Delinquent Personal Property Tax Manual

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2002 Changes to the Delinquent PersonalProperty Tax Manual

Notes: (1) A number of the pages of the updated manual show “1ST REVISION: 2002” at thebottom of the page. Many of these changes are minor corrections, minor organizationalchanges, or reflect text shifting due to new entries or revised entries on previous pages.Others merely delete references to the 1991 legislature and/or insert a statute reference,update a statute reference, or update a property classification reference. The changesthat are significant and need further explanation are listed below.

(2) One of the law changes anticipated from the 2003 Legislative Session is a changeproviding that all Notices of Tax Liens relating to personal property would be filed in theSecretary of State’s office, including the Notices of Tax Liens for individuals who areresidents of Minnesota. This is how state tax liens relating to personal property arehandled. However, the updated manual does not reflect this anticipated change. Itreflects the wording of Minnesota Statutes 2002, Section 277.20, Subd. 2.

1. Section 7020, page 2. The definition of property taxed under the manufactured home personalproperty tax law is updated to include (1) park trailers, (2) travel trailers, and (3) storage sheds, decks,or similar improvements constructed on property leased or rented as a site for a manufactured home,park trailer, or travel trailer.

2. Section 7020, page 2. Updated statistics concerning the numbers of manufactured homes and theirlocation is provided here.

3. Section 7040, pages 1 and 2. Updated information on the net tax capacity of personal property bymajor property types, and a comparison with the net tax capacity of real property, is provided here.

4. Section 7050, page 1. The reference to offsetting a taxpayer’s lottery winnings under RevenueRecapture is corrected to reference lottery winnings over $600. Previously the reference was to lotterywinnings over $1,000.

5. Section 7060, page 2. The reference to offsetting a taxpayer’s lottery winnings under RevenueRecapture is corrected to reference lottery winnings over $600. Previously the reference was to lotterywinnings over $1,000. The fact that certain other refunds besides tax refunds are subject to RevenueRecapture is acknowledged.

6. Section 7110, page 2. Obsolete paragraphs concerning interest on payable 1992 and prior year’sproperty taxes have been removed. In addition, the August 31 taxes due date for manufactured homepersonal property taxes is qualified by adding “or 20 calendar days after the postmark date on theenvelope containing the property tax statement.”

7. Section 7150, all pages. Obsolete paragraphs concerning interest on payable 1992 and prior year’sproperty taxes have been removed. In addition, the schedule of interest rates is updated to include therates for the years after 1994.

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8. Section 7220, pages 8 and 9. The two notices of delinquent taxes (one for manufactured homes andthe second for other types of personal property) are corrected to reference lottery winnings over $600.Previously the reference was to lottery winnings over $1,000. The fact that certain other refundsbesides tax refunds are subject to Revenue Recapture is acknowledged.

9. Section 7230, pages 3 and 4. The listed telephone numbers and mailing addresses are updated for theDepartment of Public Safety and the Secretary of State.

10. Section 7310, page 2. A sentence implying (erroneously) that the county treasurer distributes salerevenue to junior creditors has been removed, and replaced by a reference to Section 7880.

11. Section 7320, page 2. The telephone numbers and mailing address for the Secretary of State have beenupdated.

12. Section 7320, page 6. The example Notice of Tax Lien is corrected to show the county treasurer’ssignature rather than the county auditor’s signature.

13. Section 7340, page 4. The example Notice of Transcription of Tax Lien is corrected to show thecounty treasurer’s signature rather than the county auditor’s signature.

14. Section 7350, page 4. The example Notice of Release of Tax Lien is corrected to show the countytreasurer’s signature rather than the county auditor’s signature.

15. Section 7360, pages 5 and 6. The example Partial Release of Tax Lien as to Specific Individual andthe example Partial Release of Tax Lien as to Specific Property are modified to include the address ofthe taxpayer as well as the taxpayer’s name.

16. Section 7380, pages 1 – 3. The list of personal property exempt from the tax lien is corrected to:

(a) Separately list personal apparel, one watch, utensils, and food of the taxpayer and taxpayer’s familywithout any dollar limit (item 4 in the listing).

(b) State the separate dollar limit for a motor vehicle modified to accommodate a physical disability(item 12 in the listing).

(c) Eliminate a reference to AFDC and add references to MFIP and work first in the relief based onneed (item 13 in the listing).

(d) Add a reference to a Roth IRA for present or future payments based on illness, disability, death,age, or length of service.

(e) Add a separate item for the proceeds of payments received by a person for labor, skill, material, ormachinery contributing to an improvement to real estate (item 18 in the listing).

(f) For those items subject to dollar limits indexed by the implicit price deflator (IPD) for GrossNational Product, show the current limits as of April 2002.

17. Section 7380, page 3. The adjustment to the dollar limits for personal property exemptions based onthe implicit price deflator (IPD) for Gross National Product is given further explanation, along with thecurrent web page location to find this information.


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19. Section 7410, page 2. The names of the contact persons in the Revenue Recapture Unit of theDepartment of Revenue, the telephone numbers, the mailing address, and the directions for in-personvisits to the Recapture Unit have all been updated.

20. Section 7420, page 1. The listing of types of “refunds” that may be offset under Revenue Recapture isamended to include sustainable forest tax payments to claimants, and amounts granted to persons bythe legislature on the recommendation of the joint Senate-House of Representatives Subcommittee onClaims. It is also amended to reference lottery winnings over $600. Previously the reference was tolottery winnings over $1,000.

21. Section 7420, page 2. The minimum amount of refund that may be offset by Revenue Recapture iscorrected to $15 (previously it read $25) and the maximum debt is corrected to $25 (previously it read$15). The paragraph instructing the county treasurer to add the $10 Revenue Recapture fee to thedelinquent tax amount has been deleted. Actually, these corrections were a subject of a letter from ouroffice to the county treasurers dated April 1, 1994.

22. Section 7420, page 2. Number 6 is amended to include the requirement that the county treasurer notifythe Revenue Recapture Unit within 30 days when a debt subject to Revenue Recapture has beensatisfied or reduced at least $200 dollars by other means.

23. Section 7420, page 2. Number 7 is amended to include criminal restitution in the third order ofpriority when more than one creditor has applied for revenue recapture.

24. Section 7430, page 1. This page is amended to clarify that the application for a special Minnesota taxidentification number for Revenue Recapture is done by telephone. The previous page 2 of Section7430 is eliminated by this change.


26. Section 7440, pages 2 – 4. The references to “magnetic computer tape” have been changed to “tapecartridge” since as of July 1, 2002, reel-to-reel tapes will no longer be accepted by the Department ofRevenue for Revenue Recapture.

27. Section 7440, page 2. A county may access the State of Minnesota mainframe computer system viathe internet for Revenue Recapture purposes, as this page now states.

28. Section 7440, page 4. A note is added stating that a county treasurer may now choose to submit amodification of a Revenue Recapture claim for reductions that are less than $200.00. County treasurersare still required to submit modifications for reductions of $200.00 or more.

29. Section 7450, pages 1 – 3. The reference to offsetting a taxpayer’s lottery winnings under RevenueRecapture is corrected to reference lottery winnings over $600. Previously the reference was to lotterywinnings over $1,000. The fact that certain other refunds besides tax refunds are subject to RevenueRecapture is acknowledged.


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31. Section 7460, page 1. The reference to the first date of issuance for property tax refunds paid torenters is corrected to August 2. Previously it read August 1.

32. Section 7460, page 2. The references in number 4 to reports titled “Annual Report of Claims to beReviewed,” “Aged Claims Report,” and “Annual Report of Claims Activity by Claimant” have beendeleted since these reports from the Department of Revenue no longer exist.

33. Section 7520, page 1. This page is updated to include the statute references for the additional levy andseizure powers granted to the Department of Revenue that are also granted to the county treasurers.

34. Section 7620, pages 3 and 4. The suggested form of the “Notice of Bank Levy” is revised to include astatement that the bank is obligated to return the “Levy Questionnaire.”

35. Section 7630, pages 2 and 4. Reference is made to returning the “Levy Questionnaire” in the “self-addressed and stamped envelope.”

36. Section 7640, page 2. The list of programs that are included in the definition of “relief based on need”for the purpose of a 60-day exemption from a bank levy is updated to reflect the current programsavailable. The listing of the sources of money for which there is no time limit on the exemption from abank levy is amended to include the earnings of a minor child of the taxpayer and any child supportpaid to the taxpayer. (See M.S. 550.143, Subd. 3 and 550.37, Subds. 14 and 15.)

37. Section 7640, pages 5 and 6. The example of an exemption notice is updated to show: (1) thecalendar year 2002 dollar limits on the exemptions for (a) accident, disability, or retirement pensionsor annuities, and (b) life insurance proceeds; (2) the current list of programs for relief based on need;and (3) the current federal minimum wage. A note is included on page 6 to provide more informationon these limits and on the federal minimum wage.

38. Section 7690, page 4. The erroneous reference to “wage levy” in the “Reduction of Bank Levy” formis corrected to read “bank levy.”

39. Section 7705, pages 1 and 2. The statute references for the additional levy and seizure powers grantedto the county treasurers have been updated, and unneeded verbiage in support of the argument for thisadditional authority has been deleted.

40. Section 7705, page 4. Under current law the notice and demand for payment and the notice of intent tolevy on wages are effective for one year, and can be renewed for another year. Under previous lawthey were effective for 180 days and could be renewed for another 180 days.

41. Section 7720, page 1. Under current law the notice and demand for payment and the notice of intent tolevy on wages are effective for one year, and can be renewed for another year. Under previous lawthey were effective for 180 days and could be renewed for another 180 days.

42. Section 7730, page 1. The list of programs that are included in the definition of “relief based on need”for the purpose of an exemption from a wage levy is updated to reflect the current programs available.

43. Section 7740, page 1. A note is added to clarify that state and federal wage levies to recover taxes arecontinuous. They are not subject to the 70-day limit. Therefore, the county treasurer's wage levy doesnot have priority over an earlier filed state or federal wage levy after the 70-day grace period expiresand the state or federal wage levy has not yet been satisfied.

44. Section 7740, page 5. A sentence is added to the Notice of Wage Levy to clarify that state and federalwage levies to recover taxes are not subject to the 70-day limit.

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45. Section 7750, page 2. The information regarding the current federal minimum wage is updated.

46. Section 7750, pages 5 to 7. The Wage Disclosure Form is updated to reflect the current federalminimum wage.

47. Section 7780, pages 1, 2, and 4. An employer who fails to honor a wage levy is now subject to anassessment equal to the wage levy plus a 25% penalty rather than an assessment equal to the wage levyplus accrued interest. This change reflects the 1995 repeal of language in M.S. 290.92, Subd. 23,clause (3).

48. Section 7785, pages 1, 2, 3, and 5. An employer who fails to honor a wage levy is now subject to anassessment equal to the wage levy plus a 25% penalty rather than an assessment equal to the wage levyplus accrued interest. This change reflects the 1995 repeal of language in M.S. 290.92, Subd. 23,clause (3).

49. Section 7785, page 6. The address for the Minnesota Tax Court has been updated.

50. Section 7810, pages 1 – 3. These pages are updated to include the statute references for the additionallevy and seizure powers granted to the Department of Revenue that are also granted to the countytreasurers, and to eliminate erroneous language stating that the county treasurer cannot seize and sell ataxpayer’s personal and real property without first recording a tax lien.

51. Section 7850, page 1. Number 3 on this page is amended to state that there may be a fee for recordingand releasing a tax lien if a notice of tax lien is on record before a seizure and sale is performed.Previously it read (erroneously) that there would always be this fee because there would always be atax lien recorder prior to seizure and sale.

52. Section 7850, page 2. This page is amended to clarify that the total delinquent tax amount listed on thewarrant, as part of the proceeds from the sale of personal and/or real property seized by the countysheriff, is sent to the county treasurer.

53. Section 7860, page 1. A note is added to clarify that a county treasurer’s warrant can be served on thecounty sheriff of any county in the state of Minnesota where property of the taxpayer is located. Thecounty treasurer is not limited to the county sheriff of his/her own county. Erroneous languageconcerning the requirement of a Notice of Tax Lien has been deleted.

54. Section 7880, page 1. Language concerning the county treasurer’s Notice of Tax Lien has beenqualified by the phrase, “if one was recorded.”

55. Section 7890, page 1. This page is updated for the current deadlines of October 1 (manufacturedhomes) and April 30 (other personal property) for filing an appeal of personal property taxes with thetax court.

56. Section 7920, page 2. The list of states that have enacted the “Uniform Enforcement of ForeignJudgments Act” is updated to reflect the current list of 46 states plus other jurisdictions. Previously,this section listed 37 states.

57. Section 7900, Table of Contents. The Table of Contents for manufactured home taxes is revised toadd a section for “Property Taxes Paid Before Title Transfer.”

58. Section 7920A, page 2. The list of financial institutions defined as “lenders” is updated to the currentlist in M.S. 47.209, Subd. 1.

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59. Section 7930A, pages 2 and 3. These pages are revised to clarify the “next taxes payable year”involved in the escrow payments.

60. Section 7930A, page 3. Step 4 is corrected to read that the number of months for the escrow paymentsis determined through the next month of October rather than the next month of November (M.S.277.17, Subd. 2).

61. Section 7930A, page 7. The warning in the Notice of Escrow Payments concerning failure to makethe monthly payments, talking about taking over the taxpayer’s lottery winnings over $1,000, has beencorrected to read lottery winnings over $600.

62. Section 7940A, page 5. More information has been added regarding the statutory basis for the interestrate that applies to the unpaid balance under a confession of judgment.

63. Section 7940A, pages 7 and 11. The reference to taking over the taxpayer’s lottery winnings over$1,000 has been corrected to read lottery winnings over $600.

64. Section 7940A, page 8. The previous number 3 action, reinstate the original tax judgment for thebalance of the total delinquent tax amount not paid under the confession of judgment, has been deletedsince it does not apply to personal property taxes.

65. Section 7940A, page 11. Language is added to clarify the deadline for payment of the overdueinstallment under a confession of judgment to avoid default and subsequent enforced collectionactions.

66. Section 7960A, page 2. A note is added to clarify that the personal and real property taxes that mustbe paid before an oversized load permit may be issued are the personal or real property taxes on themanufactured home itself.

67. Section 7970A. A new section has been added for the new requirement that all personal property taxeslevied on a manufactured home that are due from the current owner at the time of transfer must be paidbefore the Department of Public Safety may issue a certificate of title. The new section also discussesthe related notice that must be printed on the property tax statements for manufactured homes.

68. Section 7900B, pages 1 – 3. The description of the distribution of delinquent tax collections isamended to include the distributions made to the state relating to the state general tax.

3/7/03

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Delinquent Personal Property Tax ManualList of Pages with a 2002 Update

Section Number Page Number(s) Section Number Page Number(s)

7010 2 7630 2, 47020 1 – 6 7640 2, 5-87030 1 7660 17040 1, 2 7670 1

7050 1, 2 7680 17060 2 7690 17110 1 7705 1 – 47120 1, 2 7720 1, 4

7150 1 – 4 7730 17210 1, 2 7740 2 – 57220 2 – 9 7750 2 – 77230 3 – 5 7760 3

7305 1 7780 1 – 47310 2 7785 1 – 3, 5, 67320 2, 3 7810 1 – 37340 4 7830 2, 3

7360 5, 6 7840 17380 1 – 3 7850 1, 27410 1, 2 7860 1, 27420 1, 2 7880 1

7430 1 7890 1 – 37440 1 – 5 7920 1, 27450 1 – 3 7930 17460 1, 2 7940 1, 2

7510 1, 2 7900A Table of Contents7520 1 7920A 2, 37530 1, 2 7930A 2 – 77550 1 – 3 7940A 1, 5 – 11

7570 5 7960A 1, 27580 4 7970A 1, 27610 1 7900B 1 – 57620 3, 4

Note: Dashes mean inclusive and everything in between.

DELINQUENT PERSONAL PROPERTY TAXES TABLE OF CONTENTS

Table of Contents

Section Number

Introduction: Delinquent Personal Property Taxes................................................................ 7000Overview of Delinquent Personal Property Taxes............................................................ 7010Types of Taxable Personal Property................................................................................ 7020Method of Assessing Personal Property Taxes ................................................................ 7030Comparison of Personal and Real Net Tax Capacity........................................................ 7040Outline of Current Collection Methods ........................................................................... 7050Suggested Sequence of Collection Actions...................................................................... 7060Total Delinquent Tax Amount ........................................................................................ 7070Chart of Major Collection Actions .................................................................................. 7080

Dates, Penalties, Interest.......................................................................................................... 7100Introduction: Dates, Penalties, Interest............................................................................ 7110Manufactured Homes...................................................................................................... 7120Leased Government Property.......................................................................................... 7130All Other Personal Property............................................................................................ 7140Interest ........................................................................................................................... 7150Special Cases.................................................................................................................. 7160

Mailing/Planning/Phoning....................................................................................................... 7200Introduction: Mailing/Planning/Phoning .......................................................................... 7210Notice of Delinquent Taxes............................................................................................. 7220Collection Plan ............................................................................................................... 7230Telephone Contact.......................................................................................................... 7240

Tax Lien ................................................................................................................................... 7300Introduction: Tax Lien.................................................................................................... 7305General Tax Lien Information......................................................................................... 7310Guidelines for Filing a Tax Lien ...................................................................................... 7315Notice of Tax Lien.......................................................................................................... 7320Renewal of Tax Lien....................................................................................................... 7330Transcription of Tax Lien ............................................................................................... 7340Release of Tax Lien ........................................................................................................ 7350Partial Release of Tax Lien ............................................................................................. 7360Cost of Filing + Releasing Tax Lien ................................................................................ 7370Property Exempt from Tax Lien...................................................................................... 7380Notice of Foreclosure or Cancellation............................................................................. 7390Lien Search Certificate.................................................................................................... 7395

1ST REVISION: 2002 1ST EDITION: JANUARY, 1994


Table of Contents(Continued) (Page 2)

Revenue Recapture .................................................................................................................. 7400Introduction: Revenue Recapture.................................................................................... 7410General Information........................................................................................................ 7420County Applies for Tax ID.............................................................................................. 7430County Files Claim with Revenue.................................................................................... 7440County Notifies Taxpayer ............................................................................................... 7450Revenue Processes County Claim.................................................................................... 7460

Levy and Seizure Authority..................................................................................................... 7500Introduction: Levy and Seizure Authority........................................................................ 7505General Information........................................................................................................ 7510County Shares State's Authority...................................................................................... 7520Three Levy and Seizure Methods .................................................................................... 7530Property Subject to Levy + Seizure................................................................................. 7540Property Exempt from Levy + Seizure ............................................................................ 7550Maximum Amount of Levy + Seizure.............................................................................. 7560Notice and Demand for Payment ..................................................................................... 7570Jeopardy Collection or Assessment ................................................................................. 7580Discovery of Taxpayer Assets ......................................................................................... 7590

Levy on Bank Accounts ........................................................................................................... 7600Introduction: Levy on Bank Accounts............................................................................. 7610Notice of Bank Levy....................................................................................................... 7620Levy Questionnaire ......................................................................................................... 7630Exemption Notice ........................................................................................................... 7640Bank's Responses to Levy............................................................................................... 7650Warning of Bank's Liability............................................................................................. 7660Order Assessing Bank's Liability ..................................................................................... 7670Bank's Setoff Rights........................................................................................................ 7680Reduction/Release of Bank Levy..................................................................................... 7690

Levy on Wages ......................................................................................................................... 7700Introduction: Levy on Wages .......................................................................................... 7705Verification of Employment ............................................................................................ 7710Notice of Intent to Levy on Wages.................................................................................. 7720Exemption Claim Form................................................................................................... 7730Notice of Wage Levy ...................................................................................................... 7740Wage Disclosure Form.................................................................................................... 7750Wage Withholding Form................................................................................................. 7760Employer Honors Wage Levy ......................................................................................... 7770Treasurer Monitors Employer's Compliance .................................................................... 7775Warning of Employer's Liability ...................................................................................... 7780Order Assessing Employer's Liability............................................................................... 7785Reduction/Release of Wage Levy.................................................................................... 7790



Table of Contents(Continued) (Page 3)

Seizure and Sale of Property.................................................................................................... 7800Introduction: Seizure + Sale of Property......................................................................... 7810Methods of Seizure + Sale .............................................................................................. 7820Property Subject to Seizure + Sale .................................................................................. 7830Guidelines for Seizure + Sale .......................................................................................... 7840Maximum Amount of Seizure + Sale............................................................................... 7850Treasurer's Warrant to Sheriff ......................................................................................... 7860Sheriff's Seizure and Sale ................................................................................................ 7870Treasurer's Management of Sale Revenue ....................................................................... 7880Restrictions on Seizure + Sale......................................................................................... 7890

Other Collection Methods........................................................................................................ 7900Introduction: Other Collection Methods.......................................................................... 7910Court Judgment .............................................................................................................. 7920County Central Collection Agency.................................................................................. 7930Cancellation of Delinquent Taxes.................................................................................... 7940

Manufactured Home Taxes .................................................................................................. 7900AIntroduction: Manufactured Home Taxes..................................................................... 7910ANotice to Lender.......................................................................................................... 7920ATax Escrow Accounts.................................................................................................. 7930AConfession of Judgment ............................................................................................... 7940AAlternative Monthly Payment Plan ............................................................................... 7950AOversized Load Moving Permit ................................................................................... 7960AProperty Taxes Paid Before Title Transfer ................................................................... 7970A

Distribution of Collections.................................................................................................... 7900B

Index...................................................................................................................................... 7900C


DELINQUENT PERSONAL PROPERTY TAXES INTRODUCTION

TABLE OF CONTENTS

SECTION HEADING SECTION NUMBER

Overview of Delinquent Personal Property Taxes ............................................................... 7010

Types of Taxable Personal Property ..................................................................................... 7020

Method of Assessing Personal Property Taxes ..................................................................... 7030

Comparison of Personal and Real Net Tax Capacity .......................................................... 7040

Outline of Current Collection Methods ............................................................................... 7050

Suggested Sequence of Collection Actions ........................................................................... 7060

Total Delinquent Tax Amount .............................................................................................. 7070

Chart of Major Collection Actions ....................................................................................... 7080

1ST EDITION: JANUARY, 1994


OVERVIEW OF DELINQUENT PERSONAL PROPERTY TAXES SECTION 7010

There are some interesting differences between delinquent personal property taxes anddelinquent real property taxes. First of all, the county auditor is responsible for collectingdelinquent real property taxes. The responsibility of collecting delinquent personal propertytaxes is in the hands of the county treasurer.

Secondly, real property taxes that are not paid on time are considered to be "late" for theremainder of the year in which they are due. A penalty is charged for paying the taxes late. Realproperty taxes do not become delinquent until the January following the year in which they aredue. Interest is charged on the unpaid tax and penalty beginning with that same January.

In contrast, personal property taxes become delinquent the day after they are due. The term,"delinquent," applies to all of the steps in the collection of the unpaid personal property taxes;i.e., from the day after they are due to the time when they are collected or canceled. A penalty ischarged on the unpaid taxes on the day when they become delinquent. Interest is charged on thedelinquent tax, penalty, and costs beginning with the January after the year when the taxes weredue and became delinquent.

The most important difference between personal and real property taxes has to do with the taxlien. When real property taxes become delinquent, the county auditor files the list of delinquenttaxes with the court administrator, notifies the taxpayers of the delinquency, and warns thetaxpayers of the expiration of the time period for paying them. Once these passive tasks havebeen completed, the specific parcel of real property on which the taxes were assessedautomatically forfeits to the state in trust for the local taxing districts when the time periodexpires.

This automatic forfeiture is possible because a real property tax lien is in rem. This means thatthe tax lien attaches to the specific parcel of real property that has been assessed regardless ofwho owns it. It does not attach to the taxpayer and all of the property owned by the taxpayer.(M.S. 272.31) When the payment period expires, the specific parcel of real propertyautomatically forfeits and can be sold with the revenues going to the local taxing districts.

With personal property taxes, there is no automatic forfeiture of a specific parcel of property atthe end of a designated time period. This is true because a personal property tax lien attaches tothe taxpayer and all of the personal and real property owned by the taxpayer. This is called inpersonam. The tax lien follows the person and not the specific parcel of property on which thetaxes were originally assessed.



OVERVIEW OF DELINQUENT PERSONAL PROPERTY TAXES SECTION 7010(Continued) (Page 2)

Because there is no automatic forfeiture, the county treasurer must take an active role in thecollection of delinquent personal property taxes. If the county treasurer does not take directaction to collect the delinquent taxes by having the taxpayer's money or property confiscated,nothing will happen. The taxes will remain unpaid, and no property will automatically beavailable to sell in order to reimburse the local taxing districts for their lost tax revenue.

To assure that action is taken, M.S. 277.21, Subd. 1 gives the following mandate to the countytreasurer:

"If a tax assessed on personal property or manufactured homes and collectibleunder this chapter is not paid when due, the county treasurer shall, as soon aspracticable, take action the county treasurer considers necessary andreasonable to collect the delinquent tax."

This Manual is an attempt to outline and explain the "necessary and reasonable" actions thatthe county treasurer may take to collect delinquent personal property taxes, includingmanufactured homes.



TYPES OF PERSONAL PROPERTY TAXES SECTION 7020

Since 1972, most of the personal property in Minnesota has been exempt from property taxes.This general exemption applies to the major types of property listed below.

1. Inventories, stocks of merchandise, manufacturers material, and manufactured articles,including the inventories of manufacturers, wholesalers, retailers, and contractors.

2. Office equipment and furnishings of a home, room, apartment, hotel, or motel.

3. Tools and machinery that are defined as personal property and are used or usable in theconstruction of buildings or highways or in the manufacture, processing, production, sale, ordistribution of marketable products.

There is very little property that remains subject to personal property taxes in Minnesota. Itusually involves a leasehold interest in personal or real property or both. It can also involveeasement right-of-ways. In most cases, an individual or organization owns property that wasconstructed on leased land. In some cases, both buildings and land are leased. In only a fewcases does the taxpayer own all of the property.

Most of the property which is still subject to personal property taxes in Minnesota may becategorized under the following four major types: (1) manufactured homes located on leasedland, (2) property owned by non-municipal utility companies and located on leased land oreasement right-of-ways, (3) leasehold interests in government-owned property, and (4) elevatorsand warehouses located on leased railroad right-of-way land. The four types are outlined below.

TYPE #1: MANUFACTURED HOMES

The term, "manufactured home," is the official name in the statutes for what is commonly calleda mobile home. A manufactured home is defined as a structure that is transportable in one ormore sections, built on a permanent chassis, and designed to be used as a dwelling with orwithout a permanent foundation. (M.S. 273.125, Subd. 8)

Manufactured homes which meet all of the following conditions are valued and taxed as personalproperty: (1) affixed to the land, (2) connected to public utilities, (3) contain water and sewerfacilities, and (4) are located on land leased by the owner of the home. If the owner of the homeholds title to the land on which it is located, the home is treated as real property for tax purposes.

Manufactured homes that are located on leased land are subject to personal property taxes in thename of the homeowner. The leased land is taxed as real property in the name of the landowner.Both the personal and real property values are set by the local assessor, and the taxes areimposed by the counties.



TYPES OF PERSONAL PROPERTY TAXES SECTION 7020(Continued) (Page 2)

Park trailers are taxed as manufactured homes. Travel trailers not conspicuously displayingcurrent registration plates on the property tax assessment date are also taxed as manufacturedhomes if occupied as human dwelling places. A park trailer means a trailer that: (1) exceeds 8-1/2 feet in width in travel mode but is no larger than 400 square feet when the collapsiblecomponents are fully extended or at maximum horizontal width, and (2) is used as temporaryliving quarters. A travel trailer means a trailer mounted on wheels that: (1) is designed toprovide temporary living quarters during recreation, camping, or travel, (2) does not require aspecial highway movement permit based on its size or weight when towed by a motor vehicle,and (3) complies with M.S. 169.80, Subd. 2 and M.S. 169.81, Subd. 2. (M.S. 168.011, Subd. 8;168.012, Subd. 9)

Storage sheds, decks, or similar improvements constructed on property that is leased or rented asa site for a manufactured home, sectional structure, park trailer, or travel trailer are taxed underthe manufactured home personal property tax law. (M.S. 273.125, Subd. 8(f))

In 2000, there were 56,957 manufactured homes assessed as personal property in Minnesota.Anoka County had the largest number, 4,790, and Cottonwood County had the lowest number,19. Of the statewide total, 41,204 manufactured homes (72.3%) were located in GreaterMinnesota with the remaining 15,753 (27.7%) located in the seven-county metropolitan area.

For more detailed information about personal property taxes and manufactured homes, seeSeries 7100 and 7900A of this Manual.

TYPE #2: NON-MUNICIPAL UTILITY COMPANIES

All personal and real property owned by a municipal utility company is exempt from propertytaxes. The term, "municipal," usually refers to a city government.

Most property owned by a non-municipal utility company is assessed as real property by thestate and is subject to real property taxes imposed by the counties. However, some property issubject to personal property taxes. This is usually personal property that is located on leasedland or easement right-of-ways. The term, "non-municipal," usually refers to a private, taxablecompany or corporation. It can include a cooperative.

The properties owned by a non-municipal utility company that are subject to personal propertytaxes are outlined below.




1. NON-MUNICIPAL ELECTRIC LIGHT AND POWER COMPANIES

The power lines that are part of a non-municipal electric light and power company's operationalsystem for generating, transmitting, and/or distributing electricity are valued as personalproperty by the state and are subject to personal property taxes imposed by the counties. Thisincludes the power line owned by a cooperative when the lines run through a city. (M.S. 272.02,Subd. 9(a); 272.03, Subd. 2(5))

The power lines usually run over leased land or easement right-of-ways. Some of them pass overland owned by the company or cooperative itself.

Exception: The power lines that are used by non-cooperative electric light and power companiesfor supplying electricity to farmers at retail are exempt from taxation. (M.S. 272.02, Subd. 19).

Exception: The power lines that are used by cooperative electric light and power companies forsupplying electricity to rural areas are assessed a special membership tax in lieu of personalproperty taxes. (M.S. 273.39 - 273.41)

The structural parts of generating, transforming, and switching substations that are located onleased railroad right-of-way land or on land leased from the state for a term of less than threeyears are treated as personal property. The taxable values are recommended by the state, andthe taxes are imposed by the counties.

2. NON-MUNICIPAL GAS, CRUDE OIL, AND PETROLEUM COMPANIES

The pipelines that are part of a non-municipal company's operational system for transportingand/or distributing natural gas, crude oil, and petroleum products are valued as personalproperty by the state and are subject to personal property taxes imposed by the counties. (M.S.272.02, Subd. 9(a); 272.03, Subd. 2(5))

The structural parts of town border stations and measuring stations that are located on leasedrailroad right-of-way land or on land leased from the state for a term of less than three years aretreated as personal property. The taxable values are recommended by the state, and the taxesare imposed by the counties.




3. OTHER NON-MUNICIPAL UTILITY COMPANIES

The pipelines that are part of a non-municipal company's operational system for transportingand/or distributing the following products are subject to personal property taxes: (a) steam orhot or chilled water for heating or cooling buildings and structures, (b) water, and (c) sewage.The taxable values are recommended by the state, and the taxes are imposed by the counties.(M.S. 272.02, Subd. 9(a); 272.03, Subd. 2(5))

Exception: The pipelines that are owned and operated by a private nonprofit corporation exemptfrom federal income taxes and which are used for generating and distributing hot water forheating buildings and structures are exempt from personal property taxes. (M.S. 272.02, Subd.17)

TYPE #3: LEASED GOVERNMENT-OWNED PROPERTY

In general, real property (buildings and land) owned by a governmental unit is exempt fromproperty taxation as long as it is used for a public purpose. If the governmental unit leases,rents, or loans the property to a party who is subject to taxation, the property loses its taxexempt status. In most cases, the lessee (the party who is granted the lease) is required to paypersonal property taxes on the property.

The term, "governmental unit," refers to the federal and state governments and all state politicalsubdivisions.

1. GOVT-OWNED PROPERTY LEASED FOR BUSINESS PROFIT

All buildings and/or land that are owned by a governmental unit and are leased, rented, orloaned to a taxable party for the purpose of conducting a business for profit are valued aspersonal property by the local assessors and are subject to personal property taxes imposed bythe counties. (M.S. 272.01, Subd. 2)

An example where both buildings and land are leased is the Metropolitan Airports Commissionthat leases tower space to a private business. The leasing business is required to pay personalproperty taxes on its tower space and the portion of the land allocated to its tower space.

Another example where both buildings and land are leased would be a city that leases officespace to private businesses in an old city hall building. Each of the leasing businesses would berequired to pay personal property taxes on its office space and portion of the land allocated to itsoffice space.




This type of personal property also includes privately owned buildings (improvements) which areconstructed on leased government-owned land and are used for business profit.

An example is the Metropolitan Airports Commission that leases land at the Crystal Airport to aprivate business that builds a hangar on the land for its business plane. The private business isrequired to pay personal property taxes on its hangar and the leased land.

Another example is an individual or organization that leases state-owned land to build acommercial resort. The party who is leasing the land is required to pay personal property taxeson its resort property and the leased land. (Note: If the property were leased from theDepartment of Natural Resources under M.S. 92.46, it would be exempt from property taxes.)

See M.S. 272.01, Subd. 2-3, for examples of leased government-owned property that are exemptfrom personal property taxes.

2. GOVT-OWNED PROPERTY LEASED FOR OTHER THAN BUSINESS PROFIT

All buildings and land that are owned by a governmental unit and are leased, rented, or loanedto a taxable party for a purpose other than business profit are valued as personal property by thelocal assessors and are subject to personal property taxes imposed by the counties. (M.S. 273.19,Subd. 1-1a))

An example where government-owned buildings and land are leased is a lakeshore cabin that isowned by the federal government. The federal government leases the cabin and land to a familyto be used as a vacation retreat. The family has the option to purchase the property at a latertime. Until that time when the property would be subject to real property taxes, the family isrequired to pay personal property taxes on the leased cabin and land.

This type of personal property also includes privately owned buildings (improvements) which areconstructed on leased government-owned land.

An example is four friends who lease an 80-acre piece of wooded land from the federalgovernment and build a hunting cabin on the land. The hunting party is responsible for payingpersonal property taxes on their cabin and the leased land.

See M.S. 273.19, Subd. 2-5, for examples of leased government-owned property that is exemptfrom personal property taxes.




TYPE #4: ELEVATORS + WAREHOUSES ON LEASED RAILROAD LAND

Railroad property can be divided into two categories: operating property and non-operatingproperty.

1. "Operating property" is defined as all property owned or used by a railroad company in theperformance of railroad transportation services. This includes franchises, right-of-ways,bridges, trestles, shops, docks, wharves, buildings, and other structures. All railroadoperating property is valued by the state.

2. "Non-operating property" simply means all railroad property that is not operating property.It includes all property that is not used for railroad transportation services.

All railroad property is subject to real property taxes that are assessed and levied in the name ofthe railroad with only one exception. The exception is outlined below.

All privately owned elevators and warehouses that are located on leased railroad right-of-wayland are valued and taxed as personal property in the name of the lessee (the party who isgranted the lease). The land on which the elevators and warehouses are located is assessed andtaxed as real property in the name of the railroad. (M.S. 273.32)

Example #1: A farmer's organization leases right-of-way land from a railroad and builds a grainelevator on the site. The farmer's organization pays personal property taxes on the grainelevator, and the railroad pays real property taxes on the land.

Example #2: A manufacturing company leases right-of-way land from a railroad and builds awarehouse on the site. The manufacturing company pays personal property taxes on thewarehouse, and the railroad pays real property taxes on the land.



METHOD OF ASSESSING PERSONAL PROPERTY TAXES SECTION 7030

Although the tax lien and the collection methods are different from real property taxes, thepersonal property taxes themselves are determined exactly the same way as real property taxes.The major steps in the process of determining personal property taxes are outlined below.

Step #1: The market value of a parcel of personal property is based on the property's highest and best use and on the average sale price of similar property in the area. The market values are determined by the local assessor or the state, depending on thetype of personal property. The market values are listed by parcel in the county assessment rolls.

Step #2: The local assessor determines the net tax capacity of a parcel of personal property by using the real property classification system. The property's highest and best use determines which classification and class rate is used. The net tax capacities are also listed by parcel in the county assessment rolls.

Example #1: A manufactured home that is located on leased land and serves as the owners homestead is assessed at the class rates used for class 1a, residential homestead property in the name of the homeowner. The leased land is assessed as real property in the name of the landowner.

Example #2: Power lines that run over an easement right-of-way on land owned by acity are assessed at the class rates used for class 3a, systems of electric utilities in thename of the electric light and power company. The land is exempt from propertytaxes.

Example #3: A vacation cabin that is located on leased federal-owned land is assessed along with the land at the class rates used for class 4c(1), non-commercial, seasonal, recreational, residential property in the name of the party who owns the cabin and is leasing the land.

Example #4: A grain elevator located on leased railroad right-of-way land is assessed at the class rates used for class 3a, commercial-industrial property in the name of the elevator owner. The land is assessed by the state as real property in the name of the railroad. In some cases, the land is assessed by the county.

Step #3: The county auditor applies the local tax rates to the net tax capacity to determine the personal property tax for each parcel listed in the county assessment rolls. The same process is used to determine the real property taxes. The personal property taxes are recorded in the county tax rolls along with the real property taxes.



METHOD OF ASSESSING PERSONAL PROPERTY TAXES SECTION 7030(Continued) (Page 2)

Step #4: The county treasurer uses the county tax rolls to prepare and mail the personal property tax statements. The personal property tax statements are prepared the same way as the real property tax statements with the following exceptions:

(1) The statement should be identified as a personal property tax statement in the title or above the columns listing the tax amounts for both years.

(2) The penalty schedule listed on the back of the statement should contain the penalty rates for unpaid personal property taxes, including manufactured homes.

(3) The stubs should show the due dates for the personal property taxes depending on their specific payment schedule. See Series 7100 of this Manual for detailed information about the three different payment schedules and due dates.



COMPARISON OF PERSONAL AND REAL NET TAX CAPACITY SECTION 7040

The statewide net tax capacities listed in the table below serve two purposes: (1) to compare therelative importance of personal property and real property for raising tax revenue, and (2) tocompare the relative importance of each major type of personal property.

Net tax capacities are used for these comparisons because a breakout of personal property taxesby major type of personal property is not available.

The figures in the table are taken from the Department of Revenue's bulletin entitled PropertyTaxes Levied in Minnesota: 2000 Assessments, Taxes Payable in 2001.

TYPE OF PROPERTY2000 NET TAX

CAPACITY

1. Manufactured Homes …………………………………………………….. $ 7,582,330

2. Non-Municipal Utilities …………………………………………………... $ 102,505,575

3. Leased Property Including Govt and Railroad Right-of-Way Property $ 21,414,879

4. All Other Personal Property ……………………………………………… $ 7,847,720

5. Total Personal Property (Line 1 + Line 2 + Line 3 + Line 4) ………………………………………. $ 139,350,504

6. Total Real Property ……………………………………………………….. $ 4,135,617,985

7. Total Personal and Real Property (Line 5 + Line 6) ………………………………………………………….. $ 4,274,968,489



COMPARISON OF PERSONAL AND REAL NET TAX CAPACITY SECTION 7040(Continued) (Page 2)

The first fact that jumps out from the table is that the total personal property net tax capacity isonly a small percentage (3.3%) of the total real and personal property net tax capacity (Line 5divided by Line 7).

Another glaring fact relates more directly to the collection of delinquent personal property taxes.The personal property taxes on manufactured homes are only a small percentage of the totalpersonal property taxes levied statewide. Using the net tax capacities for comparison, the actualpercentage is 5.4% (Line 1 divided by Line 5).

This wide discrepancy between manufactured home taxes and all other personal property taxes isinteresting because most of the personal property taxes that become delinquent are levied onmanufactured homes. In contrast, personal property taxes levied on non-municipal utilityproperty (73.6% of the total personal property NTC) seldom become delinquent.

This means that the methods of collecting delinquent personal property taxes apply to only asmall percentage of personal property taxes (manufactured homes) and to an even smallerpercentage of all property taxes levied in Minnesota.

However small the total amount may be, the county treasurer must make every effort to collectdelinquent personal property taxes in order to comply with the mandate contained in M.S.277.21, Subd. 1, and to be fair to those who do pay their property taxes on time.

To let taxpayers get by without paying personal property taxes just because the total amount issmall may set a precedent for more and more people to refuse to pay their property taxes. Theresult would be increased taxes for those who do pay or a decrease in local services financed byproperty taxes. Neither one serves the general welfare of the community.



OUTLINE OF CURRENT COLLECTION METHODS SECTION 7050

Under the current provisions, the county treasurer is given the flexibility to use whatevermethods are "necessary and reasonable" to collect delinquent personal property taxes (M.S.277.21, Subd. 1). With flexibility as the key, the county treasurer is encouraged to use some ofthe same methods that the Department of Revenue uses to collect delinquent state taxes. Anyone or any combination of the collection methods may be used.

The current methods of collecting delinquent personal property taxes, including manufacturedhomes, are outlined below. All of the methods are modeled on similar methods used by theDepartment of Revenue except number 7.

1. Billing the taxpayer by mail and telephone. (Series 7200)

2. Filing a Notice of Tax Lien against the taxpayer's real and personal property without courtjudgment. (Series 7300)

3. Requesting the Department of Revenue to withhold the taxpayer's state tax refunds andlottery winnings over $600 through the process of "Revenue Recapture." (Series 7400)

4. Levying on the taxpayer's bank accounts or wages without court judgment. (Series 7500,7600, and 7700)

5. Seizing and selling the taxpayer's personal and real property without court judgment. (Series7500 and 7800)

6. Filing a court judgment against the taxpayer's property. (Series 7900)

7. Using the county's central collection agency. (Series 7900)

8. Accepting payments under an alternative monthly payment plan. (Series 7900A)

9. Writing-off the total delinquent tax amount as uncollectible. (Series 7900)

In addition to the above methods, the 1991 and 1992 Minnesota Legislature also set up threespecial methods for collecting delinquent personal property taxes on manufactured homes. Theyare outlined below.

1. The county treasurer may send a letter to the individual or organization that is financing themanufactured home, requesting help in collecting the delinquent taxes. (Series 7900A)

2. The county treasurer may require the taxpayer to pay the delinquent and current taxes dueon the manufactured home under an escrow account. (Series 7900A)



OUTLINE OF CURRENT COLLECTION METHODS SECTION 7050(Continued) (Page 2)

3. The county treasurer must accept payment of delinquent personal property taxes under aconfession of judgment plan if the manufactured home is homesteaded. (Series 7900A)

For more detailed information about these three special provisions for collecting delinquentpersonal property taxes on manufactured homes, see Series 7900A in this Manual.

None of the other collection methods can be used by a county treasurer to collect the delinquentpersonal property taxes on a manufactured home as long as the taxpayer is making monthlypayments under an escrow account or a confession of judgment. If the taxpayer fails to make thepayments, the county treasurer may employ any of the other methods to collect the remainingdelinquent taxes.

The purpose of the current provisions is to give the county treasurer the maximum amount offlexibility possible for collecting delinquent personal property taxes, including manufacturedhomes. The county treasurer is free to select the most efficient method of collection for each taxsituation with the legal advice of the county attorney.

All of the current provisions for collecting delinquent personal property taxes, includingmanufactured homes, are outlined and explained in Series 7200 through Series 7900A in thisManual.



SUGGESTED SEQUENCE OF COLLECTION ACTIONS SECTION 7060

Although not required to do so, some of the county treasurers may choose to follow the sequenceof actions that are used by the Department of Revenue to collect most delinquent state taxes.The Department usually follows a sequence of actions which begins with a mail billing and afiling of a tax lien, continues with a telephone billing and developing a collection plan, and endswith Revenue Recapture, a levy on the taxpayer's money, or the seizure and sale of thetaxpayer's personal or real property, if necessary.

This sequence of actions reflects an increasingly severe use of the methods of collection. Thepurpose is to give the taxpayer the opportunity to pay the delinquent taxes voluntarily beforeusing the enforced collection actions.

The sequence of actions that is used by the Department of Revenue is outlined below.

1. 1ST ACTION: NOTICE OF DELINQUENT TAXES

If the taxes are not paid when due, the Department begins the collection process by billing thetaxpayer by mail. The mail billing serves as a notice of delinquent taxes, a demand forpayment, and a warning of what actions may be taken if the taxpayer does not voluntarilypay the total delinquent tax amount. See Series 7200 for more detailed information aboutthis 1st action.

2. 2ND ACTION: NOTICE OF TAX LIEN

Within a few days after the mail billing, the Department will usually file a notice of tax lien.The major purpose is to establish the priority of the state's interest in the taxpayer's real andpersonal property over any other creditors who may file liens later.

A notice of tax lien is also filed in preparation of seizing and selling the taxpayer's tangiblepersonal property or real property. A notice of tax lien must be on record before seizing andselling property. A notice of tax lien does not have to be on record to exercise any of theother enforced collection actions; e.g., Revenue Recapture, escrowing, levying on bankaccounts, or levying on wages. See Series 7300 for more detailed information about this 2ndaction.

3. 3RD ACTION: TELEPHONE CONTACT + COLLECTION PLAN

If the taxes are not paid after mailing a notice of delinquent taxes and recording a tax lien,the Department usually contacts the taxpayer by telephone and develops a collection plan.The purpose is to encourage payment and to discover information about the taxpayer inorder to decide the best method of enforcing payment later. See Series 7200 for more detailedinformation about this 3rd action.



SUGGESTED SEQUENCE OF COLLECTION ACTIONS SECTION 7060(Continued) (Page 2)

4. FINAL ACTION: USE ENFORCED COLLECTION METHODS

If there still is no response from the taxpayer, the Department will take action to enforcepayment of the delinquent taxes. This includes offsetting the taxpayer's state tax refunds, lotterywinnings over $600, or other certain refunds under Revenue Recapture, levying on thetaxpayer's bank accounts or wages, or seizing and selling the taxpayer's personal and realproperty. Seizing and selling property is obviously the most severe enforced collection action andis only used as a last resort.

See Series 7400 through Series 7800 for more detailed information about Revenue Recapture andthe different methods of levying on or seizing and selling a taxpayer's money or property.

Remember: Under the current law provisions, the county treasurer has the duty and theflexibility to choose any of the current methods of collecting delinquent personal property taxes,including manufactured homes. In some cases, it may be wise to make the decision with the legaladvice of the county attorney.

Regardless of what methods are chosen, the important thing is for the county treasurer to takewhatever action is "necessary and reasonable" to collect all delinquent personal property taxes,including manufactured homes, as mandated in M.S. 277.21, Subd. 1.



TOTAL DELINQUENT TAX AMOUNT SECTION 7070

The total amount that a taxpayer must pay at anytime to remove a delinquent personal propertytax liability will be referred to in this Manual as "the total delinquent tax amount."

The components that are or may be part of the total delinquent tax amount are outlined below.

1. THE UNPAID TAX ITSELF

This component is always part of the total delinquent tax amount.

2. THE PENALTY ON THE UNPAID TAX

The component is always part of the total delinquent tax amount.

3. THE INTEREST

This component is always part of the total delinquent tax amount whenever the total iscollected after the year in which the taxes were due.

4. THE FEE FOR FILING A TAX LIEN AND RELEASING A TAX LIEN

This component will be part of the total delinquent tax amount only if the county treasurerchooses to file a tax lien. There is a fee for filing a tax lien and another fee for releasing a taxlien. These fees are to be passed on to the taxpayer.

5. THE COUNTY SHERIFF'S FEES

This component will be part of the total delinquent tax amount only if the county treasurerofficially requests the county sheriff to act as the county treasurer's agent in collecting thetotal delinquent tax amount due. The county sheriff has the authority to charge a fee forwhatever action is taken. Those fees are to be passed on to the taxpayer.

6. THE COURT COSTS

This component will be part of the total delinquent tax amount only if the county treasurerchooses to obtain a court judgment against the taxpayer. The court has the authority tocharge for entering a court judgment. The court costs are to be passed on to the taxpayer.



CHART OF MAJOR COLLECTION ACTIONS SECTION 7080


NOTICE OF DELINQUENT TAXES(Mail between December 15 and December 30for Manufactured Home Taxes)

Anytime after Date onNotice of DelinquentTaxes

90 Calendar Days afterDate on Notice ofDelinquent Taxes (March15 through March 30)

Notice & Demand forPayment (Mail after 90-Grace Period)

Tax Lien Escrow Accounts

30 Calendar Days after Dateon Notice of Demand forPayment

Collection Plan Letter to Lender Levy on BankAccounts

TelephoneContact

RevenueRecapture

Levy on Wages

Payment Plan Central CollectionAgency

Seize & SellProperty

Court JudgmentCancellation

DELINQUENT PERSONAL PROPERTY TAXES DATES, PENALTIES, INTEREST

TABLE OF CONTENTS


Introduction: Dates, Penalties, Interest ................................................................................ 7110

Manufactured Homes ........................................................................................................... 7120

Leased Government Property ............................................................................................... 7130

All Other Personal Property ................................................................................................. 7140

Interest ................................................................................................................................... 7150

Special Cases ......................................................................................................................... 7160



INTRODUCTION: DATES, PENALTIES, INTEREST SECTION 7110

The preliminary step in the process of collecting delinquent personal property taxes, includingmanufactured homes, is to determine when the taxes become delinquent, what penalty to chargeafter the taxes become delinquent, and when to charge interest on the unpaid taxes, penalties,and costs.

The term, "delinquent," is defined differently for personal property taxes than it is for realproperty taxes. When real property taxes are not paid by the due date, they are referred to asbeing "late" and are subject to a penalty. They do not become officially "delinquent" untilJanuary of the year following the year when they are due.

In contrast, personal property taxes are declared "delinquent" the day after the due date. Thereis no equivalent period of time when they are referred to as "late." The penalty is added to theunpaid taxes on the day when they become "delinquent."

There is no one set of due dates, delinquent dates, and penalty rates for all personal propertytaxes. For example, taxes on manufactured homes are due at different times than other personalproperty taxes. And non-municipal utility companies and owners of elevators and warehouseslocated on leased railroad right-of-way land must pay their personal property taxes at a differenttime than parties leasing government property. The penalty is also different for delinquent taxeson leased government property than it is for all others.

In contrast to the variety of due dates, delinquent dates, and penalty rates, there is only oneinterest rate that is charged on all types of delinquent personal property taxes, includingmanufactured homes.

Series 7100 outlines the due dates, delinquent dates, penalty rates, and interest rate that apply tothe various types of personal property taxes, including manufactured homes.



MANUFACTURED HOMES SECTION 7120

Section 7120 outlines the past and present due dates, delinquent dates, and penalties for personalproperty taxes on manufactured homes. Personal property taxes on manufactured homes are theonly personal property taxes that are due in the same year that the property is assessed and thetaxes are levied. The taxes are levied in the name of the owner of the manufactured home. (M.S.273.125, Subd. 1-8)

See Series 7000 (Introduction) and Series 7900A (Manufactured Homes) in this Manual foradditional information about the taxable status of manufactured homes.

TOTAL TAX OF $50 OR LESS

The total personal property tax on a manufactured home must be paid in full on or beforeAugust 31 (or 20 calendar days after the postmark date on the envelope containing the propertytax statement) only when the total tax is $50.00 or less. Any amount of the tax remaining unpaidon September 1 becomes delinquent. (M.S. 273.125, Subd. 3)

On September 1, a penalty of 8% must be added to the unpaid tax. At that time, the totaldelinquent tax amount due is the sum of the unpaid personal property tax plus the 8% penalty.

