DISCLAIMER

 

06-0548R


RESOLUTION REQUESTING THE CHARTER COMMISSION TO RECOMMEND ADOPTION OF AN ORDINANCE AMENDING SECTION 69 OF THE CITY CHARTER TO ELIMINATE PENALTIES AND INTEREST ON ASSESSMENTS WHICH ARE LEVIED AFTER A PROPERTY IS FORFEITED FOR NONPAYMENT OF TAXES.

BY COUNCILOR STOVER:

     RESOLVED, that the city council hereby requests that the Charter commission recommend approval of an ordinance amending Section 69 of the City Charter, which proposed ordinance is on file in the office of the city clerk as Public Document No. ___________.


STATEMENT OF PURPOSE:  The purpose of this resolution is to request that the Charter commission review and recommend for approval a Charter amendment which would eliminate penalties and interest on assessments which are levied after property goes tax forfeit.


Presently, if property goes tax forfeit with unpaid assessments against it, those assessment are “wiped out” through the forfeiture process. They can be re-instituted once the property is sold out of forfeiture but the net result is that, during the time the property is tax forfeit, penalties and interest do not accrue.


However, under the present laws, if the assessment is levied after the property goes forfeit, the assessment stays in force during the time its tax forfeit (the state does not pay the assessments) and penalties and interest continue to build up, often to the point where they discourage people from buying the property out of forfeiture. This results in discouraging re-use of the property and its return to the property tax rolls.


This Charter amendment would cause the imposition of penalties and interest to be held in abeyance during the time the property was tax forfeit and owned by the state and would commence imposition of penalties and interest only after it was sold by the state to a third party. The result would be that assessments on property which goes tax forfeit during the pendency of the assessment would be treated the same, whether it went tax forfeit before the date the assessment was levied or after.


Pursuant to Minnesota Statutes Section 410.12, Subd. 7, the city council can approve “noncontroversial” amendments to the Charter by a unanimous vote of the council, but only after such amendments are recommended for approval by the Charter commission. This resolution requests such approval.