures."
]
},
"citation": "276.07",
"subdivision": ""
}
]Progress through the legislative process
In Committee