TOTAL TAX OVER $50

The total personal property tax on a manufactured home may be paid in two equal installmentswhen the total tax is over $50.00. The due dates, delinquent dates, and penalties for the two-installment plan are outlined below. (M.S. 273.125, Subd. 3)

1. 1ST HALF: DUE AUGUST 31 + DELINQUENT SEPTEMBER 1 + 8% PENALTY

The first installment is due no later than August 31 (or 20 calendar days after the postmark dateon the envelope containing the property tax statement). On September 1, any of the 1st-half taxremaining unpaid becomes delinquent and is subject to an 8% penalty. At that time, the totaldelinquent tax amount due is the sum of the unpaid 1st-half tax plus the 8% penalty.



MANUFACTURED HOMES SECTION 7120(Continued) (Page 2)

2. 2ND HALF: DUE NOVEMBER 15 + DELINQUENT NOVEMBER 16 + 8% PENALTY

The second installment is due no later than November 15. On November 16, any of the 2nd-halftax remaining unpaid becomes delinquent and is subject to an 8% penalty. At that time, thetotal delinquent tax amount due is the sum of the unpaid 1st-half and 2nd-half tax plus the 8%penalty.

NOTE: More information about manufactured homes whose personal property taxes aresubject to the above due dates, delinquent dates, and penalties is contained in Series7000 (Introduction) and Series 7900A (Manufactured Homes) in this Manual.



LEASED GOVERNMENT PROPERTY SECTION 7130

Section 7130 outlines the due dates, delinquent dates, and penalties for personal property taxeson leased government-owned property. This includes personal property taxes on improvementsmade to leased government-owned property. (M.S. 277.01, Subd. 1 and 3)

The taxes on these types of personal property are due and become delinquent the year after theproperty is assessed and the taxes are levied. The taxes are levied in the name of the lessee; i.e.,the party who is granted the lease.

See Section 7020 (Introduction) in this Manual for additional information about the taxablestatus of leased government-owned property.

TOTAL TAX: $50 OR LESS

When the total personal property tax levied on leased government-owned property, includingimprovements, is $50 or less, the total tax must be paid in full by the later of May 15 or 20calendar days after the postmark on the envelope containing the property tax statement. (M.S.277.01, Subd. 1 and 3)

Any amount of the total tax remaining unpaid on the later of May 16 or 21 calendar days afterthe postmark date on the envelope containing the tax statement becomes delinquent. On thedelinquent date, the unpaid tax is subject to the same penalty rates as delinquent real propertytaxes. Anytime after the delinquent date, the total delinquent tax amount due is the sum of theunpaid tax plus the appropriate penalty.

NOTE: See Section 6110 of the Manual on delinquent real property taxes for information onthe penalty rates for delinquent real property taxes. These penalty rates are authorizedunder M.S. 279.01. These penalty rates can also be found in the schedule on the backof the property tax statement.

TOTAL TAX: OVER $50

The total personal property tax levied on leased government-owned property, includingimprovements, may be paid in two equal installments when the total tax is over $50.00. (M.S.277.01, Subd. 1 and 3)



LEASED GOVERNMENT PROPERTY SECTION 7130(Continued) (Page 2)

1. 1ST HALF: DUE MAY 15 + DELINQUENT MAY 16 + REAL ESTATE PENALTY

The first installment is due by the later of May 15 or 20 calendar days after the postmark date onthe envelope containing the tax statement. On the later of May 16 or 21 calendar days after thepostmark date, any unpaid 1st-half tax becomes delinquent and is subject to the same penaltyrates as delinquent real property taxes. Anytime after the delinquent date, the total delinquenttax amount due is the sum of the unpaid 1st-half tax plus the appropriate penalty. (M.S. 277.01,Subd. 1 and 3)

2. 2ND HALF: DUE OCT. 15 + DELINQUENT OCT. 16 + REAL ESTATE PENALTY

The second installment is due no later than October 15. On October 16, any unpaid 2nd-half taxbecomes delinquent and is subject to the same penalty rates as delinquent real property taxes.Anytime after the delinquent date, the total delinquent tax amount due is the sum of the unpaid1st-half tax plus the appropriate penalty. (M.S. 277.01, Subd. 1 and 3)

NOTE: Examples of leased government-owned property, including improvements, whose personal property taxes are subject to the above due dates, delinquent dates, and penalties are contained in Section 7020 (Introduction) in this Manual. These taxes are levied in the name of the lessee; i.e., the party who is granted the lease.



ALL OTHER PERSONAL PROPERTY SECTION 7140

Section 7140 outlines the due dates, delinquent dates, and penalties for all personal propertytaxes except those on manufactured homes and leased government-owned property, includingimprovements. (M.S. 277.01, Subd. 1)

TYPES OF PERSONAL PROPERTY

In most cases, this set of due dates, delinquent dates, and penalties applies to the personalproperty taxes levied on the types of personal property listed below.

1. Non-municipal utility companies and cooperatives

2. Privately owned elevators and warehouses located on leased railroad right-of-way land

These personal property taxes are due and become delinquent the year after the property isassessed and the taxes levied. The taxes are levied in the name of the non-municipal companiesor cooperatives or the owners of the elevators and warehouses.

TOTAL TAX DUE ON MAY 15

The total amount of these taxes must be paid in full by the later of May 15 or 20 calendar daysafter the postmark date on the envelope containing the tax statement. They cannot be paid intwo equal installments.

The unpaid amount of these taxes becomes delinquent on the later of May 16 or 21 calendar daysafter the postmark date on the envelope containing the tax statement.

PENALTY: 8%

When they become delinquent, a penalty of 8% of the unpaid personal property tax must beadded to the unpaid tax. At that time, the total delinquent tax amount due is the sum of theunpaid personal property tax plus the 8% penalty. This is the same penalty rate used fordelinquent personal property taxes on manufactured homes.

NOTE: See Section 7020 (Introduction) in this Manual for information about the taxablestatus of non-municipal utility properties and privately owned elevators andwarehouses located on leased railroad right-of-way land.



INTEREST SECTION 7150

Section 7150 outlines the provisions for charging interest on delinquent personal property taxes,including manufactured homes. In contrast to the different delinquent dates and penalty rates,there is only one interest rate that applies to all types of delinquent personal property taxes. It isthe same interest rate that is charged on delinquent real property taxes under M.S. 279.03.(M.S. 277.15)

BASIS OF THE INTEREST

An annual rate of interest must be charged on the sum of the following amounts which haveaccumulated up to the date of the payment: (1) the delinquent tax, (2) the penalty, and (3) thecounty costs; e.g., the fees for filing and releasing a tax lien, the sheriff's fees, and the court costs.(M.S. 279.03, Subd. 1a)

METHOD OF CHARGING INTEREST

Beginning with taxes payable in 1993, the county treasurer must charge interest on delinquenttaxes regardless of whether or not a court judgment is obtained. The annual interest rate beginsto accrue on January 1 of the year after the year when the taxes were due and not paid. Theinterest continues to accrue from January 1 through the month when the total delinquent taxamount is paid. (M.S. 277.15)

The annual rate of interest must be prorated monthly. This means that 1/12 of the annualinterest rate is charged for each month of the year the total delinquent tax amount due remainsunpaid. A portion of a month is considered to be a whole month.

ADJUSTED PRIME RATE

The annual interest rate that is to be used for all delinquent personal property tax purposes(including manufactured homes) must be computed according to M.S. 270.75, Subd. 5. This isthe adjusted prime rate charged by banks on bank-to-business loans. It is determined by theBoard of Governors of the Federal Reserve System. This rate is subject to change on January 1stof each year. (M.S. 277.15; 279.03)

The adjusted prime rate that is to be used for delinquent personal property tax purposes(including manufactured homes) is subject to a 10% minimum and a 14% maximum. In otherwords, the rate cannot drop below 10% and cannot rise above 14% for delinquent tax purposesregardless of what the adjusted prime rate charged by banks may be for any given year.



INTEREST SECTION 7150(Continued) (Page 2)

SOURCE OF ADJUSTED PRIME RATE

When it is known each year, the Property Tax Division of the Department of Revenue certifiesthe new adjusted prime rate for the next calendar year to each county treasurer and auditor inan official memorandum.

The new adjusted prime rate for the next calendar year will also be incorporated in an updatedchart of accumulated interest rates for delinquent taxes and tax-forfeited land that will beprovided with the official memorandum.

The chart allows the county treasurer to select the total amount of interest that must be chargedon the total delinquent tax amount due through the month when payment is made.

A schedule of the interest rates imposed on delinquent personal property taxes appears on thenext page.




SCHEDULE OF ADJUSTED PRIME INTEREST RATES

A schedule of the adjusted prime interest rates that apply to delinquent personal property taxes,including manufactured homes, is listed below. The first column shows the year when the taxeswere due. The second column shows the date when the tax rate begins and the year when the taxrate applies. The third column shows the tax rate that must be charged for any delinquentpersonal property taxes, including manufactured homes, paid during that year.

The county treasurer may keep track of the rates beginning with taxes payable in 1994 as theyare reported by the Department of Revenue by entering them on the appropriate line on theschedule.

1. Payable 1993 Rate ................................ Begins January 1, 1994................................... 10 %

2. Payable 1994 Rate ................................ Begins January 1, 1995.................................... 10 %









11. Payable 2003 Rate ................................ Begins January 1, 2004.................................... ____%







EXAMPLE: CALCULATION OF INTEREST

The following worksheet shows the steps in calculating the interest for a hypothetical situationwhere the payable 1993 personal property taxes on a manufactured home remained unpaid alongwith the penalty and county costs until August 15, 1995.

1. Total Payable 1993 Property Tax Due........................................................... $ 225.00

2. Total Penalty: 8% Rate.................................................................................. $ 18.00

3. Total County Costs......................................................................................... $ 30.00

4. Total Amount Subject to Interest .................................................................. $ 273.00(Line 1 + Line 2 + Line 3)

(((Taxpayer Pays Total Amount Due on August 15, 1995)))

5. Annual Rate of Interest for 1994.................................................................... 10%

6. Total Interest Rate Charged for Year 1994................................................... 10%(10% Divided by 12 = 0.8333% Prorated Per Month.)(0.8333% x 12 Months (January through December, 1994.)

7. Annual Rate of Interest for 1995.................................................................... 10%

8. Total Interest Rate Charged for Year 1995................................................... 6.6664%(10% Divided by 12 = 0.8333% Prorated Per Month.)(0.8333% x 8 Months (January through August, 1995.)

9. Total Interest Charged on August 15, 1995................................................... $ 45.50((Line 6 + Line 8) x Line 4)

10. Total Delinquent Tax Amount Collected on August 15, 1995 ...................... $ 318.50(Line 4 + Line 9)



SPECIAL CASES SECTION 7160

There are two special cases that are exceptions to the due dates, delinquent dates, and penaltiesthat are outlined in Sections 7120 through 7140. The exceptions are outlined below.

SPECIAL CASE: MULTIPLE TAX STATEMENTS

By written resolution, a county board may grant the two-installment payment plan to a propertyowner who has been issued more than one personal property tax statement and the sum of all thetaxes exceeds $50.00. (M.S. 277.01, Subd. 1)

SPECIAL CASE: PARTIAL PAYMENTS

The county treasurer may accept payments of more or less than the exact amount of a taxinstallment due. If the accepted payment is less than the amount due, the payments must beapplied first to the penalty accrued for the year the payment is made. (M.S. 277.01, Subd. 2)

NOTE: The acceptance of partial payment of any tax does not constitute a waiver of theminimum payment required as a condition for filing an appeal under M.S. 277.011 orany other law.

The acceptance of partial payment also does not affect the payment of taxes, penalties,interest, and costs in inverse order to that in which they were levied as required underM.S. 280.39 (see Section 6460 of the Manual on delinquent real property taxes).


DELINQUENT PERSONAL PROPERTY TAXES MAILING/PLANNING/PHONING

TABLE OF CONTENTS


Introduction: Mailing/Planning/Phoning ............................................................................. 7210

Notice of Delinquent Taxes ................................................................................................... 7220

Collection Plan ...................................................................................................................... 7230

Telephone Contact ................................................................................................................ 7240



INTRODUCTION: MAILING/PLANNING/PHONING SECTION 7210

M.S. 277.21, Subd. 1 requires the county treasurer to take whatever actions are "necessary andreasonable" to collect personal property taxes, including manufactured homes, as soon aspossible after they become delinquent.

As the basis of those "necessary and reasonable" actions, the intention of the Legislature was toallow the county treasurer to use the major collection methods used by the Department ofRevenue to collect delinquent state taxes.

The Department of Revenue begins the collection process by mailing out a notice of delinquenttaxes, developing a plan of action, and following up with a telephone billing. A tax lien can befiled anytime after the taxpayer has been notified about the delinquent taxes by mail. If none ofthese methods works, the Department of Revenue will proceed with more severe enforcedcollection actions.

Considering its interpretation of Legislative intent, the Department of Revenue recommends thatthe county treasurer adopt the Department's plan of mailing/planning/phoning as the first stageof collecting all delinquent personal property taxes, including manufactured homes. The threesteps in the plan are summarized below and outlined in more detail in the following Sections ofSeries 7200.

1. STEP #1: MAILING NOTICES OF DELINQUENT TAXES

M.S. 277.17, Subd. 1 provides the county treasurer with the general instructions for mailing anotice to each taxpayer who is responsible for the delinquent taxes on a manufactured home.This notice must be given before any enforced collection actions can be taken.

Although not required by statute, the Department of Revenue recommends that the countytreasurer also mail a notice to all taxpayers that are responsible for delinquent taxes onpersonal property other than manufactured homes. This includes non-municipal utilityproperty, leased government-owned property, and privately owned elevators and warehouseslocated on leased railroad right-of-way land. It is only fair that these taxpayers also be giventhe courtesy of receiving a notice before any enforced collection actions are taken by thecounty.



INTRODUCTION: MAILING/PLANNING/PHONING SECTION 7210(Continued) (Page 2)

2. STEP #2: DEVELOPING A COLLECTION PLAN

Although not required by statute, the Department of Revenue also recommends that thecounty treasurer develop a plan of action for collecting all delinquent personal property taxes,including manufactured homes. This should be done after the notices have been mailed. Aspecific plan should be devised for each taxpayer. This will allow the county treasurer toselect the enforced collection action or actions that will work best for each taxpayer.

3. STEP #3: CONTACTING TAXPAYERS BY TELEPHONE

Although not required by statute, the Department of Revenue also recommends that thecounty treasurer contact the taxpayers by telephone after the notices of delinquent taxes havebeen mailed and the collection plans have been developed. Personal contact by telephonegives the county treasurer another method of motivating the taxpayers to pay theirdelinquent taxes in full or accept a payment plan. It also gives the county treasurer thechance to find out some information about the taxpayer that may be used later in thecollection process.

In summary, the goal of this first stage of the collection process (mailing/planning/phoning) is tomaximize the possibility of collecting the delinquent personal property taxes, includingmanufactured homes, from each taxpayer and to avoid having to use more severe enforcedcollection actions. This would be a benefit to both the taxpayers and the county.

Remember: Except for the notices for delinquent taxes on manufactured homes, the countytreasurer is not required by statute to use the above three collection methods.However, the Department of Revenue highly recommends that the countytreasurer at least use the notice of delinquent taxes method, and use it for alltaxpayers. Developing collection plans and contacting taxpayers by telephonemay be left to the discretion of the county treasurer. The use of all three of thesecollection methods would seem to conform with the overall intention of theMinnesota Legislature.



NOTICE OF DELINQUENT TAXES SECTION 7220

Section 7220 outlines the statutory provisions and Department of Revenue recommendationsfor the county treasurer to mail a Notice of Delinquent Taxes to all taxpayers who areresponsible for delinquent personal property taxes, including manufactured homes. This isthe first step in the first stage of the collection process; i.e., the mailing/planning/phoningstage.

Section 7220 also contains a sample copy of the two Notices of Delinquent Taxes that may beused by the county treasurer. One form is for delinquent personal property taxes onmanufactured homes. The other form is for all other delinquent personal property taxes. Usethese forms to develop your own county Notice of Delinquent Taxes.

PURPOSE OF THE NOTICE

The mailing of a Notice of Delinquent Taxes serves three major purposes: (1) to notify thetaxpayer of the total delinquent tax amount due at the time of the mailing, (2) to demandimmediate payment from the taxpayer, and (3) to warn the taxpayer about the enforcedcollection actions that may be taken if the total delinquent tax amount is not paid within 90calendar days after the date on the Notice of Delinquent Taxes.

SCHEDULE FOR MAILING NOTICES FOR MANUFACTURED HOMES

The county treasurer is required to mail at least one Notice of Delinquent Taxes to eachmanufactured homeowner by December 31 of the year when the homeowner's taxes are dueand become delinquent. In practice, this means that the county treasurer is given thefreedom to decide how many Notices will be mailed and when they will be mailed as long asat least one Notice is mailed no later than December 31. (M.S. 277.17, Subd. 1)

Although not required by statute, the Department of Revenue recommends the followingschedule for mailing out Notices for delinquent manufactured home taxes. Under thisschedule, the county treasurer would mail out only one Notice each year. This is consistentwith the requirement that county auditors mail out a single Notice each year for delinquentreal property taxes.

The single Notice would be mailed no sooner than December 15 (30 calendar days after the2nd-half, November 15 deadline) and no later than December 31 (the statutory deadline).This would give each manufactured homeowner at least 30 calendar days and possibly 45calendar days after the 2nd-half due date to pay the total delinquent tax amount for that yearbefore a Notice would be mailed.

The single Notice would cover all delinquent manufactured home taxes not paid by the 1st-half deadline (August 31) and the 2nd-half deadline (November 15) plus the penalty for theyear when the Notice is prepared.



NOTICE OF DELINQUENT TAXES SECTION 7220(Continued) (Page 2)

See Section 7120 for more information about the due dates, delinquent dates, and penaltiesfor personal property taxes on manufactured homes.

SCHEDULE FOR MAILING NOTICES FOR ALL OTHER PROPERTY

Although not required by statute, the Department of Revenue recommends that the countytreasurer also mail a Notice of Delinquent Taxes to all taxpayers who are responsible fordelinquent personal property taxes other than manufactured homes. This includes non-municipal utility property, leased government-owned property, and privately ownedelevators and warehouses located on leased railroad right-of-way land.

It is only fair that these taxpayers also be given the courtesy of receiving a Notice ofDelinquent Taxes before any enforced collection actions are taken by the county. This isstandard practice before collecting any other local or state delinquent taxes in Minnesota. Itshould also be standard practice for collecting delinquent personal property taxes other thanmanufactured homes.

The schedule for mailing this Notice should be the same as the schedule for mailing a Noticeof Delinquent Taxes to manufactured homeowners. Here are the two components of theschedule: (1) only one Notice should be mailed each year, and (2) the single Notice should bemailed no sooner than 30 calendar days or no later than 45 calendar days after the lastdeadline for paying the taxes that year. This would treat all taxpayers equally regardless ofwhich type of personal property taxes are delinquent.

The actual deadlines for mailing the Notices of Delinquent Taxes will vary depending on thespecific payment schedule for each type of personal property tax. The recommendeddeadlines for mailing the Notices are outlined below.

1. UTILITIES + ELEVATORS/WAREHOUSES: TOTAL TAX DUE BY MAY 15

The personal property taxes levied on non-municipal utility property and privately ownedelevators and warehouses located on leased railroad right-of-way land are due in full by May15. When any portion or all of these taxes become delinquent, the county treasurer shouldmail only one Notice to each taxpayer for the year. The single Notice should be mailed noearlier than June 15 and no later than June 30.

This gives each taxpayer at least 30 calendar days and possibly 45 calendar days after the duedate to pay the delinquent taxes and penalty before a Notice will be mailed.




See Section 7140 for more information about the due dates, delinquent dates, and penaltiesfor personal property taxes on non-municipal utility properties and privately owned elevatorsand warehouses located on leased railroad right-of-way land.

2. LEASED GOVT-OWNED PROPERTY: 1ST HALF MAY 15 + 2ND-HALF OCTOBER15

The personal property taxes levied on leased government-owned property are due in twoequal installments: one half by May 15 and the other half by October 15.

When a portion or all of these taxes remain unpaid after the 2nd-half due date (October 15),the county treasurer should mail only one Notice to each taxpayer for the year. The singleNotice should be mailed no earlier than November 15 and no later than November 30.

This gives the taxpayer at least 30 calendar days and possibly 45 calendar days after the 2nd-half due date (October 15) to pay the total delinquent taxes and penalty for that year before aNotice will be mailed.

See Section 7130 for more information about the due dates, delinquent dates, and penalty forpersonal property taxes on leased government-owned property.

CONTENT OF THE NOTICE

The Notice of Delinquent Taxes for manufactured homes and other personal property shouldcontain the major types of information listed below. Only item #5 is required by M.S. 277.17,Subd. 1. Beyond that requirement, the statute makes the Department of Revenue responsiblefor prescribing the content of the Notice of Delinquent Taxes for all counties in the state.

1. A section for the county treasurer to list the name and complete address (street or ruralroute and box number, city or town, and zip code) of the taxpayer.

2. A section for the county treasurer to list the property identification number, the type ofpersonal property, the year or years when the taxes were due, and the billing date (thedate when the Notice of Delinquent Taxes is mailed).

3. A statement explaining the taxpayer's delinquent tax liability and informing the taxpayerthat the total amount listed on the Notice plus any additional costs and interest that maybe added after the billing date must be paid to correct the delinquent tax liability.




4. A statement warning the taxpayer that a tax lien may be filed against the taxpayer'spersonal and real property anytime after the billing date.

5. A statement warning the taxpayer that the county may exercise any of the enforcedcollection actions listed if the total amount due is not paid within 90 calendar days afterthe billing date.

6. A section for the county treasurer to break down the total delinquent tax amount duethrough the billing date into the following components: the unpaid tax, the penalty, thefee for recording a tax lien, the fee for releasing a tax lien, other collection costs, interest,and the total due.

7. A statement informing the taxpayer to contact the county treasurer's office for the totaldelinquent tax amount due on the day when the taxpayer will make payment andexplaining how and where payment should be made to the county treasurer.

8. The printed name, title, address, and telephone number of the county treasurer.

EXPLANATION OF 90-DAY GRACE PERIOD

The purpose of this subsection is to explain item #5 in the previous subsection. Item #5 refersto the list of enforced collection actions that may be taken by the county treasurer if the totaldelinquent tax amount is not paid within 90 calendar days after the billing date on the Noticeof Delinquent Taxes.

M.S. 277.17, Subd. 1 forbids the county treasurer from taking the following actions to enforcepayment of delinquent taxes on manufactured homes until 90 calendar days after the billingdate on the Notice of Delinquent Taxes: (1) establishing an escrow payment plan, (2)requesting the lender to help in the collection process, and (3) levying and seizing thetaxpayer's property. An exception is made for jeopardy collections under M.S. 277.21, Subd.2.

Although the statute is directed only to manufactured homes, the Department of Revenuebelieves that the Legislature intended the county treasurer to wait 90 calendar days after thebilling date on the Notice of Delinquent Taxes before enforcing the payment of all delinquentpersonal property taxes, not just those on manufactured homes.

The Department of Revenue's interpretation of how the Minnesota Legislature intended the90-day grace period to affect the collection of delinquent personal property taxes, includingmanufactured homes, is summarized on the following pages.




COLLECTION METHODS ALLOWED ANYTIME AFTER FIRST NOTICE

The following collection methods may be taken anytime after the billing date on the Notice ofDelinquent Taxes. The county treasurer should not have to wait until after the 90-day graceperiod expires to use these methods. They do not involve the actual taking of money orproperty. They are not actions to enforce payment.

1. DEVELOPING A COLLECTION PLAN

This action may be taken anytime after the billing date on the Notice of Delinquent Taxes.(Applies to all delinquent personal property taxes, including manufactured homes.)

2. CONTACTING THE TAXPAYER BY TELEPHONE:

This action may be taken anytime after the billing date on the Notice of Delinquent Taxes.It serves as a follow-up to the mailing of the Notice of Delinquent Taxes. (Applies to alldelinquent personal property taxes, including manufactured homes.)

3. FILING A NOTICE OF TAX LIEN:

The purpose of filing a Notice of Tax Lien is to establish the priority of the county'sinterest in the taxpayer's property over any other creditor who may file a lien later.Therefore, a Notice of Tax Lien should be filed as soon as possible after the billing date onthe Notice of Delinquent Taxes. (Applies to all delinquent personal property taxes,including manufactured homes.)

4. ALTERNATIVE MONTHLY PAYMENT PLAN

This action may be taken anytime after the billing date on the Notice of Delinquent Taxes.The county treasurer may choose to let the taxpayer pay the total delinquent tax amountunder a payment plan. (Applies to all delinquent personal property taxes, includingmanufactured homes.)

5. CANCELLATION

This action may be taken anytime after the billing date on the Notice of Delinquent Taxes.(Applies to all delinquent personal property taxes, including manufactured homes.)




COLLECTION METHODS ALLOWED ONLY AFTER 90-DAY GRACE PERIOD

The following collection methods may not be initiated until the 90-day grace period hasexpired. These methods do involve the actual taking of money or property to pay the totaldelinquent tax amount. They are actions to enforce payment. They should not be used untilthe taxpayer has been given 90 calendar days to pay the total delinquent tax amountvoluntarily.

1. Escrow Payments: (Applies only to delinquent personal property taxes onmanufactured homes.)

2. Request Lender's Help: (Applies only to delinquent personal property taxes onmanufactured homes.)

3. County Collection Agency: (Applies to all delinquent personal property taxes,including manufactured homes.)

4. Revenue Recapture: (Applies to all delinquent personal property taxes, includingmanufactured homes.)

5. Levy on Bank Accounts: (Applies to all delinquent personal property taxes, includingmanufactured homes.)

6. Levy on Bank Accounts: (Applies to all delinquent personal property taxes, includingmanufactured homes.)

7. Seize and Sell Personal or Real Property: (Applies to all delinquent personalproperty taxes, including manufactured homes.)

8. Obtain Court Judgment: (Applies to all delinquent personal property taxes, includingmanufactured homes.)




FORM OF THE NOTICE

Expanding on the mandate under M.S. 277.17, Subd. 1, the Department of Revenue hasprescribed two forms for the Notice of Delinquent Taxes. One form is for delinquent personalproperty taxes on manufactured homes. The other form is for all other delinquent personalproperty taxes.

A special form is needed for delinquent personal property taxes on manufactured homesbecause the Notice of Delinquent Taxes for manufactured homes must specifically list the twoextra methods of collection; i.e., escrow payments and help from the lender. The inclusion ofthese two collection methods is required by M.S. 277.17, Subd. 1. These two collectionmethods must not be included in the Notice of Delinquent Taxes for all other personalproperty taxes.

Samples of the two forms are included on the following two pages of this Section 7220. Usethe forms to develop your own county Notice of Delinquent Taxes.




State of Minnesota County of Spruce

NOTICE OF DELINQUENT TAXES

Bradley & Theresa Whitley____ Property ID#: 012-578-803________________Pine Cove Mobile Home Park__ Property Type: Manufactured Home_________342 Washington Street________ Tax Year(s): 1993______________________Applewood, MN 57252________ Billing Date: December 20, 1993__________

Manufactured home taxes levied in your name for the year(s) listed above were not paid when dueand have become delinquent. The total amount listed below plus any additional costs and interestwhich may be added after the above billing date must be paid to correct this delinquency.

The county may file a tax lien on your real and personal property anytime after the above billingdate. You are required to pay the fee for recording and releasing the tax lien.

If payment in full is not received within 90 calendar days after the billing date, the county may takeone or more of the following actions: (1) require escrow payments of the delinquent tax amountplus next year’s taxes, (2) request the lender to help in the collection process, (3) take over yourstate tax refunds, lottery winnings over $600, or certain other refunds, (4) impose a levy on moneyheld for you or owed to you, (5) seize and sell your property, or (6) obtain a court judgment againstyour property.

TOTAL AMOUNT DUE THROUGH THE ABOVE BILLING DATE

Manufactured Home Tax $ 287.75Penalty $ 23.02Fee for Recording Tax Lien $ 0.00Fee for Releasing Tax Lien $ 0.00Other Collection Costs $ 0.00Interest $ 0.00Total Tax Due $ 310.77

Contact the Spruce County Treasurer’s office for the total amount due on the day when you willmake payment. Make your check or money order payable to the Spruce County Treasurer. Putthe property identification number listed above on your check or money order. Mail your paymentto the address listed below.

Audrey Trudeau, Spruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910





NOTICE OF DELINQUENT TAXES

Charles & Paula Jamison ____ Property ID#: 017-382-903________________Rural Route #2, Box 45 __ Property Type: Leased Gov’t Owned __Turtle Lake Township ________ Tax Year(s): 1993______________________Greenbriar, MN 56832________ Billing Date: November 23, 1993 _________

Personal property taxes levied in your name for the year(s) listed above were not paid when dueand have become delinquent. The total amount listed below plus any additional costs and interestwhich may be added after the above billing date must be paid to correct this delinquency.

The county may file a tax lien on your real and personal property anytime after the above billingdate. You are required to pay the fee for recording and releasing the tax lien.

If payment in full is not received within 90 calendar days after the billing date, the county may takeone or more of the following actions: (1) take over your state tax refunds, lottery winnings over$600, or certain other refunds, (2) impose a levy on money held for you or owed to you, (3) seizeand sell your property, or (4) obtain a court judgment against your property.

TOTAL AMOUNT DUE THROUGH THE ABOVE BILLING DATE

Personal Property Tax $ 287.75Penalty $ 23.02Fee for Recording Tax Lien $ 0.00Fee for Releasing Tax Lien $ 0.00Other Collection Costs $ 0.00Interest $ 0.00Total Tax Due $ 310.77

Contact the Spruce County Treasurer’s office for the total amount due on the day when you willmake payment. Make your check or money order payable to the Spruce County Treasurer. Putthe property identification number listed above on your check or money order. Mail your paymentto the address listed below.

Audrey Trudeau, Spruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



COLLECTION PLAN SECTION 7230

After the Notices of Delinquent Taxes have been mailed, the county treasurer may choose todevelop a collection plan for each taxpayer. This would complete the second step in the firststage of the collection process; i.e., the mailing/planning/phoning stage.

Planning a course of action would allow the county treasurer to analyze each delinquent taxliability with the following goals in mind: (1) to determine if each delinquent tax liability iscollectible or not, (2) to select the most efficient method or methods for collecting each delinquenttax liability that is collectible, (3) to obtain information about each taxpayer's assets that may belevied on or seized and sold if necessary, and (4) to write off each tax liability that is uncollectible.

Remember: The current provisions do not require the county treasurer to develop a collectionplan at any time during the collection proceedings. However, the Department of Revenuerecommends that some form of this course of action be followed because it has proved effective inthe collection of delinquent state taxes and should be equally effective for the county treasurer.

APPLICATION OF THE COLLECTION PLAN

The county treasurer may prepare a collection plan for any type of delinquent personal propertytax anytime after the billing date on the Notice of Delinquent Taxes. This would includedelinquent personal property taxes on manufactured homes.

If a collection plan were developed for a taxpayer who was required to escrow for delinquentmanufactured home taxes or had confessed judgment, the county treasurer would be ready toimplement the first stage of the plan if the taxpayer defaulted on the payments.

In all other cases, the county treasurer would be ready to put the plan into effect immediatelyafter the 90-grace period following the billing date on the Notice of Delinquent Taxes has expiredand the total delinquent tax amount has not been paid.



COLLECTION PLAN SECTION 7230(Continued) (Page 2)

REVIEWING THE TAXPAYER'S ACCOUNT

In order to determine what collection action or actions to take, the county treasurer needs tounderstand the past history and the current status of the taxpayer's record. The major questionsthat can be asked to obtain this information are outlined and answered below.

1. QUESTION #1: WHO IS LIABLE AND FOR WHAT?

The county treasurer should verify that the taxpayer is responsible for the tax that is listed underthe taxpayer's name. Information on the whereabouts of the taxpayer should be verified andupdated. If the tax liability is for a business, it should be determined if the business is active orinactive.

The amount of the tax liability should be verified. The records should show that all responsibleindividuals have been assessed for their share of the tax liability. The tax liability may beaccurate, but further investigation or adjustment may be necessary in some cases.

A check should be made to verify that the correct penalty has been added to the tax. The recordsshould be reviewed to see if any payments or deposits have been made, If so, they should havebeen properly credited to the taxpayer's account.

2. QUESTION #2: WHAT HAS HAPPENED IN THE PAST?

The county treasurer should find out if the taxpayer has been late in paying real or personalproperty taxes in the past. The records should be reviewed to see if the taxpayer has ever brokentax payment promises or defaulted on a tax payment plan. Any history of letting taxes godelinquent or letting a taxing authority seize and sell property in lieu of payment should also beuncovered.

The taxpayer's history is a good indication of what to expect in the present and future. It canalso be used to determine whether or not to allow the taxpayer to pay the amount due under apayment plan.

LOCATING TAXPAYER AND ASSETS

If the investigation shows the taxpayer's address and phone number are no longer correct, thecounty treasurer will need to take whatever action is "necessary and reasonable" to locate thetaxpayer. Action should also be taken to verify the taxpayer's employment, source of income,and the location of the taxpayer's assets if the information is not in the current records.




Some of the major sources for obtaining the above information are listed below. How many ofthese sources and in what order they are used will depend on how much information the countytreasurer already has about the taxpayer. The county treasurer will also have to decide howmuch time and effort to spend on the search for each taxpayer.

1. IRS and State Income Tax Records

2. Unemployment Records with the Department of Economic Security

3. Mailing Addresses with the U.S. Postal Service

4. Department of Natural Resources (DNR) for Taxpayers Who Have Registered Boats,Snowmobiles, or All-Terrain Vehicles

5. Department of Public Safety, Division of Driver and Vehicle Services

For information about potential lenders for one or two manufactured homes, the countytreasurer may call Kathy Wagner at (651) 296-2902, and she will provide the name andaddress of any lenders over the telephone.

For a longer list of lenders, the county treasurer should send a written request to the addresslisted below. The information will be provided by return mail.

Department of Public SafetyDivision of Driver & Vehicle Services445 Minnesota StreetSt. Paul, Minnesota 55101Attn: Records

6. Credit Reports with TRW (Credit-Reporting Service)

7. Licensing Boards or Agencies for Professional, Licensed, or Regulated Occupations

8. Governments and Governmental Agencies Which Grant Operating Licenses to Businessesand/or Their Owners

9. Home or Employment Information from Union Offices

10. Personal and Legal Actions Recorded in Governmental Offices

11. Utility Companies, Trash Haulers, or Newspaper Subscription Offices




12. Credit Information from Neighborhood Businesses (Banks, Stores, Dry Cleaners, GasStations)

13. Townhouse Associations, Rental Agents, Apartment Managers or Caretakers

14. Membership Records in Local Churches

15. Former Employers, Relatives, Friends, and Neighbors

16. Secretary of State's Office, Uniform Commercial Code (UCC-1) Division

For information regarding creditors against personal property or for owners, call (651) 296-2803 or 1 (877) 551-6767. For written communications, the address is:

Secretary of StateUniform Commercial Code (UCC-1) Division180 State Office BuildingRev. Martin Luther King, Jr. Blvd.St. Paul, Minnesota 55155-1299

REVIEW OF COLLECTION OPTIONS

The major enforced collection actions that are available to the county treasurer are outlinedbelow. In developing a plan, the county treasurer should select the enforced collection action oractions from this list that will work best with each taxpayer. The Series numbers that are listedindicate where more information about the actions can be found in the Manual.

1. Revenue Recapture .................................................................................................... Series 7400

2. Levy on Bank Accounts .................................................................................... Series 7500 - 7600

3. Levy on Wages .................................................................................................. Series 7500 - 7700

4. Seizure and Sale of Property ............................................................................. Series 7500 - 7800




5. County Central Collection Agency ............................................................................ Series 7900

6. Court Judgment ......................................................................................................... Series 7900

7. Write-Off as Uncollectible .......................................................................................... Series 7900

8. Confession of Judgment .......................................................................................... Series 7900A

9. Escrow Payments..................................................................................................... Series 7900A

10. Request Lender's Help ............................................................................................ Series 7900A

11. Alternative Monthly Payment Plan ........................................................................ Series 7900A



TELEPHONE CONTACT SECTION 7240

After the Notice of Delinquent Taxes has been mailed and a collection plan has been developed,the county treasurer may choose to contact the taxpayer by telephone. This would complete thelast step in the first stage of the collection process; i.e., the mailing/planning/phoning stage.

Remember: The current provisions for collecting delinquent personal property taxes, includingmanufactured homes, do not require the county treasurer to contact each taxpayer by telephone.However, the Department of Revenue recommends that this course of action be consideredbecause it has proved effective in the collection of delinquent state taxes and should be equallyeffective for the county treasurer.

PURPOSE OF TELEPHONE CONTACT

With a telephone call, the county treasurer can increase the possibility of achieving one or moreof the results listed below.

1. Motivate the taxpayer to pay the total delinquent tax amount immediately.

2. Obtain personal and financial information that can be added to the collection plan.

3. Encourage the taxpayer to accept an alternative monthly payment plan if there is no chanceto receive payment in full and the tax history and financial situation justify it.

4. Gain additional knowledge needed to decide which enforced collection action will work bestwith the taxpayer.

REASONS FOR NO TELEPHONE CONTACT

There are two times when the county treasurer should not make telephone contact with ataxpayer: (1) when the taxpayer is making payments under an escrow account, and (2) when thetaxpayer is making payments under a confession of judgment. If the taxpayer defaults on thepayments, the county treasurer may employ any of the collection methods, including telephonecontact.



TELEPHONE CONTACT SECTION 7240(Continued) (Page 2)

GUIDELINES FOR TELEPHONE CONTACT

If the taxpayer does not respond to the Notice of Delinquent Taxes, the county treasurer maychoose to follow-up with a telephone call. The suggested guidelines listed below are adaptedfrom the telephone billing practices used by the Department of Revenue.

1. The caller should prepare an opening statement and a course of action to propose beforecontacting a taxpayer by telephone. The opening statement should review the informationpresented in the Notice of Delinquent Taxes and bring the taxpayer up to date. The course ofaction should be derived from a preliminary knowledge of the case and should be consistentwith the county treasurer's collection plan.

2. The caller should anticipate the taxpayer's responses and be ready with counter-proposals ora firm stance, whichever has been determined to be appropriate based on preliminaryknowledge of the case as part of the county treasurer's collection plan.

3. The caller should prepare fact-finding questions regarding the taxpayer's financial status,employment, and type and location of assets that can be used to verify the information in thecounty treasurer's collection plan or add to the information in the plan. All of thisinformation will help in deciding whether or not to accept a payment plan instead of paymentin full and which subsequent enforced collection action or actions would be most effective.

4. The caller should identify himself or herself and state that he or she is the county treasurer orworks for the county treasurer.

5. The caller should confirm that the person on the telephone is the taxpayer.

6. The caller should clearly and concisely explain the reason for the telephone call.

7. The caller should motivate the taxpayer to pay in full in order to maintain a good creditrating, to avoid additional costs and possible interest, and to prevent enforced collectionactions.

8. The caller should convince the taxpayer that it is to their benefit to comply with the county'srequest or proposal.



TELEPHONE CONTACT SECTION 7240(Continued) (Page 3)

9. The caller should use fact-finding questions to build a bridge to an alternative monthlypayment if the taxpayer cannot pay in full and to obtain the location of the taxpayer's assetsthat may be levied on or seized and sold if the taxpayer refuses to make payment. Thisinformation can be used to verify the information in the county treasurer's collection plan oradd to the information in the plan.

10. The caller should solve the taxpayer's objections and come to an agreement to pay theamount due in full or under an alternative monthly payment plan with specific deadlines.

11. The caller should repeat the commitment made by the taxpayer and end the call.

12. The caller should always remain courteous but firm and in control during the telephoneconversation.


DELINQUENT PERSONAL PROPERTY TAXES TAX LIEN

TABLE OF CONTENTS


Introduction: Tax Lien ......................................................................................................... 7305

General Tax Lien Information ............................................................................................. 7310

Guidelines for Filing a Tax Lien ........................................................................................... 7315

Notice of Tax Lien ................................................................................................................. 7320

Renewal of Tax Lien ............................................................................................................. 7330

Transcription of Tax Lien ..................................................................................................... 7340

Release of Tax Lien ............................................................................................................... 7350

Partial Release of Tax Lien ................................................................................................... 7360

Cost of Filing + Releasing Tax Lien ..................................................................................... 7370

Property Exempt from Tax Lien .......................................................................................... 7380

Notice of Foreclosure or Cancellation .................................................................................. 7390

Lien Search Certificate ......................................................................................................... 7395



INTRODUCTION: TAX LIEN SECTION 7305

As part of the current collection methods, the county treasurer is given the option of filing aNotice of Tax Lien against the real and personal property of any taxpayer whose personalproperty taxes, including manufactured homes, are delinquent. The Notice of Tax Lien may befiled without obtaining a court judgment. (M.S. 277.20)

The current tax lien provisions for delinquent personal property taxes are almost an exactduplicate of the tax lien provisions that have been used by the Department of Revenue for years(M.S. 270.69).

M.S. 270.69 contains only the general provisions for the Department of Revenue to file a Noticeof Tax Lien. In order to put these general provisions into practice, the Department of Revenuehad to produce a set of manuals with detailed rules, procedures, and forms for filing a Notice ofTax Lien. These guidelines extend the general provisions of the statute.

Because M.S. 277.20 contains almost the same general provisions as M.S. 270.69, the countytreasurer is left with the same need for detailed rules, procedures, and forms for filing a Notice ofTax Lien. In order to satisfy this need, the Department of Revenue recommends that the countytreasurer follow the basic guidelines found in the Department's collection manuals. Sections7310 through 7390 outline some of these basic guidelines.

TAX LIEN: EFFECTIVE DATES

The previous tax lien provisions under M.S. 272.50 were repealed by the 1991 MinnesotaLegislature. The effective date of the repeal was January 1, 1992. However, any Notice of TaxLien that was filed earlier under M.S. 272.50 must remain in force after January 1, 1992 until thetotal delinquent tax amount is paid. (Laws 1991, Chapter 291, Article 15, Section 11)

The current tax lien provisions under M.S. 277.20 are effective on January 1, 1992, but theNotices of Tax Lien are enforceable only for taxes payable after January 1, 1992. In practice,this means that the county treasurer may use the current tax lien provisions for personalproperty taxes becoming delinquent on or after May 16, 1992.

TAX LIEN: COURT JUDGMENT NOT NEEDED

Until 1992, a Notice of Tax Lien could not be filed until a court judgment had been obtained.There was one exception. A Notice of Tax Lien could be filed without a court judgment if thecounty had reason to believe that the personal or real property would be removed before seizurecould take place. These more restrictive tax lien provisions (M.S. 272.50) were repealed by the1991 Minnesota Legislature.



INTRODUCTION: TAX LIEN SECTION 7305(Continued) (Page 2)

Under the current provisions, the county treasurer may file a Notice of Tax Lien withoutobtaining a court judgment. The change gives the county treasurer the freedom to file a Noticeof Tax Lien more quickly in order to protect the priority of the county's interest in a taxpayer'spersonal and real property. There is no requirement to wait until a court judgment can beentered.

However, if working through the court is desirable, the county treasurer may proceed against thetaxpayer in a normal court action. If a favorable judgment is entered, a Notice of Tax Lien willbe filed and the county sheriff will enforce the judgment by seizing and selling the taxpayer'spersonal or real property and will turn over the proceeds to the county treasurer to pay the totaldelinquent tax amount. See Series 7900 for information about obtaining a court judgment.

TAX LIEN: AUTHORIZATION FOR FILING

The county treasurer is the county official who is authorized to file a Notice of Tax Lien against ataxpayer's personal and real property for the purpose of collecting delinquent personal propertytaxes, including manufactured homes. The county treasurer may delegate this authority toanother person. (M.S. 277.20, Subd. 7)

The execution of the Notice of Tax Lien or any other documents affecting the Notice of Tax Lienby the county treasurer or a delegate entitles them to be recorded. No other tangible proof,certification, or acknowledgment is necessary.

TAX LIEN: 90-DAY GRACE PERIOD

The county treasurer may file a Notice of Tax Lien anytime after the billing date on the Notice ofDelinquent Taxes. The county treasurer does not have to wait 90 calendar days after the billingdate on the Notice of Delinquent Taxes as is required before exercising any of the enforcedcollection actions. Filing a Notice of Tax Lien is not an enforced collection action. It does notinvolve the actual taking of money or property from the taxpayer.

See Section 7220 for more information about the 90-day grace period.



GENERAL TAX LIEN INFORMATION SECTION 7310

Section 7310 outlines some of the general information that the county treasurer needs to know inorder to understand and administer the current provisions for filing a Notice of Tax Lien withouta court judgment. Some of the information is drawn from the general statutory provisions (M.S.277.20). Some of the information is based on the Department of Revenue's collection manuals.

TAX LIEN: DEFINITION AND PURPOSE

A "lien" can be defined as the security interest that a creditor has in property that is owned by adebtor. Once a tax lien is recorded in the appropriate government office, the creditor has thelegal right to seize and hold or sell the debtor's personal or real property as security or paymentof an unpaid debt. Examples are mortgage liens, mechanics liens, and tax liens.

A "tax lien" creates a security interest for the county (creditor) in the personal and real propertythat is owned or held by the delinquent taxpayer (debtor). With a Notice of Tax Lien on record,the county holds a degree of ownership in the taxpayer's personal and real property to the extentof the total delinquent tax amount. The Notice of Tax Lien protects that degree of ownershipfrom a competing creditor coming at a later date, seizing the same parcel of property, andclaiming its total value.

In addition to creating a security interest, a Notice of Tax Lien may also function as amotivational tool. After reading the Notice of Tax Lien from the county treasurer, the taxpayermay decide to pay the total delinquent tax amount voluntarily rather than face enforcedcollection actions later. If this happens, the county saves the time, effort, and cost of having toexercise one or more of the enforced collection actions in order to satisfy the unpaid tax liability.

A Notice of Tax Lien may also serve as a motivational tool in another way. Let's say the ownerof a manufactured home is forced to pay the total delinquent tax amount under an escrow plan,offers to pay in installments under a confession of judgment, or agrees to pay under analternative monthly payment plan. In this case, a Notice of Tax Lien may be filed to act ascollateral while the monthly payments are being made. The formal threat of losing personal orreal property may prompt the taxpayer to continue to make the payments.

TAX LIEN: CREATION

Except for the exemptions listed in Section 7380, all taxes on personal property, including thoseon manufactured homes, are a lien on all of the taxpayer's personal and real property located inMinnesota. The tax lien arises on January 2 of the year in which the tax is assessed andcontinues until the tax is paid. (M.S. 277.20, Subd. 1)



GENERAL TAX LIEN INFORMATION SECTION 7310(Continued) (Page 2)

TAX LIEN: PRIORITY

The priority of a tax lien as against other liens on the same property is determined by the orderin which each lien is recorded. The lien with an earlier recording date takes precedence over alien with a later recording date. This is legally called "race-notice."

When a parcel of property is seized and sold, the creditor with the first priority must be paidfirst from the sale revenue. Only after the creditor with first priority has been paid can anyother creditors with less priority have a chance to benefit from any of the remaining salesrevenue. See Section 7880, page 1 for more information concerning the county treasurer’smanagement of sale revenue.

TAX LIEN: ENFORCEABILITY

The tax lien that automatically attaches on January 2 of the assessment year is not enforceableagainst any other creditor until a Notice of Tax Lien has been recorded by the county treasurer.(M.S. 277.20, Subd. 2)

This means that the priority of the county's interest in a taxpayer's personal and real propertyagainst any other creditors is not measured from the January 2 assessment date. The county'spriority does not begin until the date when the county treasurer's Notice of Tax Lien is recorded.

For example, if a lien for manufactured home taxes attached on January 2, 1993 (the assessmentdate), a bank recorded a mortgage lien on December 20, 1993, and the county treasurer's Noticeof Tax Lien was recorded on December 28, 1993, the bank's interest in the taxpayer's propertywould have priority over the county. If the recording dates for the bank and the county werereversed, the county's interest would have priority over the bank.

This is the primary reason why the county treasurer should be given the authority to file a Noticeof Tax Lien on the taxpayer's property anytime after the billing date on the Notice of DelinquentTaxes. The priority of the county's interest in a taxpayer's personal and real property must beprotected as soon as possible. This will help assure that the total delinquent tax amount can bepaid from the sale revenue if the county treasurer decides later to seize and sell a taxpayer'spersonal or real property.



GENERAL TAX LIEN INFORMATION SECTION 7310(Continued) (Page 3)

TAX LIEN: DURATION

The county treasurer may file a Notice of Tax Lien anytime within five years after the date ofassessment. The phrase, "date of assessment," refers to January 2 of the year when the propertywas assessed for the purpose of imposing the tax that is delinquent. A tax lien is enforceable forten years after the date when the Notice of Tax Lien was recorded. (M.S. 277.20, Subd. 4)

A Notice of Tax Lien may be renewed for an additional ten years anytime before the expirationof the original ten-year period. It may also be transcribed to another county anytime within tenyears after the recording date in the original county. (M.S. 277.20, Subd. 4)



GUIDELINES FOR FILING A TAX LIEN SECTION 7315

The filing of a Notice of Tax Lien without a court judgment is one of the collection optionsgranted to the county treasurer. The county treasurer should decide to use this option only afterexamining each tax situation and determining that filing a Notice of Tax Lien is a reasonable wayto collect the total delinquent tax amount.

There are certain conditions that should exist before the county treasurer would decide to file aNotice of Tax Lien. These conditions are outlined below.

TAXPAYER'S FINANCIAL CONDITION

The Department of Revenue recommends that a Notice of Tax Lien be filed as soon as possibleafter the billing date on the Notice of Delinquent Taxes if the county treasurer knows that one ormore of the financial conditions listed below exists. Developing a collection plan will allow thecounty treasurer to know whether or not these conditions exist.

1. The total delinquent tax amount is equal to or more than the minimum amount that is setby the county before a Notice of Tax Lien can be filed. Each county should decide whatthat minimum amount is.

2. The taxpayer owns enough equity value in personal and real property to cover part or all ofthe total delinquent tax amount if the property is seized and sold.

3. The taxpayer's equity value in personal and real property will not be absorbed by othercreditors with higher security interests or higher lien priorities.

If it cannot be determined for sure whether or not any of the above conditions exists, the countytreasurer should assume their existence and file a Notice of Tax Lien as soon as possible after thebilling date on the Notice of Delinquent Taxes. This should be done especially if the countytreasurer wants the option of seizing and selling the taxpayer's personal or real property in thefuture.

The county treasurer may not want to file a Notice of Tax Lien if it is known for sure that noneof the above conditions exists. There is no reason to file a Notice of Tax Lien to protect thecounty's interest in the taxpayer's personal and real property if the taxpayer does not haveenough equity value in the property to make it worthwhile to seize and sell.



GUIDELINES FOR FILING A TAX LIEN SECTION 7315(Continued) (Page 2)

OTHER TAX CONDITIONS

Another reason for filing a Notice of Tax Lien is to motivate the taxpayer to pay the delinquenttaxes in full or to continue making payments under an escrow account, confession of judgment,or other installment plan. Some of the conditions that should exist before using a Notice of TaxLien as a motivational tool are listed below.

1. The taxpayer refuses to cooperate or respond to the Notice of Delinquent Taxes or thetelephone contact.

2. The taxpayer fails to fulfill a promise to pay or provide financial information to aid in thecollection process.

3. The taxpayer offers to make installment payments under a confession of judgment or analternative monthly payment plan.

4. The taxpayer fails to pay current personal property taxes, including manufactured homes,when due.

Even if the financial conditions do not exist, the county treasurer could use the filing of a Noticeof Tax Lien to motivate certain taxpayers. However, the Notice of Tax Lien may not have muchclout if the taxpayer does not have enough equity value in personal or real property to worryabout losing it.



