The bill modifies the interest rate applied to delinquent property taxes in Minnesota. It amends Minnesota Statutes 2022, section 279.03, subdivision 1a, to establish that delinquent property taxes, penalties, and costs will incur interest at a rate determined by section 270C.40, subdivision 5, with a minimum interest rate of ten percent if the calculated rate is below that threshold. Additionally, if the delinquent taxes exceed 25 percent of the prior year's school district levy, the interest rate will be doubled. A new provision allows county boards to set a lower interest rate by resolution. This change will take effect for delinquent property taxes determined on or after January 1, 2024.

Furthermore, the bill amends section 282.261, subdivision 2, to align the interest rate on repurchase contracts with the rates established in section 279.03, subdivision 1a. It also allows county boards or delegated county auditors to set a lower interest rate for these contracts. This provision will also take effect on January 1, 2024. Overall, the bill aims to provide flexibility for counties in managing interest rates on delinquent property taxes and related contracts.

Statutes affected:
Introduction: 279.03, 282.261