§ 276.131 — Distribution of Penalties, Interest, and Costs
Plain-Language Summary
This law sets rules for how penalties, interest, and costs collected on late property taxes are divided among taxing authorities. Penalties are split evenly between the county and school districts. Interest on taxes delinquent over a year is also split, with half going to schools and the other half shared between the county and the city or town where the property sits, based on their proportional tax rates.
276.131 DISTRIBUTION OF PENALTIES, INTEREST, AND COSTS.
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Subdivision 1.Distribution.
Except as provided in subdivision 2, the penalties, interest, and costs collected on special assessments and real and personal property taxes must be distributed as follows:
(1) all penalties and interest collected on special assessments against real or personal property must be distributed to the taxing jurisdiction that levied the assessment;
(2) 50 percent of all penalties collected on real and personal property taxes must be distributed to the school districts within the county, and the remaining 50 percent must be distributed to the county;
(3) in the case of interest on taxes that have been delinquent for a period of one year or less, (a) 50 percent of the interest must be distributed to the school districts within the county and (b) the remaining 50 percent shall be distributed to the county;
(4) in the case of interest on taxes that have been delinquent for a period of more than one year, (a) 50 percent of the interest must be distributed to the school districts within the county and (b) the remaining 50 percent must be distributed as follows: (i) the city or town where the property is located shall receive a share of the amount of interest equal to the proportion that the city’s or town’s local tax rate for the year that the interest was collected, is to the sum of the city’s or town’s local tax rate and the county’s local tax rate for the year that the interest was collected and (ii) the balance must be distributed to the county; and
(5) all costs collected by the county on special assessments and on delinquent real and personal property taxes must be distributed to the county in which the property is located. §
Subd. 2.Distribution of certain production taxes.
The penalties, interest, and costs collected on taxes imposed under sections 272.029 and 272.0295 must be distributed to the same local taxing jurisdictions and in the same percentages as provided for the revenues of the original taxes imposed under sections 272.029 and 272.0295. §
Subd. 3.Distribution to school district.
The distribution of all penalties and interest to the school district must be in accordance with the provisions of section 127A.34.
History:
1989 c 277 art 2 s 38; 1995 c 264 art 3 s 16; 1998 c 397 art 11 s 3; 1999 c 243 art 5 s 26; 1Sp2019 c 6 art 4 s 22
History: History: 1989 c 277 art 2 s 38; 1995 c 264 art 3 s 16; 1998 c 397 art 11 s 3; 1999 c 243 art 5 s 26; 1Sp2019 c 6 art 4 s 22