NOTICE OF TAX LIEN SECTION 7320

Section 7320 focuses on a set of questions which must be answered in order for the countytreasurer to prepare and file a Notice of Tax Lien: (1) Where is the Notice filed?, (2) Who is toreceive copies of the Notice?, (3) What information should be contained in the Notice?, and (4)What is the form of the Notice? The answers to these key questions are outlined below.

NOTICE OF TAX LIEN: FILING LOCATION

The guidelines for deciding where to file a Notice of Tax Lien for different types of property andproperty ownership are outlined below. They are derived from both the tax lien provisions forpersonal property (M.S. 277.20, Subd. 2) and the guidelines contained in the Department ofRevenue's collection manuals.

1. ABSTRACT REAL PROPERTY: ALL TYPES OF OWNERSHIP

The Notice of Tax Lien should be filed in the county recorder's office in the county in which theabstract real property is located when the following conditions exist: (a) the taxpayer ownsabstract real property located in Minnesota, and (b) the county treasurer wants the tax lien to bespecifically attached to the abstract real property.

This guideline applies to all tax liens that are attached to abstract real property located inMinnesota regardless of who owns the property: individual residents of Minnesota; individualswho live outside of Minnesota; or corporations, partnerships, and other organizations.

2. REGISTERED PROPERTY (TORRENS): ALL TYPES OF OWNERSHIP

The Notice of Tax Lien should be filed in the office of the registrar of titles in the county in whichthe Registered Property is registered when the following conditions exist: (a) the taxpayer ownsRegistered Property located in Minnesota, and (b) the county treasurer wants the tax lien to beattached to the Registered Property.

This guideline applies to all tax liens that are attached to Registered Property regardless of whoowns the property: individual residents of Minnesota; individuals who live outside of Minnesota;or corporations, partnerships, and other organizations.

3. PERSONAL PROPERTY: OWNERSHIP BY INDIVIDUAL RESIDENTS

The Notice of Tax Lien should be filed in the county recorder's office in the county where thetaxpayer lives when the following conditions exist: (a) the taxpayer is an individual resident ofMinnesota, (b) the taxpayer owns personal property located in Minnesota, and (c) the countytreasurer wants the tax lien to be specifically attached to the personal property.



NOTICE OF TAX LIEN SECTION 7320(Continued) (Page 2)

4. PERSONAL PROPERTY + OWNERSHIP BY INDIVIDUAL NON-RESIDENTS

The Notice of Tax Lien should be filed in the Secretary of State's office when the followingconditions exist: (a) the taxpayer is an individual living outside of Minnesota, and (b) the countytreasurer wants the tax lien to be specifically attached to the taxpayer's personal property.

5. PERSONAL PROPERTY + OWNERSHIP BY AN ORGANIZATION

The Notice of Tax Lien should be filed in the Secretary of State's office when the followingconditions exist: (a) the taxpayer is a corporation, partnership, or other organization; and (b) thecounty treasurer wants the tax lien to be specifically attached to the taxpayer's personalproperty.

NOTE #1: SECRETARY OF STATE'S ADDRESS

Here is the address for mailing a Notice of Tax Lien to the Secretary of State's Office:Secretary of State, Uniform Commercial Code (UCC) Division, 180 State Office Building,Rev. Dr. Martin Luther King, Jr. Blvd., St. Paul, Minnesota, 55155-1299. Telephonenumber: (651) 296-2803 or 1 (877) 551-6767. Include a self-addressed, stamped envelope forthe return of the county's copy of the recorded notice of tax lien.

NOTE #2: INDEX FOR STATE TAX LIENS

All Notices of Tax Lien filed with the county recorder must be recorded in the same indexthat is used to record state Notices of Tax Lien from the Department of Revenue under M.S.270.69. The index must indicate the name of the county for which the Notice of Tax Lien isfiled. (M.S. 277.20, Subd. 2)

NOTICE OF TAX LIEN: OFFICIAL COPIES

The current tax lien provisions in M.S. 277.20 do not specify how many copies of the Notice ofTax Lien must be prepared and what should be done with each of them.

In the absence of statutory requirements, the Department of Revenue recommends that thecounty treasurer follow the Department of Revenue's guidelines for preparing the requirednumber of copies of the state's Notice of Tax Lien.




The guidelines for preparing the required copies are listed below along with a short explanationof how they could be used at the county level.

1. THE TEMPORARY ACCOUNTING COPY.

This is a copy of the original Notice of Tax Lien that is prepared by the county treasurer's office.It serves as the document of record in the county treasurer's office while a copy of the originalNotice is being filed with the appropriate recording office.

2. COPY FOR RECORDER, REGISTRAR OF TITLES, OR SECRETARY OF STATE

This is a copy of the original Notice of Tax Lien that must be filed with the appropriaterecording office or offices.

3. THE TAXPAYER'S COPY.

This is a copy of the original Notice of Tax Lien that must be mailed to the taxpayer or taxpayerslisted on the Notice. This copy should be mailed as soon as possible after a copy of the originalNotice is prepared and filed with the appropriate recording office. There is no reason to wait toget a copy back from the recording office before completing the mailing.

4. THE RECEIPT AND RECORDED COPY.

This is the receipt that is filled out by the appropriate recording office and the copy of therecorded Notice of Tax Lien that is returned to the county treasurer. This recorded copy alongwith the receipt replaces the temporary accounting copy as the document of record in the countytreasurer's office.

NOTICE OF TAX LIEN: CONTENTS

The current tax lien provisions provide only two types of information that must be contained inthe Notice of Tax Lien. Otherwise, the statute gives no indication of what information should beincluded in the Notice of Tax Lien. (M.S. 277.20)

Remember: The law requires the county treasurer to take whatever action is "necessary andreasonable" to collect delinquent personal property taxes, including those for manufacturedhomes (M.S. 277.21, Subd. 1). As part of those actions, the county treasurer is expected to usethe same collection methods used by the Department of Revenue to collect delinquent state taxes,including a tax lien.




In the absence of statutory requirements and acting on legislative intent, the Department ofRevenue recommends that the county Notice of Tax Lien contain the same basic informationfound in the state's Notice of Tax Lien. This should assure that the county Notice of Tax Lien isjust as enforceable as the state's Notice that has been used for years.

The major types of information that are derived from the state's Notice of Tax Lien are listedbelow along with the two types of information required under M.S. 277.20.

1. A statement declaring that a tax lien has been filed by the county against all of the taxpayer'spersonal and real property located in the county for the total amount of unpaid tax, penalty,recording fees, sheriff fees, court costs, and interest.

This blanket statement refers to the original lien that attaches to all of the taxpayer's personaland real property on January 2 of the assessment year. The recording of the Notice of TaxLien establishes the priority of the county's interest in all of the taxpayer's personal and realproperty for the total delinquent tax amount. It allows the county treasurer to seize and sellas much of the taxpayer's personal and real property as needed to pay the total delinquenttax amount.

2. The name and address of the party or parties listed in the tax rolls as the taxpayer ortaxpayers of record. This information must be identical to the information used on theproperty tax statement and the Notice of Delinquent Taxes.

3. The property identification number, the personal property type, and the date when theNotice of Tax Lien was filed.

4. A section for the description of property. In most cases, this section should be left blank.Then the county treasurer is free to seize and sell any of the taxpayer's property under theblanket lien described above. If a specific property is described, the tax lien can be enforcedonly against that property and no others. In other words, any specific description overridesthe blanket lien described above.

In the case of registered property (Torrens), this section must contain the number of theCertificate of Title of the property if the tax lien is attached to the whole parcel. If the taxlien is not placed on the whole parcel, the description should clearly identify what portion ofthe property is covered by the lien. A legal description can be substituted for the number ofthe Certificate of Title. (M.S. 508.63)




5. The date when the property was assessed and the date when the taxes were due.

6. A breakdown of the total delinquent tax amount due through the filing date: unpaid tax,penalty on unpaid tax, fee for recording a tax lien, fee for releasing a tax lien, other collectioncosts, interest, and total due.

7. The signature of the county treasurer, the printed name of the county treasurer, the title ofthe county treasurer, the telephone number of the county treasurer's office, and the date ofthe signature. (This information may be for the county treasurer's delegate.)

8. A statement informing the taxpayer that the total amount due plus any additional fees, costs,and/or interest that may accrue after the Notice of Tax Lien was filed must be paid before thecounty will release the tax lien.

NOTICE OF TAX LIEN: SUGGESTED FORM

The current tax lien provisions (M.S. 277.20) do not contain any requirements or guidelines forthe format of the Notice of Tax Lien. In their absence, the Department of Revenue recommendsthat the county treasurer's Notice of Tax Lien be modeled on the state's Notice of Tax Lien thatis used by the Department of Revenue to collect delinquent state taxes.

Minor changes have been made in the Notice to make it easier for the taxpayer to understand thelegal implications of the tax lien and the specific actions that must be performed in order to avoidthe loss of personal or real property that may result from the enforcement of the tax lien.

The Department of Revenue also recommends that the county treasurer use two forms: one fordelinquent personal property taxes on manufactured homes and one for all other delinquentpersonal property taxes.

The suggested form of the Notice of Tax Lien that is presented on the following page is designedfor delinquent manufactured home taxes. To use the form for other delinquent personalproperty taxes, change all references from "manufactured home" to "personal property." Usethe suggested form to develop your own county Notice of Tax Lien.





NOTICE OF TAX LIEN

A lien is hereby filed by this county against all property and property rights of theproperty owner or owners named below and located in Spruce County for the totalamount of unpaid manufactured home tax, penalty, recording fees, sheriff's fees, courtcosts, and interest listed below.

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Filed: December 29, 1993 Applewood, MN 57252

Description of Property:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Date of Assessment of Tax: Date When Tax Was Due:January 2, 1993 November 15, 1993

TOTAL AMOUNT DUE THROUGH THE FILING DATE

1. Unpaid Manufactured Home Tax............................................................ $ 287.752. Penalty on Unpaid Tax............................................................................. $ 23.023. Fee for Recording Tax Lien...................................................................... $ 15.004. Fee for Releasing Tax Lien ....................................................................... $ 15.005. Other Collection Costs.............................................................................. $ 0.006. Interest ...................................................................................................... $ 0.007. Total Due................................................................................................... $ 340.77

___________________________________________ Date Signed: December 29, 1993Audrey TrudeauSpruce County Treasurer(234) 567-8910

Note: The total amount listed above plus any additional fees, costs, and/or interest that mayaccrue after the Notice of Tax Lien was filed must be paid before the county will releasethe tax lien.)



NOTICE OF RENEWAL OF TAX LIEN SECTION 7330

The county treasurer is authorized to renew a previously recorded Notice of Tax Lien. Theoriginal Notice of Tax Lien is enforceable for ten years after the date of recording. With therenewal, the county treasurer can extend the statute of limitations on the original Notice of TaxLien for another ten years. (M.S. 277.20, Subd. 4)

The major guidelines for filing a Notice of Renewal of Tax Lien are outlined below. A suggestedform for the renewal notice is presented at the end of this Section 7330.

RENEWAL OF TAX LIEN: FILING LOCATION

The basic guideline for where to file a Notice of Renewal of Tax Lien is simple: file the renewalnotice in the same places where the original Notice of Tax Lien was filed.

See Section 7320 for an outline of the guidelines for where to file a Notice of Tax Lien and usethem when filing a Notice of Renewal of Tax Lien.

RENEWAL OF TAX LIEN: OFFICIAL COPIES

The county treasurer should prepare the same number of copies of the renewal notice and handlethem in the same way that is recommended for the original Notice of Tax Lien.

See Section 7320 for an outline of the guidelines for the official copies of the Notice of Tax Lienand follow them when preparing and handling copies of the renewal notice.

NOTE: A copy of the Notice of Renewal of Tax Lien must be sent to the taxpayer.

RENEWAL OF TAX LIEN: CONTENTS

The current tax lien provisions (M.S. 277.20, Subd. 4) are silent on the question of what types ofinformation should be included in the Notice of Renewal of Tax Lien.

Based once again on legislative intent, the Department of Revenue is convinced that the countyNotice of Renewal of Tax Lien should contain the same types of information that can be found inthe state's renewal notice. Those types of information are outlined below.

1. A statement declaring that a tax lien filed by this county against all property and propertyrights of the property owner or owners named below and located in the county for the totalamount of unpaid tax, penalty, recording fees, sheriff fees, court costs, and interest listedbelow is hereby renewed.



NOTICE OF RENEWAL OF TAX LIEN SECTION 7330(Continued) (Page 2)

2. The name and address of the party or parties listed in the tax rolls as the taxpayer ortaxpayers of record. This information must be identical to the information used on the noticeof tax lien.

3. The property identification number, the personal property type, and the date when theNotice of Renewal of Tax Lien was filed.

4. The date when the original Notice of Tax Lien was recorded.

5. The document number, the volume number, and the page number of the original Notice ofTax Lien.

6. The date when the property was assessed and the date when the taxes were due.

7. The total delinquent tax amount due as of the date when the Notice of Renewal of Tax Lienwas filed.

8. The signature of the county treasurer, the printed name of the county treasurer, the title ofthe county treasurer, and the telephone number of the county treasurer's office. (Thisinformation may be for the county treasurer's delegate.)

9. The date when the Notice of Renewal of Tax Lien was signed by the county treasurer or thecounty treasurer's delegate.

10. A statement informing the taxpayer that the total amount due plus any additional fees, costs,and/or interest that may accrue after the Notice of Renewal of Tax Lien was filed must bepaid before the county will release the tax lien.

RENEWAL OF TAX LIEN: SUGGESTED FORM

The current tax lien provisions (M.S. 277.20, Subd. 4) do not contain any requirements orguidelines for the format of the Notice of Renewal of Tax Lien. As a result, the Department ofRevenue recommends that the county treasurer's Notice of Renewal of Tax Lien be modeled onthe renewal notice that is used by the Department of Revenue to collect delinquent state taxes.






The suggested form of the Notice of Renewal of Tax Lien that is presented on the following pageis designed for delinquent manufactured home taxes. To use the form for other delinquentpersonal property taxes, simply change all references from "manufactured home" to "personalproperty." Use the suggested form to develop your own county Notice of Renewal of Tax Lien.





NOTICE OF RENEWAL OF TAX LIEN

A lien filed by this county against all property and property rights of the property owneror owners named below and located in Spruce County for the total amount of unpaidmanufactured home tax, penalty, recording fees, sheriff's fees, court costs, and interestlisted below is hereby renewed.

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Filed: December 29, 1993 Applewood, MN 57252

INFORMATION ABOUT ORIGINAL TAX LIEN:

1. Date of Recording:................................................. December 29, 1993

2. Document Number: ............................................... 367-23-1692

3. Volume and Page Number: ................................... XXI, 1385

4. Date of Assessment of Tax:.................................... January 2, 1993

5. Date When Tax Was Due: ..................................... November 15, 1993

6. Total Tax Due as of the Above Filing Date:.......... $681.54

______________________________________ Date Signed: December 29, 1993Audrey TrudeauSpruce County Treasurer(234) 567-8910

Note: The total amount listed above plus any additional fees, costs, and/or interest that may accrue after the Notice of Renewal of Tax Lien was filed must be paid before the county will release the tax lien.)



NOTICE OF TRANSCRIPTION OF TAX LIEN SECTION 7340

The county treasurer has the authority to transcribe a tax lien to another county anytime withinten years after the date of the recording of the Notice of Tax Lien. (M.S. 277.20, Subd. 4)

The major guidelines for filing a Notice of Transcription of Tax Lien are outlined below. Asuggested form for the transcribed notice is presented at the end of this Section 7340. Both theguidelines and the form are derived from the Department of Revenue's procedures and forms forthe transcription of a state tax lien.

TRANSCRIPTION OF TAX LIEN: DEFINITION + PURPOSE

For the purpose of filing tax liens, the term, "transcription," can be defined as the process bywhich the county treasurer attaches a tax lien on all of the taxpayer's personal and real propertylocated in another county using the recording date of the original Notice of Tax Lien.

The transcription of tax lien does not extend the ten-year time period during which the originalNotice of Tax Lien is enforceable. In other words, the transcription of tax lien is enforceable forthe same period of time that the original Notice of Tax Lien is enforceable regardless of when thetranscription is recorded.

A county treasurer may choose to file a transcription of tax lien when the taxpayer owns personalor real property in a different county. The value of the property on which the tax lien is attachedin the home county may not be high enough to cover the total delinquent tax amount. To securethe balance of the tax liability, a county treasurer may transcribe the tax lien to another countyand attach it to the taxpayer's personal and real property located in that county.

TRANSCRIPTION OF TAX LIEN: FILING LOCATION

Although not explicitly covered in the current tax lien provisions (M.S. 277.20, Subd. 4), it is safeto assume that the guidelines for where to file a Notice of Transcription of Tax Lien are the sameas they are for filing a Notice of Tax Lien.

See Section 7320 for an outline of the guidelines for where to file a Notice of Tax Lien and followthem when filing a Notice of Transcription of Tax Lien.



NOTICE OF TRANSCRIPTION OF TAX LIEN SECTION 7340(Continued) (Page 2)

TRANSCRIPTION OF TAX LIEN: OFFICIAL COPIES

The county treasurer should prepare the same number of copies of the transcribed notice andhandle them in the same way that is recommended for the original Notice of Tax Lien.

See Section 7320 for an outline of the guidelines for the official copies of the Notice of Tax Lienand follow them when preparing and handling copies of the transcribed notice.

Note: A copy of the Notice of Transcription of Tax Lien must be sent to the taxpayer.

TRANSCRIPTION OF TAX LIEN: CONTENTS

The current tax lien provisions (M.S. 277.20, Subd. 4) do not provide an answer to the question:What types of information should be included in the Notice of Transcription of Tax Lien?

Relying on legislative intent, the Department of Revenue recommends that the county treasurer'sNotice of Transcription of Tax Lien be modeled on the state's transcribed notice. The basic typesof information that are contained in the state's notice are outlined below.

1. A statement declaring that the county treasurer's county hereby notifies the other countythat it has filed a tax lien against all property and property rights of the property owner orowners named below for the total amount of unpaid tax, penalty, recording fees, sheriff fees,court costs, and interest listed on the Notice.

2. The name and address of the party or parties listed in the tax rolls as the taxpayer ortaxpayers of record. This information must be identical to the information used on theNotice of Tax Lien.

3. The property identification number, the personal property type, and the date when theNotice of Transcription of Tax Lien was filed.

4. A section for the name of the county where the Notice of Transcription of Tax Lien is beingrecorded.

5. A section for the name of the home county where the Notice of Tax Lien is on record.




6. A section for listing information about the Notice of Tax Lien on record: date of recording,document number, volume and page number, date of assessment of the tax, and the totalamount of tax due as of the date when the Notice of Transcription of Tax Lien is filed.

7. The signature of the county treasurer, the printed name of the county treasurer, the title ofthe county treasurer, the telephone number of the county treasurer's office, and the date ofthe signature. (This information may be for the county treasurer's delegate.)

8. A statement informing the taxpayer that the total amount due plus any additional fees, costs,and/or interest that may accrue after the Notice of Transcription of Tax Lien was filed mustbe paid before the county will release the tax lien.

TRANSCRIPTION OF TAX LIEN: SUGGESTED FORM

The current tax lien provisions (M.S. 277.20, Subd. 4) do not contain any requirements orguidelines for the format of the Notice of Transcription of Tax Lien. As a result, the Departmentof Revenue recommends that the county's transcribed notice be modeled on the transcribednotice that is used by the Department of Revenue to collect delinquent state taxes.



The suggested form of the Notice of Transcription of Tax Lien that is presented on the followingpage is designed for delinquent manufactured home taxes. To use the form for other delinquentpersonal property taxes, change all references from "manufactured home" to "personalproperty." Use the suggested form to develop your own county Notice of Transcription of TaxLien.





NOTICE OF TRANSCRIPTION OF TAX LIEN

This county hereby notifies the county listed below that it has filed a tax lien against allproperty and property rights of the property owner or owners named below and locatedin the county listed below for the total amount of unpaid manufactured home tax,penalty, recording fees, sheriff's fees, court costs, and interest listed below.

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Filed: May 10, 1994 Applewood, MN 57252

County where notice of tax lien is being transcribed: County of Maple

County where notice of tax lien is on record: County of Spruce



2. Document Number: ............................................... 367-23-1692




6. Total Tax Due as of the Above Filing Date:.......... $ 354.97

______________________________________ Date Signed: May 10, 1994 Audrey TrudeauSpruce County Treasurer(234) 567-8910

Note: The total amount listed above plus any additional fees, costs, and/or interest that mayaccrue after the Notice of Transcription of Tax Lien was filed must be paid before thecounty will release the tax lien.



RELEASE OF TAX LIEN SECTION 7350

The county treasurer is required to file a Notice of Release of Tax Lien upon full payment of thetotal delinquent tax amount. "Full payment" may come voluntarily from the taxpayer or from alevy on the taxpayer's money or the seizure and sale of the taxpayer's personal or real property.

The current tax lien provisions (M.S. 277.20, Subd. 2) provide only an indirect reference to aNotice of Release of Tax Lien. As a result, the guidelines for preparing and filing a release andthe suggested format is modeled on the Department of Revenue's procedures and forms.

RELEASE OF TAX LIEN: VERIFICATION OF TAX PAYMENT

Before filing a Notice of Release of Tax Lien, the county treasurer should make sure that thepayment of the total delinquent tax amount is in cash or some form of secured funds. Thefollowing are examples of secured funds: (1) certified checks, (2) bank drafts, (3) travelers checks,(4) money orders, and (5) cashiers checks.

If payment is made with unsecured funds, the county treasurer should verify that the unsecuredfunds have cleared the bank before filing a Notice of Release of Tax Lien. Examples of unsecuredfunds are personal checks and payroll checks. Verifying the unsecured funds before filing arelease will prevent the need to file another tax lien if the funds do not clear the bank.

RELEASE OF TAX LIEN: FILING LOCATION

Although not explicitly stipulated in the current tax lien provisions (M.S. 277.20, Subd. 2), thecounty treasurer can assume that a Notice of Release of Tax Lien must be filed in the samegovernmental office or offices that the original Notice of Tax Lien, Notice of Renewal of TaxLien, and/or Notice of Transcription of Tax Lien were filed.

See Sections 7320, 7330, and 7340 for an outline of the guidelines for where to file a tax lien, arenewal, and a transcription and follow them when filing a Notice of Release of Tax Lien.

RELEASE OF TAX LIEN: OFFICIAL COPIES

In the absence of any statutory guidelines (M.S. 277.20, Subd. 4), the Department of Revenuerecommends that the county treasurer prepare the same number of copies of a Notice of Releaseof Tax Lien and handle them in the same way that is recommended for the original Notice of TaxLien.



RELEASE OF TAX LIEN SECTION 7350(Continued) (Page 2)

See Section 7320 for an outline of the guidelines for the official copies of the Notice of Tax Lienand use them when preparing and handling copies of a Notice of Release of Tax Lien.

Note: A copy of the Notice of Release of Tax Lien must be sent to the taxpayer.

RELEASE OF TAX LIEN: CONTENTS

The current tax lien provisions (M.S. 277.20, Subd. 2) do not provide any help in deciding whattypes of information should be included in a Notice of Release of Tax Lien. Nor is there anysuggested format for the release.

Considering legislative intent, the Department of Revenue suggests that the county's Notice ofRelease of Tax Lien should contain the same types of information that are required in the state'srelease of tax lien. Those types of information are outlined below.

1. A statement declaring that a tax lien filed by this county against all property and propertyrights of the property owner or owners named below is hereby released.

2. The name and address of the party or parties listed in the tax rolls as the taxpayer ortaxpayers of record. This information must be identical to the information used on theNotice of Tax Lien.

3. The property identification number, the property type, and the date when the Notice ofRelease of Tax Lien was filed.

4. A section for listing information about the original tax lien on record: date of recording,document number, volume and page number, and date of assessment of the tax.

5. The signature of the county treasurer, the printed name of the county treasurer, the title ofthe county treasurer, and the telephone number of the county treasurer's office. (Thisinformation may be for the county treasurer's delegate.)

6. The date when the Notice of Release of Tax Lien was signed by the county treasurer or thecounty treasurer's delegate.




RELEASE OF TAX LIEN: SUGGESTED FORM

In the absence of any guidelines in M.S. 277.20, Subd. 2, the Department of Revenuerecommends that the form of the Notice of Release of Tax Lien used by the counties be based onthe state's form for releasing a tax lien.

Minor changes have been made in the Notice to make it easier for the taxpayer to understandthat the tax lien has been removed from the property and the property is no longer under thethreat of seizure and sale by the county treasurer.


The suggested form of the Notice of Release of Tax Lien that is presented on the following page isdesigned for delinquent manufactured home taxes. To use the form for other delinquentpersonal property taxes, change all references from "manufactured home" to "personalproperty." Use the suggested form to develop your own county Notice of Release of Tax Lien.





NOTICE OF RELEASE OF TAX LIEN

A tax lien filed by this county against all property and property rights of the propertyowner or owners named below is hereby released in the county listed below.

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Filed: June 16, 1994 Applewood, MN 57252

County where tax lien is on record and is hereby released: County of Spruce



2. Document Number: ............................................... 367-23-1692




______________________________________ Date Signed: June 16, 1994 Audrey TrudeauSpruce County Treasurer(234) 567-8910



PARTIAL RELEASE OF TAX LIEN SECTION 7360

The county treasurer may choose to file a Notice of Partial Release of Tax Lien upon partialpayment of the total delinquent tax amount for which a Notice of Tax Lien was recorded. TheDepartment of Revenue uses two types of partial releases: one for a specific individual andanother for a specific piece of property.

The current tax lien provisions (M.S. 277.20, Subd. 2) provide only an indirect reference to arelease of tax lien. There is no reference at all to a partial release of tax lien. As a result, theguidelines for preparing and filing a Notice of Partial Release of Tax Lien and the suggestedformat are modeled on the procedures and forms used by the Department of Revenue.

PARTIAL RELEASE OF TAX LIEN: SPECIFIC INDIVIDUAL

The partial release of a tax lien for a specific individual can only occur when there is more thanone taxpayer who has been declared liable for the total delinquent tax amount. This will beevidenced by more than one taxpayer of record being listed on the county tax lists for theproperty in question and on the Notice of Tax Lien.

In this case, one of the taxpayers may contact the county treasurer and request a partial releasefrom the tax lien for one or more of the reasons listed below.

1. The taxpayer is not liable for any of the total delinquent tax amount.

2. The taxpayer has already paid the appropriate share of the tax liability.

3. The taxpayer agrees to make partial payment for the appropriate share of the tax liability.

When either of the first two reasons has been verified or the partial payment has been accepted,the county treasurer must file a Notice of Partial Release of Tax Lien. The balance of the taxliability will continue to be covered by the original Notice of Tax Lien on record. When theremaining balance is paid, the county treasurer must file a Notice of Release of Tax Lien asoutlined in Section 7350.



PARTIAL RELEASE OF TAX LIEN SECTION 7360(Continued) (Page 2)

PARTIAL RELEASE OF TAX LIEN: SPECIFIC PROPERTY

There are two situations where the county treasurer may choose to file a Notice of Partial Releaseof Tax Lien for a specific piece of property. These two situations are outlined below.

1. THE COUNTY RECEIVES THE TOTAL SALE PRICE

In this situation, the county treasurer and the taxpayer set up a payment plan where the taxpayeragrees to sell a piece of property and convey the total sale price to the county as partial paymentof the total delinquent tax amount.

The county treasurer would usually accept this plan because it assures partial payment of thetotal delinquent tax amount without the county having to go through the time and effort ofseizing and selling the property itself.

If the plan is accepted, the county treasurer should attend the closing for the sale of the propertywith the taxpayer and the buyer. The buyer would pay the total sale price to the countytreasurer. In turn, the county treasurer would file a Notice of Partial Release of Tax Lien withrespect to only the specific property that is described on the release form.

2. THE COUNTY RECEIVES A PERCENTAGE OF THE TOTAL SALE PRICE

As part of the payment plan in this situation, the county treasurer agrees to the following terms:(a) the taxpayer sells a specific property, (b) the taxpayer conveys a designated percentage of thetotal sale price to the county treasurer as partial payment of the total delinquent tax amount, and(c) the taxpayer retains the rest of the total sale price.

If this plan is accepted, the county treasurer should follow the same procedures as describedabove for the first situation.

PARTIAL RELEASE OF TAX LIEN: WARNINGS

The county treasurer should not be rushed into a decision to grant a partial release of a tax lienby the taxpayer or anyone else (buyer, attorney, or lending institution). All of the parties shouldnote that the county requires at least one week to determine the county's interest in thetransaction.

Before agreeing to file a partial release, the county treasurer should complete the following tasksto ensure the county's interests.




1. Determine the priority of any other secured interests in the property.

2. Determine the fair market value of the property.

3. Obtain a copy of the closing statement to verify the taxpayer's equity in the property and theamount of money to be paid to the taxpayer.

4. Grant the partial release only upon receipt of the county's total interest in the taxpayer'sequity in the property.

PARTIAL RELEASE OF TAX LIEN: VERIFICATION OF TAX PAYMENT

The county treasurer should follow the same guidelines for verifying the partial payment of a taxliability before granting a partial release of tax lien as would be followed for granting a fullrelease.

See Section 7350 for an explanation of the guidelines for verifying full payment and follow themwhen accepting partial payment.

PARTIAL RELEASE OF TAX LIEN: FILING LOCATION

Although M.S. 277.20, Subd. 2, is silent on the subject, the county treasurer should file a Noticeof Partial Release of Tax Lien in the same governmental offices as the original Notice of Tax Lienwas filed.

See Section 7320 for an outline and explanation of the guidelines for where to file a Notice of TaxLien and use them when filing a Notice of Partial Release of Tax Lien.

PARTIAL RELEASE OF TAX LIEN: OFFICIAL COPIES

The current tax lien provisions (M.S. 277.20, Subd. 2) do not specify how many copies of theNotice of Partial Release of Tax Lien must be prepared and what should be done with each ofthem. (M.S. 277.20)

In the absence of any statutory requirements, the Department of Revenue recommends that thecounty treasurer follow the Department's guidelines for preparing the required number of copiesof the Notice of Tax Lien when preparing a Notice of Partial Release of Tax Lien. See Section7320 for an outline of those guidelines.




RELEASE OF TAX LIEN: SUGGESTED FORM

A suggested form for each of the two types of partial release of tax lien is presented at the end ofthis Section 7360. The suggested forms are modeled on the forms for the partial release of statetax liens that are used by the Department of Revenue to collect delinquent state taxes.

Minor changes have been made in each Notice to make it easier for the taxpayer to understandthe legal implications of the partial release of the tax lien. Use the suggested forms to developyour own county notices to release a tax lien.





PARTIAL RELEASE OF TAX LIEN AS TO SPECIFIC INDIVIDUAL

Notice is hereby given that the County of Spruce tax lien against:

Bradley & Theresa Whitley Pine Cove Mobile Home Park 342 Washington Street Applewood, MN 57252

and filed in the Office of the Spruce County Recorder on: December 29, 1993 ,

Document Number: 367-23-1692 , Volume and Page Number: XXI, 1385 ,

is released with respect to only the following named individual(s):

TAXPAYER NAME: Theresa Whitley

TAXPAYER NAME:

TAXPAYER NAME:

_______________________________________ Date Signed: June 16, 1994 Audrey TrudeauSpruce County Treasurer234 West BroadwayGreenbriar, MN 55623(234) 567-8910





PARTIAL RELEASE OF TAX LIEN AS TO SPECIFIC PROPERTY

Notice is hereby given that the County of Spruce tax lien against:

Bradley & Theresa Whitley Pine Cove Mobile Home Park 342 Washington Street Applewood, MN 57252

and filed in the Office of the Spruce County Recorder on: December 29, 1993 ,

Document Number: 367-23-1692 , Volume and Page Number: XXI, 1385 ,

is released with respect to only the property located in Spruce County, Minnesota, andlegally described as follows:

Unorganized Territory, Unplatted Range 62-2W 06-0012-0007, Section 22, East 100 Feet of West 940 Feet of East 1/2 Lot 3, South of Service Road Document 8043, Book 16, Page 19

______________________________________ Date Signed: January 9, 1994 Audrey TrudeauSpruce County Treasurer234 West BroadwayGreenbriar, MN 55623(234) 567-8910



COST OF RECORDING + RELEASING TAX LIENS SECTION 7370

In order to have a tax lien released, the total delinquent tax amount must be paid in full. Thetotal delinquent tax amount is determined at the time when the taxpayer voluntarily makes fullpayment or the county treasurer confiscates the taxpayer's assets in lieu of the taxpayer'spayment. The components of "the total delinquent tax amount" are outlined below.

1. THE UNPAID PERSONAL PROPERTY TAX

This is the total tax that was levied on the taxpayer's personal property, announced to thetaxpayer with a mailed property tax statement, and not paid by the due date. This includes thetotal tax levied on manufactured homes. This is the major component of every total delinquenttax amount regardless of whether a tax lien is filed or not.

2. THE PENALTY ON THE UNPAID PERSONAL PROPERTY TAX

This is the percentage of the unpaid personal property tax that is automatically added to theunpaid tax on the day after the tax is due. This is a basic component that is part of every totaldelinquent tax amount regardless of whether a tax lien is filed or not.

3. THE FEES FOR RECORDING AND RELEASING TAX LIENS

The fees for recording and releasing tax liens will not be part of the total delinquent tax amountunless the county treasurer chooses to file a Notice of Tax Lien.

The fee for recording each Notice of Tax Lien, each Notice of Renewal of Tax Lien, and eachNotice of Transcription of Tax Lien is $15.00 apiece. The fee for recording each Notice of PartialRelease of Tax Lien and the final Notice of Release of Tax Lien is also $15.00 apiece. (M.S.277.20, Subd. 2)

The county treasurer is exempt from paying the $15.00 fee when any type of tax lien is recorded.The $15 fee for each recording of a tax lien and the $15 fee for each release of a tax lien must bepaid by the county treasurer when the release is recorded by the county treasurer.

The county treasurer is authorized to collect the $15.00 fee for each recording and the $15.00 feefor each release as part of the total delinquent tax amount.



COST OF RECORDING + RELEASING TAX LIENS SECTION 7370(Continued) (Page 2)

The $15.00 fee for recording the Notice of Tax Lien and the $15.00 fee for the final Notice ofRelease of Tax Lien should be listed on the Notice of Tax Lien because they are known for surewhen the notice is prepared and filed.

The other types of notices and releases will probably be filed after the original Notice of Tax Lienis prepared and filed. As a result, they may not be listed on the original Notice of Tax Lien, buttheir fees must be added to the total delinquent tax amount that must be paid before the tax liencan be released.

4. INTEREST ON THE UNPAID TAX, PENALTY, AND COSTS

Interest always becomes part of the total delinquent tax amount when the amount due is not paidduring the taxes payable year. Interest must be charged from January 1 of the year after theyear when the taxes were due through the month when the total delinquent tax amount is paid infull. Interest must be calculated on the sum of the unpaid tax, penalty, and county costs at thetime of payment.

5. COUNTY SHERIFF'S COSTS FOR SEIZURE AND SALE OF PROPERTY

If the county treasurer chooses to involve the county sheriff in the seizure and sale of thetaxpayer's property, the county sheriff must be paid for the costs of seizing, hauling, storing, andselling the property. After the sale, the county sheriff will withhold an amount from the salerevenue to pay for the costs before sending the remaining balance to the county treasurer.

6. COURT COSTS

If the county treasurer chooses to obtain a court judgment against the taxpayer, the court mustbe paid for the costs of entering the judgment. The costs will be paid from the sale revenue whenthe county sheriff enforces the judgment by seizing and selling the taxpayer's property.



PROPERTY EXEMPT FROM TAX LIEN SECTION 7380

Personal property taxes, including manufactured homes, become a lien on all of the taxpayer'sreal and personal property in Minnesota as of January 2 of the assessment year and continueuntil the taxes are paid. (M.S. 277.20, Subd. 1)

Once the Notice of Tax Lien is filed, the tax lien is enforceable against all of the taxpayer's realproperty located in Minnesota. It is also enforceable against all of the taxpayer's personalproperty located in Minnesota except for the types of personal property exempt from any lien orseizure and sale under M.S. 550.37, 550.38, and 550.39. (M.S. 277.20, Subd. 3)

NOTE: Manufactured homes that are owned by the taxpayer and taxed as personal property are subject to the tax lien even though they are otherwise exempt under M.S. 550.37, Subd. 12.

The types of personal property that are exempt under M.S. 550.37, 550.38, and 550.39 and areexempt from the tax lien are outlined below.

1. The family bible, library, and musical instruments. (M.S. 550.37, Subd. 2)

2. A seat or pew in any house or place of public worship and a lot in any burial ground. (M.S.550.37, Subd. 3)

3. Personal apparel, one watch, utensils, and food of the taxpayer and the taxpayer’s family.(M.S. 550.37, Subd. 4)

4. Household furniture, appliances, phonographs, and radio and television receivers of thetaxpayer and family not exceeding $8,100 in value. (M.S. 550.37, Subd. 4)

5. Farm machines and implements used in farming operations by the taxpayer engagedprincipally in farming, livestock, farm produce, and standing crops not exceeding $13,000 invalue. (M.S. 550.37, Subd. 5)

6. Tools, implements, machines, instruments, office furniture, stock in trade, and libraryreasonably necessary in the trade, business, or profession of the taxpayer not exceeding$9,000 in value. (M.S. 550.37, Subd. 6)

7. The total value of property exempt under #5 and #6 must not exceed $13,000 if theexemptions are combined. (M.S. 550.37, Subd. 7)

8. The library and philosophical and chemical or other apparatus used for the instruction ofyouth and belonging to any university, college, seminary of learning, or school that isindiscriminately open to the public. (M.S. 550.37, Subd. 8)



PROPERTY EXEMPT FROM TAX LIEN SECTION 7380(Continued) (Page 2)

9. All money arising from any claim because of the destruction of or damage to exemptproperty. (M.S. 550.37, Subd. 9)

10. Life insurance benefits payable to a surviving spouse or child up to $36,000 with anadditional $9,000 for each dependent of the surviving spouse or child. (M.S. 550.37, Subd.10)

11. All benefits payable by any police department or fire department association, beneficiaryassociation, or fraternal benefit association to any person entitled to assistance. (M.S.550.37, Subd. 11)

12. One motor vehicle to the extent of a value not exceeding $3,600, or one motor vehicle to theextent of a value not exceeding $36,000 that has been modified, at a cost of not less than$2,700, to accommodate the physical disability making a disabled person eligible for acertificate authorized by M.S. 169.345. (M.S. 550.37, Subd. 12(a)

13. All relief based on need and the earnings or salary of a person who is a recipient of reliefbased on need. This includes MFIP, work first, general assistance medical care,supplemental security income, medical assistance, Minnesota supplemental assistance, andgeneral assistance. The salary or earnings of any taxpayer who is or has been a recipient oran inmate of a correctional institution must be exempt for six months after return toemployment or farming. (M.S. 550.37, Subd. 14)

14. The earnings of the minor child of the taxpayer by reason of any liability of the taxpayer notcontracted for the special benefit of the minor child. (M.S. 550.37, Subd. 15)

15. The claim for damages recoverable by the taxpayer for a levy or sale of the taxpayer'sexempt personal property or for the wrongful taking or detention of such property and anyjudgment recovered for the damages. (M.S. 550.37, Subd. 16)

16. The taxpayer's aggregate interest not to exceed $7,200 in any accrued dividend or interestunder or loan value of any unmatured insurance contract owned by the taxpayer and underwhich the insured is the taxpayer or an individual of whom the taxpayer is a dependent.(M.S. 550.37, Subd. 23)

17. The taxpayer's right to receive present or future payments or past payments under a stockbonus, pension, profit sharing, annuity, individual retirement account, Roth IRA, individualretirement annuity, simplified employee pension, or similar plan or a contract on account ofillness, disability, death, age, or length of service. (M.S. 550.37, Subd. 24)



PROPERTY EXEMPT FROM TAX LIEN SECTION 7380(Continued) (Page 3)

The exemption for the taxpayer's aggregate interest under all plans and contracts is limitedto a present value of $54,000 and additional amounts under all plans and contracts is limitedto what is reasonably necessary for the support of the taxpayer and any spouse anddependents of the taxpayer.

18. The proceeds of payments received by a person for labor, skill, material, or machinerycontributing to an improvement to real estate within the meaning of M.S. 514.01. (M.S.550.37, Subd. 25)

19. All moneys paid to the taxpayer as a veteran's pension, bonus, adjusted compensationallotment, or other benefit by the state of Minnesota or the United States. (M.S. 550.38)

20. The net amount payable to the taxpayer or a beneficiary under any policy of accident ordisability insurance or under any accident or disability clauses attached to any policy of lifeinsurance. (M.S. 550.39)

NOTE: ADJUSTMENT TO DOLLAR LIMITS ON PROPERTY EXEMPTIONS

M.S. 550.37 requires that the dollar limitations on property exemptions, excluding the dollarlimitations in M.S. 550.37, Subds. 5 and 7 (numbers 5 and 7 above) be adjusted in evennumbered years based on the percentage change in the Implicit Price Deflator for the GrossNational Product. No adjustment is made unless the percentage of change between the index forDecember of the preceding year and the reference base index, calculated to the nearest wholepercentage point, is 10% or more.

The Minnesota Department of Commerce announces the dollar limits on property exemptionsevery even numbered year in an April issue of the State Register. The changes become effectiveon July 1 of the year in which they are announced. The dollar limits listed above wereannounced in the April 15, 2002 issue of the State Register.

Copies of the State Register should be available in the county library. This information may alsobe found on the Department of Administration’s web page. The numbers above were found inOctober of 2002 by going to:

http://www.comm.media.state.mn.us/bookstore/stateregister/archives.asp



NOTICE OF FORECLOSURE OR CANCELLATION SECTION 7390

If a mortgage foreclosure or a cancellation of a contract for deed sale is started against thetaxpayer's real property on which a tax lien has been attached, a notice of foreclosure orcancellation must be mailed to the county treasurer at least 25 calendar days before theforeclosure sale or the date of cancellation. (M.S. 277.20, Subd. 6)

A notice does not have to be mailed to the county treasurer if the Notice of Tax Lien wasrecorded less than 31 days before the foreclosure sale or the date of cancellation.

Upon the request of the agent who mailed the notice, the county treasurer is required to send theagent a receipt for the notice within one business day after receiving the notice.

The notice must contain the following information.

1. The name and address of the taxpayer.

2. A copy of the notice of mortgage foreclosure or contract for deed cancellation.

3. A copy of the Notice of Tax Lien that was recorded by the county treasurer.

4. The total unpaid balance of the mortgage or contract for deed.

5. A legal description of the real property.

The notice of mortgage foreclosure or contract termination allows the county treasurer toevaluate whether or not it would be cost effective to redeem the real property in order topreserve the county's security interest under the tax lien. If the county's Notice of Tax Lien wasrecorded earlier in time than the mortgage or contract for deed, the county's tax lien isautomatically preserved.



LIEN SEARCH CERTIFICATE SECTION 7395

Any person may request and receive a lien search certificate from the county recorder, registrarof titles, or the Secretary of State. (M.S. 277.20, Subd. 8)

The lien search certificate must provide the requesting person with the following information.

1. A list of all liens and other documents affecting any lien that have been recorded afterDecember 31, 1989.

2. The name of each person against whom a lien or other document affecting any lien has beenrecorded after December 31, 1989.

3. The date and hour when each lien or other document affecting any lien was recorded afterDecember 31, 1989.

The fees for issuing a lien search certificate are contained in M.S. 336.9-525 and M.S. 357.18.Upon request, the recording officer must provide a copy of any notice of lien or other documentaffecting any lien for a fee of $1.00 per page.


DELINQUENT PERSONAL PROPERTY TAXES REVENUE RECAPTURE

TABLE OF CONTENTS


Introduction: Revenue Recapture ........................................................................................ 7410

General Information ............................................................................................................. 7420

County Applies for Tax ID ................................................................................................... 7430

County Files Claim with Revenue ........................................................................................ 7440

County Notifies Taxpayer ..................................................................................................... 7450

Revenue Processes County Claim ......................................................................................... 7460



INTRODUCTION: REVENUE RECAPTURE SECTION 7410

Revenue Recapture is probably the county treasurer's most convenient and efficient method ofenforcing payment of delinquent personal property taxes, including manufactured homes.Although it appears to function as a levy, Revenue Recapture is not officially a levy because it isnot included in the types of levy and seizure actions authorized under M.S. 277.21.

Revenue Recapture is a special procedure for the state government, the University of Minnesota,and certain local governmental units to collect debts by having the Department of Revenuewithhold the debtor's tax refunds, lottery winnings over $600, or certain other refunds and mailthem to the creditor agency. (M.S. 270A.01 to 270A.12)

Delinquent personal property taxes, including manufactured homes, are debts owed to thecounty. The county, as a local governmental unit, is an eligible creditor under the "RevenueRecapture Act." Therefore, the county treasurer may collect delinquent personal property taxes,including manufactured homes, through the Revenue Recapture program. This collectionmethod involves the cooperation of the Department of Revenue and the county treasurer.

In general, here is how Revenue Recapture works. The county treasurer files a claim with theDepartment of Revenue for the total delinquent tax amount owed by a taxpayer. TheDepartment of Revenue withholds the amount of the county's claim from the taxpayer's state taxrefunds, lottery winnings over $600, or certain other refunds and mails a check for that amountto the county treasurer. The county treasurer uses the money to pay all or a part of the totaldelinquent tax amount.

Similar to the other enforced collection actions, the county treasurer cannot file a claim against ataxpayer's state tax refunds, lottery winnings over $600, or certain other refunds with theDepartment of Revenue until the 90-day grace period following the billing date on the Notice ofDelinquent Taxes has expired. See Section 7220 for information about the 90-grace period.

The following procedures must be completed before the county treasurer can use RevenueRecapture to collect delinquent personal property taxes, including manufactured homes.

1. The county treasurer must understand the basic rules and regulations in order to know whento and how to use Revenue Recapture. These are outlined in Section 7420.

2. The county treasurer must make a one-time application to the Revenue Recapture Unit in theDepartment of Revenue for a Minnesota tax identification number. The procedures for doingthis are outlined in Section 7430.

3. The county treasurer must file a claim with the Revenue Recapture Unit in the Departmentof Revenue for each delinquent taxpayer. The alternative methods of filing and theinformation needed by the Department of Revenue are outlined in Section 7440.



INTRODUCTION: REVENUE RECAPTURE SECTION 7410(Continued) (Page 2)

4. The county treasurer must notify each affected taxpayer that a claim has been filed with theDepartment of Revenue. The form and content of the notice are presented in Section 7450.

5. The Revenue Recapture Unit in the Department of Revenue must process the countytreasurer's claim. The steps in this process are outlined in Section 7460.

In order to obtain information about the Revenue Recapture program at the Department ofRevenue, please contact one of the two individuals listed below.

1. KAREN L. CARLSON: Revenue Recapture Unit, (651) 556-4718

2. CONNIE BRENIZER: Revenue Recapture Unit, (651) 556-4753

Please mail all written communications to the address listed below.

Revenue Recapture UnitMinnesota Department of RevenueMail Station 4110St. Paul, MN 55146-4110

Here are the directions for visiting the Revenue Recapture Unit in person.

Department of Revenue BuildingTax Operations, 1st Floor600 North Robert StreetSt. Paul, Minnesota(North side of I-94 on Robert Street, west side of Jackson Street across from RegionsHospital.)



GENERAL INFORMATION SECTION 7420

As a first preliminary step, the county treasurer must understand the basic rules and regulationsin order to know when to and how to use Revenue Recapture. Some of the rules and regulationsare taken directly from the Revenue Recapture statutes (M.S. 270A.01 through 270A.12). Theothers have been developed by the Revenue Recapture Unit in the Department of Revenue.

An outline of these rules and regulations is presented below in the form of a question and answerformat.

1. CAN REVENUE RECAPTURE BE USED AGAINST ALL TAXPAYERS?

The answer is, no. A debtor under the Revenue Recapture provisions is defined as a "naturalperson." This means that the county treasurer may only use Revenue Recapture to collectdelinquent personal property taxes assessed in the name of an individual or individuals. Itcannot be used to collect taxes assessed in the name of an organization; e.g., a partnership, abusiness, or a corporation. (M.S. 270A.03, Subd. 4)

For example, delinquent personal property taxes assessed in the name of an individual who ownsa manufactured home or is leasing government-owned property can be collected with RevenueRecapture. Those assessed in the name of a non-municipal utility company or an elevator orwarehouse owned by a company or corporation and located on leased railroad right-of-way landcannot.

2. WHAT TYPES OF TAX REFUNDS MAY BE OFFSET UNDER REVENUE RECAPTURE?

The Revenue Recapture Unit in the Department of Revenue is authorized to offset (withhold)any of the following taxpayer refunds: (1) individual income tax refunds pursuant to M.S.Chapter 290, (2) political contribution refunds pursuant to M.S. Chapter 290, (3) property taxcredits or refunds pursuant to M.S. Chapter 290A, or (4) sustainable forest tax payments toclaimants under M.S. Chapter 290C. The following shall also be treated as refunds for thepurpose of Revenue Recapture and may be offset: (1) lottery winnings over $600, or (2) amountsgranted to persons by the legislature on the recommendation of the joint senate-house ofrepresentatives subcommittee on claims. (M.S. 270A.03, Subd. 7)

3. DOES THE DEPARTMENT OF REVENUE CHARGE A REVENUE RECAPTURE FEE?

The answer is, yes. A fee is not due at the time the claim is filed by the county treasurer. If arefund is withheld, a $10.00 fee for each claim will be deducted from the amount withheld. Theamount of the claim or the balance of the refund, whichever is less, will be forwarded to thecounty treasurer. (M.S. 270A.07, Subd. 1-2)



GENERAL INFORMATION SECTION 7420(Continued) (Page 2)

4. WHAT IS THE MINIMUM AMOUNT THAT MAY BE OFFSET?

The minimum amount that a county may claim is $25.00 (the minimum debt under M.S.270A.03, Subd. 5). The minimum amount of refund that may be offset by RevenueRecapture is $15.00. This is the minimum debt of $25.00 minus the $10.00 RevenueRecapture fee. (M.S. 270A.05)

5. WHAT IS THE DEADLINE FOR USING REVENUE RECAPTURE?

In general, the county treasurers may use Revenue Recapture up to five years after thepersonal property taxes became delinquent. If the county treasurer files a Notice of Tax Lien,Revenue Recapture may be used anytime within the 10-year duration of the lien.

6. HOW LONG DOES A REVENUE RECAPTURE CLAIM REMAIN IN EFFECT?

Once a Revenue Recapture claim is filed with the Department of Revenue, the claim remainsin effect until one of the following actions takes place: (a) the total delinquent tax amount ispaid by offsetting the taxpayer's refunds, or (2) the county treasurer notifies the Departmentof Revenue that the total delinquent tax amount has been collected through some othermethod.

The county treasurer is required to notify the Revenue Recapture Unit when a debt subjectto Revenue Recapture has been satisfied or reduced at least $200 by other means. Suchnotification must be made within 30 days of the satisfaction or reduction. (M.S. 270A.07)

7. WHICH CREDITORS HAVE PRIORITY IF THERE IS MORE THAN ONE CLAIM?

A taxpayer's state tax refunds are offset in the following order of priority: 1st, delinquent taxobligations owed to the Department of Revenue; 2nd, delinquent child support payments;3rd, criminal restitution; and 4th, any remaining debts (including delinquent personalproperty taxes owed to a county) based on the order in time in which the county claims werereceived. (M.S. 270A.10)

8. WHEN IS A COUNTY INELIGIBLE TO PARTICIPATE IN THE PROGRAM?

A county is ineligible to participate in the Revenue Recapture program if one of the followingconditions exists: (a) the county treasurer has a written payment agreement with thetaxpayer which prohibits recapture and the taxpayer is current on the payments (an escrowaccount or a confession of judgment), (b) the collection would result in the loss of federalfunds, (c) the time period allowed for collection has expired, or (d) the county treasurercannot supply the necessary identifying information. (M.S. 270A.04, Subd. 1-2)



COUNTY APPLIES FOR TAX ID SECTION 7430

As a second preliminary step, the county treasurer must apply to the Revenue Recapture Unit inthe Department of Revenue for a Minnesota tax identification number. The county treasurermust have a Minnesota tax identification number on record with the Revenue Recapture Unitbefore any claims for Revenue Recapture can be processed. This is a one-time application.

