Coversheet

Board Action Request
22-0535

Item Description:
Revision of the property tax penalty abatement policy, authorized under Minn. Stat. § 279.01

Resolution:

BE IT RESOLVED, that the penalty for late payment of property tax on a property is eligible for abatement if: (1) the owner of the property has not had a previous abatement on the same property in the prior 10 years; and (2) the parcel has no delinquent taxes owed; and

BE IT FURTHER RESOLVED, that penalty for late payment of property tax on an eligible property will be abated upon written request provided that the owner has paid the past due taxes in full, and that said application and payment needs to be made by the owner, or any person or agent who has a legal right to make application on behalf of the owner, to the county treasurer no later than June 30 for abatement of the penalty for first half taxes or no later than November 30 for abatement of the penalty for second half taxes in the year in which the taxes are due and in a manner as prescribed by the county treasurer; and

BE IT FURTHER RESOLVED, that this amended abatement policy will take effect for taxes payable in 2023.


Background: Under Minnesota law, property taxes are payable in two equal installments on May 15 and October 15 of each year, called the “first half” and “second half" payments. The county collects property taxes on behalf of all taxing districts in its boundaries and disburses the taxes following collection. If not paid by each deadline, the taxpayer immediately incurs a penalty of 2% (homestead) or 4% (non-homestead). Additional penalty is added every month for the remainder of the year until a maximum penalty of 8% (homestead) or 12% (non-homestead) is reached. It should be noted that penalty is always calculated on the unpaid portion of tax remaining at the time it is imposed.


Recommendation from County Administrator: Recommend Approval