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SF1709 (Legislative Session 94 (2025-2026))

Unpaid special assessments interest accrual rate modification provision and requiring refunds of certain payments on interest provision

Related bill: HF238

AI Generated Summary

This bill (S.F. No. 1709) proposes modifications to the taxation laws in Minnesota, specifically concerning the accrual of interest on unpaid special assessments and refunds of certain interest payments.

Key changes include:

  1. Modification of Interest Accrual: The bill updates the rate and process by which interest accrues on unpaid special assessments. It allows for flexibility in interest calculations, including provisions for annual installments with interest and potential forgiveness of interest accrued before the first payment installment.

  2. Refunds for Overpayments: If the interest added to an installment exceeds the interest actually accrued, the excess amount will be considered an overpayment and made available for refund claims.

  3. Administrative and Procedural Clarifications: The bill includes technical adjustments concerning the hearing and adoption process for assessments, notice requirements, and deferment provisions.

This bill primarily seeks to ensure fairness in interest accrual on assessments and to provide property owners with potential refunds for overpaid interest amounts.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025SenateFloorActionIntroduction and first reading
February 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes provisions for mailing notices to property owners regarding changes in interest rates or prepayment requirements."
      ],
      "removed": [
        "Eliminates separate notification procedures for changes to assessment amounts."
      ],
      "summary": "This bill amends the process and conditions for adopting special assessments under section 429.061, subdivision 2.",
      "modified": [
        "Adjusts the conditions under which interest accrues on deferred assessments."
      ]
    },
    "citation": "429.061"
  },
  {
    "analysis": {
      "added": [
        "Clarifies recoverability aspect of assessments from public property owners."
      ],
      "removed": [
        "Previous clauses that were conflicting with current assessment deferral rules."
      ],
      "summary": "This section pertains to the special considerations for assessments on public property.",
      "modified": [
        "Adjusts criteria for recoverability of assessments from public property."
      ]
    },
    "citation": "435.19"
  },
  {
    "analysis": {
      "added": [
        "Establishes process for claiming refunds on interest overpayments."
      ],
      "removed": [
        "No major elements removed, only clarification added."
      ],
      "summary": "The bill incorporates refund provisions for overpayment of accrued interest as outlined in section 276.19.",
      "modified": [
        "Refines the refund process tied to assessment interest payments."
      ]
    },
    "citation": "276.19"
  }
]

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