SPECIAL ID NUMBER FOR REVENUE RECAPTURE

The county treasurer must use this Minnesota tax identification number for the sole purpose ofparticipating in the state Revenue Recapture program. The county treasurer should apply forthis special number immediately so that it is on record when the county treasurer decides to useRevenue Recapture for the first time.

This Minnesota tax identification number is separate from the Minnesota tax identificationnumber that a county uses to make its deposits of state income tax withheld from employees orits payments of state sales taxes.

This Minnesota tax identification number is used in the Department of Revenue's computersystem to associate the county's name and address with its Revenue Recapture claims and toissue payments for refund offsets.

INFORMATION REQUIRED FOR THE APPLICATION

The standard information outlined below must be submitted to the Revenue Recapture Unit inthe Department of Revenue in order to obtain a special Minnesota tax identification number forRevenue Recapture.

1. The name of the county that will be filing claims for Revenue Recapture.

2. The official address for the county courthouse. (Street, city, county, state, zip code. Do notuse P.O. box.)

3. The official address where the offsets of the taxpayer's refunds are to be mailed. (Street, city,county, state, zip code. Do not use P.O. box.)

4. The reason for applying for the Minnesota tax identification number. (Revenue Recapture)

5. The printed name and signature of the county treasurer, the title of the county treasurer, thedate of the signature, and the county treasurer's telephone number.

Note: This application is made by telephone. Call Karen Carlson of the Revenue Recapture unitat (651) 556-4758.



COUNTY FILES CLAIM WITH REVENUE SECTION 7440

After the Minnesota tax identification number has been obtained, the county treasurer may file aRevenue Recapture claim anytime after the 90-day grace period following the billing date on thetaxpayer's Notice of Delinquent Taxes has expired. (See Section 7220 for information about theNotice of Delinquent Taxes and the 90-day grace period.)

NOTE: Because Revenue Recapture is not officially a levy, the county treasurer does not haveto send a Notice and Demand for Payment to the taxpayer and wait another 30calendar days before filing a Revenue Recapture claim as would have to be done beforelevying on a taxpayer's bank accounts or wages, for example, under M.S. 277.21.

INFORMATION REQUIRED FOR THE CLAIM

In order to file a Revenue Recapture claim, the county treasurer must provide the RevenueRecapture Unit in the Department of Revenue with the information listed below. (M.S. 270A.04,Subd. 2-4)

1. The full legal name(s) (last, first, middle initial) of the taxpayer(s) who are responsible for thedelinquent personal property taxes, including manufactured homes, and whose refunds are tobe offset.

2. The complete last known address of the taxpayer(s). (Street or rural route and P.O. box, cityor town, county, state, zip code.)

3. The social security number(s) of the taxpayer(s). M.S. 273.124, Subd. 13(c) provides that thecounty assessor may disclose social security numbers to the county treasurer for the purposeof recovering unpaid personal property taxes under Revenue Recapture.

4. The total amount that is to be offset from the taxpayer's state tax refunds, lottery winningsover $600, or certain other refunds.

5. The county name, courthouse address, and Minnesota tax identification number obtainedsolely for Revenue Recapture purposes.

6. The name and telephone number of the contact person in the county treasurer's office. (Thismay be the county treasurer or another person delegated by the county treasurer toadminister the Revenue Recapture program with the Department of Revenue.)



COUNTY FILES CLAIM WITH REVENUE SECTION 7440(Continued) (Page 2)

METHOD OF FILING: FORM ARC-150

The county treasurer must provide the Revenue Recapture Unit in the Department of Revenuewith the required information listed above in one of three ways: (1) Form ARC-150, (2) tapecartridge or diskette, or (3) county on-line computer system linked to the state's mainframecomputer system. The instructions for using the Form ARC-150 are outlined below.

If this method is used, the county treasurer must fill out a Form ARC-150 for each taxpayer withdelinquent personal property taxes that the county treasurer wants to collect through theRevenue Recapture program. The forms may be ordered from the Revenue Recapture Unit, orthe county may print its own forms.

If the county chooses to print its own forms, the form must conform exactly to the design andlanguage of the Department's Form ARC-150. To ensure conformity, the county's form must bereviewed by the Revenue Recapture Unit prior to its use. If the county uses a computer to printand fill out the forms on continuous paper, each form must be separated before the county mailsthe forms to the Revenue Recapture Unit.

See Section 7410 (Introduction) for a list of telephone numbers for the contact persons in theRevenue Recapture Unit in the Department of Revenue. The Form ARC-150 should be mailedto the Revenue Recapture Unit's address that is also listed in Section 7410.

METHOD OF FILING: TAPE CARTRIDGE OR DISKETTE

Instead of using Form ARC-150 or the county on-line computer system, the county treasurermay send the required information to the Revenue Recapture Unit in the Department ofRevenue on tape cartridge or diskette. As of July 1, 2002, two types of tape cartridges areacceptable: 3490 (36 track) and 3480 (18 track).

Note: As of July 1, 2002, reel-to-reel tapes will no longer be accepted.

METHOD OF FILING: ON-LINE COMPUTER SYSTEM

As an alternative to using Form ARC-150 or tape cartridge/diskettes, the county treasurer maytransmit the required information to the Revenue Recapture Unit in the Department of Revenuethrough an on-line computer system.

In order to use this method, the county must have access to the State of Minnesota mainframecomputer system. This may now be done via the internet.




Prior to the use of this method, the county treasurer or a designated employee must attend atraining course that is conducted by the Department of Revenue. Once you have completed thecourse, the county treasurer or the designated employee can directly enter the RevenueRecapture information into the state's computer system and modify it later as needed.

The county treasurer should call the Revenue Recapture Unit for more detailed instructions onthe use of the on-line computer system. See Section 7410 (Introduction) for a list of telephonenumbers for the contact persons in the Revenue Recapture Unit.

METHOD OF FILING: COVER LETTER

The county treasurer must enclose a cover letter along with all claims submitted on Forms ARC-150 or tape cartridge/diskettes. The cover letter must contain the information listed below.

1. The name of the county and the Minnesota tax identification number that is to be used solelyfor Revenue Recapture.

2. The name and telephone number of the county treasurer or an employee designated tosubmit the Revenue Recapture claims.

3. The number of claims submitted on the enclosed Forms ARC-150 or tape cartridge/diskette.

The county treasurer should mail the cover letter along with the Forms ARC-150 or tapecartridges/diskettes to the Revenue Recapture Unit's address that is listed in Section 7410(Introduction).

DECERTIFICATION/MODIFICATION OF THE CLAIM

The Revenue Recapture Unit in the Department of Revenue has set up a method for the countytreasurer to cancel a claim (decertification) or change the amount of a claim (modification) whena Form ARC-150 or tape cartridge/diskette has been filed. The form for this purpose is called a"Decertification/Modification Request."

1. DECERTIFICATION OF A CLAIM:

The "decertification" part of the form is used to cancel a claim. The county treasurer mustcomplete the form and mail it to the Revenue Recapture Unit within 30 calendar days after thetaxpayer has voluntarily paid the total delinquent tax amount or the county treasurer hasenforced payment by a method other than Revenue Recapture.




2. MODIFICATION OF A CLAIM:

The "modification" part of the form is used to increase or decrease the original amount of aclaim. The county treasurer must complete the form and mail it to the Revenue Recapture Unitwithin 30 calendar days after the taxpayer has voluntarily reduced the total delinquent taxamount by at least $200.00 or the county treasurer has enforced payment by another method toreduce it by at least $200.00.

Note: The county treasurer may choose to submit a modification when the reduction in the totaldelinquent tax amount due to voluntary payments from the taxpayer or due to otherenforced payment methods is less than $200.00.

The county treasurer may also use the form to increase the amount of the original RevenueRecapture claim. If enough time has passed since the claim was filed, the county treasurer maywant to add the amount of the interest that has accrued. Or the original claim may be increasedby the amount of the fees for filing a notice of tax lien since the original claim was filed.

The county treasurer should mail the Decertification/Modification Request to the RevenueRecapture Unit's address that is listed in Section 7410 (Introduction). Copies of the form can beobtained from the Revenue Recapture Unit. See Section 7410 (Introduction) for the names andtelephone numbers of the contact persons.

The county treasurers may also print and use their own copies of theDecertification/Modification Request. A sample form is presented on the next page. Use thesample form to develop your own county forms.





REVENUE RECAPTURE PROGRAMDECERTIFICATION/MODIFICATION REQUEST

DATE: May 10, 2002

TO: Revenue Recapture UnitMinnesota Department of RevenueMail Station 4110St. Paul, MN 55146-4110

FROM: Spruce County Agency

Audrey Trudeau, County Treasurer Contact Person

(234) 567-8910 Telephone Number

REGARDING: X Decertification(check appropriate line)

Modification

$ 359.29 Amount Previously Claimed

$ -359.29 Change to Claim (+ or -)

$ 0.00 New Balance of Claim

DATE CLAIM WAS SUBMITTED: March 14, 2002

FOR: Whitley, Bradley & Theresa (Last Name, First Name, Middle Initial)

568-38-7712 (Social Security Number)



COUNTY NOTIFIES TAXPAYER SECTION 7450

After filing a claim, the county treasurer must notify the taxpayer that a claim has been filedwith the Department of Revenue to have the taxpayer's state tax refunds or lottery winnings over$600 offset to pay for the taxpayer's delinquent personal property taxes, including manufacturedhomes. (M.S. 270A.08)

This letter to the taxpayers will be referred to as the "Notice of Revenue Recapture" in thisManual.

DEADLINE FOR MAILING THE NOTICE

The county treasurer must mail a Notice of Revenue Recapture to the taxpayer within 5 calendardays after filing a claim with the Department of Revenue to offset the taxpayer's state taxrefunds, lottery winnings over $600, or certain other refunds. (M.S. 270A.08, Subd. 1)

If the Notice of Revenue Recapture is returned by the Post Office as undeliverable, the countytreasurer must contact the Department of Revenue in an attempt to locate a more currentaddress. Once the new address is received, the county treasurer must send a second Notice ofRevenue Recapture to the taxpayer.

INFORMATION REQUIRED IN THE NOTICE

M.S. 270A.08 requires that the Notice of Revenue Recapture contain the information listedbelow in items #4, #5, #6, #7, and #9. The other items of information are recommended by theDepartment of Revenue. They are standard items of information contained in most tax notices.

1. The full legal name of the taxpayer as it appears in the county tax rolls. This should be thesame name as that used on the Notice of Delinquent Taxes.

2. The complete last known address of the taxpayer: Street or rural route and box number, cityor town, county, state, zip code.

3. The property identification number, the personal property type, the year or years when thetaxes were due, and the date when the Notice of Revenue Recapture was mailed.

4. A statement declaring that the taxpayer owes delinquent personal property taxes for the yearor years listed on the Notice.

5. A statement announcing that the county is exercising its authority under the RevenueRecapture Act, M.S. 270A, to collect the total amount listed on the Notice.



COUNTY NOTIFIES TAXPAYER SECTION 7450(Continued) (Page 2)

6. A statement announcing that the county has instructed the Department of Revenue towithhold the total amount listed on the Notice from any of the taxpayer's state tax refunds,lottery winnings over $600, or certain other refunds to pay for the total delinquent taxamount.

7. A breakdown of the total delinquent tax amount which will be withheld by the Departmentof Revenue from the taxpayer's state tax refunds, lottery winnings over $600, or certain otherrefunds: unpaid tax, penalty, fee for recording a tax lien, fee for releasing a tax lien, othercounty costs, interest, $10 state processing fee, and total due.

8. A statement announcing that any additional fees, costs, and/or interest that may be addedafter the date on the Notice must be paid before the county will release the tax lien, if one wasfiled, and cancel the tax liability.

9. A statement announcing that the taxpayer has the right to contest the county's action within45 calendar days after the date on the Notice.

10. The printed name, signature, title, address, and telephone number of the county treasureralong with the date of the signature.

FORM OF THE NOTICE

The Revenue Recapture provisions do not contain any requirements or guidelines for the form ofthe Notice of Revenue Recapture. As a result, the Department of Revenue recommends that thecounty treasurer use the form provided on the next page of this Section 7450. Any variation onthe form must still contain the statutorily required information listed above.

The suggested form of the Notice of Revenue Recapture that is presented on the following page isdesigned for delinquent manufactured home taxes. To use the form for other delinquentpersonal property taxes, all references to "manufactured home" must be changed to "personalproperty."





NOTICE OF REVENUE RECAPTURE

Bradley & Theresa Whitley___________ Property ID#: 012-578-803_________________Pine Cove Mobile Home Park_________ Property Type: Manufactured Home__________ 342 Washington Street_______________ Tax Year(s): 1993_______________________ Applewood, MN 57252_______________ Billing Date: March 23, 1994______________

According to our records, you owe delinquent personal property taxes on your manufactured homefor the year(s) listed above.

This is to notify you that we are exercising our authority under the Revenue Recapture Act,Minnesota Statutes 270A, to collect the total amount listed below. We have instructed theDepartment of Revenue to withhold the total amount listed below from any state tax refunds,lottery winnings over $600, or other certain refunds due to you.

TOTAL AMOUNT TO BE WITHHELD FIGURED THROUGH DATE OF NOTICE:

1. Unpaid Manufactured Home Tax $ 287.752. Penalty $ 23.023. Fee for Recording Tax Lien $ 15.004. Fee for Releasing Tax Lien $ 15.005. Other County Costs $ 0.006. Interest $ 8.527. State Processing Fee $ 10.008. Total Due $ 359.29

Any additional fees, costs, and/or interest that may be added after the date of this notice must bepaid before the county will release the tax lien, if one was filed, and cancel your tax obligation.

You have the right to contest the validity of this claim. You may exercise this right by making awritten request for a county hearing by May 6, 1994 , which is 45 calendar days from thedate of this notice. The request or tax payments must be sent to the address listed below.

Date Signed: March 23, 1994 Audrey Trudeau, Spruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910




TAXPAYER'S CONTESTED CASE HEARING

After receiving the Notice of Revenue Recapture, the taxpayer may send a written notice to thecounty treasurer, requesting a hearing to contest the validity of the county's claim. Thetaxpayer's written notice must be received by the county treasurer no later than 45 calendar daysafter the date on the original Notice of Revenue Recapture or a corrected one. (M.S. 270A.08,Subd. 2(b); 270A.09)

Upon receipt of a taxpayer's request, the county treasurer must set up a hearing for no later than30 calendar days after the date the taxpayer's request was received. The hearing is to beconducted according to the contested case procedures established in the state AdministrativeProcedure Act (M.S. 14.001 through 14.69). No issue may be raised at the hearing that has beenpreviously ruled on in a court of law.



REVENUE PROCESSES COUNTY'S CLAIM SECTION 7460

The final step in the Revenue Recapture process is for the Revenue Recapture Unit in theDepartment of Revenue to process the county treasurer's claim to a taxpayer's state tax refunds,lottery winnings over $600, or certain other refunds. (M.S. 270A.07)

The major actions performed by the Revenue Recapture Unit are outlined below.

1. THE COUNTY CLAIMS ARE ENTERED INTO THE REFUND PROCESSING MODULE(RPM) COMPUTER SYSTEM.

The information is entered and matched against the Individual Master File. The county isnotified of any discrepancies. The claim is not removed from the system at the end of the yearwhen the claim was filed as it was under previous law. Instead, the claim remains on file untilenough of the taxpayer's refunds are offset to cover the amount of the claim or the countytreasurer cancels the claim.

2. THE TAX RETURNS ARE PROCESSED AND THE TAX REFUNDS ARE ISSUED.

Although they can be issued daily beginning around January 15, the major bulk of the stateincome tax refunds come in March, April, and May. Property tax refunds are issuedbeginning around August 2 for renters and September 15 for homeowners. Property taxrefunds for manufactured home owners are determined at the same time as refunds forrenters. Smaller volumes of refunds on delinquent and amended returns are issuedthroughout the year.

Because of having to wait 90 calendar days after the billing date on the Notice of DelinquentTaxes, the county treasurer will not be able to file a Revenue Recapture claim until the middleof March at the earliest. This means that some of the earlier income tax refunds may beissued to the taxpayer before the county treasurer can put a claim on them.

The same timing problem does not exist with the property tax refunds. If a taxpayer hasdelinquent property taxes, any property tax refund is withheld by the Department of Revenueuntil the delinquent taxes are paid. So the taxpayer's property tax refund will always beavailable unless it is claimed by the state or the county for child support payments.

3. THE CLAIMS ARE DEDUCTED FROM THE REFUNDS AND CHECKS ARE ISSUED.

The Department of Revenue's computer system deducts the claims from the taxpayer's statetax refunds, lottery winnings over $600, or certain other refunds and issues a payment to thecounty treasurer and to the taxpayer if there is a refund balance remaining after the offset.



REVENUE PROCESSES COUNTY'S CLAIM SECTION 7460(Continued) (Page 2)

The Revenue Recapture Unit notifies the taxpayer of the refund offset and notifies the countytreasurer that a payment is being sent.

The Revenue Recapture Unit mails the check (warrant) to the county treasurer.* One checkis issued each day for all delinquent personal property taxes offset in that day's processing.

The Revenue Recapture Unit updates the claim with the amount offset and calculates thebalance remaining, if any.

4. MONTHLY AND ANNUAL REPORTS ARE MAILED TO THE COUNTY TREASURERTO AID IN THE MANAGEMENT OF THE CLAIMS.

The Revenue Recapture Unit also mails a monthly report to the county called "Summary ofOffsets by Claimant Agency" to aid in the management of the claims.

A report called "Inventory Report of Claims by Claimant" is available upon request to assistthe county treasurers in reconciling their records with claim balances on the Department ofRevenue's computer system. It is anticipated that county treasurers would use this report onan annual basis. It may be requested by calling one of the contact persons at the RevenueRecapture Unit. The names and telephone numbers are listed in Section 7410 (Introduction).

* NOTE #1: COUNTY TREASURER MUST REFUND BALANCE TO TAXPAYER

If, for any reason, the amount of a taxpayer's refund that is received from the Revenue RecaptureUnit is more than the total delinquent tax amount, the county treasurer must provide a refund tothe taxpayer for the amount of the overpayment. In addition, the county treasurer must payinterest on the amount of the overpayment from the date the tax was paid. The annual rate ofinterest is the actual adjusted prime rate as determined under M.S. 270.75, Subd. 5. (M.S.270A.07, Subd. 5)

* NOTE #2: JOINT PROPERTY TAX REFUND SUBJECT TO REVENUE RECAPTURE

The amount of a joint property tax refund subject to Revenue Recapture must be apportionedaccording to each spouse's share of their total income. The Revenue Recapture Unit must sendthe total refund to the county treasurer. Upon request from the spouse who does not owe thedelinquent taxes, the county treasurer must calculate the portion of the refund belonging to thatspouse and deliver it to that spouse. (M.S. 270A.03, Subd. 7)


DELINQUENT PERSONAL PROPERTY TAXES LEVY + SEIZURE AUTHORITY

TABLE OF CONTENTS


Introduction: Levy and Seizure Authority .......................................................................... 7505

General Information ............................................................................................................. 7510

County Shares State's Authority .......................................................................................... 7520

Three Levy and Seizure Methods ......................................................................................... 7530

Property Subject to Levy + Seizure ...................................................................................... 7540

Property Exempt from Levy + Seizure ................................................................................. 7550

Maximum Amount of Levy + Seizure .................................................................................. 7560

Notice and Demand for Payment ......................................................................................... 7570

Jeopardy Collection or Assessment ...................................................................................... 7580

Discovery of Taxpayer Assets ............................................................................................... 7590



INTRODUCTION: LEVY + SEIZURE AUTHORITY SECTION 7505

At this point in the collection process, the county treasurer has mailed the Notice of DelinquentTaxes, probably filed a Notice of Tax Lien, developed a collection plan, and followed up with atelephone call. The 90-day grace period following the date on the Notice of Delinquent Taxes hasexpired, and the taxpayer still has not volunteered to pay the total delinquent tax amount. Whatdoes the county treasurer do now?

Under the old collection provisions, the county treasurer did not have to deal with this question.The responsibility of enforcing the payment of the total delinquent tax amount was in the handsof other officials. The county sheriff had to make the collection or serve citations. If this failed,the court had to enter judgments against the taxpayers, and the county sheriff had to enforce thejudgments by seizing and selling the taxpayer's property. (M.S. 277.02, 277.03, and 277.05through 277.13, repealed by the 1991 Minnesota Legislature)

Under the current law collection provisions (M.S. 277.21), the county treasurer is solelyresponsible for enforcing the payment of the total delinquent tax amount. If the county treasurerdoes not take direct action, nothing will happen. The total delinquent tax amount will simplyremain unpaid.

To assure that action is taken, M.S. 277.21, Subd. 1 provides that:

"If a tax assessed on personal property or manufactured homes and collectibleunder this chapter is not paid when due, the county treasurer shall, as soon aspracticable, take action the county treasurer considers necessary and reasonableto collect the delinquent tax."

To fulfill this mandate, the law gives the county treasurer several options to enforce payment ofthe total delinquent tax amount without obtaining a court judgment.

Series 7500 outlines the general levy and seizure authority that is available to the countytreasurer. These general provisions apply to the specific methods of levying on a taxpayer's bankaccounts (Series 7600), levying on a taxpayer's wages (Series 7700), and seizing and selling ataxpayer's personal and real property (Series 7800).



GENERAL INFORMATION SECTION 7510

Section 7510 outlines some of the general information that the county treasurer needs tounderstand before deciding to enforce the payment of the total delinquent tax amount by levyingon a taxpayer's money or seizing and selling a taxpayer's property without obtaining a courtjudgment. This information applies to all of the specific methods of levying on money andseizing and selling property.

DEFINITION: "LEVY" VS. "SEIZE"

Most of us are accustomed to using the term, "levy," to mean the assessment of a property tax orthe tax itself. In the legal world of creditors and debtors, the term, "levy," refers to the authorityof a creditor to "seize" a debtor's assets so they can be sold and the money can be used to pay theoutstanding debts. In this context, the terms, "levy" and "seize" usually are synonymous.

In this Manual, the terms, "levy" and "seize," will be used separately to describe two of themajor types of enforced collection actions available to the county treasurer. The term, "levy,"will refer to the county treasurer's option to direct a third party to confiscate a taxpayer's moneyand send it to the county treasurer. The term, "seize," will refer to the county treasurer's optionof confiscating a taxpayer's personal or real property so it can be sold and the proceeds can beused to pay the total delinquent tax amount. The compound term, "seize and sell," willsometimes be used to describe the complete process.

Series 7600 and 7700 focus on the rules, procedures, and forms for levying on a taxpayer's bankaccounts and wages, respectively. These are probably the county treasurer's most convenientand effective methods of levying on a taxpayer's money. A bank levy and a wage levy can beaccomplished indirectly through written communications with the bank and the employer. Itdoes not require personal contact with the taxpayer.

Series 7800 covers the rules, procedures, and forms for seizing and selling a taxpayer's personalor real property. This is undoubtedly the most severe method of enforced collection. It usuallyinvolves the personal seizure and sale of physical objects that are in the possession of thetaxpayer. Therefore, it is probably the method that will be used only as a last resort by thecounty treasurer.

EFFECTIVE DATE FOR LEVY + SEIZURE PROVISIONS

The current levy and seizure provisions under M.S. 277.21 are effective beginning on January 1,1992. In practice, this means that the county treasurer may use the current levy and seizureprovisions to collect any delinquent personal property taxes, including delinquent manufacturedhome personal property taxes, remaining unpaid on or after January 1, 1992, whether or not thetax is included in a court judgment.



GENERAL INFORMATION SECTION 7510(Continued) (Page 2)

COURT JUDGMENT NOT NEEDED FOR LEVY OR SEIZURE

Until 1992, a taxpayer's personal and real property could not be levied on or seized and sold untila court judgment had been entered. There was one exception. If the county had reason tobelieve that the property would be removed from the county before the court judgment could beentered, the property could be levied on or seized and sold immediately. These more restrictedlevy and seizure provisions (M.S. 277.02, 277.03, and 277.05 through 277.13) were repealed bythe 1991 Minnesota Legislature.

Under the current law provisions (M.S. 277.21), the county treasurer is authorized to levy on orseize and sell a taxpayer's money or property without obtaining a court judgment. The changegives the county treasurer the freedom to act quickly and independently. There is norequirement to wait until a court judgment can be entered.

However, if a court judgment is deemed desirable, the county treasurer may proceed against thetaxpayer with a court action. If a favorable judgment is entered, the county sheriff must enforcethe judgment by levying on the taxpayer's money or seizing and selling the taxpayer's personalor real property and must turn over the proceeds to the county treasurer to pay all or part of thetotal delinquent tax amount. See Section 7530 and Series 7900 for information about when it isappropriate to obtain a court judgment.

DURATION OF LEVY AND SEIZURE AUTHORITY

The county treasurer may levy on or seize and sell a taxpayer's money or property anytimewithin five years after the date of assessment. The phrase, "date of assessment," refers toJanuary 2 of the year when the property was assessed for the purpose of imposing the tax that isdelinquent. (M.S. 277.21, Subd. 1)

If a Notice of Tax Lien has been recorded, the county treasurer may exercise the levy and seizureauthority anytime within the 10-year period the lien is enforceable. If the Notice of Tax Lien isextended for another ten years, the levy and seizure authority is also extended for that same 10-year period. If a court judgment has been entered, the levy and seizure authority extendsthroughout the statutory period of enforcement of the judgment.



COUNTY SHARES STATE'S AUTHORITY SECTION 7520

In general, the current law intends for the county treasurer to use the same basic methods oflevying on or seizing and selling a taxpayer's money or property as have been used by theDepartment of Revenue to collect delinquent state taxes for years.

As proof of this legislative intent, the current levy and seizure provisions for the countytreasurers (M.S. 277.21) are almost an exact duplicate of the levy and seizure provisions in M.S.270.70 that are used by the Department of Revenue.

In addition to its own levy and seizure provisions, M.S. 277.21 also grants the county treasurersthe powers of M.S. 550 to levy on or seize and sell a taxpayer's money or property, as well as theextra levy and seizure powers granted to the Department of Revenue in M.S. 270.7001, 270.7002,and 290.92, Subd. 23. (M.S. 277.21, Subd. 3)

M.S. 270.70, 270.7001, 270.7002, and 290.92, Subd, 23, along with M.S. 550, contain only thegeneral provisions for the Department of Revenue to levy on or seize and sell a taxpayer's moneyor property. In order to put these general provisions into practice, the Department of Revenuehad to develop a set of collection manuals with detailed rules, procedures, and forms that extendthe general provisions in the statutes.

Because M.S. 277.21 contains almost the same general provisions as M.S. 270.70 and alsoreferences M.S. 550 as well as in M.S. 270.7001, 270.7002, and 290.92, Subd. 23, the countytreasurer is left with the same need for detailed rules, procedures, and forms for levying on orseizing and selling a taxpayer's money or property. In order to satisfy this need, the Departmentof Revenue recommends that the county treasurer follow the rules, procedures, and forms foundin the Department's collection manuals.

The outline of the rules, procedures, and forms for levying on or seizing and selling a taxpayer'smoney and property (which are presented in Series 7500, 7600, 7700, and 7800 of this Manual)are based on the appropriate statutes and the Department of Revenue's collection manuals.



THREE LEVY AND SEIZURE METHODS SECTION 7530

In order to enforce the payment of delinquent personal property taxes, including manufacturedhomes, the county treasurer may levy on or seize and sell a taxpayer's money or property in oneor more of the three ways outlined below. All three methods are part of the general levy andseizure authority granted to the county treasurer in M.S. 277.21.

METHOD #1: COUNTY TREASURER ACTS INDEPENDENTLY

Under the first method, the county treasurer may personally levy on or seize and sell a taxpayer'smoney or property under the administrative authority of the county treasurer's office. Thecounty treasurer does not have to issue a warrant requiring the county sheriff's action. Thecounty treasurer does not have to obtain a court judgment. The county treasurer may simply actalone. (M.S. 277.21, Subd. 1 and 3)

The Department of Revenue recommends that this personal method of levying on or seizing ataxpayer's money or property be used only when there is no danger of physical harm to thecounty treasurer.

For example, the county treasurer can levy on a taxpayer's bank accounts (Series 7600) or wages(Series 7700) without danger of physical harm because there is no personal contact with thetaxpayer. All of the actions can be accomplished through written communications with the bankor the employer.

When there is any possibility of physical harm, the county treasurer should use method #2 that isexplained below.

METHOD #2: COUNTY TREASURER ISSUES WARRANT TO SHERIFF

Under the second method, the county treasurer still may act under the administrative authorityof the county treasurer's office. However, instead of taking personal action, the county treasurermay issue a warrant to the county sheriff. The county sheriff is required to levy on or seize andsell the taxpayer's money or property as the county treasurer's agent and as specificallycommanded in the warrant. (M.S. 277.21, Subd. 13)

Under the old provisions repealed by the 1991 Minnesota Legislature, the county sheriff wasrequired to levy on or seize and sell a taxpayer's money or property in order to enforce a courtjudgment. Under the current law provisions, no court judgment is needed. The county sheriff isrequired to perform the levy or seizure and sale under the authority of the county treasurer'swarrant. The county treasurer's warrant is just as binding on the county sheriff as any warrantfrom the court.



THREE LEVY AND SEIZURE METHODS SECTION 7530(Continued) (Page 2)

The Department of Revenue recommends that the county treasurer use the services of the countysheriff whenever there is danger of physical harm. For example, the county sheriff should act asthe county treasurer's agent to seize and sell a taxpayer's personal property; e.g., a boat, asnowmobile, or a manufactured home. These actions require personal contact with a potentiallyhostile taxpayer. The county sheriff is specifically trained and armed to deal with this situation.

METHOD #3: COUNTY TREASURER OBTAINS COURT JUDGMENT

Under the third method, the county treasurer may choose not to act under the administrativeauthority of the county treasurer's office. Instead, the county treasurer may choose to actthrough the judicial authority of the court. The county treasurer may request the countyattorney to bring a court action against the taxpayer for the total delinquent tax amount. If afavorable judgment is entered, the county sheriff is required to enforce the judgment by levyingon or seizing and selling the taxpayer's money or property.

The Department of Revenue recommends that the county treasurer only use the third method tolevy on or seize and sell the money or property of a taxpayer who lives outside the state ofMinnesota. For all other tax cases, the county treasurer should use method #1 or method #2. SeeSeries 7900 for more information about the use of a court judgment.

COUNTY TREASURER HOLDS LEVY AND SEIZURE AUTHORITY

Remember: The county treasurer is given the authority and responsibility to enforce thepayment of delinquent personal property taxes, including delinquent manufactured homespersonal property taxes, by M.S. 277.21. If the taxpayer does not voluntarily pay the delinquenttax amount, the county treasurer must take action or the amount due will never be collected.

Under M.S. 277.21, the county treasurer must make the decision to levy on or seize and sell ataxpayer's money or property. The decision rests with the county treasurer regardless ofwhether the county treasurer acts personally, issues a warrant to the county sheriff to act, orobtains a court judgment for the county sheriff to act. In all cases, the county treasurer mustmake the first move or nothing will happen.



PROPERTY SUBJECT TO LEVY + SEIZURE SECTION 7540

In general, the county treasurer is authorized to levy on or seize and sell as much of a taxpayer'smoney or property as is needed to pay the total delinquent tax amount. The levy and seizureauthority also extends to the taxpayer's rights to obtain money or property in the future. (M.S.277.21, Subd. 13)

Exception: The county treasurer's levy and seizure authority does not extend to the types ofproperty exempt under M.S. 550.37, 550.38, and 550.39. However, manufactured homesotherwise exempt under M.S. 550.37, Subd. 12, are subject to the county treasurer's seizure andsale authority. See Section 7550 for more detailed information about these exceptions.

LEVY AUTHORITY: MONEY ON DEPOSIT OR OWED TO THE TAXPAYER

Except for the statutory exemptions, the county treasurer may levy on any of the taxpayer'smoney sources; i.e., money held on deposit by a third party or money owed to the taxpayer by athird party. Some of the major money sources that the Department of Revenue levies on underM.S. 270.70 are listed below. The county treasurer has the authority to levy on these samemoney sources under M.S. 277.21.

1. A LEVY ON A TAXPAYER'S BANK ACCOUNTS.

This levy requires a bank, a savings and loan association, a credit union, or any otherfinancial institution to withdraw a taxpayer's money on deposit and send it to the countytreasurer. Any financial institution that fails to comply with a bank levy is personally liablefor the amount of the claim. See Series 7600 for detailed information about the rules,procedures, and forms for exercising this levy authority.

2. A LEVY ON A TAXPAYER'S WAGES.

This levy requires an employer to withhold an authorized amount from an employee's wagesand send it to the county treasurer. The employer must continue to withhold money eachpay period until the total delinquent tax amount is paid. Any employer that fails to complywith a wage levy is personally liable for the amount of the claim. See Series 7700 for detailedinformation about the rules, procedures, and forms for implementing this levy authority.

3. A LEVY ON A TAXPAYER'S INTEREST IN A CONTRACT FOR DEED AS VENDOR

This levy requires the buyer under a contract for deed (vendee) to send the installmentpayments to the county treasurer instead of the seller who is the delinquent taxpayer. Thevendee must continue to send the payments to the county treasurer until the total delinquenttax amount is paid or until the contract is satisfied. Any vendee who fails to comply with acontract for deed levy is personally liable for the amount of the claim.



PROPERTY SUBJECT TO LEVY + SEIZURE SECTION 7540(Continued) (Page 2)

4. A LEVY ON THE CONTENTS OF A TAXPAYER'S CASH DRAWER

This levy requires the taxpayer to turn over the contents of a cash register, a safe, a vault,cash box, or any other type of cash receptacle to the county treasurer. Because a cash drawerlevy requires personal contact with the taxpayer, the Department of Revenue recommendsthat the county treasurer use the county sheriff to levy on a taxpayer's cash drawer.

SEIZURE AUTHORITY: PERSONAL + REAL PROPERTY

Except for the statutory exemptions, the county treasurer may seize and sell any of the taxpayer'stangible personal property or real property. Tangible personal property refers to materialobjects that are movable. Real property refers to land, anything growing on the land, andanything permanently constructed on the land.

1. THE SEIZURE/SALE OF THE TAXPAYER'S MANUFACTURED HOME

This refers to the taxpayer's manufactured home on which the delinquent personal propertytaxes were assessed. It does not include the leased land on which the manufactured home islocated.

2. THE SEIZURE/SALE OF THE TAXPAYER'S MOTOR VEHICLES

This includes automobiles, pickup trucks, trucks, vans, recreational vehicles, four-wheel drivevehicles, tractors, grain combines, lawn mowers, snow blowers, and airplanes.

3. THE SEIZURE/SALE OF THE TAXPAYER'S RECREATIONAL EQUIPMENT

This includes motor homes, motorboats, sailboats, canoes, snowmobiles, motorcycles,motorbikes, motor scooters, shotguns, rifles, revolvers, pistols, fishing tackle, fishing rods,fishing reels, bows and arrows, video cameras, and golf clubs.

4. THE SEIZURE/SALE OF THE TAXPAYER'S DOMESTIC ANIMALS

This includes dairy cattle, beef cattle, horses, sheep, goats, pigs, chickens, and pet-shopanimals.

5. THE SEIZURE/SALE OF THE TAXPAYER'S HOME APPLIANCES

This includes refrigerators, freezers, portable microwave ovens, portable room heaters,washers, dryers, television sets, stereo systems, and videocassettes.




6. THE SEIZURE/SALE OF THE TAXPAYER'S HOME FURNITURE

This includes sofas, upholstered chairs, TV recliners, dining room tables, hutches, lamptables, coffee tables, lamps, dinette sets, dressers, bureaus, and desks.

7. THE SEIZURE/SALE OF THE TAXPAYER'S OFFICE EQUIPMENT

This includes personal computers, printers, copiers, typewriters, word processors, filingcabinets, desks, and chairs.

8. THE SEIZURE/SALE OF THE TAXPAYER'S MOVABLE EQUIPMENT ANDMACHINERY USED IN COMMERCIAL AND INDUSTRIAL OPERATIONS.

9. THE SEIZURE/SALE OF THE TAXPAYER'S REAL PROPERTY

This includes any land, anything growing on the land, and anything permanently constructedon the land.

GUIDELINES FOR LEVYING ON OR SEIZING ASSETS

There are two conditions that should exist before the county treasurer considers levying on orseizing and selling a taxpayer's money or property. If these two conditions do not exist, thecounty treasurer should not take action against the taxpayer's assets even though they aresubject to the levy and seizure authority.

1. CONDITION #1: TAXPAYER'S INTEREST IN THE ASSETS

The taxpayer's interest in the money or property must be large enough to pay the totaldelinquent tax amount or at least a large portion of it. Before taking action, the countytreasurer should make sure that the money or property has not been pledged to someone else.

Information on Uniform Commercial Code (UCC-1) financial statements can be obtainedfrom the Secretary of State's Office. The county recorder's office has information about anysecurity or lien interests in the taxpayer's property.




2. CONDITION #2: CONVERTIBILITY OF PROPERTY INTO CASH

Obviously, this condition does not apply to a levy on the taxpayer's money that is already inthe form of cash. It does apply to the taxpayer's personal and real property that must beeasily and inexpensively convertible into cash so that the county treasurer can pay the totaldelinquent tax amount. If it cannot be easily and inexpensively converted into cash, theproperty is valueless to the county treasurer.

NOTE: The information needed to know whether or not these two conditions exist can be obtained as part of the research done for the collection plan. See Section 7230 for information about the process of developing a collection plan for each taxpayer.



PROPERTY EXEMPT FROM LEVY + SEIZURE SECTION 7550

The county treasurer is authorized to levy on or seize and sell all of the taxpayer's money orproperty except for the types of property exempt from levy and seizure under M.S. 550.37,550.38, and 550.39. (M.S. 277.21, Subd. 13)

NOTE: Manufactured homes that are owned by the taxpayer and taxed as personal property are subject to the county treasurer's seizure and sale authority even though they are otherwise exempt under M.S. 550.37, Subd. 12.

The types of property that are exempt from levy under M.S. 550.37, 550.38, and 550.39 areoutlined below. They are the same types of property that are also exempt from a tax lien underM.S. 277.20.

1. The family bible, library, and musical instruments. (M.S. 550.37, Subd. 2)

2. A seat or pew in any house or place of public worship and a lot in any burial ground. (M.S.550.37, Subd. 3)

3. Personal apparel, one watch, utensils, and food of the taxpayer and the taxpayer’s family.(M.S. 550.37, Subd. 4)

4. Household furniture, appliances, phonographs, and radio and television receivers of thetaxpayer and family not exceeding $8,100 in value. (M.S. 550.37, Subd. 4)

5. Farm machines and implements used in farming operations by the taxpayer engagedprincipally in farming, livestock, farm produce, and standing crops not exceeding $13,000 invalue. (M.S. 550.37, Subd. 5)

6. Tools, implements, machines, instruments, office furniture, stock in trade, and libraryreasonably necessary in the trade, business, or profession of the taxpayer not exceeding$9,000 in value. (M.S. 550.37, Subd. 6)

7. The total value of property exempt under #5 and #6 must not exceed $13,000 if theexemptions are combined. (M.S. 550.37, Subd. 7)

8. The library and philosophical and chemical or other apparatus used for the instruction ofyouth and belonging to any university, college, seminary of learning, or school that isindiscriminately open to the public. (M.S. 550.37, Subd. 8)

9. All money arising from any claim because of the destruction of or damage to exemptproperty. (M.S. 550.37, Subd. 9)



PROPERTY EXEMPT FROM LEVY + SEIZURE SECTION 7550(Continued) (Page 2)

10. Life insurance benefits payable to a surviving spouse or child up to $36,000 with anadditional $9,000 for each dependent of the surviving spouse or child. (M.S. 550.37, Subd.10)

11. All benefits payable by any police department or fire department association, beneficiaryassociation, or fraternal benefit association to any person entitled to assistance. (M.S.550.37, Subd. 11)

12. One motor vehicle to the extent of a value not exceeding $3,600, or one motor vehicle to theextent of a value not exceeding $36,000 that has been modified, at a cost of not less than$2,700, to accommodate the physical disability making a disabled person eligible for acertificate authorized by M.S. 169.345. (M.S. 550.37, Subd. 12(a)

13. All relief based on need and the earnings or salary of a person who is a recipient of reliefbased on need. This includes MFIP, work first, general assistance medical care,supplemental security income, medical assistance, Minnesota supplemental assistance, andgeneral assistance. The salary or earnings of any taxpayer who is or has been a recipient oran inmate of a correctional institution must be exempt for six months after return toemployment or farming. (M.S. 550.37, Subd. 14)

14. The earnings of the minor child of the taxpayer and any child support paid to the taxpayer,by reason of any liability of the taxpayer not contracted for the special benefit of the minorchild. (M.S. 550.37, Subd. 15)

15. The claim for damages recoverable by the taxpayer for a levy or sale of the taxpayer'sexempt personal property or for the wrongful taking or detention of such property and anyjudgment recovered for the damages. (M.S. 550.37, Subd. 16)

16. The taxpayer's aggregate interest not to exceed $7,200 in any accrued dividend or interestunder or loan value of any unmatured insurance contract owned by the taxpayer and underwhich the insured is the taxpayer or an individual of whom the taxpayer is a dependent.(M.S. 550.37, Subd. 23)

17. The taxpayer's right to receive present or future payments or past payments under a stockbonus, pension, profit sharing, annuity, individual retirement account, Roth IRA, individualretirement annuity, simplified employee pension, or similar plan or a contract on account ofillness, disability, death, age, or length of service. (M.S. 550.37, Subd. 24)



PROPERTY EXEMPT FROM LEVY + SEIZURE SECTION 7550(Continued) (Page 3)

The exemption for the taxpayer's aggregate interest under all plans and contracts is limitedto a present value of $54,000 and additional amounts under all plans and contracts is limitedto what is reasonably necessary for the support of the taxpayer and any spouse anddependents of the taxpayer.

18. The proceeds of payments received by a person for labor, skill, material, or machinerycontributing to an improvement to real estate within the meaning of M.S. 514.01. (M.S.550.37, Subd. 25)

19. All moneys paid to the taxpayer as a veteran's pension, bonus, adjusted compensationallotment, or other benefit by the state of Minnesota or the United States. (M.S. 550.38)

20. The net amount payable to the taxpayer or a beneficiary under any policy of accident ordisability insurance or under any accident or disability clauses attached to any policy of lifeinsurance. (M.S. 550.39)

NOTE: ADJUSTMENT TO DOLLAR LIMITS ON PROPERTY EXEMPTIONS

M.S. 550.37 requires that the dollar limitations on property exemptions, excluding the dollarlimitations in M.S. 550.37, Subds. 5 and 7 (numbers 5 and 7 above) be adjusted in evennumbered years based on the percentage change in the Implicit Price Deflator for the GrossNational Product. No adjustment is made unless the percentage of change between the index forDecember of the preceding year and the reference base index, calculated to the nearest wholepercentage point, is 10% or more.

The Minnesota Department of Commerce announces the dollar limits on property exemptionsevery even numbered year in an April issue of the State Register. The changes become effectiveon July 1 of the year in which they are announced. The dollar limits listed above wereannounced in the April 15, 2002 issue of the State Register.

Copies of the State Register should be available in the county library. This information may alsobe found on the Department of Administration’s web page. The numbers above were found inOctober of 2002 by going to:

http://www.comm.media.state.mn.us/bookstore/stateregister/archives.asp



MAXIMUM AMOUNT OF LEVY + SEIZURE SECTION 7560

Section 7560 defines the maximum amount that a county treasurer can levy on a taxpayer'smoney or realize from the seizure and sale of a taxpayer's personal or real property. It alsoexplains how any excess money from a levy or seizure must be handled.

LEVY OR SEIZURE FOR THE TOTAL DELINQUENT TAX AMOUNT

The county treasurer is authorized to levy on or seize and sell as much of a taxpayer's money orproperty as is needed to pay the total delinquent tax amount. For any given tax situation, thetotal delinquent tax amount may equal all or some of the components outlined below. (M.S.277.21, Subd. 1 and 13)

1. The unpaid tax itself.

2. The penalty on the unpaid tax.

3. The fees for recording, transcribing, renewing, and releasing a tax lien.

4. The interest that has accrued up to the time of the levy or seizure.

5. The county sheriff's costs for seizing and selling property.

6. The court costs for entering a tax judgment.

DISTRIBUTION OF ANY EXCESS AMOUNT

Any excess money from a levy or seizure and sale that remains after paying the total delinquenttax amount must be paid to the taxpayer. In short, the county treasurer is only allowed to retainthe exact amount of money from any levy or seizure and sale that is needed to pay the totaldelinquent tax amount.



NOTICE AND DEMAND FOR PAYMENT SECTION 7570

Before any of the taxpayer's money or property can be levied on or seized and sold, the countytreasurer must send a Notice and Demand for Payment to the taxpayer. This is a generic noticethat only has to be sent to each taxpayer one time. After this one-time notice is sent, the countytreasurer may exercise one or more of the methods of levying on or seizing and selling ataxpayer's money or property without giving further notice. (M.S. 277.21, Subd. 2)

The rules, procedures, and the form that must be used to prepare and mail the Notice andDemand for Payment are outlined below. Some of these are derived directly from M.S. 277.21,Subd. 2, and others are based on the Department of Revenue's collection manuals.

TIME RESTRICTIONS ON LEVY AND SEIZURE

There are two time restrictions that control when a county treasurer may begin to levy on orseize and sell a taxpayer's money or property.

1. TIME RESTRICTION #1: THE 90-DAY GRACE PERIOD

The county treasurer cannot mail the Notice and Demand for Payment before the 90-daygrace period following the billing date on the Notice of Delinquent Taxes has expired. SeeSection 7220 of this Manual for detailed information about the 90-day grace period.

2. TIME RESTRICTION #2: THE 30-DAY WAITING PERIOD

After the 90-day grace period has expired and the Notice and Demand for Payment has beenmailed, the county treasurer cannot begin to levy on or seize and sell a taxpayer's money orproperty until 30 calendar days after the billing date on the Notice and Demand for Payment.(M.S. 277.21, Subd. 2)

In summary, the county treasurer must wait at least 120 calendar days after the billing date onthe Notice of Delinquent Taxes before starting to levy on or seize and sell a taxpayer's money orproperty. The 120-day waiting period is the sum of the 90 calendar days following the billingdate on the Notice of Delinquent Taxes and the 30 calendar days following the date on the Noticeand Demand for Payment. Exception: Jeopardy collection (See Section 7580).



NOTICE AND DEMAND FOR PAYMENT SECTION 7570(Continued) (Page 2)

MAIL NOTICE ONLY UPON INTENTION TO LEVY OR SEIZE

The question arises, why do we need a Notice and Demand for Payment when we have alreadymailed a Notice of Delinquent Taxes earlier? The answer is, they both serve a different legalpurpose as required under M.S. 277.17, Subd. 1, and M.S. 277.21, Subd. 2, respectively.

The purpose of mailing a Notice of Delinquent Taxes is to announce for the first time that thetaxpayer has failed to pay the tax liability on time. The taxpayer is also warned that, if the totaldelinquent tax amount is not paid within 90 calendar days, the county treasurer may take actionto enforce payment.

The purpose of mailing a Notice and Demand for Payment is to announce that the taxpayer hasfailed to pay the tax liability within the 90-day grace period. The taxpayer is warned this timethat, if the total delinquent tax amount is not paid within 30 calendar days, the county treasurerwill take action to levy on or seize and sell the taxpayer's money or property without furthernotice.

In short, the county treasurer must mail a Notice of Delinquent Taxes whether or not the countytreasurer intends to enforce payment. On the other hand, the county treasurer should not mail aNotice and Demand for Payment unless the county treasurer fully intends to exercise at least oneof the methods of levying on or seizing and selling the taxpayer's money or property after the 30-day waiting period expires.

ONE NOTICE COVERS ALL LEVIES AND SEIZURES

Let's repeat the major point. The Notice and Demand for Payment is a generic notice. Thismeans that the county treasurer only needs to send one Notice and Demand for Payment to eachtaxpayer. The one-time notice warns the taxpayer that, if the total delinquent tax amount is notpaid within 30 calendar days, the county treasurer will exercise one or more of the methods oflevying on or seizing and selling the taxpayer's money or property without giving further notice.

For example, if the county treasurer fully intends to levy on the taxpayer's bank accounts andmails a Notice and Demand for Payment based on that intention, the county treasurer is notlimited to the bank levy after the 30-day waiting period expires. The county treasurer mayexercise a bank levy and have the county sheriff seize and sell the taxpayer's snowmobile withoutfurther notice. Or the county treasurer can decide instead to seize and sell the taxpayer'ssnowmobile and forget the bank levy without giving the taxpayer further notice.




CONTENT OF THE NOTICE

M.S. 277.21, Subd. 2, contains only three types of information that must be contained in theNotice and Demand for Payment. Otherwise, the statute gives no indication of what informationshould be included in the notice.

The Department of Revenue recommends that the county Notice and Demand for Paymentcontain the same basic information as the Department of Revenue's Notice and Demand forPayment. The state's notice complies with the statutory requirements and adds otherinformation intended to complete the communication with the taxpayer.

The major types of information that are required under M.S. 277.21, Subd. 2, or contained inthe state's Notice and Demand for Payment are listed below.

1. A section for the county treasurer to list the name and complete address (street or rural routeand box number, city or town, and zip code) of the taxpayer.

2. A section for the county treasurer to list the property identification number, the type ofpersonal property, the date when the Notice and Demand for Payment was mailed, and thetotal delinquent tax amount due as of the mailing date.

3. A statement declaring that the balance due has not been paid.

4. A statement warning the taxpayer that the balance due plus any additional costs and interestadded after the mailing date must be paid in full within 30 calendar days of the billing dateon the notice to avoid collection action which may include levying on bank accounts andwages and seizing and selling personal and real property.

5. A statement explaining the conditions under which the county treasurer cannot levy or seizethe taxpayer's money or property.

6. A statement about the taxpayer's right to request that any seized property be put up for salewithin 60 calendar days of the request.

7. A statement about the alternatives available to the taxpayer to prevent a levy or seizure.

8. A statement informing the taxpayer to contact the county treasurer's office for the totaldelinquent tax amount due on the day when the taxpayer will make payment and explaininghow and where payment should be made to the county treasurer.

9. The printed name, title, address, and telephone number of the county treasurer.




SUGGESTED FORM FOR THE NOTICE

M.S. 277.21 does not contain any requirements or guidelines for the format of the Notice andDemand for Payment. In their absence, the Department of Revenue recommends that thecounty's Notice be modeled on the Department of Revenue's form. Minor changes have beenmade in the Department's form to facilitate communications with the taxpayer.


There are only two major differences in the two forms. The first difference is the reference toeither personal property taxes or manufactured home taxes. The second difference is thestatutory reference to M.S. 277.23 for the confession of judgment installment plan formanufactured home taxes on homesteaded property. This statutory reference must not be usedfor taxes on manufactured homes that are not homesteaded or taxes on personal property otherthan manufactured homes.

The suggested form of the Notice and Demand for Payment that is presented on the followingpage is designed for delinquent manufactured home taxes. To use the form for other delinquentpersonal property taxes, change all references from "manufactured home" to "personalproperty." Use the suggested form to develop your own county Notice and Demand forPayment.





NOTICE AND DEMAND FOR PAYMENT

Bradley & Theresa Whitley Property ID#: 012-578-803__________Pine Cove Mobile Home Park Property Type: Manufactured Home___342 Washington Street Date Mailed: March 23, 1994_______Applewood, MN 57252 Total Due: $ 349.29____________

Manufactured home taxes assessed in your name have not been paid. To avoid enforced collectionaction, the total amount listed above plus any additional costs and interest added after the date ofthis notice must be received within thirty (30) calendar days after the date of this notice.

If full payment is not received, enforced collection action will be taken without further notice toyou. This may include levying on your bank accounts and wages and/or seizing and selling yourpersonal or real property. If a levy or seizure is served and you disagree with the action taken, youmay request a review of the action by contacting the person listed on the levy notice.

We cannot seize your personal or real property if any of the following conditions exists: (1) a taxappeal under M.S. 278 or M.S. 273.125 is still pending, (2) the estimated costs of the seizure andsale of your property will exceed the fair market value of the property at the time of the seizure, or(3) you have been subpoenaed to appear before the Department of Revenue.

You may request that we put your seized property up for sale within sixty (60) calendar days ofyour request. If we decide that it is not in the county's best interest to sell the property within thistime period, you may appeal that decision to the tax court.

Levy or seizure action can be prevented by payment of your taxes in full or by entering into aninstallment payment plan under M.S. 277.23, if your manufactured home is taxed as a homestead.If a levy or seizure is served and you disagree with the action taken, you may request a review ofthe action by contacting the person listed on the levy notice.

Contact the Spruce County Treasurer's office for the total amount due on the day when you willmake payment. Make your check or money order payable to the Spruce County Treasurer. Mailyour payment to the address listed below. Put your property identification number on your checkor money order.

Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, MN 56323(234) 567-8910



JEOPARDY COLLECTION OR ASSESSMENT SECTION 7580

If the county treasurer determines that the collection of delinquent taxes or current taxes is injeopardy, the county treasurer may immediately levy on or seize a taxpayer's money or property.This may be done without any regard for notices that would otherwise have to be mailed ordeadlines and due dates that would otherwise have to be observed. (M.S. 277.21, Subd. 2 and 4)

In the case of delinquent taxes or current taxes that have already been calculated, this is called a"jeopardy collection." For current taxes that have not been calculated yet, this action is referredto as a "jeopardy assessment."

The rules, procedures, and forms that must be followed in exercising a jeopardy collection orassessment are outlined below. They are based on the provisions in M.S. 277.21, Subd. 2 and 4,and the Department of Revenue's collection manuals.

IMMEDIATE LEVY OR SEIZURE WITHOUT TIME RESTRICTIONS

If the county treasurer has reason to believe that a collection is in jeopardy, the county treasurermay exercise a jeopardy collection anytime during the collection process. The county treasurerdoes not have to wait for any of the actions and deadlines outlined below to be completed.

1. The county treasurer does not have to wait until a Notice of Delinquent Taxes is mailed.

2. The county treasurer does not have to wait for the 90-day grace period following the billingdate on the Notice of Delinquent Taxes to expire.

3. The county treasurer does not have to mail a Notice and Demand for Payment and wait for30 calendar days.

In the case of a jeopardy levy, the county treasurer can legally be levying on the taxpayer's bankaccounts or wages on the same day that the Notice and Demand for Immediate Payment isprepared and mailed. In some cases, the Notice of Levy may be sent to the bank or employerbefore the taxpayer receives the Notice and Demand for Immediate Payment.

For a jeopardy seizure, the county treasurer or the county sheriff, whoever is executing theseizure, should serve the Notice and Demand for Immediate Payment to the taxpayer in personbefore seizing any property. If the taxpayer pays the total delinquent tax amount at that time,no seizure is necessary. If the taxpayer refuses to pay or is not home, the Notice should be left onthe taxpayer's premises, and the property should be seized immediately.



JEOPARDY COLLECTION OR ASSESSMENT SECTION 7580(Continued) (Page 2)

EVIDENCE SUPPORTING A JEOPARDY COLLECTION

Before a jeopardy collection can be considered, the county treasurer must have reasonablegrounds to believe that one or more of the conditions outlined below exist.

1. A taxpayer is about to leave the county or the state.

2. A taxpayer is about to move money or property out of the county or state.

3. The collection of the total delinquent tax amount will be jeopardized by the notices andwaiting periods required by other collection methods.

When there is reason to believe that a collection is in jeopardy, the county treasurer must gatherevidence to support a jeopardy collection. The evidence must be in the form of writtendocuments and records. Personal observations must be put in writing for future reference. Thewritten evidence may be needed to justify the jeopardy collection in an administrative review orin the Tax Court.

ADMINISTRATIVE + JUDICIAL REVIEW PROCESS

Although the following rules and procedures contained in M.S. 270.274 are not required of thecounty treasurer under M.S. 277.21, the Department of Revenue recommends that the countytreasurer follow them if a jeopardy collection is made.

These rules and procedures are followed by the Department of Revenue when exercising ajeopardy collection. The suggested form of the Notice and Demand for Immediate Payment thatis mailed to or served on the taxpayer as part of the jeopardy collection process containsreferences to these rules and procedures.

1. Within 5 calendar days after a jeopardy collection is made, the taxpayer should be sent awritten statement of the information relied on to make the jeopardy collection. Thestatement should list all items of evidence showing a jeopardy situation exists.

2. The taxpayer's request for an administrative review by the county treasurer's office must bemade within 35 calendar days after the jeopardy collection.

3. The administrative review must determine whether the amount of the jeopardy levy orseizure is reasonable.

4. The administrative decision may be appealed to the Tax Court.




5. The county treasurer must be able to show that delay would have jeopardized the collection.

6. The taxpayer must prove that there was no reason for a jeopardy collection.

7. The Tax Court will decide in favor of either the county treasurer or the taxpayer.

8. The Tax Court's decision may not be appealed.

JEOPARDY ASSESSMENT

If the collection of personal property taxes, including manufactured homes, are in jeopardybefore the taxes are calculated for the current tax year, the county treasurer may immediatelyexercise a jeopardy assessment with the help of the county auditor. The rules, procedures, andforms for a jeopardy collection apply to a jeopardy assessment as well. (M.S. 277.21, Subd. 2)

To initiate a jeopardy assessment, the county auditor must immediately determine the amount ofthe current year's tax by applying the latest available levy rate and market values and notify thecounty treasurer of the amount of tax in jeopardy.

Upon receipt of the tax amount from the county auditor, the county treasurer may immediatelylevy on or seize the taxpayer's money or property without regard to prior notice or due date.Similar to a jeopardy collection, the county treasurer must send the taxpayer a Notice andDemand for Immediate Payment as soon as possible after the levy or seizure action.

When a jeopardy assessment is made, the taxpayer may file an appeal with the Tax Court within30 calendar days after the notice is issued by the county treasurer. The notice must advise thetaxpayer of the right of appeal. If a timely appeal is made, no sale may be made unless the taxesremain unpaid for a period of more than 30 calendar days after final determination by the TaxCourt. (M.S. 277.21, Subd. 4)

NOTICE AND DEMAND FOR IMMEDIATE PAYMENT

When the decision has been made to execute a jeopardy collection or assessment, the countytreasurer must send a Notice and Demand for Immediate Payment to the taxpayer as soon aspossible. However, the county treasurer does not have to wait to perform the jeopardy collectionor assessment until the Notice is mailed. In fact, if it is sent by U.S. mail, the Notice may reachthe taxpayer after the jeopardy collection or assessment has actually taken place.




The suggested Notice and Demand for Immediate Payment that is presented on the followingpage is modeled on the form used by the Department of Revenue. Because of the jeopardysituation, the Notice does not contain the restriction on the seizure of property while a tax appealis pending under M.S. 278 or M.S. 273.125. In the case of a jeopardy assessment, the noticemust advise the taxpayer of the right to appeal the assessment in the Tax Court.

The suggested Notice is specifically worded for a jeopardy collection and for delinquentmanufactured home taxes. When there is a jeopardy assessment, the appropriate wording mustbe added. To use the form for delinquent personal property taxes other than manufacturedhomes, simply change all references from "manufactured home" to "personal property."

Remember to drop the statutory reference to M.S. 277.23 in the paragraph referring to theinstallment payment agreement in the form for all personal property taxes except manufacturedhomes.





NOTICE AND DEMAND FOR IMMEDIATE PAYMENT

Bradley & Theresa Whitley Property ID#: 012-578-803__________Pine Cove Mobile Home Park Property Type: Manufactured Home___342 Washington Street Date Mailed: January 13, 1994______Applewood, MN 57252 Total Due: $ 341.05____________

The past due manufactured home taxes listed above have not been paid. Acting under the authorityof Minnesota Statutes 277.21, Subd. 2, the county treasurer has reason to believe that the collectionof the past due manufactured home taxes is in jeopardy.

Therefore, payment of the total past due tax is demanded. If this amount is not paid immediately,collection action will be taken without further notice to you. This may include levying on your bankaccounts or other sources of money or seizing and selling your personal or real property.

If a levy or seizure is made, you may request a review of the action by contacting the countytreasurer. To prevent a levy or seizure, you can pay the total past due amount in full or enter intoan installment payment agreement under Minnesota Statutes 277.23, if your manufactured home istaxed as a homestead.

Within five (5) calendar days after a levy or seizure is made, you may request that the countytreasurer send you a written statement of the evidence relied on to make this jeopardy collection.Within thirty (30) calendar days after receiving a written statement of the evidence or, if you do notreceive a written statement, within thirty-five (35) calendar days after the date on this Notice andDemand for Immediate Payment, you may request the county treasurer to review the validity of thetotal past due taxes demanded from you under this jeopardy collection.

If you disagree with the determination of the county treasurer, you may appeal to the MinnesotaTax Court.


Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, MN 56323(234) 567-8910



DISCOVERY OF ASSETS SECTION 7590

During the 30-day period following the date on the Notice and Demand for Payment, the countytreasurer should try to find out where the taxpayer has money on deposit, who the taxpayer'semployer is, and what types of personal and real property the taxpayer owns. If the countytreasurer has already uncovered the taxpayer's assets when the collection plan was developed,this step may be used to verify that the earlier information is still valid. (See Section 7230 forinformation about the collection plan.)

If this research is successful, the county treasurer will be ready to levy on the taxpayer's bankaccounts or wages or seize and sell the taxpayer's personal or real property immediately after the30-day waiting period following the date on the Notice and Demand for Payment expires.

The sources of information that were used to develop the collection plan can also be used to helpdiscover the taxpayer's assets. See Section 7230 for an outline of those sources. Some additionalsources are listed below.

1. Motor Vehicle records lien information on the vehicles registered. They usually provide thename and address of the financial institution where a loan was taken on a vehicle. This mayalso be the bank where the taxpayer has money on deposit.

2. The Department of Revenue may have records of the taxpayer's assets for the purpose ofcollecting delinquent state taxes.

3. Copies of the taxpayer's checks that were used in the past to pay personal or real propertytaxes to the county. This will show which banks the taxpayer had checking accounts inearlier.

4. Canceled checks made out to the taxpayer from the county treasurer may have been cashedat the taxpayer's usual bank.


DELINQUENT PERSONAL PROPERTY TAXES LEVY ON BANK ACCOUNTS

TABLE OF CONTENTS


Introduction: Levy on Bank Accounts ................................................................................. 7610

Notice of Bank Levy .............................................................................................................. 7620

Levy Questionnaire ............................................................................................................... 7630

Exemption Notice .................................................................................................................. 7640

Bank's Responses to Levy ..................................................................................................... 7650

Warning of Bank's Liability ................................................................................................. 7660

Order Assessing Bank's Liability ......................................................................................... 7670

Bank's Setoff Rights .............................................................................................................. 7680

Reduction/Release of Bank Levy .......................................................................................... 7690



INTRODUCTION: LEVY ON BANK ACCOUNTS SECTION 7610

The county treasurer's authority to levy on a taxpayer's bank accounts is one of the mostconvenient and efficient methods of enforcing payment of delinquent personal property taxes,including manufactured homes. It is comparable to Revenue Recapture and levying on ataxpayer's wages. All three of these enforced collection methods may be exercised by the countytreasurer without a court judgment, without the county sheriff, and without personal contactwith the taxpayer.

GENERAL LEVY + SEIZURE PROVISIONS

Before initiating the process of levying on a taxpayer's bank accounts, the county treasurer mustreview the general levy provisions which are outlined in Series 7500. A thorough knowledge ofthese provisions is necessary because they apply to all types of levying on and seizing and sellinga taxpayer's money and property. These provisions must be understood and followed whenlevying on a taxpayer's bank accounts.

DEFINITION OF TERMS

The phrase, "levy on a taxpayer's bank accounts," is used in this Manual to refer to the countytreasurer's authority to require a bank to withdraw a specified amount of money from ataxpayer's accounts on deposit with the bank and send it to the county treasurer. The countytreasurer will use the money to pay the total delinquent tax amount owed by the taxpayer. Thisenforced collection method will also be referred to as a "bank levy."

The term, "bank," is used to refer to all types of financial institutions where the taxpayer does ormay have money on deposit; e.g., banks, savings and loan associations, and credit unions.

BANK LEVY AUTHORITY

The county treasurer's authority to levy on a taxpayer's bank accounts is derived from thegeneral levy and seizure authority contained in M.S. 277.21. Under M.S. 277.21, Subd. 1, thecounty treasurer is required to take whatever action is "necessary and reasonable" to collectdelinquent personal property taxes, including manufactured homes. The county treasurer maydefine a bank levy as a necessary and reasonable method of collection just as the Department ofRevenue has done for years.

The county treasurer also is allowed to levy and seize the taxpayer's property under the authorityof M.S. 277.21. Under M.S. 277.21, Subd. 1, the term, "levy," is defined to include "the power ofdistraint and seizure by any means." Levying on a taxpayer's bank accounts is surely alegitimate means of distraint and seizure since it has been used for years by the Department ofRevenue to collect delinquent state taxes.



INTRODUCTION: LEVY ON BANK ACCOUNTS SECTION 7610(Continued) (Page 2)

Although the general levy provisions are contained in M.S. 277.21, most of the rules, procedures,and forms for levying on a taxpayer's bank accounts that are presented in this Series 7600 aremodeled on the Department of Revenue's interpretation of M.S. 270.70 that is the basis of M.S.277.21. The source for this information is the Department of Revenue's collection manuals.

NO BANK LEVY DURING 90-DAY GRACE PERIOD

Like the other enforced collection actions, the process of levying on a taxpayer's bank accountscan begin only after the 90-day grace period following the billing date on the Notice ofDelinquent Taxes has expired.

Exception: If it is determined that a tax collection is in jeopardy, the county treasurer mayimmediately exercise a bank levy without waiting for the 90-day grace period to expire.

See Section 7220 of this Manual for detailed information about the 90-day grace period. SeeSection 7580 for an outline and summary of the provisions for exercising a jeopardy collection.

MAJOR STEPS FOR BANK LEVY

The process of levying on a taxpayer's bank accounts can be reduced to the major steps outlinedbelow. Each step is covered in the Section that is listed in parentheses. Repeat: the steps cannotbegin until after the 90-day waiting period following the billing date on the Notice of DelinquentTaxes has expired.

1. NOTICE AND DEMAND FOR PAYMENT (Section 7570)

As the first step in the process, the county treasurer must mail a Notice and Demand forPayment to the taxpayer at least 30 calendar days before levying on the taxpayer's bankaccounts.

The rules, procedures, and forms for mailing a Notice and Demand for Payment to thetaxpayer are covered in Section 7570. Please study them thoroughly before executing a levyon a taxpayer's bank accounts. They will not be repeated in this Series 7600.




2. A JEOPARDY COLLECTION OR ASSESSMENT (Section 7580)

If a tax collection is in jeopardy, the county treasurer may mail a Notice and Demand forImmediate Payment to the taxpayer and may immediately serve a Notice of Bank Levy on thebank without regard for any deadlines, waiting periods, or further notice to the taxpayer.This step will be taken only in exceptional situations. It is not part of the regular process oflevying on a taxpayer's bank accounts.

The rules, procedures, and forms for executing a jeopardy collection or assessment arecovered in Section 7580. Please study them thoroughly before executing a jeopardy levy on ataxpayer's bank accounts. They will not be repeated in this Series 7600.

3. DISCOVERY OF THE TAXPAYER'S MONEY ON DEPOSIT (Section 7590)

During the 30-day period following the billing date on the Notice and Demand for Payment,the county treasurer should attempt to discover which banks hold the taxpayer's money ondeposit. If the county treasurer already did this when the collection plan was developed, thisstep can be used to verify that the earlier information is still valid. This information ishelpful, but not necessary to complete the bank levy process.

The sources that will help the county treasurer discover where the taxpayer has money ondeposit are presented in Section 7590. Please refer to those sources before executing a banklevy. The information will not be repeated in this Series 7600.

4. NOTICE OF BANK LEVY (Section 7620)

When the 30-day period following the date on the Notice and Demand for Payment hasexpired and the taxpayer has not paid or made arrangements to pay the total delinquent taxamount, the county treasurer may serve a Notice of Bank Levy on each of the banks wherethe taxpayer is known to have money on deposit or to all of the banks in the citiessurrounding the taxpayer's home or work place, if it is not known specifically which bankshold the taxpayer's money.

Repeat: Unless it is a jeopardy collection or assessment, the Notice of Bank Levy cannot beserved until 30 calendar days after the date on the Notice and Demand for Payment.

5. LEVY QUESTIONNAIRE + EXEMPTION NOTICE (Sections 7630 + 7640)

The county treasurer must enclose a Levy Questionnaire and an Exemption Notice with eachNotice of Bank Levy that is served on a bank.




6. EXEMPTION NOTICE TO THE TAXPAYER (Section 7640)

After serving a Notice of Bank Levy along with a Levy Questionnaire and an ExemptionNotice on a bank, the county treasurer must mail a copy of the Exemption Notice to thetaxpayer.

7. WARNING OF BANK'S POSSIBLE LIABILITY (Section 7660)

If a bank does not comply with the Notice of Bank Levy, the county treasurer must send aWarning Letter to the bank . The Warning Letter informs the bank that it will be personallyliable for the amount of the bank levy plus a 25% penalty if it fails to withhold the amount ofthe bank levy from the taxpayer's accounts or show reason why it does not have to do so.

8. ORDER ASSESSING THE BANK'S LIABILITY (Section 7670)

If a bank still does not respond to the Warning Letter, the county treasurer must serve on thebank an Order Assessing the Bank for the Amount of the Bank Levy plus a 25% penalty.

9. BANK CLAIMS SETOFF RIGHTS FOR THE LEVY AMOUNT (Section 7680)

If the bank attempts to setoff the taxpayer's funds covered by the bank levy and the setoff isnot legally justified, the county treasurer must send to the bank a Final Demand for theamount of the bank levy. (Section 7680)

10. REDUCTION OF BANK LEVY AND RELEASE OF BANK LEVY (Section 7690)

If all or a part of the total delinquent tax amount is collected by some method other than thebank levy, the county treasurer must send to the bank a Notice of Bank Levy Reduction or aNotice of Bank Levy Release.



NOTICE OF BANK LEVY SECTION 7620

When the 30-day period following the date on the Notice and Demand for Payment has expired,the county treasurer may serve a Notice of Bank Levy on each bank where the taxpayer does ormay have money on deposit. Each bank has 10 calendar days from the date on the Notice ofBank Levy to honor the levy.

The rules, procedures, and the form for preparing and serving a Notice of Bank Levy that arepresented in this Section 7620 are taken from M.S. 277.21 and the Department of Revenue'scollection manuals.

METHOD OF SERVICE

The county treasurer must serve a Notice of Bank Levy on a bank by one of the followingmethods: (1) first class mail, (2) personal service by the county treasurer, (3) personal service byan employee of the county treasurer's office, or (4) personal service by an agent of the countytreasurer. (M.S. 277.21, Subd. 16)

METHOD OF SELECTING BANKS

The service of a Notice of Bank Levy could be completed more efficiently if the county treasurerknew where the taxpayer had money on deposit. It would be even better if the numbers of thebank accounts were known. Then the county treasurer would only have to levy on those specificaccounts in those specific banks.

Fortunately, the county treasurer is not required to know this information in order to exercise abank levy. Following the lead of the Department of Revenue, the county treasurer has theauthority to serve a Notice of Bank Levy on any bank located in the area surrounding thetaxpayer's home or work place without knowing if the taxpayer has money on deposit there orthe number of the accounts that might be there.

In fact, the county treasurer may go beyond that and serve a Notice of Bank Levy on any banklocated in Minnesota where there is reason to believe that the taxpayer may have money ondeposit. The bank does not have to be located in the area surrounding the taxpayer's home orwork place.

The banks that do have the taxpayer's money on deposit must comply with the bank levy orshow reason why they do not have to comply. The banks that do not hold any money for thetaxpayer must fill out and return the Levy Questionnaire to prove that.

If it turns out that the taxpayer has money on deposit in more than one bank and each bankhonors the levy, the county treasurer will probably receive more money than is needed to pay thetotal delinquent tax amount due. This does not cause a problem. The county treasurer simplykeeps the amount needed to pay the tax liability and returns the rest of the money to the otherbanks to be deposited back in the taxpayer's accounts.



NOTICE OF BANK LEVY SECTION 7620(Continued) (Page 2)

NOTE: In no case, can a bank refuse to comply with a Notice of Bank Levy because the county treasurer did not include the numbers of the taxpayer's accounts in the Notice.

TYPES OF BANK ACCOUNTS SUBJECT TO THE LEVY

Following the model of the Department of Revenue, the county treasurer may levy on the typesof money accounts outlined below. Each of these types of accounts is listed in section I. of theLevy Questionnaire.

1. Checking accounts.

2. Savings accounts.

3. Certificates of deposit.

4. Trust accounts.

5. Individual Retirement Accounts (IRA's).

CONTENT OF THE NOTICE OF BANK LEVY

M.S. 277.21 is silent about the content of the Notice of Bank Levy. Therefore, the Department ofRevenue recommends that the county treasurer's Notice of Bank Levy be modeled on the Noticethat is used by the state. The major types of information contained in the state's Notice areoutlined below.

1. The date when the Notice of Bank Levy was prepared.

2. The name and complete address (street, city, state, zip code) of the bank.

3. The name and complete address (street or rural route and box number, city or town, state,zip code) of the taxpayer.

4. The property identification number, the personal property tax type, and the total delinquenttax amount due when the Notice of Bank Levy was prepared.

5. A statement announcing that the balance due still remains unpaid after serving a Notice andDemand for Payment to the taxpayer.

6. A statement announcing that, pursuant to M.S. 277.21, the county treasurer is levying on thetaxpayer's bank accounts for the balance due.




7. A statement announcing that the bank is obligated under M.S. 277.21 to return thecompleted “Levy Questionnaire” and to withdraw from the taxpayer's bank accounts anamount needed to satisfy the balance due and deliver that amount to the county treasurer nolater than 10 calendar days after the date on the Notice of Wage Levy.

8. A statement announcing that failure to comply with this levy will result in the bank'spersonal liability for the balance due plus a 25% penalty as authorized under M.S. 277.21.

9. A statement announcing that the bank is relieved from any obligation to the taxpayer as aresult of complying with this levy.

10. The name, signature, date of the signature, and address and telephone number of the countytreasurer.

FORM OF THE NOTICE OF BANK LEVY

In the absence of any statutory guidelines, the Department of Revenue recommends that thecounty treasurer's Notice of Bank Levy be modeled on the Notice that is used by the Departmentof Revenue. A suggested form is presented at the end of this Section 7620. Use the suggestedform to develop your own county Notice of Bank Levy.

Minor changes have been made in the Notice to make it easier for the employer to understandeach of the actions that must be performed in order to comply with the bank levy and avoidpersonal liability for failure to comply with the bank levy.


The suggested form of the Notice of Bank Levy is designed for delinquent manufactured hometaxes. To use the form for other delinquent personal property taxes, the references to"manufactured homes" should be changed to "personal property."





NOTICE OF BANK LEVY

Financial Institution:

Farmers State Bank of Applewood______________________________________________________ 512 Main Street_____________________________________________________________________ Applewood, MN 57252_______________________________________________________________ ___________________________________________________________________________________

Taxpayer:

Bradley & Theresa Whitley__________ Property ID#: 012-578-803_________________Pine Cove Mobile Home Park________ Property Type: Manufactured Home__________ 342 Washington Street______________ Date Served: April 26, 1994_______________ Applewood, MN 57252______________ Total Due: $ 352.13____________________

After notice and demand for payment, the above named taxpayer has still not paid the above totalmanufactured home tax as required by Minnesota law. Therefore, as authorized by MinnesotaStatute 277.21, the Spruce County Treasurer serves a levy on the amount of the taxpayer's moneyon deposit with the above named financial institution necessary to satisfy the above tax obligation.

Within ten (10) calendar days after the date on this notice, the above named financial institution isrequired by law to deliver to the Spruce County Treasurer at the address listed below thecompleted “Levy Questionnaire” and all of the taxpayer's money on deposit with the above namedfinancial institution necessary to satisfy the levy.

Failure to comply with this levy will result in the financial institution's personal liability for theamount of the levy plus a twenty-five percent (25%) penalty as provided under Minnesota Statutes277.21, Subdivisions 8, 9, and 10.

To the extent that you comply with this levy, you are relieved from any further obligation to thetaxpayer under Minnesota Statutes 277.21, Subdivision 15.

Date Signed: April 26, 1994 Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



LEVY QUESTIONNAIRE SECTION 7630

The county treasurer must enclose a Levy Questionnaire with each Notice of Bank Levy that isserved on a bank. The bank is required to complete and return the Levy Questionnaire to thecounty treasurer within 10 calendar days after the date on the Notice of Bank Levy.

The guidelines and the form that are presented in this Section 7630 are derived entirely from theDepartment of Revenue's collection manuals. M.S. 277.21 does not contain any informationabout the Levy Questionnaire.

PURPOSE OF THE LEVY QUESTIONNAIRE

The purpose of the Levy Questionnaire is to obtain detailed information about the taxpayer'sassets that are being held by the bank. This is the kind of detailed information that the countytreasurer probably would not have access to in any other way. The major types of informationare outlined below.

1. The Levy Questionnaire provides the county treasurer with a complete picture of thetaxpayer's money, safe deposit box, stocks, bonds, notes, deeds, or debentures that are beingheld by the bank. This information may be used in the present to obtain all or part of thedelinquent tax amount due. Or the information can be kept on record and used to collectdelinquent personal property taxes, including manufactured homes, in the future.

2. The Levy Questionnaire provides the county treasurer with detailed information about anysetoffs claimed by the bank itself. The term, "setoff," refers to the bank's claim against anyof the taxpayer's assets that have priority over the bank levy. This information will help thecounty treasurer decide whether or not to exercise a final demand for payment if the bank'ssetoff is not legal. (See Section 7680 for more information about setoffs.)

3. The Levy Questionnaire provides the county treasurer with detailed information about anythird parties who may have an adverse interest in the taxpayer's assets; e.g., security interestsand liens. This information will let the county treasurer know if the county can claim all ofthe assets or if the assets must be shared by a third party or parties. It will also show thepriority of each claim.

4. The Levy Questionnaire provides the county treasurer with the name and title of the bankofficial who is responsible to the bank for complying with the bank levy. This person's namemay come in handy in the future if the county treasurer wants to communicate with the bankby phone or mail.



LEVY QUESTIONNAIRE SECTION 7630(Continued) (Page 2)

CONTENT OF THE LEVY QUESTIONNAIRE

M.S. 277.21 does not contain any information about the content of the Levy Questionnaire.Therefore, the Department of Revenue recommends that the county treasurer's LevyQuestionnaire be modeled on the Levy Questionnaire that is used by the state. The major typesof information contained in the state's Levy Questionnaire are outlined below.

1. A section for the county treasurer to enter the name and complete address (street or ruralroute and box number, city or town, state, zip code) of the taxpayer.

2. A statement requiring the bank to complete and return the Levy Questionnaire within 10calendar days in the self-addressed and stamped envelope to the county treasurer at theaddress listed on the bottom of the Notice of Bank Levy.

3. A section for the bank to enter the name of the bank and the name and official title of theperson at the bank who is responsible to the bank for complying with the levy.

4. A statement for the bank to certify whether or not the taxpayer did have money on depositwith the bank on the date when the bank received the county treasurer's Notice of BankLevy. The date when the Notice of Bank Levy was received must be listed in the appropriateblanks provided on the Levy Questionnaire.

5. A section for the bank to list the types of accounts in which the taxpayer has money ondeposit, the account number, and the dollar amount on deposit in each account.

6. A section for the bank to check whether or not the taxpayer has a safety deposit box.

7. A section for the bank to describe any personal property, instruments, or papers in which thetaxpayer has an interest and are being held by the bank.

8. A section for the bank to certify to any amount of the taxpayer's assets against which thebank has any setoff rights, defense, lien, or other claim. A statement requiring the bankofficial to list the time and date of each setoff and announcing that a setoff must have beenexercised before the Notice of Bank Levy was served.




9. A section for the bank to list any amounts claimed by third parties who may have an adverseinterest in the taxpayer's assets. The nature of each third party's interest and which assetsare subject to the interest must also be included.

10. A final section where the bank official signs the form, prints the bank official's name, lists thetitle of the bank official, and lists the date of the signature.

FORM FOR THE LEVY QUESTIONNAIRE

Because there are no statutory guidelines, the Department of Revenue recommends that thecounty treasurer's Levy Questionnaire be modeled on the Levy Questionnaire that is used by theDepartment of Revenue. A suggested form is presented at the end of this Section 7630. Use thesuggested form to develop your own county Levy Questionnaire.

Minor changes have been made in the Levy Questionnaire to clarify the definition of the majorterms used and help the bank understand what information to include in each section.


The suggested form of the Levy Questionnaire is designed for delinquent manufactured hometaxes. To use the form for other delinquent personal property taxes, the property tax type mustbe changed from "manufactured home" to "personal property."





LEVY QUESTIONNAIRE

(To Be Completed By The Financial Institution)

In the matter of:

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Served: April 26, 1994 Applewood, MN 57252 Total Due: $ 352.13

This Levy Questionnaire must be completed and returned in the self-addressed andstamped envelope to the Spruce County Treasurer within ten (10) calendar days after thedate on the Notice of Bank Levy.

Name of official: Christopher W. Lawton Title of official: Cashier Supervisor Financial Institution: Farmers State Bank of Applewood

On April 29, 1994 , the date on which our financial institution received theNotice of Bank Levy from the Spruce County Treasurer, there was in the possession ofand under the control of this financial institution the following assets in the name of theabove taxpayer, whether jointly or individually held.

I. MONEY Account Numbers Total Dollar Amount

Savings Account 83-345-15 $ 1,389.23

Checking Account 66-123-06 $ 427.87

Certificate None $ 0.00

Trust Account None $ 0.00

IRA Account None $ 0.00

II. SAFE DEPOSIT BOX Yes: No: X




Levy QuestionnairePage 2

III.PERSONAL PROPERTY

Describe any personal property, instruments, or papers in which the taxpayer has aninterest and are in the possession of your financial institution, whether for collateral orotherwise; e.g., stocks, bonds, notes, deeds, or debentures.

None

IV. SETOFF

Enter the nature and amount of any setoff, defense, lien, or claim that you assert againstthe money accounts set forth in Section I., 1-4, above. In addition to the amount of thesetoff, enter the time and date when the setoff was asserted and formalized by notice tothe taxpayer. Pursuant to Minnesota Statutes 277.21, Subdivision 14, if you are assertinga setoff, the right to setoff must have been exercised prior to being served with the Noticeof Bank Levy.

None TOTAL $: 0.00

V. ADVERSE INTERESTS

Enter any amounts claimed by third parties who may have an interest in the taxpayer'sassets that are located at your financial institution. Describe the nature of the thirdparty's interest or claim and which assets are subject to the adverse interest.

None TOTAL $: 0.00

Signature of Official: Name of Official: Christopher W. Lawton Title of Official: Cashier Supervisor Date of Signature: April 29, 1994



EXEMPTION NOTICE SECTION 7640

The county treasurer is responsible for informing the taxpayer and the bank about the types ofmoney on deposit that are exempt from a bank levy. This is done with an Exemption Notice.

The rules, procedures, and form for preparing and mailing an Exemption Notice that arepresented in this Section 7640 are based solely on the Department of Revenue's collectionmanuals. M.S. 277.21 does not contain any information about the Exemption Notice.

RECIPIENTS OF THE EXEMPTION NOTICE

The Exemption Notice must be delivered to the two parties outlined below.

1. A copy of the Exemption Notice must be delivered to each bank that is receiving a Notice ofBank Levy. The Exemption Notice must be delivered to each bank along with the Notice ofBank Levy and the Levy Questionnaire.

2. A copy of the Exemption Notice that is delivered to each bank must be mailed to thetaxpayer. The Exemption Notice should be mailed to the taxpayer immediately after theNotice of Bank Levy is delivered to the bank.

PURPOSE OF THE EXEMPTION NOTICE

The Exemption Notice serves the major purposes that are outlined below.

1. The Exemption Notice serves as a notification to the taxpayer that a Notice of Bank Levy hasbeen delivered to the named bank and what the consequences of the Notice of Bank Levy are.

2. The Exemption Notice informs the taxpayer and the bank which of the money funds ondeposit in the bank are exempt from the bank levy. It also shows which exemptions have atime restriction and how long that restriction is for specific types of exemptions.

3. The Exemption Notice provides a tear-off form for the taxpayer to claim an exemption withthe county treasurer and requires the taxpayer to enclose documentation with the form.

4. The Exemption Notice requires the taxpayer to list the name and address of the taxpayer'semployer if the source of the exemption is wages.



EXEMPTION NOTICE SECTION 7640(Continued) (Page 2)

TIME LIMITS ON EXEMPTIONS

As a general rule, all of the taxpayer's money on deposit that can be traced to any of the sourceslisted on the Exemption Notice are exempt from a bank levy. Except for wage deposits, there isno time limit on this exemption as long as the funds are traceable to the exempt source. Theexemptions that have a time limit and those without a time limit are outlined below. They arealso listed on the Exemption Notice.

1. All of the taxpayer's money on deposit which can be traced to the following sources areexempt from a bank levy for only 20 calendar days after the date of deposit: (a) 75% of thewage earner's after tax earnings, (b) all of the wage earner's after tax earnings below 40times the federal minimum wage.

2. All of the taxpayer's money on deposit which can be traced to the following sources areexempt from a bank levy for only 60 calendar days after the date of deposit: (a) all wages of ataxpayer who is receiving relief based on need or has received relief based on need within thelast six months, (b) all wages of a taxpayer who has been an inmate of a correctionalinstitution within the last six months.

Relief based on need includes Minnesota Family Investment Program (MFIP), EmergencyAssistance (EA), Work First Program, Medical Assistance (MA), General Assistance (GA),General Assistance Medical Care (GAMC), Emergency General Assistance (EGA),Minnesota Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA), SupplementalSecurity Income (SSI), and Energy Assistance.

3. There is no time limitation on the exemption for a taxpayer's money on deposit as long as itcan be traced to one of the following sources: (a) Social Security benefits, (b) Unemploymentor workers' compensation or veteran's benefits, (c) accident, disability, or retirementpensions or annuities; (d) life insurance proceeds; (e) the earnings of a minor child of thetaxpayer and any child support paid to the taxpayer; and (f) money from a claim for damageto or destruction of exempt property.

In most cases, the amount of a taxpayer's money on deposit that is exempt from a bank levy isprobably going to be small, if any. The possibility of an exemption should surely not stop thecounty treasurer from levying on a taxpayer's bank accounts. The county treasurer shouldcomplete the bank levy and leave the burden of proof for exemptions with the taxpayer.




CONTENT OF THE EXEMPTION NOTICE

There is no information in M.S. 277.21 about the content of the Exemption Notice. Therefore,the Department of Revenue recommends that the county treasurer's Exemption Notice bemodeled on the form that is used by the state. The major types of information contained in thestate's Exemption Notice are outlined below.


2. The date (month/day/year) when the Exemption Notice was delivered and mailed.

3. A statement notifying the taxpayer that a Notice of Bank Levy has been delivered to thenamed bank and that the bank is required to withdraw an amount from the taxpayer'saccounts necessary to pay the total delinquent tax amount due.

4. A statement announcing to the taxpayer that the money on deposit is exempt from the banklevy if it can be traceable to the sources listed on the Exemption Notice.

5. A section explaining the time limits on some of the exemptions after the date when the moneywas deposited in the bank.

6. A tear-out form with instructions that the taxpayer can use to claim an exemption from thebank levy.

7. A statement announcing that the taxpayer must enclose documentation with the tear-outexemption form.

8. A statement announcing that the taxpayer must list the Case Number and the name of thecounty if the source of an exemption is a type of relief based on need.

9. A statement announcing that the taxpayer must list the name and address of the taxpayer'semployer if the source of an exemption is wages.

10. A blank space for the taxpayer's signature and date of signature.




FORM FOR THE EXEMPTION NOTICE

In the absence of any statutory guidelines, the Department of Revenue recommends that thecounty treasurer's Exemption Notice be modeled on the Notice that is used by the Department ofRevenue. A suggested form is presented at the end of this Section 7640. Use the suggested formto develop your own county Exemption Notice.

Minor changes have been made in the Exemption Notice to make it easier for the taxpayer tounderstand the types and lengths of the exemptions and how to fill out the form to claim anexemption.


The suggested form of the Exemption Notice is designed for delinquent manufactured hometaxes. To use the form for other delinquent personal property taxes, the references to"manufactured homes" should be changed to "personal property."





EXEMPTION NOTICE

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Served: April 26, 1994 Applewood, MN 57252 Total Due: $ 352.13

You are hereby notified that a Notice of Bank Levy has been served on the FarmersState Bank of Applewood . Pursuant to Minnesota Statutes 277.21, thefinancial institution is required to deliver to the Spruce County treasurer, within ten (10)calendar days after the date of the Notice of Bank Levy, an amount from the funds inyour accounts necessary to pay the total delinquent manufactured home tax listed above.

However, the funds in your accounts are exempt from the Notice of Bank Levy withoutany time restrictions if they are traceable to one or more of the following sources:

1. Social Security benefits (Old Age, Survivors, or Disability Insurance).

2. Unemployment compensation, workers' compensation, or veterans' benefits.

3. An accident, disability, or retirement pension or annuity if it is a qualified plan forpurposes of federal income tax, and if not qualified, up to a value of $54,000 plusadditional amounts reasonably necessary for the support of the debtor and the debtor'sspouse and/or dependents.

4. Life insurance proceeds from the death of your spouse or parent of up to $36,000 withan additional $9,000 for each of your dependents. or all the earnings of your minor child.

5. Money from a claim for damage to or destruction of exempt property. Examples ofexempt property are household goods, farm tools, business equipment, or a car.

The funds in your accounts are exempt from the Notice of Bank Levy for 60 calendardays after the date of deposit if they are traceable to one or more of the following sources:




Exemption NoticePage 2

6. All wages and relief payments based on need that were received within the last sixmonths. This includes Minnesota Family Investment Program (MFIP), EmergencyAssistance (EA), Work First Program, Medical Assistance (MA), General Assistance(GA), General Assistance Medical Care (GAMC), Emergency General Assistance (EGA),Minnesota Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA),Supplemental Security Income (SSI), and Energy Assistance.

7. All wages of a person who has been an inmate of a correctional institution within thelast six months.

The funds in your accounts are exempt from the Notice of Bank Levy for 20 calendardays after the date of deposit if they are traceable to one or more of the following sources:

8. 75% of every wage earner's after tax earnings.

9. All of a wage earner's after tax earnings below 40 times the federal minimum wage($206 for a 40 hour week with the minimum wage at $5.15 per hour).

Note: The limits in lines 3 and 4 above are subject to adjustment as provided in Section 7550.The federal minimum wage is lower for smaller employers ($4.90 if gross volume of sales isless than $500,000). It is also lower if the wage is a training wage ($4.25 for newemployees under the age of 20 during their first 90 consecutive days of employment).




EXEMPTION CLAIM FORM

(To Be Completed By Taxpayer)

Complete, sign, and mail this form within fifteen (15) calendar days after the date of thisExemption Notice to the address listed at the bottom of this form.

1. Amount of Exemption Claim.

I claim all the funds in my account(s) are exempt.

X I claim some of the funds in my account(s) are exempt.

Total dollar amount exempt: $ 312.87

2. List the Type of Account(s) in Which the Exemption Funds Are on Deposit (Savings,Checking, Certificates, Trust Account, or IRA Account):

Checking

3. Basis for the Exemption.

Of the exemption categories listed above as #1 through #9, list the numbers and names ofthe categories for which you are claiming an exemption:

#6, Supplemental Security Income

NOTE: You must enclose documentation with this exemption claim (such as checkstubs and deposit slips) which trace the exempt funds into your accounts.




Exemption Claim FormPage 2

If the source is a type of If the source is wages, list therelief based on need, list name and address of yourthe case number and county: employer:

Case No.:238-12-9062 Employer:

County: Spruce Address:

May 3, 1994 (Your Signature) (Date of Signature)

Return Claim Form To:

Spruce County Treasurer's OfficeSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323



BANK'S RESPONSES TO LEVY SECTION 7650

Each bank that receives a Notice of Bank Levy must respond to the county treasurer within ten(10) calendar days after the date on the Notice of Bank Levy. There are several different waysthat each bank may respond to a bank levy. Four of the most common ways of responding areoutlined below.

RESPONSE #1: BANK HONORS LEVY

In the vast majority of cases, the bank will honor the county treasurer's levy if the bank isholding money on deposit for the taxpayer. The bank will honor the levy in full or in partdepending on how much money the taxpayer has on deposit.

The bank will honor the levy in full if the taxpayer has enough money on deposit to satisfy thetotal amount of the levy. The bank will withdraw that amount from the taxpayer's accounts andmail a check for that amount to the county treasurer along with a completed LevyQuestionnaire. The total delinquent tax amount will be paid in full, and the county treasurerwill send the bank a Release of Levy.

If the taxpayer does not have enough money on deposit to satisfy the total amount of the levy, thebank will only be able to honor the levy in part. The bank will withdraw the total amount ondeposit and mail a check for that amount to the county treasurer along with a completed LevyQuestionnaire. The county treasurer will send the bank a Release of Levy. Because the levysatisfies only part of the total delinquent tax amount, the county treasurer will have to collect thebalance by some other method.

NOTE: As stated in the Notice of Bank Levy, a bank is not liable to the taxpayer for honoringa bank levy from the county treasurer. The taxpayer cannot bring legal action againstthe bank for the amount withdrawn from the taxpayer's money accounts and mailed tothe county treasurer. (M.S. 277.21, Subd. 15)

RESPONSE #2: NO MONEY ON DEPOSIT

When the county treasurer sends a Notice of Bank Levy to banks that are not known to havemoney on deposit for the taxpayer, this is the way that some, but hopefully not all, of the banksmay respond. A bank may send the Levy Questionnaire back to the county treasurer with zeroesin all of blanks for the types of money accounts. This certifies that the taxpayer does not havemoney on deposit in the bank.

A bank may even call the county treasurer to say that the taxpayer does not have any money ondeposit in their institutions. They may also ask what to do now? The county treasurer shouldask them to complete and mail the Levy Questionnaire as written proof that the taxpayer doesnot have any money on deposit.



BANK'S RESPONSES TO LEVY SECTION 7650(Continued) (Page 2)

After receiving these types of responses, the county treasurer can either leave the bank levy inplace to pick up money deposited later by the taxpayer or send the bank a Release of Levy. Ineither case, the county treasurer should begin to pursue one of the other methods of enforcingpayment of the total delinquent tax amount.

RESPONSE #3: BANK CLAIMS SETOFF RIGHTS

Only on rare occasions will a bank respond to the county treasurer's levy on a taxpayer's bankaccounts by claiming setoff rights to all or part of the taxpayer's money on deposit. Thisresponse means that the bank claims a legal interest in the taxpayer's money on deposit that haspriority over the county treasurer's levy interest. See Section 7680 for more information about abank's setoff rights and what the county treasurer can legally do about a bank's claim.

RESPONSE #4: BANK FAILS TO HONOR LEVY

Once in a while, a bank may not respond to a bank levy at all or may explicitly refuse to honor abank levy. A bank may not complete and return the Levy Questionnaire, may not withdraw thetaxpayer's money and send it to the county treasurer, or both. Fortunately, the current levyprovisions give the county treasurer the authority to counteract this lack of response or refusal tocomply.

As stated in the Notice of Bank Levy, the county treasurer can hold any bank personally liablefor the amount of the bank levy if the bank fails to honor the levy. The bank itself can berequired to pay the amount of the bank levy plus a 25% penalty.

The county treasurer must complete the major steps outlined below in order to force a bank tocomply with the levy or pay the amount of the bank levy plus the 25% penalty itself.

1. If the bank does not complete and return the Levy Questionnaire and does not remit thetaxpayer's money on deposit, the county treasurer must send the bank a warning letter. (SeeSection 7660)

2. If the bank completes and returns the Levy Questionnaire that shows that the taxpayer hasmoney on deposit, but fails to remit the money, the county treasurer must send the bank awarning letter. (See Section 7660)

3. If the bank does not respond to the Warning Letter, the county treasurer must serve the bankwith an order assessing personal liability on the bank that is outlined in Section 7670.



WARNING OF BANK'S LIABILITY SECTION 7660

If a bank fails to respond to a bank levy or refuses to honor a bank levy within ten (10) calendardays after the date on the Notice of Bank Levy, the county treasurer should warn the bank of itspersonal liability for the amount of the bank levy. This is done by mailing a Warning Letter tothe bank. (M.S. 277.21, Subd. 8)

The rules and regulations that are presented in this Section 7660 are based on M.S. 277.21,Subd. 8, and the Department of Revenue's interpretation of the equivalent statute that applies tothe state's Warning Letter; i.e., M.S. 270.7002. The form and content of the Warning Letter arederived solely from the Department of Revenue's collection manuals.

DEFINITION OF FAILURE TO HONOR A BANK LEVY

A bank's failure to honor a bank levy is indicated by any one of the situations outlined below.

1. The bank does not complete and return the Levy Questionnaire and does not withdraw therequired money from the taxpayer's deposits and send it to the county treasurer within 10calendar days after the date on the Notice of Bank Levy.

2. The bank completes and returns the Levy Questionnaire that indicates that the taxpayer hasmoney on deposit, but does not withdraw the required money and send it to the countytreasurer within 10 calendar days after the date on the Notice of Bank Levy.

If either one of the above situations exists, the county treasurer should send the bank a WarningLetter immediately after the 10-day grace period expires.

TOTAL AMOUNT OF BANK'S LIABILITY

As stated in the Notice of Bank Levy, the county treasurer can hold the bank personally liable forthe amount of the bank levy if the bank fails to respond to or refuses to honor the bank levy. Thebank can be required to pay the sum of the two amounts listed below.

1. TOTAL AMOUNT OF THE BANK LEVY

The bank can be held personally responsible for the total amount of the bank levy that shouldhave been withdrawn from the taxpayer's money accounts. When collected, the countytreasurer must credit this amount against the total delinquent tax amount owed by thetaxpayer. (M.S. 277.21, Subd. 8)



WARNING OF BANK'S LIABILITY SECTION 7660(Continued) (Page 2)

2. PENALTY EQUAL TO 25% OF THE BANK LEVY

In addition to the total amount of the bank levy, the bank must pay a penalty equal to 25%of the bank levy. When collected, the county treasurer must not credit this amount againstthe total delinquent tax amount owed by the taxpayer. (M.S. 277.21, Subd. 9)

In the absence of any statutory guidelines for how it should be handled, the Department ofRevenue recommends that the 25% penalty be distributed along with the other penalties forlate payment of taxes under M.S. 276.131.

CONTENT OF THE WARNING LETTER

The Department of Revenue recommends that the county treasurer's Warning Letter be basedon the Letter that is used by the state. The major types of information that should be containedin the county treasurer's Warning Letter are outlined below.



3. The property identification number, the property type, the date when the Warning Letterwas mailed, and the total amount of the bank levy as listed on the Notice of Bank Levy.

4. A statement reminding the bank that, on (list the date on the Notice of Bank Levy), a Noticeof Bank Levy was sent to your financial institution for the amount of the taxpayer's moneyon deposit needed to pay the total delinquent tax amount listed on the Warning Letter. ALevy Questionnaire was enclosed with the Notice of Bank Levy.

5. A statement announcing that, as of the date on the Warning Letter, the county treasurer hasnot received the amount of the bank levy or the completed Levy Questionnaire.

6. A statement warning the bank that failure to honor the levy will result in an Order ofAssessment against the bank for the amount of the levy plus a 25% penalty for failure tohonor the levy as authorized under M.S. 277.21, Subd. 8, 9, and 10.




7. A statement warning the bank that, if there is no response within ten (10) calendar days afterthe date on the Warning Letter, enforced collection actions will be initiated against the bank.

8. A statement reminding the bank that the levy amount or the completed Levy Questionnaireshould be sent to the address listed at the bottom of the Warning Letter.

9. The signature, printed name, address, and telephone number of the county treasurer and thedate of the signature.

FORM FOR THE WARNING LETTER

The Department of Revenue recommends that the county treasurer's Warning Letter be modeledon the Letter that is used by the Department of Revenue. A suggested form is presented at theend of this Section 7660. Use the suggested form to develop your own county Warning Letter.

Minor changes have been made in the Warning Letter to make it easier for the financialinstitution to understand what will happen if the bank levy is not honored and what to do toavoid those things from happening.


The suggested form of the Warning Letter is designed for delinquent manufactured home taxes.To use the form for other delinquent personal property taxes, the references to "manufacturedhomes" should be changed to "personal property."





WARNING OF LIABILITY FOR FAILURE TO HONOR BANK LEVY

Financial Institution:Farmers State Bank of Applewood__________512 Main Street_________________________ Applewood, MN 57252___________________

Taxpayer:Bradley & Theresa Whitley Property ID#: 012-578-803_____________ Pine Cove Mobile Home Park Property Type: Manufactured Home______ 342 Washington Street Date Mailed: May 10, 1994____________ Applewood, MN 57252 Total Due: $ 352.13________________

On April 26, 1994 , a Notice of Bank Levy was served on your financial institutionfor the amount of the above taxpayer's money on deposit in your financial institution needed to paythe total delinquent tax amount list above. A Levy Questionnaire was included with the service ofthe Notice of Bank Levy.

As of the date on this letter, your financial institution has failed to return the completed LevyQuestionnaire and/or honor the Notice of Bank Levy.

The purpose of this letter is to warn you that failure to honor the bank levy will result in an Orderof Assessment against your financial institution for the amount of the bank levy plus a 25% penaltyas authorized under Minnesota Statutes 277.21, Subdivisions 8, 9, and 10.

If you do not respond within ten (10) calendar days after the date on this letter, enforced collectionaction will be taken against your financial institution for the amount of the bank levy plus the 25%penalty.

Send the completed Levy Questionnaire and/or the amount of the bank levy from the taxpayer'saccounts to the county treasurer's office at the address listed below.

Date Signed: May 10, 1994 Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



ORDER ASSESSING BANK'S LIABILITY SECTION 7670

If a bank fails to respond to the Warning Letter (Section 7660) within 10 calendar days after thedate on the Warning Letter, the county treasurer should first contact the bank in person or bytelephone. If the bank does not respond within ten (10) days after the personal contact, thecounty treasurer should assess the bank for the amount of the bank levy plus the 25% penalty.This is done by serving an Order of Assessment against the bank. (M.S. 277.21, Subd. 8)

The county treasurer's authority to hold the bank personally responsible for the bank levy iscontained in M.S. 277.21. Subd. 8, 9, and 10. The following interpretation of this statutoryauthority is based on the Department of Revenue's interpretation of the state's similar authorityin M.S. 270.7002, Subd. 1, 2, and 3. The county treasurer's provisions are taken almost verbatimfrom the state's provisions.

CONTACT BANK BEFORE SERVING ORDER OF ASSESSMENT

If the bank has not responded to the Warning Letter within ten (10) calendar days after the dateon the Warning Letter, the county treasurer should contact the bank in person or by telephonebefore serving the Order of Assessment on the bank. The personal contact should involve thethree actions outlined below.

1. The county treasurer should verify that the bank did receive the Notice of Bank Levy anddetermine the status of the bank levy.

2. The county treasurer should request immediate compliance with the bank levy and keep arecord of the request.

3. The county treasurer should warn the bank of its personal liability for failure to honor thebank levy.

SERVE ASSESSMENT ORDER ON BANK

If the bank does not respond within ten (10) days after the personal contact, the county treasurershould prepare an Order of Assessment in the name of the bank. The signed Order ofAssessment along with a copy of the original Notice of Bank Levy should be personally served onthe bank. If personal service is not possible, the Order of Assessment and the copy of the Noticeof Bank Levy must be served on the bank by certified mail with return receipt requested.

The bank has 10 calendar days after the date on the Order of Assessment to respond to thecounty treasurer. If the bank levy is not honored or a written protest is not received within thattime, the county treasurer should start an enforced collection action against the bank's assetswith the help of the county attorney.



ORDER ASSESSING BANK'S LIABILITY SECTION 7670(Continued) (Page 2)

If the bank voluntarily complies with the county treasurer's bank levy within the 10-day graceperiod, the county treasurer should not start enforced collection action against the bank's assets.Compliance is indicated by any one of the actions outlined below.

1. The bank returns the Levy Questionnaire that certifies that the taxpayer does or does nothave money on deposit with the bank.

2. If the taxpayer's money on deposit is equal to or more than the bank levy, the bank submitsonly the amount of the deposits needed to satisfy the bank levy.

3. If the taxpayer's money on deposit is less than the bank levy, the bank submits the totalamount on deposit that satisfies part of the bank levy.

CONTENT OF THE ORDER OF ASSESSMENT

The Department of Revenue recommends that the county treasurer's Order of Assessmentcontain the same basic information as the Department of Revenue's Order. M.S. 277.21 providesthe authority for the county treasurer to execute an Order of Assessment. However, the statutedoes not contain any information about the content of the Order.

The major types of information contained in the state's Order are outlined below.



3. A statement announcing that the bank is liable for the amount of the levy plus a 25% penaltyfor failure to honor the bank levy.

4. A statement listing the statute (M.S. 277.21, Subd. 8, 9, and 10) which authorizes the countytreasurer to assess the bank for the amount of the bank levy and the 25% penalty.

5. A breakout of the amount of the bank levy, the amount of the 25% penalty, and the totalassessment under this order.

6. A statement announcing that the bank may submit a written protest to the county treasurerexplaining why the bank is not liable for the total assessment. The protest must be receivedwithin ten (10) calendar days after the date on the Order of Assessment.




7. A statement announcing that, if the written protest is not received within the 10-day period,the bank's only recourse is to appeal directly to the Minnesota Tax Court within 60 calendardays after the expiration of the 10-day period to submit the written protest.

8. A statement informing the bank where to obtain the forms for the Tax Court appeal.

9. A statement warning the bank that collection action can still be taken against the bank eventhough an appeal is pending.

10. The name, signature, date of signature, and address of the county treasurer.

FORM FOR THE ORDER OF ASSESSMENT

The Department of Revenue recommends that the county treasurer's Order of Assessment bemodeled on the Order that is used by the Department of Revenue. Minor changes have beenmade in the form to make it easier for the financial institution to understand what its personalliability is and the recourses it has to appeal the Order.

A suggested form is presented at the end of this Section 7670. Use this form to develop your owncounty Order of Assessment.

COPY OF ORIGINAL NOTICE OF BANK LEVY

Following the state's model, the Department of Revenue recommends that the county treasurerenclose a copy of the original Notice of Bank Levy with the Order of Assessment that is mailed tothe bank. If this is done, the bank cannot claim that it does not have a copy of the Notice ofBank Levy. There also cannot be any doubt about the mailing of the Notice of Bank Levy or thedate of the mailing.





ORDER ASSESSING LIABILITY FOR FAILURE TO HONOR BANK LEVY


Farmers State Bank of Applewood 512 Main Street Applewood, MN 57252

Taxpayer:

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Served: May 23, 1994 Applewood, MN 57252 Total Due: $ 352.13

As a result of your failure to honor the attached Notice of Bank Levy, your financialinstitution is hereby assessed for the amount of the bank levy plus a 25% penalty. ThisOrder of Assessment is made pursuant to Minnesota Statutes 277.21, Subdivisions 8, 9,and 10.

Amount of Levy Total AssessmentNot Surrendered 25% Penalty of this Order

$ 352.13 $ 88.03 $ 440.16

If a written protest explaining why you are not liable for the above amount is not receivedby the county treasurer's office within ten (10) calendar days after the date on this Orderof Assessment, your only recourse is to appeal the Order of Assessment directly to theMinnesota Tax Court. The appeal must be made within sixty (60) calendar days after theexpiration of the 10-day protest period.




Order of AssessmentPage 2

If you decide to appeal, you may choose to have your case heard in the regular Tax Courtor informally by a Tax Court Judge in the Small Claims Division. In order to appeal tothe Small Claims Division, the amount of your claim cannot be more than $5,000. Adecision made in the Small Claims Division is final. It cannot be appealed by you or thecounty treasurer.

You can get the forms needed to file an appeal by going in person or writing to:Minnesota Tax Court, 520 Lafayette Road, Second Floor, St. Paul, Minnesota, 55155.You may also get the appeal forms from the District Court Clerk in you county.

Collection action can still be taken against you while your appeal to the Tax Court ispending.

Date Signed: May 23, 1994Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



BANK'S SETOFF RIGHTS SECTION 7680

After being served the Notice of Bank Levy and the Levy Questionnaire, a bank may claim itslegal right to setoff the taxpayer's money on deposit in order to defeat the bank levy. The bankmay submit a claim of setoff rights by filling out section IV. of the Levy Questionnaire that ismailed to the county treasurer.

NOTE: The possibility of a bank claiming setoff rights is very remote. Therefore, it should notprevent the county treasurer from deciding to levy on a taxpayer's bank accounts.

M.S. 277.21, Subd. 14, contains the provisions for the county treasurer to determine the validityof a bank's claim of setoff rights. The following interpretation of these statutory provisions isbased on the Department of Revenue's interpretation of the state's similar provisions under M.S.270.70, Subd. 14. The county treasurer's provisions are taken almost verbatim from the state'sprovisions.

DEFINITION: BANK'S SETOFF RIGHTS

The term, "setoff," refers to the process by which a bank applies the money in an individual'saccount toward the balance of any outstanding loan or loans owed by the individual to the bank.

When it claims setoff rights over the taxpayer's money on deposit, the bank is really saying thatits legal interest in the taxpayer's money has priority over the county treasurer's interest with thebank levy. The bank should make this claim by filling out section IV. of the Levy Questionnaire.

PRIORITY: BANK'S SETOFF RIGHTS VS. TREASURER'S BANK LEVY

M.S. 277.21, Subd. 14, provides the method to decide who has priority over the taxpayer'smoney on deposit in the bank; i.e., the bank's setoff rights or the county treasurer's bank levy.The decision is based on which of the conditions outlined below exists.

1. If the bank's setoff was exercised before the county treasurer's Notice of Bank Levy wasserved, the bank's claim has priority over the county treasurer's bank levy.

2. If the county treasurer's Notice of Bank Levy was served before the bank's setoff, thecounty treasurer's bank levy has priority over the bank's setoff right.



BANK'S SETOFF RIGHTS SECTION 7680(Continued) (Page 2)

BURDEN OF PROOF

The burden of proof lies with the bank. As stated in section IV. of the Levy Questionnaire, thebank must submit proof that the date when the setoff was asserted and formalized by notice tothe taxpayer was prior to the date when the Notice of Bank Levy was served on the bank. If thedate of the setoff and the date of the bank levy were the same, the bank must provide proof thatthe setoff was exercised earlier in the day than the service of the Notice of Bank Levy.

In addition to providing valid proof, the bank's evidence must be verified by the sworn statementof a responsible officer of the bank.

The bank's evidence and sworn statement should be submitted along with the LevyQuestionnaire to the county treasurer.

COUNTY TREASURER'S RESPONSE

The county treasurer must respond to a bank's claim to offset the taxpayer's money on deposit inone of the two general ways outlined below.

1. If the bank provides evidence proving the priority of the bank's setoff rights and a swornstatement of a responsible bank official verifying the evidence, the county treasurer mustaccept the priority of the bank's setoff.

If the bank's setoff covers all of the taxpayer's funds on deposit, there will be nothing left forthe bank levy. In this case, the county treasurer must respond by sending a Release of Levyto the bank (See Section 7690).

If the bank's setoff covers only part of the taxpayer's funds on deposit, the county treasurermust respond by reducing the original amount of the bank levy to the amount not covered bythe bank's setoff. This is done by mailing the bank a Reduction of Levy (See Section 7690).

2. If the bank does not provide valid proof and a sworn statement or if the county treasurerdetermines that the bank's evidence does not prove that the bank's setoff has priority, thecounty treasurer must deny the bank's claim. This is done by mailing a Notice of FinalDemand for Payment to the bank.

If the bank submits the required evidence and sworn statement, the county treasurer mustrespond as indicated in subsection number 1. above. If the bank does not respond, thecounty treasurer should follow up with a Warning Letter (Section 7660) and an Order ofAssessment (Section 7670).




NOTICE OF FINAL DEMAND FOR PAYMENT

The form and content of the Notice of Final Demand for Payment are modeled entirely on theDepartment of Revenue's collection manuals. M.S. 277.21 is silent on the question of what formthe county treasurer's response to an invalid setoff claim should take.

The major types of information contained in the state's Notice of Final Demand for Payment areoutlined below. A suggested form is presented at the end of this Section 7680. Use the form todevelop your own county Notice of Final Demand for Payment.

1. The date when the Notice of Final Demand for Payment was mailed.


3. The name and complete address (street or rural route and box number, city or township,state, zip code) of the taxpayer.

4. A statement informing the bank that the county treasurer is aware of the bank's claim tosetoff the taxpayer's money on deposit that was the object of the county treasurer's banklevy.

5. A statement informing the bank that M.S. 277.21, Subd. 14, grants the county treasurer'sbank levy priority over any unexercised right of setoff claimed by the bank.

6. A statement informing the bank that the priority of its right of setoff over the bank levy mustbe substantiated by evidence of the time and date when the taxpayer was notified of the setoffand by the sworn statement of a responsible officer of the bank.

7. A statement informing the bank that it must comply with the bank levy unless it can provethat it exercised its right of setoff prior to the service of the bank levy.






NOTICE OF DEMAND FOR FINAL PAYMENT

Date: May 24, 1994

Financial Institution: Taxpayer:

Farmers State Bank of Applewood Bradley & Theresa Whitley 512 Main Street Pine Cove Mobile Home Park Applewood, MN 57252 342 Washington Street Applewood, MN 57252

Your Levy Questionnaire indicates that you are asserting the right to setoff thetaxpayer's money on deposit in your financial institution as a result of the countytreasurer's Notice of Bank Levy served on you.

Pursuant to Minnesota Statutes 277.21, Subdivision 14, a levy by the county treasurer ona taxpayer's funds on deposit in a financial institution located in this state has priorityover any unexercised right of setoff claimed by the financial institution. The financialinstitution's claim that it exercised its right to setoff prior to the service of the tax levymust be substantiated by evidence of the date of the setoff and must be verified by thesworn statement of a responsible officer of the financial institution.

As of the date of this Notice of Demand for Final Payment, you have not submittedevidence of the priority of your right to setoff or the sworn statement required by law.

Unless you submit the required evidence and sworn statement to the address listed below,you must comply with the tax levy.




REDUCTION/RELEASE OF BANK LEVY SECTION 7690

M.S. 277.21 does not contain any provision for the county treasurer to use for reducing orreleasing a bank levy. The authority for the state to reduce or release a levy is contained in M.S.270.709, Subd. 1.

Even though there is no specific statutory authority, the county treasurer is still required legallyto reduce or release a bank levy in the same way a tax lien must be reduced or released.Therefore, the Department of Revenue recommends that the county treasurer perform theseactions under the authority of M.S. 270.709.

The interpretation of the statute and the form for reducing or releasing a bank levy that arepresented in this Section 7690 are derived from the Department of Revenue's collection manuals.

CONDITIONS FOR REDUCING/RELEASING BANK LEVY

The county treasurer must reduce or release a bank levy on all or part of the taxpayer's moneyon deposit when one or more of the conditions outlined below exist.

1. TOTAL DELINQUENT TAX AMOUNT PAID IN FULL OR IN PART

If part of the total delinquent tax amount that is the object of the bank levy is collectedindirectly from the bank or directly from the taxpayer, the county treasurer must reduce thebank levy by the amount collected. In this case, the bank levy will remain in place for theamount of the total delinquent tax amount not yet collected. Once the remaining balance iscollected, the bank levy can be released.

If all of the total delinquent tax amount that is the object of the bank levy is collectedindirectly from the bank or directly from the taxpayer, the county treasurer must release thebank levy. In this case, releasing the levy means that there is no longer a bank levy on thetaxpayer's money on deposit.

2. RELEASE WILL FACILITATE COLLECTION OF TOTAL DELINQUENT TAXAMOUNT

In this situation, the taxpayer volunteers to pay the total delinquent tax amount in full or signan installment agreement only if the county treasurer releases the bank levy.



REDUCTION/RELEASE OF BANK LEVY SECTION 7690(Continued) (Page 2)

3. TOTAL DELINQUENT TAX AMOUNT PAID UNDER INSTALLMENT PLAN

If the taxpayer agrees to pay the delinquent tax amount under an installment plan, thecounty treasurer must release the bank levy. An example is a confession of judgment for thetotal delinquent tax amount on a manufactured home that is receiving homestead treatment(See Section 7940A). If the taxpayer defaults on the payments, the county treasurer canalways reinstate the bank levy.

CONTENT OF THE REDUCTION/RELEASE OF BANK LEVY

The Department of Revenue recommends that the county treasurer's Reduction of Bank Levyand Release of Bank Levy contain the same basic information as the Department of Revenue'sforms. The state's forms comply with the statutory requirements under M.S. 270.709, Subd. 1,as referenced in M.S. 290.92, Subd. 23.

The major types of information that are contained in the state's forms are listed below.

1. The date when the Reduction of Levy or Release of Levy was prepared and mailed.



4. A statement reminding the bank that, on (list the date on the Notice of Bank Levy), theamount of the bank levy was (list the exact amount).

5. For a reduction of the bank levy, a statement announcing that the bank levy that was servedon the bank is reduced to (list the balance of the total delinquent tax still not paid).

6. For a release of the bank levy, a statement announcing that the bank levy that was served onthe bank is released in full.





SUGGESTED FORM FOR THE REDUCTION/ RELEASE OF BANK LEVY

The Department of Revenue recommends that the county treasurer's Reduction of Bank Levyand Release of Bank Levy be modeled on the forms that are used by the Department of Revenue.

Minor changes have been made in the forms to make it easier for the employer to understand thepurpose of the forms and comply with their requirements.


The suggested forms that are presented at the end of this Section 7790 are designed fordelinquent manufactured home taxes. To use the form for other delinquent personal propertytaxes, the references to "manufactured homes" should be changed to "personal property." Usethe suggested forms to develop your own county forms.





REDUCTION OF BANK LEVY

Date: May 4, 1994



On April 26, 1994 , a Notice of Bank Levy was served on your financialinstitution for the above named taxpayer.

At the time of the bank levy, the total delinquent manufactured home tax due and owingfrom the above named taxpayer was $ 352.13 . This was also the amount of thebank levy served on your financial institution for the above named taxpayer.

As a result of collecting part of the total tax liability, the amount of the bank levy that wasserved on your financial institution for the above named taxpayer is reduced to$ 223.45 . This means that you must continue to honor the bank levy for thereduced amount only.






RELEASE OF BANK LEVY

Date: May 4, 1994



On April 26, 1994 , a Notice of Bank Levy was served on your financialinstitution for the above named taxpayer.

At the time of the bank levy, the total delinquent manufactured home tax due and owingfrom the above named taxpayer was $ 352.13 . This was also the amount of thebank levy served on your financial institution for the above named taxpayer.

As a result of collecting all of the above tax liability, the amount of the bank levy that wasserved on your financial institution for the above named taxpayer is released. This meansthat you no longer have to honor the Notice of Bank Levy served on you in the name ofthe above taxpayer.



DELINQUENT PERSONAL PROPERTY TAXES LEVY ON WAGES

TABLE OF CONTENTS


Introduction: Levy on Wages ............................................................................................... 7705

Verification of Employment.................................................................................................. 7710

Notice of Intent to Levy on Wages ....................................................................................... 7720

Exemption Claim Form ........................................................................................................ 7730

Notice of Wage Levy ............................................................................................................. 7740

Wage Disclosure Form .......................................................................................................... 7750

Wage Withholding Form ...................................................................................................... 7760

Employer Honors Wage Levy ............................................................................................... 7770

Treasurer Monitors Employer's Compliance ....................................................................... 7775

Warning of Employer's Liability .......................................................................................... 7780

Order Assessing Employer's Liability .................................................................................. 7785

Reduction/Release of Wage Levy ......................................................................................... 7790



INTRODUCTION: LEVY ON WAGES SECTION 7705

The county treasurer's authority to levy on a taxpayer's wages is one of the most convenient andefficient methods of enforcing payment of delinquent personal property taxes, includingmanufactured homes. It is comparable to Revenue Recapture and levying on a taxpayer's bankaccounts. All three of these enforced collection methods may be exercised by the countytreasurer without a court judgment, without the county sheriff, and without personal contactwith the taxpayer.


Before initiating the process of levying on a taxpayer's wages, the county treasurer must reviewthe general levy provisions which are outlined in Series 7500. A thorough knowledge of theseprovisions is necessary because they apply to all types of levying on and seizing and selling ataxpayer's money and property. These provisions must be understood and followed whenlevying on a taxpayer's wages.

DEFINITION OF TERMS

The phrase, "levy on a taxpayer's wages," is used in this Manual to refer to the countytreasurer's authority to require a taxpayer's employer to withhold a specified amount of moneyfrom the taxpayer's wages each pay period and send it to the county treasurer until the totaldelinquent tax amount is paid. This enforced collection method will also be referred to as a"wage levy."

The term, "wages," is used to refer to all types of compensation due to the taxpayer for personalservices rendered to an employer; e.g., wages, salary, tips, commissions, and bonuses.

WAGE LEVY AUTHORITY

The county treasurer's authority to levy on a taxpayer's wages is contained in M.S. 277.21, Subd.3 where it says that the county treasurer has the powers given to the Commissioner of Revenuein M.S. 290.92, Subd. 23. M.S. 277.21 also grants the county treasurers the powers of M.S. 550to levy on or seize a taxpayer’s wages.

The rules, procedures, and forms for levying on a taxpayer's wages that are presented in thisSeries 7700 are based on the Department of Revenue's interpretation of M.S. 290.92, Subd. 23.The source for this information is the Department of Revenue's collection manuals.



INTRODUCTION: LEVY ON WAGES SECTION 7705(Continued) (Page 2)

NO WAGE LEVY DURING 90-DAY GRACE PERIOD

Similar to the other enforced collection actions, the process of levying on a taxpayer's wagescannot start until the 90-day grace period following the billing date on the Notice of DelinquentTaxes has expired.

Exception: If it is determined that a tax collection is in jeopardy, the county treasurer mayimmediately exercise a wage levy without waiting for the 90-day grace period to expire.

See Section 7220 of this Manual for detailed information about the 90-day grace period. SeeSection 7580 for an outline and summary of provisions for exercising a jeopardy collection.

MAJOR STEPS FOR WAGE LEVY

The major steps in the process of levying on a taxpayer's wages are outlined below. Each step iscovered in the Section that is listed in parentheses.

1. VERIFICATION OF EMPLOYMENT (Section 7710)

During the 90-day grace period following the billing date on the Notice of Delinquent Taxes,the county treasurer should identify the taxpayer's current employer. This can be done aspart of the development of the collection plan or after the decision to execute a wage levy. Inany case, a wage levy cannot be executed without identifying the taxpayer's currentemployer.

The sources that will help the county treasurer identify the taxpayer's employer are presentedin Section 7230. Please refer to those sources before executing a wage levy. The informationwill not be repeated in this Series 7700.


After the 90-day grace period following the billing date on the Notice of Delinquent Taxes hasexpired, the county treasurer must mail a Notice and Demand for Payment to the taxpayer atleast 30 calendar days before levying on the taxpayer's wages. The 30-day waiting period canrun concurrently with the 30-day waiting period after the date on the Notice of Intent toLevy as long as both Notices have the same date and are mailed on the same day.

The rules, procedures, and forms for mailing a Notice and Demand for Payment to thetaxpayer are covered in Section 7570. Please study them thoroughly before executing a levyon a taxpayer's wages. They will not be repeated in this Series 7700.




3. NOTICE OF INTENT TO LEVY ON WAGES (Section 7720)

After the 90-day grace period following the date on the Notice of Delinquent Taxes hasexpired, the county treasurer must mail a Notice of Intent to Levy on Wages to the taxpayerat least 30 calendar days before a wage levy can be served on the taxpayer's employer. TheNotice of Intent should be enclosed in a separate envelope, but it should have the same dateand be mailed on the same day as the Notice and Demand for Payment. This will allow the30-day waiting period for each Notice to run concurrently.

After the 30-day waiting period expires, the county treasurer may require the taxpayer'semployer to withhold an authorized amount of the taxpayer's wages for up to one yearwithout further notice to the taxpayer. The county treasurer may extend the wage levy byanother year by sending a Continuation Notice to the taxpayer.

4. EXEMPTION CLAIM FORM (Section 7730)

The county treasurer must enclose an Exemption Claim Form with each Notice of Intent toLevy on Wages that is delivered to a taxpayer.

5. NOTICE OF WAGE LEVY (Section 7740)

When the 30-day period following the same date on the Notice and Demand for Payment andthe Notice of Intent to Levy on Wages has expired without any response from the taxpayer,the county treasurer may serve a Notice of Wage Levy on the taxpayer's employer. Theemployer must honor the wage levy starting with the next pay period and continue to honorit until notified by the county treasurer otherwise.

Repeat: Unless it is a jeopardy collection or assessment, the Notice of Wage Levy cannot beserved on the employer until 30 calendar days after the same date on the Notice and Demandfor Payment and the Notice of Intent to Levy on Wages.

6. WAGE DISCLOSURE FORM (Section 7750)

The county treasurer must enclose a Wage Disclosure Form with each Notice of Wage Levythat is served on an employer. The employer has 10 calendar days to complete the WageDisclosure Form and return a copy of the Form to the county treasurer. The amount of thetaxpayer's wages that must be withheld each pay period and submitted to the countytreasurer is determined by completing the calculation steps in the Wage Disclosure Form.




7. WAGE WITHHOLDING FORM (Section 7760)

The county treasurer must enclose three copies of the Wage Withholding Form with eachNotice of Wage Levy that is served on an employer. The employer must submit the moneywithheld from the taxpayer's wages with this Form within 10 calendar days after each payperiod.

8. EMPLOYER HONORS WAGE LEVY (Section 7770)

The employer will honor the wage levy by returning the completed Wage Disclosure Formand submitting the wages withheld from the employee each pay period with the WageWithholding Form. The county treasurer must monitor the process to be sure that theemployer continues to send the required amount each pay period and credit each paymentagainst the total delinquent tax amount owed by the taxpayer. When the amount of the wagelevy plus accrued interest has been paid, the county treasurer must send the employer aRelease of Wage Levy.

9. WARNING OF EMPLOYER'S LIABILITY (Section 7780)

If the employer does not honor the wage levy, the county treasurer must send to the employera Warning Letter. The Warning Letter informs the employer that the employer will bepersonally liable for the amount of the wage levy if one or both of the following actions arenot performed: (a) the completed Wage Disclosure Form must be returned within 10 calendardays after the date on the Notice of Wage Levy, and (b) the authorized withholdings must besubmitted within 10 calendar days after the first pay period following the date on the Noticeof Wage Levy.

10. ORDER ASSESSING EMPLOYER'S LIABILITY (Section 7785)

If the employer does not respond to the Warning Letter, the county treasurer must send tothe employer an Order Assessing the Employer for the Amount of the Wage Levy.

11. REDUCTION OF WAGE LEVY AND RELEASE OF WAGE LEVY (Section 7790)

When part of the total delinquent tax amount is collected by a method other than the wagelevy, the county treasurer must send a Reduction of Wage Levy to the employer. When thetotal delinquent tax amount is collected in full through the wage levy or by other means, thecounty treasurer must send a Release of Wage Levy to the employer.



VERIFICATION OF EMPLOYMENT SECTION 7710

During the 90-day grace period following the billing date on the Notice of Delinquent Taxes, thecounty treasurer should identify the taxpayer's current or last known employer and obtainemployment information about the taxpayer from the employer.

PURPOSE OF IDENTIFYING TAXPAYER'S EMPLOYER

The purpose of identifying the taxpayer's employer is obvious: the county treasurer needs toknow where the taxpayer is currently working before a wage levy can be used to collect the totaldelinquent tax amount. If the taxpayer is unemployed or a current employer cannot beidentified, the county treasurer must choose another method of enforcing payment. Noemployer, no wage levy.

SOURCES FOR IDENTIFYING TAXPAYER'S EMPLOYER

The sources that may help the county treasurer identify the taxpayer's employer are the same assome of those used to develop the collection plan. See Section 7230 for an outline of thosesources. Please refer to those sources before attempting to identify a taxpayer's employer.

EMPLOYMENT INFORMATION

When the taxpayer's current or last known employer has been identified, the county treasurershould ask the employer the major questions outlined below in order to obtain the employmentinformation needed to begin the process of levying on the taxpayer's wages after the 90-day graceperiod has expired.

1. Is the taxpayer currently working for the employer?

2. If currently working for the employer, is the employer's most recent address and telephonenumber for the taxpayer the same as the one the county treasurer has on record?

3. If currently working for the employer, what is the taxpayer's work status: full time or parttime? How many hours per week if full time? How many hours per week if part time?

4. If not currently working for the employer, what was the date of the termination, if thetaxpayer did work for the employer in the past?

5. If not currently working for the employer, what is the name and address of the taxpayer'spresent employer, if known?



VERIFICATION OF EMPLOYMENT SECTION 7710(Continued) (Page 2)

METHODS OF OBTAINING EMPLOYMENT INFORMATION

In order to obtain employment information about the taxpayer, the county treasurer maycontact the employer by telephone or mail.

If contact is made by telephone, the county treasurer should ask the major questions outlinedabove and record the employer's responses in writing. The time and date of the telephonecontact should be included on the written record.

Instead of using the telephone, the county treasurer may send the employer a Letter RequestingCurrent Employment Information. The major questions should be listed on the Letter. Theemployer should answer the questions in writing on the Letter and return the Letter to thecounty treasurer. The contents of the Letter are listed in the following subsection.

NOTE: EMPLOYMENT INFORMATION NOT NEEDED TO EXECUTE A WAGE LEVY

If an employer refuses to answer the major questions over the telephone or does not return theLetter with the information requested, the county treasurer may still serve a wage levy on theemployer after the 90-day grace period has expired and the other preliminary procedures in theprocess have been completed.

CONTENT OF THE EMPLOYMENT INFORMATION LETTER

The Department of Revenue recommends that the county treasurer's Letter Requesting CurrentEmployment Information contain the same basic information as the Department of Revenue'sLetter. The state's Letter complies with the statutory requirements under M.S. 290.92, Subd. 23.

The major types of information that are contained in the state's Letter are outlined below.

1. The date (month/day/year) when the Letter was mailed.

2. The name and complete address (street or rural route and box number, city or town, state,zip code) of the employer.





4. A section for the employer to answer each of the major questions that are outlined on pageone of this Section 7710.

5. A statement announcing that a self-addressed and stamped envelope is enclosed for theemployer to mail the completed letter to the county treasurer.

6. A statement requesting the employer to complete and return the letter to the county treasurerwithin 10 calendar days after the date on the letter.

7. The name, title, address, and telephone number of the county treasurer.

FORM FOR THE EMPLOYMENT INFORMATION LETTER

The Department of Revenue recommends that the county treasurer's Letter Requesting CurrentEmployment Information be modeled on the Letter that is used by the Department of Revenue.Minor changes have been made in the Letter to make it easier for the employer to understandthe instructions and comply with the requirements stated in the Letter. A suggested form ispresented at the end of this Section 7710. Use the suggested form to develop your own countyEmployment Information Letter.





LETTER REQUESTING CURRENT EMPLOYMENT INFORMATION

Employer: Taxpayer:Farmers State Bank of Applewood Bradley & Theresa Whitley 512 Main Street Pine Cove Mobile Home Park Applewood, MN 57252 342 Washington Street Applewood, MN 57252

Please answer the following questions and return the letter in the self-addressed andstamped envelope to the county treasurer at the address listed below within ten (10)calendar days after the date on the letter. If you have any questions, please contact thecounty treasurer at the telephone number listed below.

1. Is the above taxpayer currently working for you? Yes X No _____

2. If yes, is the taxpayer's address listed above the same as the address you have for thetaxpayer? Yes X No _____

Please list your address for the taxpayer if it is different.N/A

3. If yes, check the box that indicates the taxpayer's work status:

Full time X Part time _____ Please list the number of hours the taxpayerworks per week: Full time 40 Part time _____

4. If the taxpayer is not currently working for you, please list the date (month/day/year)when taxpayer's employment was terminated: N/A

5. If the taxpayer is not currently working for you, please list the name and address ofthe taxpayer's current employer, if known.N/A

Date Mailed: February 2, 1994Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



NOTICE OF INTENT TO LEVY ON WAGES SECTION 7720

After the 90-day grace period following the billing date on the Notice of Delinquent Taxes hasexpired and the taxpayer's employer has been identified, the county treasurer must mail a Noticeand Demand for Payment and a Notice of Intent to Levy on Wages to the taxpayer before aNotice of Wage Levy can be served on the taxpayer's employer.

The rules, procedures, and the form for preparing and mailing a Notice and Demand forPayment are covered in Section 7570. Please study them thoroughly before executing a levy on ataxpayer's wages. They will not be repeated in this Series 7700.

The rules, procedures, and the form for preparing and mailing a Notice of Intent to Levy onWages are outlined in this Section 7720. They are based on the interpretation of M.S. 290.92,Subd. 23, which is contained in the Department of Revenue's collection manuals.

CONCURRENT 30-DAY WAITING PERIOD

The question arises: Does the county treasurer have to mail the Notice and Demand for Paymentfirst, wait 30 calendar days, mail the Notice of Intent to Levy on Wages, and wait another 30calendar days before serving a wage levy on the employer? In other words, does the countytreasurer have to wait a total of 60 days before actually levying on the taxpayer's wages?

The answer is, no. The 30-day waiting periods for each of the Notices may run concurrently. Inorder for this to happen, the county treasurer must prepare the two Notices at the same time, putthe same date on each Notice, place each Notice in a separate envelope, and mail them on thesame day. Then the county treasurer has to wait only 30 calendar days from the date on the twoNotices before serving the wage levy on the employer.

DURATION OF THE NOTICE OF INTENT TO LEVY ON WAGES

The Notice of Intent to Levy on Wages extends for one year after the date on the Notice of Intent.This means that the county treasurer can require the taxpayer's employer to withhold anauthorized amount from the taxpayer's wages each pay period for up to one year without givingthe taxpayer any further notice.

CONTINUATION OF THE ORIGINAL NOTICE

If the total delinquent tax amount is not paid in full from the wages withheld during the firstyear, the county treasurer may extend the wage levy for another year by sending the taxpayer aContinuation Notice. The county treasurer may extend the wage levy as many times as needed topay the total delinquent tax amount owed by the taxpayer.



NOTICE OF INTENT TO LEVY ON WAGES SECTION 7720(Continued) (Page 2)

The county treasurer must enclose a copy of the Exemption Claim Form with each ContinuationNotice that is mailed to the taxpayer. See Section 7730 for information about the ExemptionClaim Form.

A suggested form for the Continuation Notice is presented at the end of this Section 7720. Usethe suggested form to develop your own county Continuation Notice.

CONTENT OF THE NOTICE OF INTENT TO LEVY ON WAGES

The Department of Revenue recommends that the county treasurer's Notice of Intent to Levy onWages contain the same basic information as the Department of Revenue's Notice of Intent. Thestate's Notice of Intent complies with the statutory requirements under M.S. 290.92, Subd. 23.

The major types of information that are contained in the state's Notice of Intent are listed below.


2. The taxpayer's property identification number, the property type, the date when the Noticeof Intent was mailed, and the total delinquent tax amount owed as of the date when theNotice of Intent was prepared and mailed.

3. A statement reminding the taxpayer of the total delinquent tax amount remaining unpaid asof the date when the Notice of Intent was prepared and a demand for payment.

4. A statement warning the taxpayer that a wage levy will be served on the taxpayer's employerif the total amount due is not paid within 30 calendar days after the date on the Notice ofIntent.

5. A statement announcing that the taxpayer may avoid a wage levy by paying the total amountdue in full or entering into an installment payment agreement.

6. A statement announcing that the taxpayer may request a review of the action taken if a wagelevy is served and the taxpayer disagrees with the amount of the levy.

7. A statement explaining the specific situations when certain wages are exempt from a wagelevy.




8. A statement informing the taxpayer to complete the enclosed Exemption Claim Form (Section7730) and mail it to the county treasurer if the taxpayer wishes to claim an exemption.

9. A statement informing the taxpayer how and when to make payment in full in order to avoida bank levy.


SUGGESTED FORM FOR THE NOTICE OF INTENT TO LEVY ON WAGES

The Department of Revenue recommends that the county treasurer's Notice of Intent to Levy onWages be modeled on the Notice of Intent that is used by the Department of Revenue. Asuggested form is presented at the end of this Section 7720. Use the suggested form to developyour own county Notice of Intent.

Minor changes have been made in the Notice of Intent to make it easier for the taxpayer tounderstand what will happen if the total delinquent tax amount is not paid within the 30-daygrace period and the county treasurer levies on the taxpayer's wages.


There are only two major differences in the two forms. The first difference is the reference toeither personal property taxes or manufactured home taxes. The second difference is thestatutory reference to M.S. 277.23 for the confession of judgment installment plan formanufactured homes taxes on homesteaded property. This statutory reference must not be usedfor other personal property taxes.

The suggested form of the Notice of Intent to Levy on Wages is designed for delinquentmanufactured home taxes. To use the form for other delinquent personal property taxes, thereferences to "manufactured homes" should be changed to "personal property."





NOTICE OF INTENT TO LEVY ON WAGES

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Mailed: March 23, 1994 Applewood, MN 57252 Total Due: $ 349.29

The manufactured home taxes listed above have not been paid. This is a demand for payment ofthe total amount listed above plus any additional costs and interest accrued after the date of thisnotice.

If full payment is not received within thirty (30) calendar days after the date on this notice, youremployer will be required to withhold an amount authorized by law from your wages each payperiod until the total delinquent tax amount due is paid in full. This is called a "wage levy."

A wage levy can be prevented by paying the total delinquent tax amount due in full or by enteringinto an installment payment agreement under M.S. 277.23, if your manufactured home is taxed as ahomestead. If a wage levy is served on your employer, you may request a review of the action bycontacting the Spruce County Treasurer.

Your wages are completely exempt from a wage levy if any one of the following conditions exists:(1) you are presently a recipient of relief based on need, (2) you have been a recipient of relief basedon need within the last six (6) months, or (3) you have been an inmate of a correctional institutionwithin the last six (6) months. Relief based on need includes only Minnesota Family InvestmentProgram (MFIP), Emergency Assistance (EA), Work First Program, Medical Assistance (MA),General Assistance (GA), General Assistance Medical Care (GAMC), Emergency GeneralAssistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA),Supplemental Security Income (SSI), and Energy Assistance.

If you wish to claim an exemption, you must complete the enclosed Exemption Claim Form andsend it to the address listed below.


__________ Date Signed: March 23, 1994 Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, MN 56323(234) 567-8910





CONTINUATION NOTICE


This notice is to inform you that funds will continue to be withheld from your wages topay the manufactured home taxes listed above unless you pay the total amount listedabove plus any additional costs and interest accrued after the date on this notice or yourexemption status has changed.

If your exemption status has changed, you must complete the enclosed Exemption ClaimForm and send it to the address listed below.

Contact the Spruce County Treasurer's office for the total amount due on the day whenyou will make payment. Make your check or money order payable to the Spruce CountyTreasurer. Mail your payment to the address listed below. Put your propertyidentification number on your check or money order.

Date Signed: March 22, 1995 Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, MN 56323(234) 567-8910



EXEMPTION CLAIM FORM SECTION 7730

The county treasurer must enclose an Exemption Claim Form with each Notice of Intent to Levyon Wages that is mailed to a taxpayer. In order to qualify for the wage levy exemption, thetaxpayer must complete and return the Exemption Claim Form to the county treasurer within 10calendar days after the date on the Notice of Intent.

The rules, procedures, and the form for preparing and mailing an Exemption Claim Form areoutlined in this Section 7730. They are based on the interpretation of M.S. 290.92, Subd. 23,which is contained in the Department of Revenue's collection manuals.

TYPES AND DURATION OF WAGE LEVY EXEMPTIONS

The taxpayer can claim an exemption from a wage levy when one or more of the conditionsoutlined below exists. These wage levy exemptions are granted under M.S. 550.37, Subd. 14, asreferenced in M.S. 290.92, Subd. 23.

1. RECEIPT OF RELIEF PAYMENTS BASED ON NEED

If the taxpayer is presently receiving relief based on need,* the county treasurer cannot servea wage levy on the taxpayer's employer until 6 months after the date when the taxpayer stopsreceiving the relief payments.

If the taxpayer is not presently receiving relief based on need, but has received relief based onneed* within the last 6 months, the county treasurer cannot serve a wage levy on thetaxpayer's employer until 6 months after the taxpayer stopped receiving the relief payments.

In each of the above cases, the taxpayer must grant the county treasurer the right to verifywith the relief agency when the relief payments ended. After receiving an Exemption ClaimForm, the county treasurer must contact the relief agency to confirm the exemption.

* Relief based on need includes only Minnesota Family Investment Program (MFIP),Emergency Assistance (EA), Work First Program, Medical Assistance (MA), GeneralAssistance (GA), General Assistance Medical Care (GAMC), Emergency GeneralAssistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance(MSA-EA), Supplemental Security Income (SSI), and Energy Assistance.

2. RECENT CONFINEMENT IN A CORRECTIONAL INSTITUTION

If the taxpayer has been an inmate of a correctional institution within the last 6 months, thecounty treasurer cannot serve a wage levy on the taxpayer's employer until 6 months afterthe date when the taxpayer was released from the institution.



EXEMPTION CLAIM FORM SECTION 7730(Continued) (Page 2)

In the above case, the taxpayer must grant the county treasurer the right to verify with thecorrectional institution when the taxpayer was released. After receiving an Exemption ClaimForm, the county treasurer must contact the correctional institution to confirm the exemption.

CONTENT OF THE EXEMPTION CLAIM FORM

The Department of Revenue recommends that the county treasurer's Exemption Claim Formcontain the same basic information as the Department of Revenue's Form. The state's Formcomplies with the statutory requirements under M.S. 290.92, Subd. 23.

The major types of information that are contained in the state's Form are listed below.


2. The taxpayer's property identification number, the property type, the date when theExemption Claim Form was mailed (same date as Notice of Intent to Levy on Wages), andthe total delinquent tax amount owed as of the date when the Notice of Intent and theExemption Claim Form were prepared and mailed.

3. A statement informing the taxpayer that the following form must be completed, signed,dated, and returned to the county treasurer within 10 calendar days after the date of theabove forms in order to claim an exemption from the wage levy.

4. A statement certifying that, under the penalty of perjury, the taxpayer's wages are exemptfrom the wage levy for the reasons listed below.

5. A section for the taxpayer to claim each of the three types of exemptions and list the reliefprogram, the case number, and the county for an exemption based on relief and the nameand location of the correctional institution for an exemption based on confinement.

6. A statement authorizing any agency that provided the taxpayer with relief based on need orany correctional institution where the taxpayer was an inmate to disclose whether or not thetaxpayer received relief or was an inmate.

7. The signature of the taxpayer and the date of the signature.




SUGGESTED FORM FOR THE EXEMPTION CLAIM FORM

The Department of Revenue recommends that the county treasurer's Exemption Claim Form bemodeled on the Form that is used by the Department of Revenue. A suggested form is presentedat the end of this Section 7730. Use the suggested form to develop your own county ExemptionClaim Form.

Minor changes have been made in the Form to make it easier for the taxpayer to understand theinstructions and comply with the requirements stated in the Form.


The suggested form is designed for delinquent manufactured home taxes. To use the form forother delinquent personal property taxes, the references to "manufactured homes" should bechanged to "personal property."





EXEMPTION CLAIM FORM

Bradley Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Mailed: March 23, 1994 Applewood, MN 57252 Total Due: $ 349.29

If an exemption is claimed, the following must be completed and returned to the Spruce CountyTreasurer within ten (10) calendar days after the date on the Notice of Intent to Levy on Wagesand on this Exemption Claim Form..

I hereby claim, under penalty of perjury, that my wages are exempt from a wage levy because:(Check appropriate box and provide required information)

__ 1. I am presently a recipient of relief based on need. (Specify the program, case number,and the county from which relief is being received.)

(Program) (Case Number) (County)

_X_ 2. I am not presently receiving relief based on need, but I have received relief based onneed within the last six (6) months.

Supplemental Security Income 238-12-9062 Spruce County

(Program) (Case Number) (County)

__ 3. I have been an inmate of a correctional institution within the last six (6) months.

(Correction Institution) (Location)

I hereby authorize any agency which has distributed relief to me or any correctional institution inwhich I was an inmate to disclose to the Spruce County Treasurer whether or not I was a recipientof relief based on need or was an inmate of a correctional institution within the last six (6) months.

March 29, 1994 (Taxpayer's Signature) (Date of Signature)



NOTICE OF WAGE LEVY SECTION 7740

When the 30-day waiting period after the same date on the Notice and Demand for Payment andthe Notice of Intent to Levy on Wages has expired without any response from the taxpayer, thecounty treasurer must serve the Notice of Wage Levy on the taxpayer's employer.

The county treasurer must enclose a Wage Disclosure Form and three copies of the WageWithholding Form with the Notice of Wage Levy that is served on the taxpayer's employer. SeeSections 7750 and 7760 for information about these two forms, respectively.

The rules, procedures, and the form for preparing and mailing a Notice of Wage Levy areoutlined in this Section 7740. They are based on the interpretation of M.S. 290.92, Subd. 23,which is contained in the Department of Revenue's collection manuals.

METHOD OF SERVICE

The county treasurer must serve a Notice of Wage Levy on the taxpayer's employer by one of thefollowing methods: (1) first class mail, (2) personal service by the county treasurer, (3) personalservice by an employee of the county treasurer's office, or (4) personal service by an agent of thecounty treasurer.

PRIORITY OF WAGE LEVY

The county treasurer's wage levy has priority over any other wage levies (except for courtordered child support levies), private judgment garnishments, or wage assignments that areserved on the taxpayer's employer after the county treasurer's Notice of Wage Levy has beenserved. This means that the taxpayer's employer must honor the county treasurer's wage levy infull before honoring any of the other claims (except for court ordered child support levies).

Any wage levy, private judgment garnishment, or wage assignment that was served on thetaxpayer's employer before the county treasurer's Notice of Wage Levy is served has priorityover the county treasurer's wage levy for up to 70 calendar days after the date of service. Thismeans that the employer does not have to honor the county treasurer's wage levy during the 70-day grace period unless the earlier claims are satisfied before the 70-day grace period expires.

If the earlier claims are satisfied before the 70-day grace period expires, the county treasurer'swage levy must be honored immediately and has priority over any claims that may be filed later(except for court ordered child support levies).



NOTICE OF WAGE LEVY SECTION 7740(Continued) (Page 2)

If the 70-day grace period expires before the earlier claims have been satisfied, the countytreasurer's wage levy must be honored immediately and has priority over the earlier claims(except for court ordered child support levies) and any claims which may be filed later (exceptfor court ordered child support levies).

Note: State and federal wage levies to recover taxes are continuous. They are not subject to the70-day limit. Therefore, the county treasurer's wage levy does not have priority over anearlier filed state or federal wage levy after the 70-day grace period expires and the stateor federal wage levy has not yet been satisfied.

After receiving the county treasurer's Notice of Wage Levy, the taxpayer's employer is requiredto notify the county treasurer of any other claims that were served prior to the receipt of theNotice of Wage Levy. The notification must include the amount of the earlier claims and thedate of service. The notification must be made as part of the Wage Disclosure Form that isenclosed with the Notice of Wage Levy.

CONTENT OF THE NOTICE OF WAGE LEVY

The Department of Revenue recommends that the county treasurer's Notice of Wage Levycontain the same basic information as the Department of Revenue's Notice. The state's Noticecomplies with the statutory requirements under M.S. 290.92, Subd. 23.

The major types of information that are contained in the state's Notice are listed below.

1. The name and complete address (street or rural route and box number, city or town, state,zip code) of the taxpayer's employer.


3. The taxpayer's property identification number, the type, the date when the Notice of WageLevy was mailed, and the total delinquent tax amount owed as of the date when the Notice ofWage Levy was prepared and mailed.

4. A statement requiring the employer to withhold the amount determined on the calculationworksheet in the Wage Disclosure Form from the total amount due to the taxpayer each payperiod beginning with the next pay period after the date on the Notice of Wage Levy.




5. A statement informing the employer that any wage levy, private judgment garnishment, orwage assignment that was served on the employer before the county treasurer's wage levy haspriority over the county treasurer's wage levy for up to 70 calendar days after the date ofservice. When the 70 calendar days expire or if the earlier claim is satisfied before the 70calendar days expire, the county treasurer's wage levy must be honored immediately.

6. A statement informing the employer that the county treasurer's wage levy has priority overany wage levy, private judgment garnishment, or assignment of wages that is served on theemployer after the county treasurer's wage levy with the exception of a court ordered childsupport levy.

7. A statement requiring the employer to provide the county treasurer with the followinginformation on the final Wage Disclosure Form when the taxpayer's employment isterminated: (a) the date of termination, and (b) the total amount withheld as of thetermination date.

8. A statement requiring the employer to complete the Wage Disclosure Form enclosed with theNotice of Wage Levy and return it to the county treasurer within 10 calendar days after thedate on the Notice of Wage Levy.

9. A statement warning the employer that failure to comply with any of the requirements statedin the Notice of Wage Levy will result in the employer's personal liability for the totaldelinquent tax amount listed on the Notice of Wage Levy plus any accrued interest.

10. A statement requiring the employer to submit the authorized amount withheld from thetaxpayer's wages each pay period along with a completed Wage Withholding Form to thecounty treasurer within 10 calendar days after each pay period ends.

11. A statement informing the employer not to include the amount of wages withheld under thecounty treasurer's wage levy with the regular Quarterly Withholding (MW-1) Statement andnot to report them on the taxpayer's W-2 statement at the end of the year.

12. A statement requiring the employer to continue to withhold the authorized amount from thetaxpayer's wages until notified by the county treasurer otherwise.





SUGGESTED FORM FOR THE NOTICE OF WAGE LEVY

The Department of Revenue recommends that the county treasurer's Notice of Wage Levy bemodeled on the Notice that is used by the Department of Revenue's Notice. A suggested form ispresented at the end of this Section 7740. Use the suggested form to develop your own countyNotice of Wage Levy.

Minor changes have been made in the Notice to make it easier for the employer to understandeach of the actions that must be performed in order to comply with the wage levy.


The suggested form of the Notice of Wage Levy is designed for delinquent manufactured hometaxes. To use the form for other delinquent personal property taxes, the references to"manufactured homes" should be changed to "personal property."





NOTICE OF WAGE LEVY

Employer:

Applewood Service Station 924 Main Street Applewood, MN 57252

Employee:

Bradley Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Mailed: April 26, 1994 Applewood, MN 57252 Total Due: $ 352.13

Pursuant to Minnesota Statutes, Section 277.21 and 290.92, Subdivision 23, you arerequired to withhold the authorized amount computed on the enclosed Wage DisclosureForm from the total compensation due to the above employee each pay period beginningwith the next pay period after the date on this Notice.

Any levy, private judgment garnishment, or wage assignment that was served on you inthe name of the above employee prior to this wage levy has priority over this wage levyfor up to seventy (70) calendar days after its service date. When the seventy (70) calendardays expire or if the prior claim is satisfied before the seventy (70) calendar days expire,this wage levy must be honored immediately. Previously filed state or federal wage leviesto recover taxes that have not yet been satisfied are not subject to this 70-day limit.

This wage levy has priority over any levies, private judgment garnishments, or wageassignments that are served on you in the name of the above employee after the servicedate of this wage levy except for court ordered child support levies.

If the above employee ceases to be employed by you, you must immediately notify theSpruce County Treasurer on the final Wage Withholding Form of the termination dateand the total amount withheld as of the termination date.




Notice of Wage LevyPage 2

You are required to complete the Wage Disclosure Form enclosed with this notice andreturn it to the address listed below within ten (10) calendar days after the date on thisnotice.

If you willfully fail to comply with the requirements set forth in this notice, you will bepersonally liable for the total tax listed above plus any accrued interest.

Make your remittance for the authorized amount to be withheld each pay period payableto the Spruce County Treasurer, attach it to a Wage Withholding Form enclosed withthis notice, and mail it to the address listed below within ten (10) calendar days after eachpay period ends.

Do not include the remittance with your Quarterly Withholding (MW-1) Statement anddo not report them on the employee's W-2 Statement.

You must continue to make remittances until notified otherwise by the Spruce CountyTreasurer.

Date Signed: April 26, 1994Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323Telephone: (234) 567-8910



WAGE DISCLOSURE FORM SECTION 7750

The county treasurer must enclose a Wage Disclosure Form with the Notice of Wage Levy that isserved on the taxpayer's employer. See Section 7740 for information about the Notice of WageLevy.

The rules, procedures, and the form for preparing and mailing a Wage Disclosure Form to thetaxpayer's employer are outlined in this Section 7750. They are based on the interpretation ofM.S. 290.92, Subd. 23, which is contained in the Department of Revenue's collection manuals.

PURPOSE OF WAGE DISCLOSURE FORM

The Wage Disclosure Form is vital to the completion of the wage levy. It serves as the worksheetfor calculating the amount of the taxpayer's wages that must be withheld each pay period andsubmitted to the county treasurer. If the taxpayer's employer fails to complete the calculationworksheet on the Wage Disclosure Form, the amount to be withheld each pay period cannot beknown, and the employer cannot comply with the wage levy.

DEADLINE FOR RETURNING WAGE DISCLOSURE FORM

The taxpayer's employer must complete the Wage Disclosure Form and return it to the countytreasurer within 10 calendar days after the date on the Notice of Wage Levy.

If the taxpayer's employer does not complete the Wage Disclosure Form and return it to thecounty treasurer within the 10-day grace period, the employer may be held personally liable forthe amount of the wage levy plus any accrued interest.

MAJOR COMPONENTS OF WAGE DISCLOSURE FORM

After receiving the Wage Disclosure Form, the taxpayer's employer may need to contact thecounty treasurer for help in filling out the calculation worksheet on the Form. In fact, astatement in the Form encourages the employer to contact the county treasurer for help.

Here are some of the major components of the calculation worksheet on the Wage DisclosureForm that may need to be explained to the employer.

1. DISPOSABLE EARNINGS

The term, "disposable earnings," refers to the total wages which the taxpayer receives fromthe employer minus the following deductions required by law to be withheld from the totalwages: (a) federal income taxes, (b) state income taxes, (c) Social Security (F.I.C.A.), and (d)Medicare.



WAGE DISCLOSURE FORM SECTION 7750(Continued) (Page 2)

These deductions have priority over the county treasurer's wage levy. They must be withheldfirst from the taxpayer's total wages. The remaining balance of the taxpayer's total wages("disposable earnings") is used in the calculation worksheet to determine the amount to bewithheld each pay period under the wage levy.

2. MINIMUM WAGE

The term, "minimum wage," refers to the current federal hourly minimum wage. When thisManual was updated, the minimum wage was $5.15 per hour for large employers and $4.90per hour for small employers, and the training wage was $4.25 per hour.

The amount of the taxpayer's disposable earnings that is equal to the minimum wage is notsubject to the county treasurer's wage levy. The minimum wage is subtracted from thetaxpayer's disposable earnings as one of the steps in the calculation worksheet.

3. SETOFFS

The term, "setoff," refers to any legal claim that the employer has against the taxpayer'swages. The legal claim allows the employer to subtract a specific amount from the taxpayer'swages each pay period. For example, the employer may have given the taxpayer an advanceon future wages, and the advance is being paid back a little each pay period.

The amount of the taxpayer's wages that is setoff for the employer has priority over thecounty treasurer's wage levy if the setoff was legally recorded before the wage levy wasserved. The setoff must be subtracted as one of the last steps on the calculation worksheet todetermine the amount to be withheld each pay period under the wage levy.

The county treasurer should respond to a claim for setoff rights by the employer in the sameway as the county treasurer responds to a bank claim for setoff rights. See Section 7680 fordetailed information on how and when to respond to a setoff claim.

4. ADVERSE INTERESTS

The term, "adverse interest," refers to any legal claim which a party other than the employerhas against the taxpayer's wages. Examples are other wage levies, private judgmentgarnishments, and assignments of wages. Examples of other wage levies are a federalgovernment wage levy, a state government wage levy, and a court ordered child support levy.

See Section 7740 for a detailed explanation of when an adverse interest has priority over thecounty treasurer's wage levy and when it does not.




COMMUNICATION BETWEEN TREASURER AND EMPLOYER

In most cases, the correct amount to be withheld from the taxpayer's wages each pay period willhave to be negotiated between the employer and the county treasurer. The employer has accessto the employment information, and the county treasurer has knowledge of the statutoryrequirements. Somehow these two sources of information must come together to determine theauthorized amount of the taxpayer's wages to be withheld. This can be done in several ways.

The negotiations may begin with the employer calling the county treasurer for help in completingthe calculation worksheet. The employer may need help in defining some of the majorcomponents used in the worksheet and in deciding what numbers should be entered on certainlines of the worksheet. This will give the county treasurer the chance to resolve anymisunderstandings or errors before the Wage Disclosure Form is returned to the countytreasurer.

If the employer completes and returns the Wage Disclosure Form without requesting any help,the county treasurer should review the Form and proof the numbers and the calculations foreach step in the worksheet. If there is any reason to believe that the authorized amount to bewithheld is incorrect, the county treasurer will have to initiate the negotiations by contacting theemployer. The two parties should discuss the steps in the calculation worksheet and make anycorrections necessary.

If there were errors in one or more of the steps in the calculation worksheet and the authorizedamount to be withheld was incorrect, the county treasurer should send the employer a new WageDisclosure Form. The employer should enter the correct numbers on the calculation worksheetand return the Form to the county treasurer. The original incorrect Wage Disclosure Formshould be destroyed.

FORMULA FOR CALCULATING AMOUNT TO BE WITHHELD

The basic formula for calculating the amount to be withheld from the taxpayer's wages isoutlined below. Each of the steps in the formula is calculated in the worksheet that is the majorpart of the Wage Disclosure Form.




THE AUTHORIZED AMOUNT TO BE WITHHELD EQUALS:

1. The lesser of: (a) 25% of disposable earnings, or

(b) Disposable earnings minus 40 times the hourly federal minimum wagetimes the number of work weeks in the pay period

2. PLUS: (a) Other money due taxpayer from employer, and

(b) Value of taxpayer's personal property held by employer

3. MINUS: (a) Employer setoffs, and

(b) Adverse interests

In most cases, the authorized amount that the county treasurer can expect to receive under awage levy will be 25% of the taxpayer's disposable earnings.

This is true because, in most cases, the following conditions will exist: (1) 25% of the disposableearnings will be less than the disposable earnings minus the federal hourly minimum wage, (2)the employer will not owe the taxpayer any other money, (3) the employer will not be holdingany personal property for the taxpayer, and (4) there will not be any setoffs or adverse interests.

FORM AND CONTENT OF WAGE DISCLOSURE FORM

The form and content of the Wage Disclosure Form that the Department of Revenuerecommends for the county treasurer is adapted from the Form used by the Department ofRevenue for the same purpose. The state's Form complies with the statutory requirements underM.S. 290.92, Subd. 23.

Minor changes have been made in the form to make it easier for the employer to understand theinstructions and complete the calculation worksheet correctly.

A suggested form for the Wage Disclosure Form is presented at the end of this Section 7750. Theform is completed as it would be when received from the employer. Use the suggested form todevelop your own county Wage Disclosure Form.





WAGE DISCLOSURE FORM

Employer: Taxpayer:Applewood Service Station Bradley Whitley 924 Main Street Pine Cove Mobile Home Park Applewood, MN 57252 342 Washington Street Applewood, MN 57252

This Wage Disclosure Form must be completed and returned to the Spruce CountyTreasurer within ten (10) calendar days after the date on the Notice of Wage Levy. Acopy of the Form should be kept for your records. You are encouraged to contact theSpruce County Treasurer's office for help in completing the calculation worksheet.

Check the box below which indicates the length of the employee's pay period and enterthe number of hours worked each pay period. Enter the employee's hourly wage. Enterany other compensation paid to the employee per pay period.

One week pay period. Number of hours: X Two week pay period. Number of hours: 80 One month pay period. Number of hours: $12.00 Hourly wage.$None Other compensation per pay period.

Using the above wage information, complete each step in the following worksheet in orderto determine the authorized amount to be withheld each pay period as required under theNotice of Wage Levy.

1. TOTAL EARNINGS PER PAY PERIOD $ 960.00

This means the sum of the compensation paid to the taxpayer per pay period forpersonal services to you. This includes hourly wages, salary, tips, commissions,bonuses, payments to a private pension or retirement fund, and any other forms ofcompensation.

2. TOTAL WITHHOLDINGS PER PAY PERIOD $ 260.00

Only the following regular withholding should be included in this amount: federalincome taxes, state income taxes, social security (F.I.D.C.), and Medicare. Do notinclude any other regular withholdings.




Wage Disclosure FormPage 2

3. TOTAL DISPOSABLE EARNINGS PER PAY PERIOD $ 700.00(Line 1 minus Line 2)

4. FEDERAL HOURLY MINIMUM WAGE PER PAY PERIOD $ 412.00

This amount is determined by multiplying the federal hourly minimum wage by thenumber of hours in the taxpayer's pay period.

5. NET DISPOSABLE EARNINGS PER PAY PERIOD $ 288.00(Line 3 minus Line 4)

6. 25% OF DISPOSABLE EARNINGS PER PAY PERIOD $ 175.00(Line 3 multiplied by 0.25)

7. LESSER OF LINE 5 OR LINE 6 $ 175.00

8. OTHER MONEY DUE TAXPAYER PER PAY PERIOD $ 0.00

9. VALUE OF TAXPAYER'S PERSONAL PROPERTY HELDBY EMPLOYER $ 0.00

10. SUM OF LINE 7, LINE 8, AND LINE 9 $ 175.00

11. EMPLOYER SETOFF PER PAY PERIOD $ 0.00

This is the amount deducted from the taxpayer's wages per pay period to pay backmoney owed to the employer. Enter an amount here only if the claim was filed beforethe date on the Notice of Wage Levy from the county treasurer.

12. THIRD PARTY ADVERSE INTEREST PER PAY PERIOD $ 0.00

This is the amount deducted from the taxpayer's wages per pay period for other wagelevies, private judgment garnishments, or assignments of wages. Examples: A stategovernment wage levy and a court ordered child support levy. Enter an amount hereonly if the claims were served on you before the date on the Notice of Wage Levy fromthe county treasurer.




Wage Disclosure FormPage 3

13. SUM OF LINE 11 AND LINE 12 $ 0.00

14. AUTHORIZED AMOUNT TO BE WITHHELD PER PAY PERIOD $ 175.00(Line 10 minus Line 13, not less than zero)

You are hereby instructed to remit the amount on Line 14 to the Spruce CountyTreasurer within ten (10) calendar days after the first pay period following the date onthe Notice of Wage Levy. The remittances must continue for each subsequent pay perioduntil you are notified by the county treasurer otherwise.

Date: May 3, 1994(Signature of employer's representative)

Lawrence F. Gerber, Manager (Print name of employer's representative)



WAGE WITHHOLDING FORM SECTION 7760

The county treasurer must enclose three copies of a Wage Withholding Form with the Notice ofWage Levy that is served on the taxpayer's employer. See Section 7740 for information aboutthe Notice of Wage Levy.

The rules, procedures, and the form for preparing and mailing a Wage Withholding Form to theemployer and for completing and returning it to the county treasurer are outlined in this Section7760. They are based on the interpretation of M.S. 290.92, Subd. 23, which is contained in theDepartment of Revenue's collection manuals.

PURPOSE OF WAGE WITHHOLDING FORM

The Wage Withholding Form serves two purposes. First, it functions as the receipt for theamount of withholdings that the taxpayer's employer submits to the county treasurer. Itprovides the employment information that the county treasurer needs to identify the purpose forthe check that is enclosed with the Form. This purpose is served each time the employer submitsa check in compliance with the wage levy.

The second purpose will only be served if the taxpayer's employment is terminated before thetotal delinquent tax amount due is paid through the wage levy. If the taxpayer's employment isterminated, the employer must use the form to indicate the date of the termination and the totalamount withheld up to the termination date. There are sections on the form for this purpose.

DEADLINE FOR SUBMITTING WAGE WITHHOLDING FORM

The taxpayer's employer is required to complete a Wage Withholding Form after the pay period,attach the check for the amount of withholdings for the pay period to the Form, and submit bothto the county treasurer within 10 calendar days after the pay period expires. The process mustbegin with the first pay period following the date on the Notice of Wage Levy.

If the taxpayer's employer does not complete the Wage Withholding Form and return it to thecounty treasurer along with the withholding check within the 10-day grace period, the employermay be held personally liable for the amount of the wage levy plus any accrued interest.

CONTENT OF THE WAGE WITHHOLDING FORM

The Department of Revenue recommends that the county treasurer's Wage Withholding Formcontain the same basic information as the Department of Revenue's Form. The state's Formcomplies with the statutory requirements under M.S. 290.92, Subd. 23.



WAGE WITHHOLDING FORM SECTION 7760(Continued) (Page 2)

The major types of information that should be included in the county treasurer's WageWithholding Form are listed below.

1. The name and complete address (street or rural route and box number, city or town, state,zip code) of the taxpayer's employer.


3. The date when the pay period for which the wages are being withheld and submitted ended.

4. The total authorized amount withheld from the taxpayer's wages for the designated payperiod.

5. A section for the employer to list the date of the termination and the total amount of wageswithheld to the date of termination if the taxpayer's employment was terminated during or atthe end of the designated pay period.

6. The total amount of the remittance by check.

7. A statement reminding the employer not to include the regular amount of income taxwithholdings with this remittance.

8. A statement instructing the employer to make out the check or money order to the countytreasurer and send the check and completed Wage Withholding Form to the county treasurerat the address listed on the bottom of the form.

9. The signature and printed name of the employer's representative and the date of thesignature.

FORM OF THE WAGE WITHHOLDING FORM

The Department of Revenue recommends that the county treasurer's Wage Withholding Formbe modeled on the Form that is used by the Department of Revenue. A suggested form ispresented at the end of this Section 7760. Use the suggested form to develop your own countyWage Withholding Form.

Minor changes have been made in the Form to make it easier for the employer to understand theinstructions and comply with the requirements stated in the Form.



WAGE WITHHOLDING FORM SECTION 7760(Continued) (Page 3)


WAGE WITHHOLDING FORM

Employer: Taxpayer:Applewood Service Station Bradley Whitley 924 Main Street Pine Cove Mobile Home Park Applewood, MN 57252 342 Washington Street Applewood, MN 57252

Wage Levy Withholdings for Pay Period Ending: May 13, 1994

Total Amount Withheld for Above Pay Period: $ 175.00

If the taxpayer's employment was terminated during or at the end of the above payperiod, provide the following information.

1. Date of Termination: N/A

2. Total Amount Withheld to Date of Termination: $ N/A

Total Amount of Remittance: $ 175.00

NOTE: DO NOT INCLUDE REGULAR AMOUNT OF INCOME TAXES WITHHELD

Make Remittance Payable to: Spruce County Treasurer

Mail Remittance to: Spruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323Telephone: (234) 567-8910

Date: May 18, 1994(Signature of employer's representative)

Lawrence F. Gerber, Manager (Print name of employer's representative)



EMPLOYER HONORS WAGE LEVY SECTION 7770

In most cases, the taxpayer's employer will honor the county treasurer's wage levy. In order tohonor the wage levy, the employer must perform the required actions that are stated in theNotice of Wage Levy. The three major actions that must be completed by the taxpayer'semployer are outlined below.

ACTION #1: COMPLETE + RETURN WAGE DISCLOSURE FORM

After receiving the Notice of Wage Levy, the first thing the taxpayer's employer must do tocomply with the wage levy is to complete the Wage Disclosure Form and return it to the countytreasurer within 10 calendar days after the date on the Notice of Wage Levy.

The taxpayer's employer must complete the calculation worksheet in order to determine theauthorized amount to be withheld from the taxpayer's wages each pay period. Without knowinghow much to withhold, there is no way the employer can honor the wage levy.

See Sections 7740 and 7750 for information and a suggested form for the Notice of Wage Levyand the Wage Disclosure Form, respectively.

ACTION #2: WITHHOLD + REMIT AUTHORIZED WAGES

The second thing the taxpayer's employer must do to comply with the wage levy is to withholdthe authorized amount from the taxpayer's wages beginning with the first pay period followingthe date on the Notice of Wage Levy. A check for the authorized amount must be attached to acompleted Wage Withholding Form and submitted to the county treasurer within 10 calendardays after the pay period ends.

The employer must continue to perform the above action for each subsequent pay period untilthe county treasurer notifies the employer otherwise. The county treasurer's notification will bemade with a Reduction or Release of Wage Levy.

The employer should keep a record of the authorized amount withheld each pay period for anyfuture communications with the taxpayer or the county treasurer.

See Section 7760 for information and a suggested form for the Wage Withholding Form.



EMPLOYER HONORS WAGE LEVY SECTION 7770(Continued) (Page 2)

ACTION #3: NOTIFICATION OF EMPLOYEE'S TERMINATION

The third action that the taxpayer's employer must perform in order to be in compliance withthe wage levy is only going to be required one time, if at all. If the taxpayer's employment isterminated before the amount of the wage levy is paid in full, the employer must notify thecounty treasurer of the termination date and the total amount withheld through the terminationdate.

The notification of termination must be made on the final Wage Withholding Form that issubmitted to the county treasurer.

NO DISCHARGE BECAUSE OF WAGE LEVY

There is one action that the taxpayer's employer must not perform in order to be in compliancewith the wage levy. The employer must not discharge the taxpayer just because the countytreasurer served a Notice of Wage Levy on the employer.

Discharging the taxpayer for no other reason than the service of the wage levy would constitute afailure to comply with the wage levy and may result in the actions outlined below.

1. The taxpayer may bring a civil action against the employer within 90 calendar days afterthe termination. The court may order the reinstatement of the taxpayer. The employermust pay the taxpayer twice the wages lost as a result of the illegal termination. (M.S.571.927 as referenced in M.S. 290.92, Subd. 23)

2. The county treasurer may hold the employer personally responsible for the wage levy.



TREASURER MONITORS EMPLOYER'S COMPLIANCE SECTION 7775

The county treasurer has several duties to perform when the taxpayer's employer complies orfails to comply with the wage levy. Some of the major actions are listed below.

1. The county treasurer must help the employer complete the calculation worksheet on theWage Disclosure Form if the employer requests it.

2. The county treasurer must proof the steps in the calculation worksheet on the WageDisclosure Form when received from the employer and negotiate with the employer to makeany necessary corrections.

3. The county treasurer must monitor the time after receiving the Wage Disclosure Form to besure that the employer submits a check and a completed Wage Withholding Form for the payperiod following the date on the Notice of Wage Levy.

4. The county treasurer must keep record of each payment received from the employer andcredit each amount received against the total delinquent tax amount owed by the taxpayer.

5. If the employer fails to comply with the wage levy, the county treasurer must take theappropriate actions as outlined in Sections 7780 and 7785. Failure to honor a wage levyoccurs when (a) the employer does not submit a completed Wage Disclosure Form, (b) theemployer does not start withholding, or (c) the employer stops withholding.

6. If part of the total delinquent tax amount owed is collected from a source other than the wagelevy, the county treasurer must reduce the amount of the original wage levy to the remainingbalance of the tax liability. This is done by sending a Reduction of Wage Levy to theemployer (Section 7790).

7. When the total delinquent tax amount owed is collected from a source other than the wagelevy or the total amount of the wage levy plus any accrued interest is paid from theemployer's withholdings, the county treasurer must notify the employer to stop withholdingany more money from the taxpayer's wages. This is done by sending a Release of Wage Levyto the employer (Section 7790).



WARNING OF EMPLOYER'S LIABILITY SECTION 7780

If the taxpayer's employer fails to honor a wage levy, the county treasurer should take theactions authorized by law to force the employer to comply with the wage levy. The first step is tomail a Warning Letter to the employer.

The rules, procedures, and the form for preparing and mailing a Warning Letter are outlined inthis Section 7780. They are based on M.S. 277.21, Subd. 8, 9, and 10 and the Department ofRevenue’s interpretation of the equivalent statute that applies to the state’s Warning Letter; i.e.,M.S. 270.7002. The form and content of the Warning Letter are derived solely from theDepartment of Revenue’s collection manuals.

NOTE: See Section 7770 for the actions that must be performed by the employer in order tocomply with the wage levy. If any of these actions is not performed, the employer hasfailed to honor the wage levy.

TOTAL AMOUNT OF EMPLOYER'S LIABILITY

As stated in the Notice of Wage Levy, the county treasurer may hold the employer personallyliable for the amount of the wage levy if the employer fails to honor the wage levy. If ordered bythe county treasurer, the employer must pay the sum of the two amounts listed below.

1. TOTAL AMOUNT OF THE WAGE LEVY

The employer must pay the total amount of the wage levy that should have been withheldfrom the taxpayer's wages (M.S. 277.21, Subd. 8). When collected, the county treasurer mustcredit this amount against the total delinquent tax amount owed by the taxpayer.

2. PENALTY EQUAL TO 25% OF THE WAGE LEVY

In addition to the total amount of the wage levy, the employer must pay a penalty equal to25% of the wage levy. When collected, the county treasurer must not credit this amountagainst the total delinquent tax amount owed by the taxpayer. (M.S. 277.21, Subd. 9)

In the absence of any statutory guidelines for how it should be handled, the Department ofRevenue recommends that the 25% penalty be distributed along with the other penalties forlate payment of taxes under M.S. 276.131.



WARNING OF EMPLOYER'S LIABILITY SECTION 7780(Continued) (Page 2)

CONTENT OF THE WARNING LETTER

The Department of Revenue recommends that the county treasurer's Warning Letter contain thesame basic information as the Department of Revenue's Letter. The state's Letter complies withthe statutory requirements under M.S. 270.7002.

The major types of information that should be contained in the county treasurer's WarningLetter are listed below.



3. The property identification number, the property type, the date when the Warning Letterwas mailed, and the total delinquent tax amount due on the date when the Warning Letterwas prepared and mailed.

4. A statement reminding the employer that, on (list the date on the Notice of Wage Levy), aNotice of Wage Levy was sent to the employer requiring the withholding of an authorizedamount from the taxpayer's wages needed to pay the taxpayer's tax liability. A WageDisclosure Form was enclosed with the Notice of Wage Levy.

5. A statement announcing that, as of the date on the Warning Letter, the employer has failedto comply with one or more of the requirements stated on the Notice of Wage Levy.

6. A statement warning the employer that failure to honor the wage levy will result in an Orderof Assessment against the employer for the amount of the levy plus a 25% penalty for failureto honor the levy as authorized under M.S. 277.21.

7. A statement warning the employer that, if there is no response within 10 calendar days afterthe date on the Warning Letter, enforced collection actions will be initiated against theemployer.

8. A statement reminding the employer that the completed Wage Disclosure Form or theauthorized withholding should be sent to the address listed at the bottom of the WarningLetter.





FORM FOR THE WARNING LETTER

The Department of Revenue recommends that the county treasurer's Warning Letter be modeledon the Letter that is used by the Department of Revenue. A suggested form for the WarningLetter is presented at the end of this Section 7780. Use the suggested form to develop your owncounty Warning Letter.

Minor changes have been made in the Warning Letter to make it easier for the employer tounderstand the consequences of failing to honor the wage levy.







WARNING OF LIABILITY FOR FAILURE TO HONOR WAGE LEVY

Employer:

Applewood Service Station 924 Main Street Applewood, MN 57252

Employee:

Bradley Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Mailed: May 10, 1994 Applewood, MN 57252 Total Due: $ 352.13

On April 26, 1994 , a Notice of Wage Levy was sent to you requiring you to withhold an authorizedamount from the above taxpayer's wages needed to pay the total delinquent manufactured home taxlisted above. A Wage Disclosure Form and three copies of a Wage Withholding Form wereenclosed with the Notice of Wage Levy.

As of the date on this letter, you have failed to comply with one or more of the requirements statedin the Notice of Wage Levy. The purpose of this letter is to warn you that failure to honor the wagelevy will result in an Order of Assessment against you for the total amount of the wage levy plus a25% penalty as authorized under Minnesota Statutes, Section 277.21, Subdivisions 8, 9, and 10.

If you do not respond within ten (10) calendar days after the date on this letter, enforced collectionaction will be taken against you for the total amount of the wage levy plus the 25% penalty.

Send the completed Wage Disclosure Form or remit a check for the authorized amount to bewithheld per pay period to the Spruce County Treasurer at the address listed below.

Date Signed: May 10, 1994 Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



ORDER ASSESSING EMPLOYER’S LIABILITY SECTION 7785

If the taxpayer's employer fails to respond to the Warning Letter (Section 7780) within 10calendar days after the date on the Warning Letter, the county treasurer should first contact theemployer in person or by telephone.

If the taxpayer's employer does not respond within 10 days after the personal contact, the countytreasurer should assess the employer for the amount of the wage levy plus the 25% penalty. Thisis done by serving an Order of Assessment against the employer. A copy of the original Notice ofWage Levy must be enclosed with the Order of Assessment.

The rules, procedures, and the form for preparing and mailing an Order of Assessment areoutlined in this Section 7785. They are based on the interpretation of M.S. 290.92, Subd. 23,which is contained in the Department of Revenue's collection manuals.

CONTACT EMPLOYER BEFORE SERVING ORDER OF ASSESSMENT

If the taxpayer's employer has not responded to the Warning Letter within 10 calendar daysafter the date on the Warning Letter, the county treasurer should contact the employer in personor by telephone before serving the Order of Assessment on the employer. The personal contactshould involve the three actions outlined below.

1. The county treasurer should verify whether or not the employer received the Notice of WageLevy, the Wage Disclosure Form, and the three copies of the Wage Withholding Form.

2. If the employer did not receive the Notice and the enclosed forms, the county treasurershould prepare, date, and send a new Notice of Wage Levy, a Wage Disclosure Form, andthree copies of the Wage Withholding Form.

3. If the employer did receive the Notice and the enclosed forms, the county treasurer shouldrequest immediate compliance with the wage levy and keep a record of the request. If theemployer is confused about what to do, the county treasurer should provide whatever help isnecessary to clarify the issues and persuade the employer to honor the wage levy.

4. The county treasurer should warn the employer of its personal liability for failure to honorthe wage levy.



ORDER ASSESSING EMPLOYER’S LIABILITY SECTION 7785(Continued) (Page 2)

SERVE ASSESSMENT ORDER ON EMPLOYER

If the taxpayer's employer does not respond within 10 calendar days after the personal contact,the county treasurer should prepare an Order of Assessment in the name of the employer. Thesigned Order of Assessment along with a copy of the original Notice of Wage Levy should bepersonally served on the employer. If personal service is not possible, the Order of Assessmentand the copy of the original Notice of Wage Levy must be sent to the employer by certified mailwith return receipt requested.

NOTE: The county treasurer must serve the Order of Assessment on the employer no later than 60 calendar days after the Notice of Wage Levy was served on the employer. However, if the employer initially honors the wage levy and later stops complying, the 60-day period can be extended from the date compliance stopped.

The taxpayer's employer has 10 calendar days after the date on the Order of Assessment torespond to the county treasurer. If the wage levy is not honored or a written protest is notreceived within that time, the county treasurer should start an enforced collection action againstthe employer with the help of the county attorney.

If the employer honors the wage levy within the 10-day grace period after receiving the Order ofAssessment, the county treasurer should not start an enforced collection action against theemployer.

If the employer submits a written protest within the 10-day grace period after receiving theOrder of Assessment, the county treasurer should review the protest. If the employer has proventhat the amount of the wage levy was incorrect or was totally invalid, the county treasurer shouldreduce the amount of the wage levy accordingly or release it entirely.

The county treasurer may start an enforced collection action against the employer even if theemployer has appealed directly to the Minnesota Tax Court.

CONTENT OF THE ORDER OF ASSESSMENT

The Department of Revenue recommends that the county treasurer's Order of Assessmentcontain the same basic information as the Department of Revenue's Order. The state's Ordercomplies with the statutory requirements under M.S. 277.21, Subd. 8, 9, and 10.




The major types of information contained in the state's Order are outlined below.



3. The property identification number, the property type, the date when the Order ofAssessment was mailed, and the total delinquent tax amount due on the date when the Orderwas prepared and mailed.

4. A statement announcing that the employer is liable for the amount of the wage plus the 25%penalty for failure to honor the Notice of Wage Levy.

5. A statement listing the statute (M.S. 277.21, Subd. 8, 9, and 10) which authorize the countytreasurer to assess the employer for the amount of the wage levy and the 25% penalty.

6. A breakout of the amount of the wage levy, the 25% penalty, and the total assessment underthis order.

7. A statement announcing that the employer may submit a written protest to the countytreasurer explaining why the employer is not liable for the total assessment. The protest mustbe received within 10 calendar days after the date on the Order of Assessment.

8. A statement announcing that, if the written protest is not received within the 10-day period,the employer's only recourse is to appeal directly to the Minnesota Tax Court within 60calendar days after the expiration of the 10-day period to submit the written protest.

9. A statement informing the employer where to obtain the forms for the Tax Court appeal.

10. A statement warning the employer that collection action can still be taken against theemployer even though an appeal is pending.





FORM OF THE ORDER OF ASSESSMENT

The Department of Revenue recommends that the county treasurer's Order of Assessment bemodeled on the Order that is used by the Department of Revenue. A suggested form is presentedat the end of this Section 7785. Use the suggested form to develop your own county Order ofAssessment.

Minor changes have been made in the Order to make it easier for the employer to understandthe consequences of failing to comply with the wage levy and the specific actions that must betaken to avoid those consequences.



COPY OF ORIGINAL NOTICE OF WAGE LEVY

Following the state's lead, the Department of Revenue recommends that the county treasurerenclose a copy of the original Notice of Wage Levy with the Order of Assessment that is mailed tothe employer. If this is done, the employer cannot claim that it does not have a copy of theNotice of Wage Levy. There also cannot be any doubt that the Notice of Wage Levy was mailedor the date of the mailing.





ORDER ASSESSING LIABILITY FOR FAILURE TO HONOR WAGE LEVY

Employer:


Employee:

Bradley Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Mailed: May 23, 1994 Applewood, MN 57252 Total Due: $ 352.13

As a result of your failure to honor the attached Notice of Wage Levy, you are herebyassessed for the amount of the wage levy plus a 25% penalty. This Order of Assessment ismade pursuant to Minnesota Statutes 277.21, Subd. 8, 9, and 10.

Amount of Levy Total AssessmentNot Surrendered 25% Penalty of this Order

$ 352.13 $ 88.03 $ 440.16

If a written protest explaining why you are not liable for the above amount is not receivedby the county treasurer's office within ten (10) calendar days after the date on this Orderof Assessment, your only recourse is to appeal the Order of Assessment directly to theMinnesota Tax Court. The appeal must be made within 60 calendar days after theexpiration of the 10-day protest period.

If you decide to appeal, you may choose to have your case heard in the regular Tax Courtor informally by a Tax Court Judge in the Small Claims Division. In order to appeal tothe Small Claims Division, the amount of your claim cannot be more than $5,000. Adecision made in the Small Claims Division is final. It cannot be appealed by you or thecounty treasurer.




Order of AssessmentPage 2

You can get the forms needed to file an appeal by going in person or writing to:Minnesota Tax Court, Minnesota Judicial Center, Suite 245, 25 Rev. Dr. Martin LutherKing Jr. Blvd., St. Paul, Minnesota, 55155. You may also get the appeal forms from theDistrict Court Clerk in your county.

Collection action can still be taken against you while your appeal to the Tax Court ispending.




REDUCTION/RELEASE OF WAGE LEVY SECTION 7790

Even though there is no specific statutory authority, the county treasurer is still required legallyto reduce or release a wage levy in the same way a tax lien must be reduced or released.Therefore, the Department of Revenue recommends that the county treasurer perform theseactions under the authority of M.S. 270.709.

The interpretation of the statute and the form for reducing or releasing a wage levy that arepresented in this Section 7790 are derived from the Department of Revenue's collection manuals.

CONDITIONS FOR REDUCING/RELEASING WAGE LEVY

The county treasurer must reduce or release a wage levy on all or part of the taxpayer'sauthorized withholdings when one or more of the conditions outlined below exist.

1. TOTAL DELINQUENT TAX AMOUNT PAID IN FULL OR IN PART

If part of the total delinquent tax amount owed is collected by some method other than thewage levy, the county treasurer must reduce the wage levy by the amount collected. In thiscase, the wage levy will remain in place for the amount of the total delinquent tax amount notyet collected. Once the remaining balance is collected, the wage levy can be released.

If all of the total delinquent tax amount that is the object of the wage levy is collected by somemethod other than the wage levy, the county treasurer must release the wage levy. In thiscase, releasing the wage levy means that there is no longer a levy on the taxpayer's wages.

2. RELEASE WILL FACILITATE COLLECTION OF TOTAL DELINQUENT TAXAMOUNT

In this situation, the taxpayer agrees to pay the total delinquent tax amount in full or sign aninstallment agreement only if the county treasurer releases the wage levy. When the taxpayeractually pays the amount due in full, the county treasurer must release the wage levy. Thismeans that there is no longer a levy on the taxpayer's wages.



REDUCTION/RELEASE OF WAGE LEVY SECTION 7790(Continued) (Page 2)

3. TOTAL DELINQUENT TAX AMOUNT PAID UNDER INSTALLMENT PLAN

If the taxpayer agrees to pay the total delinquent tax amount under an installment plan, thecounty treasurer must release the wage levy. This means that there is no longer a levy on thetaxpayer's wages. An example is a confession of judgment for the total delinquent taxamount on a manufactured home that is receiving homestead treatment (M.S. 277.23)

If the taxpayer defaults on the installment agreement, the county treasurer may serve anotherwage levy on the taxpayer's employer.

CONTENT OF THE REDUCTION/RELEASE OF WAGE LEVY

The Department of Revenue recommends that the county treasurer's Reduction of Wage Levyand Release of Wage Levy contain the same basic information as the Department of Revenue'sforms. The state's forms comply with the statutory requirements under M.S. 270.709, Subd. 1,as referenced in M.S. 290.92, Subd. 23.

The major types of information that are contained in the state's forms are listed below.

1. The date when the Reduction of Wage Levy or Release of Wage Levy was prepared.



4. A statement reminding the employer that, on (list the date on the Notice of Wage Levy), theamount of the wage levy was (list the exact amount).

5. For a reduction of the wage levy, a statement announcing that the wage levy that was servedon the employer is reduced to (list the balance of the total delinquent tax amount still notpaid).

6. For a release of the wage levy, a statement announcing that the wage levy that was served onthe employer is released in full.

7. The name, signature, address, and telephone number of the county treasurer, and the date ofthe signature.




SUGGESTED FORM FOR THE REDUCTION/ RELEASE OF WAGE LEVY

The Department of Revenue recommends that the county treasurer's Reduction of Wage Levyand Release of Wage Levy be modeled on the forms that are used by the Department of Revenue.

Minor changes have been made in the forms to make it easier for the employer to understand thepurpose of the forms and comply with their requirements.


The suggested forms that are presented at the end of this Section 7790 are designed fordelinquent manufactured home taxes. To use the form for other delinquent personal propertytaxes, the references to "manufactured homes" should be changed to "personal property."





REDUCTION OF WAGE LEVY

Date: May 4, 1994

Employer: Employee:

Applewood Service Station Bradley Whitley 924 Main Street Pine Cove Mobile Home Park Applewood, MN 57252 342 Washington Street Applewood, MN 57252

On April 26, 1994 , a Notice of Wage Levy was served on you in the name ofthe above employee.

At the time of the wage levy, the total delinquent manufactured home tax due and owingfrom the above named employee was $ 352.13 . This was also the amount of thewage levy that was served on you in the name of the above employee.

As a result of collecting part of the total tax liability, the amount of the wage levy that wasserved on you in the name of the above employee is reduced to $ 223.45 . Thismeans that you must continue to honor the wage levy for the reduced amount only.






RELEASE OF WAGE LEVY

Date: May 4, 1994

Employer: Employee:

Applewood Service Station Bradley Whitley 924 Main Street Pine Cove Mobile Home Park Applewood, MN 57252 342 Washington Street Applewood, MN 57252

On April 26, 1994 , a Notice of Wage Levy was served on you in the name ofthe above employee.

At the time of the wage levy, the total delinquent manufactured home tax due and owingfrom the above named employee was $ 352.13 . This was also the amount of thewage levy that was served on you in the name of the above employee.

As a result of collecting the total tax liability, the wage levy that was served on you in thename of the above employee is released. This means that you no longer have to honor thewage levy that was served on you in the name of the above employee.



DELINQUENT PERSONAL PROPERTY TAXES SEIZURE + SALE OF PROPERTY

TABLE OF CONTENTS


Introduction: Seizure + Sale of Property ............................................................................. 7810

Methods of Seizure + Sale ..................................................................................................... 7820

Property Subject to Seizure + Sale ....................................................................................... 7830

Guidelines for Seizure + Sale ................................................................................................ 7840

Maximum Amount of Seizure + Sale .................................................................................... 7850

Treasurer's Warrant to Sheriff ............................................................................................. 7860

Sheriff's Seizure and Sale ...................................................................................................... 7870

Treasurer's Management of Sale Revenue ........................................................................... 7880

Restrictions on Seizure + Sale ............................................................................................... 7890



INTRODUCTION: SEIZURE + SALE OF PROPERTY SECTION 7810

The county treasurer has the authority to seize and sell the taxpayer's personal and real propertyin order to pay the total delinquent tax amount owed by the taxpayer. This is the most severeenforced collection action that is available to the county treasurer. Therefore, it is the collectionmethod that probably should be used only as a last resort.

There is another reason why the county treasurer should only use the seizure and sale authorityoccasionally. In many cases, the costs of seizing, hauling, storing, and selling the property will begreater than the amount of the total delinquent tax amount owed by the taxpayer. To avoid thispossibility, the county treasurer will have to use the seizure and sale authority selectively.

NOTE: The county treasurer may not seize and sell the types of personal and real property that are exempt under M.S. 550.37, 550.38, and 550.39. See Section 7550 for a list of these exempt properties. (M.S. 277.21, Subd. 1)


Before seizing and selling a taxpayer's personal and real property, the county treasurer mustreview the general levy and seizure provisions that are outlined in Series 7500. These provisionsmust be understood and followed when seizing and selling a taxpayer's personal and realproperty.

DEFINITION OF TERMS

In this Manual, the terms, "seize" and "sale" will refer to the county treasurer's option ofconfiscating a taxpayer's personal and real property so it can be sold and the proceeds can beused to pay the total delinquent tax amount owed by the taxpayer. The terms, "seize and sell"and "seizure and sale" will be used to describe the complete process.

SEIZURE AND SALE AUTHORITY

The county treasurer's general authority to seize and sell a taxpayer's personal and real propertyis contained in M.S. 277.21. Under M.S. 277.21, Subd. 3, the county treasurer is granted all ofthe powers in M.S. 550 for the purpose of seizing and selling a taxpayer's personal and realproperty, as well as the extra levy and seizure powers granted to the Department of Revenue inM.S. 270.7001, 270.7002, and 290.92, Subd. 23. The seizure may be made without first obtaininga court judgment. The seal of the court under M.S. 550.04 is not needed by the county treasurer.

The specific rules, procedures, and forms for seizing and selling a taxpayer's personal and realproperty that are presented in this Series 7800 are modeled on the Department of Revenue'sinterpretation of M.S. 270.70, 270.7001, 270.7002, and M.S. 550. M.S. 270.70 is the basis of M.S.277.21. The source for this information is the Department of Revenue's collection manuals.



INTRODUCTION: SEIZURE + SALE OF PROPERTY SECTION 7810(Continued) (Page 2)

NO SEIZURE AND SALE DURING 90-DAY GRACE PERIOD

Like the other enforced collection actions, the process of seizing and selling a taxpayer's personaland real property can begin only after the 90-day grace period following the billing date on theNotice of Delinquent Taxes has expired.

Exception: If it is determined that a tax collection is in jeopardy, the county treasurer mayimmediately seize and sell a taxpayer's personal and real property without waiting for the 90-daygrace period to expire.

See Section 7220 of this Manual for detailed information about the 90-day grace period. SeeSection 7580 for an outline and summary of the provisions for exercising a jeopardy collection.

MAJOR STEPS FOR SEIZURE AND SALE

The process of seizing and selling a taxpayer's personal and real property can be reduced to themajor steps outlined below. Each step is covered in the Section or Series that is listed inparentheses. The steps cannot begin until after the 90-day grace period following the billing dateon the Notice of Delinquent Taxes has expired.


As the first step in the process, the county treasurer must mail a Notice and Demand forPayment to the taxpayer at least 30 calendar days before seizing and selling the taxpayer'spersonal and real property.

The rules, procedures, and forms for mailing a Notice and Demand for Payment to thetaxpayer are covered in Section 7570. Please study them thoroughly before seizing andselling a taxpayer's personal and real property. They will not be repeated in this Series 7800.

2. A JEOPARDY COLLECTION OR ASSESSMENT (Section 7580)

If a tax collection is in jeopardy, the county treasurer may mail a Notice and Demand forImmediate Payment to the taxpayer and may immediately seize and sell a taxpayer's personaland real property without regard for any deadlines, waiting periods, or further notice to thetaxpayer. This step will be taken only in exceptional situations. It is not part of the regularprocess of seizure and sale.



INTRODUCTION: SEIZURE + SALE OF PROPERTY SECTION 7810(Continued) (Page 3)

The rules, procedures, and forms for executing a jeopardy collection or assessment arecovered in Section 7580. Please study them thoroughly before executing a jeopardy seizureand sale. They will not be repeated in this Series 7800.

3. DISCOVERY OF THE TAXPAYER'S PROPERTY (Section 7590)

During the 30-day period following the billing date on the Notice and Demand for Payment,the county treasurer should attempt to discover what personal and real property is owned bythe taxpayer and where it is located. If the county treasurer already did this when thecollection plan was developed, this step can be used to verify that the earlier information isstill valid. This information is needed to complete the seizure and sale process.

The sources that will help the county treasurer discover the taxpayer's personal and realproperty are presented in Section 7590. Please refer to those sources before executing aseizure and sale. The information will not be repeated in this Series 7800.

4. NOTICE OF TAX LIEN (Series 7300)

Once the total delinquent tax amount is collected or canceled, the county treasurer mustremove the tax lien from the records by recording a Notice of Release of Tax Lien.

The rules, procedures, and forms for recording a Notice of Tax Lien and a Notice of Releaseof Tax Lien are presented in Series 7300. Please study them thoroughly before seizing andselling a taxpayer's personal and real property. They will not be repeated in this Series 7800.

5. COUNTY TREASURER'S WARRANT (Section 7830)

When the 30-day period following the date on the Notice and Demand for Payment hasexpired, the county treasurer may issue a warrant to the county sheriff. The warrantrequires the county sheriff to seize and sell the taxpayer's personal or real property that isdescribed on the warrant in order to pay the total delinquent tax amount and the sheriff'scosts.

Repeat: Unless it is a jeopardy collection or assessment, the county treasurer's warrant maynot be issued to the county sheriff until 30 calendar days after the date on the Notice andDemand for Payment.



METHODS OF SEIZURE + SALE SECTION 7820

In order to enforce the payment of delinquent personal property taxes, including manufacturedhomes, the county treasurer has the authority to seize and sell a taxpayer's personal and realproperty in any one of the three ways outlined below. All three methods are part of the generalseizure and sale authority granted to the county treasurer by M.S. 277.21.

METHOD #1: COUNTY TREASURER ACTS INDEPENDENTLY

Under the first method, the county treasurer may personally seize and sell a taxpayer's personaland real property under the administrative authority of the county treasurer's office. Nowarrant needs to be issued to the county sheriff; no court judgment needs to be obtained. Thecounty treasurer may simply perform the actions alone. (M.S. 277.21, Subd. 1-3)

The Department of Revenue does not recommend that the county treasurer use this method ofseizure and sale. The seizure and sale of property involves personal contact with a potentiallyhostile taxpayer. The county treasurer also does not have the means of hauling, storing, andselling the property. Therefore, the county treasurer would be wise not to perform these actionspersonally.

METHOD #2: COUNTY TREASURER OBTAINS COURT JUDGMENT

With this second method, the county treasurer may choose to act through the judicial authorityof the court instead of acting under the administrative authority of the county treasurer's office.The county treasurer may request the county attorney to bring a court action against thetaxpayer for the total delinquent tax amount owed by the taxpayer. (M.S. 277.21, Subd. 1-3)

If a favorable judgment is entered, a writ of execution will be issued to the county sheriff. Actingon the writ of execution, the county sheriff will enforce the court judgment against the taxpayerby seizing and selling the taxpayer's property as authorized under M.S. 550. The county sheriffwill withhold an amount collected from the sale for administrative costs and send the balance tothe county treasurer to pay the total delinquent tax amount.

The Department of Revenue recommends that the county treasurer only use this second methodto seize and sell the property of a taxpayer who lives outside the state of Minnesota. See Section7900 for more information about the use of a court judgment.



METHODS OF SEIZURE + SALE SECTION 7820(Continued) (Page 2)

METHOD #3: COUNTY TREASURER ISSUES WARRANT TO SHERIFF

Under the third method, the county treasurer may also act under the administrative authority ofthe county treasurer's office. However, instead of taking personal action, the county treasurermay issue a warrant to the county sheriff. The county sheriff is required to seize and sell thetaxpayer's personal and real property as the county treasurer's agent. (M.S. 277.21, Subd. 13)

Under the old seizure and sale provisions repealed by the 1991 Minnesota Legislature, a writ ofexecution was issued to the county sheriff who was required to seize and sell a taxpayer'sproperty in order to enforce the court judgment. Under the new provisions, no court judgmentis needed. The county sheriff is required to perform the seizure and sale under the authority ofthe county treasurer's warrant. The county treasurer's warrant is just as binding on the countysheriff as any writ of execution from the court.

The Department of Revenue recommends that the county treasurer always use the services of thecounty sheriff to seize and sell property for two reasons: (1) the county sheriff is specificallytrained and armed to deal with a potentially hostile taxpayer, and (2) the county sheriff has theequipment and the experience to seize, haul, store, and sell a taxpayer's property.

Once again, the county treasurer should be selective in using the county sheriff to seize and sellproperty because of the high costs of completing the process.

NOTE: CONSULTATION BETWEEN COUNTY TREASURER AND COUNTY SHERIFF

The Department of Revenue recommends that the county treasurer consult with the county sheriff before deciding to issue a warrant to the county sheriff. A seizure and sale must be a cooperative action between the county treasurer and the county sheriff. Each one should understand the other's legal rights and responsibilities.



PROPERTY SUBJECT TO SEIZURE + SALE SECTION 7830

In general, the county treasurer is authorized to seize and sell as much of a taxpayer's personaland real property as is needed to pay the total delinquent tax amount. The seizure and saleauthority also extends to the taxpayer's rights to obtain property in the future. (M.S. 277.21,Subd. 1 and 13)

Exception: The county treasurer's seizure and sale authority does not extend to the types ofproperty exempt under M.S. 550.37, 550.38, and 550.39. However, manufactured homesotherwise exempt under M.S. 550.37, Subd. 12, are subject to the county treasurer's seizure andsale authority. See Section 7550 for more detailed information about these exceptions.

SEIZURE AND SALE: PERSONAL PROPERTY

Except for the statutory exemptions, the county treasurer may seize and sell any of the taxpayer'stangible personal property. Tangible personal property refers to material objects that aremovable. Examples of the most common types of tangible personal property are listed below.

Tangible personal property is the most likely type of property that the county treasurer will seizeand sell. Tangible personal property is easier to seize and sell than real property. Compared toreal property, the value of used tangible personal property is closer to the total delinquent taxamount owed by most taxpayers, especially owners of manufactured homes.

1. THE SEIZURE/SALE OF THE TAXPAYER'S MANUFACTURED HOME

This refers to the taxpayer's manufactured home on which the delinquent personal propertytaxes were assessed. It does not include the leased land on which the manufactured home islocated.

Although legally justified, the county treasurer may be reluctant to seize and sell amanufactured home that serves as the taxpayer's only residence. However, the countytreasurer can more easily use this authority to seize and sell a manufactured home that hasbeen abandoned by the taxpayer.

2. THE SEIZURE/SALE OF MOTORIZED EQUIPMENT

For seizure and sale purposes, the term, "motorized equipment," is used to includeautomobiles, pickup trucks, trucks, vans, SUVs, motor homes, recreational vehicles,snowmobiles, motorcycles, motorbikes, motor scooters, four-wheel drive vehicles, tractors,grain combines, lawn mowers, snow blowers, boat outboard motors, motorboats, andairplanes.



PROPERTY SUBJECT TO SEIZURE + SALE SECTION 7830(Continued) (Page 2)

3. THE SEIZURE/SALE OF NON-MOTORIZED EQUIPMENT

For seizure and sale purposes, the term, "non-motorized equipment," is used to includefishing boats, fishing tackle, fishing rods, fishing reels, sailboats, canoes, water skis, snow skis,shotguns, rifles, revolvers, pistols, bows and arrows, cameras, video cameras, and golf clubs.

4. THE SEIZURE/SALE OF DOMESTIC ANIMALS

This includes dairy cattle, beef cattle, horses, sheep, goats, pigs, chickens, and pet-shopanimals.

5. THE SEIZURE/SALE OF HOME APPLIANCES

This includes refrigerators, freezers, portable microwave ovens, portable room heaters,washers, dryers, radios, television sets, portable stereo systems, videocassette recorders, DVDplayers, and computers.

6. THE SEIZURE/SALE OF HOME FURNITURE

This includes sofas, upholstered chairs, TV recliners, dining room tables, hutches, lamptables, coffee tables, lamps, dinette sets, dressers, bureaus, and desks.

7. THE SEIZURE/SALE OF THE TAXPAYER'S OFFICE EQUIPMENT

This includes personal computers, printers, copiers, typewriters, word processors, filingcabinets, desks, and chairs.

8. THE SEIZURE/SALE OF MOVABLE EQUIPMENT AND MACHINERY USED INCOMMERCIAL AND INDUSTRIAL OPERATIONS.



PROPERTY SUBJECT TO SEIZURE + SALE SECTION 7830(Continued) (Page 3)

SEIZURE AND SALE: REAL PROPERTY

Except for the statutory exemptions, the county treasurer may seize and sell any of the taxpayer'sreal property. Real property is defined as land, anything growing on the land, and anythingpermanently constructed on the land.

In most cases, the county treasurer may not have the opportunity to seize and sell real property.Most delinquent personal property taxes are on manufactured homes that are homesteaded andwhich are assessed as personal property since they are located on land that is leased by the ownerof the manufactured home. Therefore, most taxpayers with delinquent personal property taxesprobably do not own real property.

However, if a taxpayer with delinquent personal property taxes also owns real property otherthan the real property where the taxpayer’s personal property is located, the opportunity is therefor the county treasurer to seize and sell real property.



GUIDELINES FOR SEIZURE + SALE SECTION 7840

The first thing that must be done before seizing a taxpayer's property is to verify that theproperty is actually owned by the taxpayer. This can be done as part of the research conductedfor developing the collection plan. See Section 7230 and 7590 for the sources to use to verify thetaxpayer's ownership.

Once the taxpayer's ownership has been confirmed, there are two financial conditions thatshould exist before the county treasurer considers seizing and selling a taxpayer's personal andreal property. If these two financial conditions do not exist, the county treasurer should not takeaction against the taxpayer's property even though it is subject to the seizure and sale authority.

1. CONDITION #1: TAXPAYER'S INTEREST IN THE ASSETS

The taxpayer's equity interest in the property must be large enough to pay the totaldelinquent tax amount (or at least a large portion of it); the costs of seizing, hauling, storing,and selling the property; and the sheriff's administrative costs.

Before taking action, the county treasurer should make sure that the property has not beenpledged to someone else and the value of the property at public auction will pay the totaldelinquent tax amount (or at least a large portion of it) and the above costs.

Information on Uniform Commercial Code (UCC-1) financial statements for personalproperty can be obtained from the Secretary of State's Office. Call the Uniform CommercialCode Division at (651) 296-2803 or 1 (877) 551-6767. The county recorder's office hasinformation about any security or lien interests in the taxpayer's real property.

2. CONDITION #2: CONVERTIBILITY OF PROPERTY INTO CASH

Assuming that the first condition is met, the taxpayer's personal and real property must beeasily and inexpensively convertible into cash so that the county treasurer can pay the totaldelinquent tax amount and the above costs. If it cannot be easily and inexpensively convertedinto cash, the property is valueless to the county treasurer.

NOTE: The information needed to know whether or not these two conditions exist can also be obtained as part of the research conducted for the collection plan. See Section 7230 and7590 for the sources to use to verify the existence of these two conditions.



MAXIMUM AMOUNT OF SEIZURE + SALE SECTION 7850

Section 7850 covers the maximum amount that a county treasurer can realize from the seizureand sale of a taxpayer's personal and real property.

THE TOTAL DELINQUENT TAX AMOUNT

The county treasurer is authorized to seize and sell as much of a taxpayer's personal and realproperty as is needed to pay the total delinquent tax amount that is listed on the warrant to thecounty sheriff. For any given tax situation, the total delinquent tax amount will equal the sum ofthe components listed below. (M.S. 277.21, Subd. 1 and 13)

1. THE UNPAID TAX ITSELF

This will always be the major component of the total delinquent tax amount for which thetaxpayer's property is being seized and sold.

2. THE PENALTY ON THE UNPAID TAX

This will always be a component of the total delinquent tax amount for which the taxpayer'sproperty is being seized and sold.

3. THE FEES FOR RECORDING AND RELEASING THE TAX LIEN

This may be a component of the total delinquent tax amount for which the taxpayer'sproperty is being seized and sold if a Notice of Tax Lien is on record before a seizure and saleis performed. There may also be the fees for transcribing, renewing, or partially releasing thetax lien if the county treasurer took any of these actions before the warrant was issued to thecounty sheriff.

4. THE INTEREST ACCRUED ON THE UNPAID TAX, PENALTY, AND COSTS

This will always be a component of the total delinquent tax amount for which the taxpayer'sproperty is being seized and sold. The exact amount of interest for each seizure and salesituation will depend on how soon after the required waiting period the county treasurerissues the warrant to the county sheriff.



MAXIMUM AMOUNT OF SEIZURE + SALE SECTION 7850(Continued) (Page 2)

COUNTY SHERIFF'S COSTS

Assuming that the county treasurer exercises the seizure and sale authority by issuing a warrantto the county sheriff, the county sheriff will seize and sell enough of the taxpayer's personal andreal property that is described on the warrant to pay the amounts listed below.

1. The total delinquent tax amount listed on the warrant.

2. The costs of seizing, hauling, storing, and selling the property.

3. The sheriff's administrative costs.

When the sale is completed, the county sheriff will keep an amount for the costs of (2) and (3)above and send the balance to the county treasurer.



TREASURER'S WARRANT TO SHERIFF SECTION 7860

When the 30-day period following the date on the Notice and Demand for Payment has expired,and the taxpayer's property ownership has been verified, the county treasurer may issue awarrant to the county sheriff. (M.S. 277.21, Subd. 13)

The county treasurer's warrant commands the county sheriff to seize and sell the taxpayer'sproperty described on the warrant, withhold an amount from the sale revenue to pay the totalcosts, and return the warrant and the balance of the sale revenue to the county treasurer within120 calendar days after the date on the warrant.

The rules, procedures, and the form for preparing and issuing a warrant to the county sheriffthat are presented in this Section 7860 are taken from M.S. 277.21, Subd. 13 and the Departmentof Revenue's collection manuals.

Note: A warrant can be served on the county sheriff of any county in the state of Minnesotawhere property of the taxpayer is located. The county treasurer is not limited to thecounty sheriff of his/her own county.

METHOD OF ISSUING THE WARRANT

The county treasurer must issue a warrant to the county sheriff by one of the following methods:(1) first class mail, (2) personal service by the county treasurer, (3) personal service by anemployee of the county treasurer's office, or (4) personal service by an agent of the countytreasurer. (M.S. 277.21, Subd. 16)

SELECTION OF PROPERTY FOR SEIZURE + SALE

The county treasurer must identify and locate the personal and real property that is owned bythe taxpayer before the warrant is issued to the county sheriff. The county treasurer must selecta specific piece (or pieces) of personal property or a parcel of real property that the countytreasurer wants seized and sold. The county treasurer must provide a description of each pieceor parcel of property on the warrant.

This means that the county treasurer must perform the investigative work to identify and locatethe taxpayer's personal and real property. The county sheriff is not required to do the researchfor the county treasurer. The county sheriff is only required to seize and sell the specificproperty or properties described on the warrant.



TREASURER'S WARRANT TO SHERIFF SECTION 7860(Continued) (Page 2)

Most of the county treasurer's investigative work should be done when developing the collectionplan. The sources that will help the county treasurer locate and identify the taxpayer's personaland real property are presented in Section 7230 and 7590. Please refer to those sources beforeexecuting a seizure and sale.

The county treasurer should consult with the county sheriff for assistance in conducting theinvestigative work. The county sheriff should be willing to provide suggestions and tools to helpthe county treasurer. In fact, any successful seizure and sale will require the cooperation of bothcounty officials.

CONTENT OF TREASURER'S WARRANT

M.S. 277.21, Subd. 13 is silent about the content of the county treasurer's warrant. Therefore,the Department of Revenue recommends that the county treasurer's warrant be modeled on thewarrant that is issued to the county sheriffs by the Department of Revenue. The major types ofinformation contained in the Department of Revenue's warrant are outlined below.

1. The date when the warrant was mailed.


3. The property identification number, the personal property tax type, and the total delinquenttax amount that is to be collected under the warrant.

4. A salutation indicating that the warrant is from the county treasurer to the county sheriff.

5. A statement notifying the county sheriff that the total delinquent tax amount listed on thewarrant still remains unpaid after the county treasurer served a Notice and Demand forPayment to the taxpayer.

6. A statement commanding the county sheriff, as the agent of the county treasurer pursuant toM.S. 277.21, Subd. 13, to seize any of the taxpayer's property or rights to property within thecounty and sell as much of the property as is needed to pay the total delinquent tax amountlisted on the warrant.

7. A statement informing the county sheriff that the sale and the time and manner ofredemption from the sale must be governed by M.S. 550 to the extent not provided in M.S.270.701 to 270.709.




8. A section for the county treasurer to describe the specific pieces of property that are to beseized and sold under the warrant.

The description should include as much detail as possible so that the county sheriff canidentify and locate the property. For personal property, the description should include themake, the model name or number, model year, the serial number, the color, and the addresswhere it is located.

9. A statement commanding the county sheriff to send the warrant and the proceeds from thesale, minus the county sheriff's costs, to the county treasurer at the address listed on thewarrant. The statement must clearly indicate that the county sheriff has 120 calendar daysafter the date on the warrant to complete these tasks.

10. The name, signature, date of the signature, and address and telephone number of the countytreasurer.

FORM OF TREASURER'S WARRANT

In the absence of any statutory guidelines, the Department of Revenue recommends that thecounty treasurer's warrant be modeled on the warrant that is used by the Department ofRevenue. A suggested form is presented at the end of this Section 7860. Use the suggested formto develop your own county warrant.

Minor changes have been made in the warrant to make it easier for the county sheriff tounderstand each of the actions that must be performed in order to comply with the warrant.


The suggested form of the warrant is designed for delinquent manufactured home taxes. To usethe form for other delinquent personal property taxes, the references to "manufactured homes"should be changed to "personal property."





WARRANT OF THE SPRUCE COUNTY TREASURERTO SEIZE AND SELL PROPERTY FOR DELINQUENT TAXES

Taxpayer:Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Issued: April 26, 1994 Applewood, MN 57252 Total Tax Due: $ 352.13

The Spruce County Treasurer to the Spruce County Sheriff:

After notice and demand for payment, the above named taxpayer has still not paid theabove total manufactured home tax as required by Minnesota law.

Therefore, you are commanded, as the agent of the Spruce County Treasurer pursuant toMinnesota Statutes, Section 277.21, Subdivision 13, to seize any property or rights toproperty of the above taxpayer within your county, and to sell as much of the property asis required to satisfy the above total manufactured home tax.

The sale and the time and manner of redemption from the sale must, to the extent notprovided in Minnesota Statutes, Section 270.701 to 270.709, be governed by Chapter 550.

Description of Property to be Seized:Nortrac Snowmobile, Model III, Serial Number 28-870-1539, Black and Red, 1991, (Located at above address)

You are also commanded to remit the proceeds of the sale, less your costs, to the SpruceCounty Treasurer and to send the remittance and this Warrant to Spruce CountyTreasurer at the address listed below within 120 calendar days after the date on thisWarrant.

Date Signed: April 26, 1994Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



SHERIFF'S SEIZURE + SALE SECTION 7870

Upon receipt of the county treasurer's warrant, the county sheriff has up to 120 days after thedate on the warrant to honor the terms of the warrant. The county sheriff's actions arecontrolled by the provisions under M.S. 277.21, Subd. 13; M.S. 270.701 to 270.709; and M.S.550.

The major steps that the county sheriff will take to honor the county treasurer's warrant areoutlined below. For more detailed information about the county sheriff's procedures, the countytreasurer should talk with the county sheriff.

1. STEP #1: SHERIFF ATTEMPTS TO COLLECT FROM THE TAXPAYER

Before seizing the property listed on the warrant, the county sheriff will present the taxpayerwith the warrant and attempt to persuade the taxpayer to pay the total delinquent taxamount listed on the warrant plus the sheriff's costs in a lump-sum cash payment at thattime.

If the taxpayer pays in full, the county sheriff will not seize the property listed on thewarrant. The county sheriff will return to the office, retain the amount paid for costs, andsend the balance to the county treasurer.

2. STEP #2: SHERIFF SEIZES THE PROPERTY LISTED ON THE WARRANT

If the taxpayer refuses to pay the total delinquent tax amount listed on the warrant plus thesheriff's costs at that time, the county sheriff will proceed to seize the property listed on thewarrant. The county sheriff will have any personal property hauled to the county impoundlot or a private contracted lot. The property will be hauled by the county or by a privatehauler. The property will be stored at the lot until the public auction.

If the warrant lists a manufactured home, the county sheriff will leave the home at the sitewhere it is attached. The home will be locked and sealed until the public auction.



SHERIFF'S SEIZURE + SALE SECTION 7870(Continued) (Page 2)

3. STEP #3: SHERIFF HOLDS A PUBLIC AUCTION

As soon as possible after the seizure, the county sheriff will publish a notice of public auctionat which the seized property will be sold. The notice must be published at least 10 calendardays before the date of the public auction. The notice will describe the property and list thedate, time, and place for the sale.

On the date announced in the notice, the county sheriff will offer the seized property for saleand will sell it to the highest bidder. The county treasurer may set a minimum price or mayaccept the highest bid without setting a minimum price. The county sheriff will collect themoney in full, give the buyer a certificate of sale, and turn the property over to the buyer.

If there are no bidders, the county sheriff must return the property to the taxpayer. In orderto help avoid this, the county treasurer may want to advertise the sale by word of mouth andcontact some people who may be interested in bidding on the property.

4. STEP #4: SHERIFF DISTRIBUTES PROCEEDS OF THE SALE

After the sale is completed, the county sheriff will withhold enough from the proceeds of thesale to pay the costs of seizing, hauling, and storing the property; publishing the notice of thepublic auction; and conducting the sale. The balance will be sent to the county treasurer.

NOTE: COUNTY SHERIFF MUST HONOR COUNTY TREASURER'S WARRANT

Under M.S. 277.21, Subd. 13, the county sheriff, as the agent of the county treasurer, is required to honor the county treasurer's warrant. The county treasurer's warrant is just as binding on the county sheriff as any writ of execution from the court.



TREASURER'S MANAGEMENT OF SALE REVENUE SECTION 7880

As the final stage of the seizure and sale process, the county treasurer is responsible formanaging the sale revenue that is received from the county sheriff. The county treasurer mustfollow the priority schedule that is outlined below when distributing the sale revenue.

1. PRIORITY #1: CREDITORS SENIOR TO THE COUNTY TREASURER

From the total sale revenue, the county treasurer must pay each senior creditor the amountof the creditor's recorded interest in the taxpayer's property that was seized and sold. Theterm, "senior creditor," refers to any party who has a security interest or a lienhold interestin the taxpayer's property that was recorded before the county treasurer's Notice of Tax Lienwas recorded (if one was recorded).

The county treasurer is responsible for discovering the senior creditors and paying them firstfrom the total sale revenue. The senior creditors will be discovered when the countytreasurer does the research to determine whether or not a seizure and sale is a worthwhilemethod of enforcing payment of the total delinquent tax amount (See Section 7840). If asenior creditor is discovered, the county treasurer may not choose to seize and sell theproperty. If the property is seized and sold, the senior creditor must be paid first.

Note: The county treasurer is not responsible for paying any junior creditors. The term, "junior creditor," refers to any party who holds a security or lienhold interest in thetaxpayer's property that was recorded after the county treasurer's Notice of Tax Lien was recorded (if one was recorded).

2. PRIORITY #2: COUNTY TREASURER'S NOTICE OF TAX LIEN

After paying any senior creditors, the county treasurer may use the remaining balance of thesale revenue to pay the total delinquent tax amount owed by the taxpayer. (M.S. 277.21,Subd. 13; 270.708, Subd. 1)

If the remaining balance is large enough to pay the total delinquent tax amount, the tax lien(if one was recorded) must be released, and the record of the delinquent tax must be removedfrom the county tax rolls.

If the remaining balance is less than the total delinquent tax amount, the county treasurermust subtract the remaining balance from the total delinquent tax amount owed, leave thetax lien on record (if one was recorded), and attempt to collect the unpaid amount by someother method. If the county treasurer decides to cancel the unpaid amount, the tax lien (ifone was recorded) must be released, and the record of the delinquent tax must be removedfrom the county tax rolls.



TREASURER'S MANAGEMENT OF SALE REVENUE SECTION 7880(Continued) (Page 2)

3. PRIORITY #3: REMAINING BALANCE PAID TO THE TAXPAYER

After paying any senior creditors and the total delinquent tax amount, the county treasurermust pay any remaining balance of the sale revenue to the taxpayer. (M.S. 277.21, Subd. 13;270.708, Subd. 2)



RESTRICTIONS ON SEIZURE + SALE SECTION 7890

There are several restrictions on the county treasurer's authority to seize and sell a taxpayer'spersonal and real property. The restrictions functions as safeguards to protect the taxpayer'sinterest in the property that is threatened by seizure and sale.

Some of the major restrictions are outlined below. Some of them overlap because of similarprovisions in M.S. 277.21 and M.S. 270.701 to 270.709.

RESTRICTION BASED ON TAXPAYER'S RIGHT OF APPEAL

Except for a jeopardy collection, the county treasurer may not seize a taxpayer's property untilthe time has expired for filing an appeal of the tax assessment with the tax court. The deadlinesfor filing an appeal are listed below.

1. MANUFACTURED HOMES: OCTOBER 1

The deadline for filing an appeal for personal property taxes on a manufactured home underM.S. 273.125, Subd. 4 is October 1 of the year when the taxes are payable.

2. OTHER THAN MANUFACTURED HOMES: APRIL 30

For personal property taxes other than those on manufactured homes, the deadline for filingan appeal under M.S. 278 is April 30.

If a jeopardy assessment has been made, the taxpayer may file an appeal with the tax courtwithin 30 calendar days after the notice of assessment is issued by the county. The notice mustadvise the taxpayer of the right of appeal. (M.S. 277.21, Subd. 4)

If a timely appeal has been filed, the county treasurer may seize and sell a taxpayer's property ifthe taxes remain unpaid for a period of more than 30 calendar days after final determination ofthe appeal by the tax court.

Notwithstanding the above restrictions, a taxpayer's seized property may be sold if one of thefollowing conditions is met: (1) the taxpayer approves the sale in writing; or (2) the countytreasurer determines that the property is perishable, may be reduced in value by keeping, orcannot be kept without great expense.



RESTRICTIONS ON SEIZURE + SALE SECTION 7890(Continued) (Page 2)

REDEMPTION OF SEIZED PROPERTY

After the seizure but before the sale, the taxpayer may pay in full the total delinquent taxamount and the sheriff's costs to the county treasurer. Upon receipt of payment in full, thecounty treasurer will direct the county sheriff to return the seized property to the taxpayer. Allfurther seizure and sale proceedings must be stopped. The county treasurer must release the taxlien and remove the delinquent tax from the county tax records. (M.S. 270.703, Subd. 1 and 3)

PROPERTY RETURNED TO TAXPAYER FOR PAYMENT OR OTHER SECURITY

The county treasurer is required to return any seized property to the taxpayer whenever thetaxpayer performs any one of the acts outlined below. (M.S. 277.21, Subd. 6)

1. The taxpayer pays the total delinquent tax amount in full to the county treasurer.

2. The taxpayer gives the county treasurer a surety bond equal to the appraised value of thetaxpayer's interest in the seized property.

3. The taxpayer deposits with the county treasurer security in a form and amount that isnecessary to ensure payment of the total delinquent tax amount, but not more than twice thetotal delinquent tax amount.

TAXPAYER'S CLAIM FOR EQUITABLE RELIEF

After property is seized, the taxpayer may, upon giving 48-hours notice to the county treasurerand the court, bring a claim for equitable relief before the district court for the release of theseized property to the taxpayer upon the terms and conditions the court considers equitable.(M.S. 277.21, Subd. 12)

NO SALE OF PROPERTY UNDER PROBATE

If any property seized by the county treasurer is included in a formal probate proceeding underM.S. 524.3-401 to 524.3-505 and is under full supervision of the probate court, the countytreasurer may not sell the property until the probate proceedings are completed or until thecourt orders it to be sold. (M.S. 277.21, Subd. 5)



RESTRICTIONS ON SEIZURE + SALE SECTION 7890(Continued) (Page 3)

SEIZURE OR SALE PROHIBITED BY COURT INJUNCTION

If a seizure or sale of a taxpayer's property would irreparably injure any rights in propertywhich the court determines to be superior to the rights of the local taxing districts to receivetheir share of the total delinquent tax amount, the district court may grant an injunction toprohibit the enforcement of the seizure or sale. (M.S. 277.21, Subd. 7)


DELINQUENT PERSONAL PROPERTY TAXES OTHER COLLECTION METHODS

TABLE OF CONTENTS


Introduction: Other Collection Methods ............................................................................. 7910

Court Judgment .................................................................................................................... 7920

County Central Collection Agency ....................................................................................... 7930

Cancellation of Delinquent Taxes ......................................................................................... 7940



INTRODUCTION: OTHER COLLECTION METHODS SECTION 7910

With one exception, all of the Series in this Manual focus on one or more of the methods bywhich the county treasurer may take independent action to collect delinquent personal propertytaxes, including manufactured homes. The one exception is this Series 7900.

Series 7900 outlines the provisions for the county treasurer to transfer the authority to collect thetotal delinquent tax amount to the district court (Section 7920) or to another county collectionagency (Section 7930). In both cases, the county treasurer is conveying the authority to collectthe total delinquent tax amount to another governmental office instead of exercising thatauthority independently from within the county treasurer's office.

Series 7900 also outlines the provisions for the county treasurer to cancel the total delinquent taxamount when it is impossible or not practical to try to collect it (Section 7940). Obviously, this isan anti-collection provision. It allows the county treasurer to write off the total delinquent taxamount instead of collecting it. Because of the possible negative effect on taxpayers whovoluntarily pay their taxes or whose money or property is confiscated in lieu of the taxes, thecounty treasurer should cancel the total delinquent tax amount only as a last resort.



COURT JUDGMENT SECTION 7920

M.S. 277.21, Subd. 1 gives the county treasurer the option of using the services of the districtcourt to collect delinquent personal property taxes, including manufactured homes.

This option is an alternative to the county treasurer independently exercising the enforcedcollection methods that are authorized under M.S. 277.17, 277.20, and 277.21 and outlined inthis Manual. It is an alternative to the county treasurer collecting the total delinquent taxamount under the administrative authority of the county treasurer's office. Instead, the countytreasurer turns over the collection authority to the district court.

As stated in Section 7530, the Department of Revenue recommends that the county treasureronly use the services of the district court to levy on or seize and sell the money or property of ataxpayer that is located outside the state of Minnesota. For all other tax cases, the countytreasurer should collect the total delinquent tax amount under the administrative authority ofthe county treasurer's office.

The Department's position on obtaining a court judgment in order to collect delinquent personalproperty taxes, including manufactured homes, is presented below. For more detailedinformation about obtaining a court judgment, please contact Lance Staricha, in theDepartment’s Legal Services Section, at (651) 556-4087.

SUMMARY: COLLECTING DELINQUENT PERSONALPROPERTY TAXES BY COURT JUDGMENT

Chapter 277 of the Minnesota Statutes no longer requires that personal property taxes becollected through court action. The prior statutes, which outlined the procedures for obtaining acourt judgment in this situation (i.e., sections 277.02; 277.03; 277.05; 277.06; 277.07; 277.08;277.09; 277.10; 277.11; 277.12; 277.13) were repealed the same year that sections 277.20 and277.21 were enacted.

Despite the fact that these specific laws have been repealed, it is still possible to collect personalproperty taxes by: (1) obtaining a court judgment against the person liable for the tax; and then(2) proceeding against that person for the judgment debt.

In 1935, the United States Supreme Court ruled that taxes may be enforced by bringing a civilsuit against the non-paying taxpayer, except where the applicable statutes give the taxingauthorities a different and exclusive remedy -- as would be the case, for example, in regard toreal estate taxes which are imposed exclusively against the real property itself and not the person.The suit for personal property taxes owing would be the same type of common-law action that aprivate party would bring against another for a debt owed under a contract. See, MilwaukeeCounty v. M.E. White Co., 296 U.S. 268 at 271, 56 S.Ct. 229 at 231.



COURT JUDGMENT SECTION 7920(Continued) (Page 2)

Considering that the current section 277.21, subdivision 3, grants to each county treasurer all thepowers that they would have if they had gone to court and won an in personam judgmentagainst the delinquent taxpayer; why would a county want to go through the effort of actuallytaking the delinquent taxpayer to court?

The reason a county might want to do this is because the statute which gives the treasurer thepowers of a judgment creditor for the purposes of enforcing the tax-debt, and the statute whichallows the treasurer to put a lien on the delinquent taxpayer's property, only gives these powersin regard to that property of the tax-debtor that is located with this state. If a delinquenttaxpayer has insufficient property in this state, or if they no longer have any property in thisstate, the county may wish they could put a lien on, or have the local sheriff seize and sell the out-of-state property of the tax-debtor.

The first step in reaching that result would be to obtain a court judgment against the delinquenttaxpayer in Minnesota for the taxes, penalties and interest due, plus court costs. (The countycould chose to seek that judgment in the courts of the state wherein the taxpayer has seize-ableproperty, but since the judges of those courts are presumably not as familiar with the Minnesotatax laws as are the judges of Minnesota courts, that course of action might involve more time andexpense. Seeking a judgment in the courts of another state would also require that the countycontract with an attorney in that other state, unless the county has someone on staff who islicensed to practice law in the other state.)

Upon entry of a judgment by a Minnesota court, in favor of the county for the taxes, penalties,interest and costs, that judgment can be enforced in the other state. If the other state is one ofthe forty-six states that have enacted the 'Uniform Enforcement of Foreign Judgments Act,' thecounty need only file a certified copy of the Minnesota judgment in the office of a local courtadministrator with the other state in order to have all the enforcement powers that the holder ofa court judgment has in that other state. The only limitation under the 'Uniform Act' is that theMinnesota judgment may only be filed in one court district in the other state.

The forty-six states which have enacted the 'Uniform Enforcement of Foreign Judgments Act'are: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia,Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan,Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey,New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington,West Virginia, Wisconsin, and Wyoming. Other jurisdictions with the Act are the District ofColumbia, Puerto Rico, and the Virgin Islands.

In order to collect on a Minnesota judgment in states other than those listed above, a separatesuit must be brought in that other state to enforce the Minnesota judgment.



COURT JUDGMENT SECTION 7920(Continued) (Page 3)

Another consideration is that the powers of a judgment holder, and the procedures under whichthose powers are enforced, do vary from state to state. Thus, a county that expects to garnish theout-of-state earnings of a delinquent taxpayer after obtaining a court judgment will have toinvestigate whether garnishment is proper in the other state in that situation. The county wouldalso face the possibility that they would have to retain counsel in the other state in order toproperly file or serve the legal documents that are required under the other state's garnishmentlaws.

A less costly, and less complicated approach might be to limit the use of court judgments to thosesituations in which the county treasurer knows that the delinquent taxpayer has real property inanother state, and that other state has enacted the 'Uniform Act.' In those states, the county willget the equivalent of a lien against the taxpayer's property in that state by simply filing acertified copy of a Minnesota court judgment for taxes in the county or court district where theproperty is located. If the property is ever sold, the purchaser will in most cases require thejudgment to be paid in order to clear up what otherwise amounts to a cloud on the seller's title.



COUNTY CENTRAL COLLECTION AGENCY SECTION 7930

M.S. 277.21, Subd. 1 gives the county treasurer the option of using the services of the "centralcollection unit of the county" to collect delinquent personal property taxes, includingmanufactured homes.

This option is an alternative to the county treasurer independently exercising the enforcedcollection methods that are authorized under M.S. 277.17, 277.20, and 277.21 and outlined inthis Manual. It is an alternative to the county treasurer collecting the total delinquent taxamount under the administrative authority of the county treasurer's office. Instead, the countytreasurer turns over the collection authority to another county collection agency.

The phrase, "central collection unit of the county," refers to any agency of the county that is inthe business of collecting moneys owed to the county. In some counties, it may refer to theagency in the county human services or welfare department that collects child support paymentsor payments for the out-of-home placement of children. In other counties, it may refer to theagency that collects various county fees and service charges. In all cases, it refers to a countyagency other than the county treasurer's office.

Under M.S. 277.21, Subd. 1, the county treasurer has the authority to negotiate with any othercounty collection agency. If the other county collection agency is agreeable, the county treasurercan transfer the authority and responsibility of collecting any delinquent personal propertytaxes, including manufactured homes, to that county collection agency. If possible, the agencycollects the total delinquent tax amount and submits the proceeds to the county treasurer.



CANCELLATION OF DELINQUENT TAXES SECTION 7940

Section 7940 is the only Section in this Manual that does not focus on a method of collectingdelinquent personal property taxes, including manufactured homes. Instead, it covers theprovision for not collecting the total delinquent tax amount; i.e., the cancellation of the totaldelinquent tax amount.

M.S. 277.24 gives the county treasurer the authority to cancel the total delinquent tax amount atany time during the collection process.

The rules and procedures that must be followed by the county treasurer in order to cancel thetotal delinquent tax amount due are outlined below.

1. The county treasurer may cancel the total delinquent tax amount at any time during thecollection process if one or both of the conditions listed below exist.

a) The county treasurer is satisfied that the total delinquent tax amount cannot be collectedfor any reason.

b) The county treasurer determines that the collection costs are excessive in comparison tothe total delinquent tax amount involved.

2. If a cancellation is made, the county treasurer must keep a list of the canceled totaldelinquent tax amount for at least six (6) years.

3. The cancellation list must identify the taxpayer, state the total delinquent tax amountcanceled, and explain the reason why the total delinquent tax amount was not collectible.

Under M.S. 277.24, the county treasurer may choose to cancel any total delinquent tax amountunder the administrative authority of the county treasurer's office. The county treasurer doesnot have to obtain the approval of any other county officials, the county board, or any of thelocal taxing districts. The county treasurer has the authority and the responsibility to actindependently.



CANCELLATION OF DELINQUENT TAXES SECTION 7940(Continued) (Page 2)

However, it should be remembered that the following mandate is given to the county treasurer inM.S. 277.21, Subd. 1:

"If a tax assessed on personal property or manufactured homes and collectibleunder this chapter is not paid when due, the county treasurer shall, as soon aspracticable, take action the county treasurer considers necessary and reasonable tocollect the delinquent tax."

In the face of this mandate, the county treasurer should decide to cancel the total delinquent taxamount only as a last resort. The decision to cancel should be made only after every "necessaryand reasonable" action has been taken to collect the total delinquent tax amount.

In each tax situation, the county treasurer must balance the mandate to collect the totaldelinquent tax amount and the authority to cancel the total delinquent tax amount.

In each tax situation, the county treasurer must decide at what point all "necessary andreasonable" action has been taken to collect the total delinquent tax amount and the totaldelinquent tax amount may be justifiably canceled.


DELINQUENT PERSONAL PROPERTY TAXES MANUFACTURED HOME TAXES

TABLE OF CONTENTS


Introduction: Manufactured Home Taxes ........................................................................... 7910A

Notice to Lender .................................................................................................................... 7920A

Tax Escrow Accounts ............................................................................................................ 7930A

Confession of Judgment ........................................................................................................ 7940A

Alternative Monthly Payment Plan ...................................................................................... 7950A

Oversized Load Moving Permit ............................................................................................ 7960A

Property Taxes Paid Before Title Transfer .......................................................................... 7970A



INTRODUCTION: MANUFACTURED HOME TAXES SECTION 7910A

Series 7200 through 7900 of this Manual outline the current methods that the county treasurerhas to collect all delinquent personal property taxes, including manufactured homes.

The major purpose of this Series 7900A is to summarize four special methods that are intendedto be used for the collection of delinquent personal property taxes on manufactured homes.These four special methods may be used to collect delinquent manufactured home taxes inaddition to the collection methods outlined in Series 7100 through 7900.

The four special methods are listed below. The numbers in the parentheses indicate the Sectionin which each of the methods is summarized.

1. NOTICE TO LENDER (Section 7920A)

This special collection method allows the county treasurer to send a notice to any financialinstitution that has loaned money to a taxpayer to buy a manufactured home and is receivingmonthly payments on the loan. The notice requires the lender to warn the taxpayer that thelender may pay the total delinquent tax amount and begin foreclosure proceedings if thetaxpayer does not voluntarily pay the amount due within a certain amount of time.

2. TAX ESCROW ACCOUNTS (Section 7930A)

This special collection method authorizes the county treasurer to require the taxpayer tomake monthly payments into an escrow account to pay the total delinquent tax amount plusthe upcoming year's taxes on the manufactured home. The amounts of the monthlypayments are set so that there will be enough money in the escrow account to pay the totaldelinquent tax amount plus the upcoming year's taxes by the next November 15.

3. CONFESSION OF JUDGMENT (Section 7940A)

This special method allows the taxpayer to pay the total delinquent tax amount under a 5-year payment plan. The taxpayer agrees to have the total delinquent tax amount combinedunder a confession of judgment. The taxpayer agrees to pay a 20% down payment anddirects the court to enter judgment for the remaining balance. The taxpayer agrees to paythe remaining balance in four, equal, annual installments plus interest. The taxpayer alsoagrees to pay current taxes before they become delinquent.



INTRODUCTION: MANUFACTURED HOME TAXES SECTION 7910A(Continued) (Page 2)

4. OVERSIZED LOAD MOVING PERMIT (Section 7960A)

This special method cannot be initiated by the county treasurer. It indirectly allows thecounty treasurer to collect delinquent personal property taxes on a manufactured homebefore anyone can obtain a permit to move the home. This prevents the owner or a buyerfrom moving the home out of the county and leaving the county treasurer with the task oftracing down the owner or the home in order to collect the total delinquent tax amount.

ALTERNATIVE MONTHLY PAYMENT PLAN

The special method of collection that is outlined in Section 7950A is called the "alternativemonthly payment plan." This is recommended for the county treasurer when the totaldelinquent tax amount is relatively small and the taxpayer's income and assets are also small. Inthese cases, the best chance of collecting the total delinquent tax amount is to let the taxpayerpay it off in small monthly payments spread over no more than twelve months. This plan is mostappropriate for manufactured home taxes, but it does not have to be limited to them.



NOTICE TO LENDER SECTION 7920A

After the 90-day grace period following the date on the Notice of Delinquent Taxes has expired,the county treasurer may require the help of the lender to collect the total delinquent tax amountowed by the owner of a manufactured home. This method of collection will be referred to as "thelender option" in this Section 7920A.

NOTE: See Section 7220 for detailed information about the Notice of Delinquent Taxes and the 90-day grace period.

RESTRICTIONS ON THE LENDER OPTION

The county treasurer's use of the lender option is limited by the restrictions outlined below.

1. The option can be used only if the owner has borrowed money to purchase the manufacturedhome and is still making monthly payments to the lender to repay the loan. In other words,there has to be a lender in order for the county treasurer to use the lender option.

2. The option can be used only for agreements that are signed and delivered after December 31,1992, for the financing or refinancing of a purchase of a manufactured home. (M.S. 47.209,Subd. 1)

3. The option can be used only for delinquent personal property taxes that are assessed onmanufactured homes. It cannot be used for delinquent personal property taxes on other thanmanufactured homes.

4. The option can be used only within one year following the date when the taxes on themanufactured home became delinquent. (M.S. 47.209, Subd. 3)

RESTRICTION ON ALL FINANCING AGREEMENTS

Beginning on January 1, 1993, all agreements between a lender and the purchaser of amanufactured home must contain a statement that it is the condition of the loan agreement thatthe purchaser must pay all personal property taxes on the manufactured home by the due date.(M.S. 47.209, Subd. 2)

90-DAY GRACE PERIOD

The county treasurer must wait 90 calendar days after the date on the Notice of DelinquentTaxes before using the lender option. See Section 7220 for detailed information about the 90-daygrace period and the Notice of Delinquent Taxes. (M.S. 277.17, Subd. 1)



NOTICE TO LENDER SECTION 7920A(Continued) (Page 2)

This is the same 90-day grace period that the county treasurer must grant before using any of theenforced collection methods outlined in the earlier Series of this Manual.

DEFINITION OF "LENDER"

The term, "lender," refers to any of the types of financial institutions listed below which haveentered into an agreement for financing or refinancing a purchase of a manufactured home.(M.S. 47.209)

1. A state bank and trust company

2. A national banking association

3. A state or federally chartered savings association

4. A mortgage bank

5. A savings bank

6. An insurance company

7. A credit union

8. A dealer as defined in M.S. 327B.01, Subd. 7

IDENTIFICATION OF LENDERS

The question arises, how does the county treasurer find out whether or not the taxpayer haspurchased the manufactured home under a loan agreement? In other words, how can the countytreasurer discover if there is a lien on the manufactured home and, if so, who is the lienholder?

One way would be to contact the Minnesota Department of Public Safety. The name andaddress of any lender (lienholder) are listed on the certificate of title that is issued for amanufactured home by the Department's Division of Driver and Vehicle Services. Thisinformation is on record with the Division.

The county treasurer can obtain this information by contacting the Division and giving them thecomplete name and address of the manufactured home owner. For information about potentiallenders for one or two manufactured homes, the county treasurer may call Kathy Wagner at(651) 296-2902, and she will provide the name and address of any lenders over the telephone.




For a longer list of lenders, the county treasurer should send a written request to the addresslisted below. The information will be provided by return mail.

Department of Public SafetyDivision of Driver & Vehicle Services445 Minnesota StreetSt. Paul, MN 55101Attn: Records

NOTICE OF DELINQUENT TAXES TO LENDER

After the 90-day grace period following the date on the Notice of Delinquent Taxes has expired,the county treasurer may initiate the lender option by sending a written notice to the lender.The notice will be referred to in this Section 7920A as the Notice of Delinquent Taxes To Lender.(M.S. 277.17, Subd. 1)

The notice must contain the information listed below. Some of the information is required bystatute. Other information is recommended by the Department of Revenue.

1. The complete name and address (street, city, state, and zip code) of the lender.

2. The complete name and address (street or rural route and box number, city, state, and zipcode) of the homeowner.

3. The property identification number, the property type, the date when the Notice ofDelinquent Taxes To Lender was prepared and mailed, and the total delinquent tax amountowed as of the date when the Notice was prepared and mailed.

4. The Notice of Delinquent Taxes To Lender must inform the lender that the homeowner owesdelinquent personal property taxes. (M.S. 47.209, Subd. 3)

5. The Notice of Delinquent Taxes To Lender must inform the lender that, within 30 calendardays after receiving the Notice from the county treasurer, the lender must notify thehomeowner of the three things listed below.

a) The total delinquent tax amount must be paid in full to the county treasurer no later than60 calendar days from the date on the lender's notice to the homeowner. (M.S. 47.209,Subd. 3)




b) If the total delinquent tax amount is not paid by that time, the lender may pay it and maybegin foreclosure proceedings to recover the amount of the tax and the unpaid loan.(M.S. 47.209, Subd. 3)

c) The homeowner must contact the county treasurer's office for the total amount due on theday when the homeowner will make payment.

6. The Notice of Delinquent Taxes To Lender must inform the lender that, if the lender pays thetotal delinquent tax amount, the lender must also contact the county treasurer's office for thetotal delinquent tax amount due on the day when the lender will make payment.

A suggested form for the Notice of Delinquent Taxes To Lender is presented at the end of thisSection 7920A. Use the suggested form to develop your own county Notice of Delinquent TaxesTo Lender.

TREASURER NOTIFIES LENDER WHEN TAXES ARE PAID

The county treasurer is required to notify the lender when all or part of the total delinquent taxamount is paid by the homeowner or is collected by the county treasurer by some other methodanytime during the 90 calendar days following the date on the county treasurer's Notice ofDelinquent Taxes To Lender. (M.S. 47.209, Subd. 3)

The 90 calendar days includes the 30 calendar days the lender has to send a notice to thehomeowner after receiving the county treasurer's Notice of Delinquent Taxes To Lender and the60 calendar days the homeowner has to pay the total delinquent tax amount after receiving thelender's notice.

RESULTS OF THE LENDER OPTION

The collection process will be ended if either one of the following actions results from the use ofthe lender option: (1) the lender's notice to the homeowner motivates the homeowner to pay thetotal delinquent tax amount, or (2) the lender pays the total delinquent tax amount if thehomeowner does not respond to the lender's notice.

If neither the homeowner nor the lender pays the total delinquent tax amount, the countytreasurer will have to turn to one or more of the enforced collection actions that are outlined inthe previous Series in this Manual.





NOTICE OF DELINQUENT TAXES TO LENDER



Taxpayer:


Manufactured home taxes levied in the name of the above taxpayer were not paid when due in 1993 and have become delinquent. Pursuant to Minnesota Statutes, Section 277.17,Subdivision 1, and 47.209, Subdivision 3, your financial institution, as the holder of a lien on theabove named taxpayer's manufactured home, are required to send a written notice to the abovenamed taxpayer within thirty (30) calendar days after receiving this notice. The written noticemust inform the taxpayer of the following:

1. The taxpayer must pay the total delinquent tax amount within sixty (60) calendar days after thedate on your notice.

2. If the taxpayer does not pay the total delinquent tax amount within the above deadline, you may

pay the total delinquent tax amount and may begin foreclosure proceedings. 3. The taxpayer must contact the Spruce County Treasurer's office for the total delinquent tax

amount due on the day when the homeowner will make payment.

If you pay the total delinquent tax amount, you must also contact the Spruce County Treasurer'soffice for the total delinquent tax amount due on the day when you will make payment.

Date Signed: March 23, 1994 Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323Telephone: (234) 567-8910



TAX ESCROW ACCOUNTS SECTION 7930A

After the 90-day grace period following the date on the Notice of Delinquent Taxes has expired,the county treasurer may require the owner of a manufactured home to make monthly paymentsof the total delinquent tax amount plus the total tax for the next taxes payable year. This methodof enforced collection will be referred to in this Section 7930A as the "escrow account option."

NOTE: See Section 7220 for detailed information about the Notice of Delinquent Taxes and the 90-day grace period.

RESTRICTIONS ON THE ESCROW ACCOUNT OPTION

The county treasurer's use of the escrow account option is limited by the restrictions outlinedbelow.

1. The option can be used only if the county treasurer has not already sent a notice to the lenderwho holds a lien on the taxpayer's manufactured home, requiring the lender to help in thecollection process as required under M.S. 277.17, Subd. 1, and 47.209, Subd. 3. See Section7920A for detailed information about the lender option.

2. The option can be used only for delinquent personal property taxes that are assessed onmanufactured homes. It cannot be used for delinquent personal property taxes on other thanmanufactured homes.

3. The option can be used only for personal property taxes on manufactured homes that arepayable in calendar year 1993 and thereafter.

90-DAY GRACE PERIOD

The county treasurer must wait 90 calendar days after the date on the Notice of DelinquentTaxes before using the escrow account option. See Section 7220 for detailed information aboutthe 90-day grace period and the Notice of Delinquent Taxes. (M.S. 277.17, Subd. 1)

This is the same 90-day grace period that the county treasurer must grant before using any of theenforced collection methods outlined in the earlier Series of this Manual.



TAX ESCROW ACCOUNTS SECTION 7930A(Continued) (Page 2)

DEFINITION OF A "TAX ESCROW ACCOUNT"

In general, the term, "escrow," refers to a process by which money is held by a third party untilthe terms and conditions of a financial agreement are satisfied. The term, "escrow account,"refers to the fund in which the third party holds the money until it is paid out later.

For example, many of us have a mortgage that requires the mortgagee to set up an escrowaccount to be used to pay our real property taxes and/or home insurance. As the mortgagor, wepay an amount monthly into the escrow account usually equal to 1/12 of the amount of the yearlytax and insurance. The mortgagee uses the money in the escrow account to pay the taxes andinsurance when they become due.

With the escrow account option, the county treasurer plays the role of the "mortgagee," and thetaxpayer is the "mortgagor." The county treasurer requires the taxpayer to make monthlypayments into a tax escrow account for the total delinquent tax amount and the total tax for thenext taxes payable year. The county treasurer uses a portion of each monthly payment to paythe previous year's tax that is already overdue and to pay the first-half and second-halfinstallments of the tax for the next taxes payable year when they become due.

AMOUNT OF MONTHLY TAX ESCROW PAYMENTS

The goal of the escrow account option is to have the sum of the total delinquent tax amount andthe total tax for the next taxes payable year paid in full by the next November 15. Therefore, theamount of the monthly payments will vary depending on the amount of the total tax due and thenumber of months remaining from the month when the first escrow payment is due through thenext month of August.

The steps that the county treasurer should follow to determine the amount of the monthlypayments under the escrow account option are outlined below.

1. Determine the total delinquent tax amount that is due up through the month when the Noticeof Escrow Payments and the coupon booklet will be mailed to the taxpayer.

The total delinquent tax amount includes the unpaid tax, the penalty, and any interest thataccrued up through the month when the materials will be mailed. It will also include the feesfor recording and releasing a tax lien, if the county treasurer filed a tax lien after the Noticeof Delinquent Taxes was mailed to the taxpayer. See Section 7310 for information about thepurpose of filing a tax lien when a taxpayer is escrowing.




2. Determine the total estimated tax for the next taxes payable year.

If the Notice of Escrow Payments and the coupon booklet are mailed in March as theDepartment of Revenue recommends, the actual total tax for the next taxes payable year willnot be known because the values will not be available yet. Therefore, the county treasurermust estimate the tax on the manufactured home for the next taxes payable year. This couldbe done using the current taxes payable year tax rates for real and personal property and thetaxable net tax capacity of the manufactured home for the previous taxes payable year.

Note: For a Notice of Escrow Payments and a coupon booklet mailed in March, the taxes duefor the “next taxes payable year” are actually the taxes due August 31 and November15 of the same calendar year in which the mailing takes place.

3. Add the amount determined in Step #1 and the amount determined in Step #2. The result isthe total amount that must be paid into the tax escrow account by the taxpayer with themonthly payments.

4. Determine the number of months remaining from the month when the first escrow paymentwill be made through the next month of August.

5. Divide the amount in Step #3 by the number of months in Step #4. The result is the amountof the monthly payments that should be listed on each escrow account coupon and paid bythe taxpayer.

ESCROW ACCOUNT COUPON BOOKLETS

Each county treasurer is responsible for designing and printing an escrow coupon booklet thatmust be mailed to the taxpayer. The major components of the coupons and the procedures forusing the coupons that are recommended by the Department of Revenue are outlined below.

1. There should be one coupon in each booklet for each of the months when the taxpayer isrequired to make the escrow payments.

2. Each coupon should identify the property for which the tax is being paid, the amount of therequired monthly payment due, and the date when the monthly payment is due. (Any otherinformation that the county treasurer needs to process the escrow payments efficiently andaccurately may be added to the coupon.)

3. The due date on each coupon should be the 30th of the month.




4. The county treasurer must mail the escrow coupon booklet to the taxpayer along with theNotice of Escrow Payments.

5. The taxpayer must mail the coupon for the appropriate month along with the money for themonthly payment to the county treasurer's office.

RATIONALE FOR 30TH AS DUE DATE

M.S. 277.17, Subd. 3, allows the taxpayer 30 calendar days after receiving the county treasurer'sNotice of Escrow Payments and the coupon booklet to make the first monthly escrow payment.

If the county treasurer sets the due date on the first coupon for the 30th of the month followingthe month in which the Notice of Escrow Payments and the coupon booklet are mailed, thetaxpayer will have at least 30 calendar days to make the first payment as long as the materialsare mailed no later than the 30th of the month before the first payment is due.

For example, let's say that the county treasurer mails the Notice of Delinquent Taxes to thetaxpayer on December 15, 1993. The 90-day grace period following the date on the Notice ofDelinquent Taxes expires on March 15, 1994. If the Notice of Escrow Payments and the couponbooklet are prepared and mailed on March 23, 1994 and the due date on the first coupon is April30, 1994, the taxpayer will have at least thirty days to make the first payment. The same wouldbe true if the mailing took place anytime from the 16th through the 30th of March.

Mailing the Notice of Escrow Payments and the coupon booklet in March will always grant thetaxpayer the maximum number of months to pay the total required escrow amount; i.e., 5months, April through August. This will make the monthly payments the lowest possible. Andthe lower the monthly payments, the greater the chance the taxpayer will actually pay them.

GUIDELINES FOR DEPOSITING + RECORDING ESCROW PAYMENTS

The Department of Revenue recommends that the county treasurer follow the guidelines outlinedbelow for depositing, recording, and monitoring the taxpayer's monthly escrow payments.

1. The money from all monthly escrow payments may be deposited or invested in the same waythe county funds are deposited or invested.

2. The money from all monthly escrow payments may be deposited in a single account.However, the county treasurer must keep separate records of the payments of eachhomeowner.




3. Any interest earned on the amount in the tax escrow account may be retained by the countyand used to pay any of the county's expenses.

4. If the amount in the tax escrow account is more than the amount needed to pay the tax, thecounty treasurer must refund the excess.

5. If the amount in the tax escrow account is less than the amount needed to pay the tax, thecounty treasurer must notify the taxpayer of the additional amount needed at least 30calendar days before the due date and demand immediate payment.

6. If the taxpayer pays the total delinquent tax amount in full, the county treasurer mustrequire the taxpayer to continue to make the monthly payments into the tax escrow accountfor the next taxes payable year's taxes.

NOTICE OF ESCROW PAYMENTS

In order to initiate the escrow account option, the county treasurer must send a written notice tothe taxpayer requiring escrow payments. An escrow coupon booklet must be enclosed with thenotice. The notice will be referred to in this Section 7930A as the Notice of Escrow Payments.(M.S. 277.17, Subd. 1)

M.S. 277.17 is silent about the form and content of the written notice to the taxpayer. Therefore,the Department of Revenue recommends that the county treasurer's Notice of Escrow Paymentscontain the information outlined below.

1. The complete name and address (street or rural route and box number, city or town, state,and zip code) of the homeowner.

2. The property identification number, the property type, the date when the Notice ofDelinquent Taxes To Lender was prepared and mailed, and the total delinquent tax amountowed as of the date when the Notice was prepared and mailed.

3. A statement informing the taxpayer that the total delinquent tax amount has not been paid.

4. A statement requiring the taxpayer to begin making monthly installment payments of thetotal delinquent tax amount and the estimated tax for the next taxes payable year.

5. A paragraph explaining the procedures that the taxpayer must follow in making the monthlypayments.




6. A paragraph explaining how the county treasurer will use the money in the escrow account topay the taxpayer's total delinquent tax amount and the estimated tax for the next taxespayable year.

7. A paragraph warning the taxpayer that, if the escrow payments are not made, the countytreasurer may take any of the enforced collection actions that are listed at the end of theparagraph.


A suggested form for the Notice of Escrow Payments is presented at the end of this Section7930A. Use the suggested form to develop your own county Notice of Escrow Payments.





NOTICE OF ESCROW PAYMENTS

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Date Mailed: March 23, 1994 Applewood, MN 57252 Total Tax Due: $ 349.29

According to our records, you have failed to pay the property taxes on yourmanufactured home that were due in 1993 . If you do not immediately pay in fullthe total delinquent tax amount listed above, you must begin making monthly paymentsof the total delinquent tax amount listed above plus the county's estimate of the total taxfor the upcoming year.

To make the monthly payments, you must use the enclosed booklet that contains couponsfor monthly payments. The coupons show the total dollar amount you must pay eachmonth. You must include the coupon for the appropriate month with each payment toensure that your payment is correctly recorded. The due date for each payment isprinted on each month's coupon.

Each month the county will deposit in an escrow account that part of your payment thatis for the upcoming year's total tax. On the payment due dates for the upcoming year'stax, the county will take the money from the account and use it to pay your tax on thosedates.

If you fail to make the monthly payments, the county may take one or more of thefollowing actions: (1) request your lender to help in the collection process, (2) take overyour state tax refunds or lottery winnings over $600, (3) impose a levy on money held foryou or owed to you, (4) seize and sell your property, or (5) obtain a court judgmentagainst your property.

Date Signed: March 23, 1994Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



CONFESSION OF JUDGMENT SECTION 7940A

Certain taxpayers are authorized to pay the total delinquent tax amount owed on theirhomesteaded manufactured homes under a 5-year installment plan. To obtain the right to payunder installments, the taxpayers must submit a written offer to the county treasurer. This five-year installment plan is called a "confession of judgment." (M.S. 277.23, Subd. 1-3)

This confession of judgment is similar to the one authorized for the payment of delinquent realproperty taxes under M.S. 279.37. In fact, the provisions of M.S. 279.37 apply to this confessionof judgment except as otherwise provided in M.S. 277.23.

For more detailed information about the confession of judgment for delinquent real propertytaxes, see Series 6500 in the Department of Revenue's Delinquent Tax and Tax ForfeitureManual (The Red Book).

ELIGIBILITY: PARTIES

The owner or another person having an interest in a manufactured home that is classified andtaxed as both personal property and a homestead may confess judgment and pay the totaldelinquent tax amount under a 5-year installment plan. (M.S. 277.23, Subd. 1)

The Department of Revenue recommends that the above eligible parties be defined morespecifically as outlined below.

1. The term, "owner," should refer to the party whose name is on the certificate of title for themanufactured home. This is similar to the fee owner who is eligible to confess judgment ondelinquent real property taxes under M.S. 279.37, Subd. 2.

2. The phrase, "another person having an interest in a manufactured home," should beinterpreted as any party to whom the right to pay taxes has been given by statute, mortgage,or other agreement. An example would be a lender who has financed the purchase of amanufactured home and has the right to pay the taxes under the terms of the loan agreementif the title owner fails to pay them.

This second definition is similar to the one used to decide which parties other than the feeowner may confess judgment on delinquent real property taxes under M.S. 279.37, Subd. 2.

For the sake of brevity, the title owner or another interested party who offers to confessjudgment will be referred to in this Section 7940A as the "eligible taxpayer" or the "taxpayer."



CONFESSION OF JUDGMENT SECTION 7940A(Continued) (Page 2)

ELIGIBILITY: PROPERTY

A confession of judgment may only be offered by an eligible taxpayer to pay the total delinquenttax amount owed on a manufactured home that is currently receiving homestead treatment. Thetotal delinquent tax amount owed on personal property other than a homesteaded manufacturedhome may not be paid under a confession of judgment. (M.S. 277.23, Subd. 1)

"Currently receiving homestead treatment" means that the manufactured home must beclassified as homestead in the year in which the confession of judgment is offered. If themanufactured home lost its status as a homestead before the date when the confession ofjudgment is offered, the county treasurer may legally reject the offer.

ELIGIBILITY: NUMBER OF CONFESSIONS

The county treasurer must accept all first-time offers to confess judgment from all eligibletaxpayers and on all properties that are eligible. The county treasurer does not have theauthority to accept or reject the first-time request for a confession of judgment if the eligibilityrequirements are met. (M.S. 279.37, Subd. 10)

Following a default on a first confession of judgment, an eligible taxpayer may offer to confessjudgment a second time on the unpaid balance of the first defaulted confession. The countytreasurer must accept the second confession as long as the taxpayer and the property are eligible.

The conditions, requirements, and procedures for setting up and administering a secondconfession of judgment are the same as those for the first confession.

TERMS OF THE 5-YEAR CONFESSION OF JUDGMENT

A taxpayer must begin the process by filing a written offer to confess judgment with the countytreasurer. (M.S. 277.23, Subd. 1; 279.37, Subd. 2)

The county treasurer determines the eligibility of the taxpayer and the eligibility of themanufactured home. The county treasurer's staff prepares the written contract for theconfession of judgment, and the eligible taxpayer signs it. A suggested form for the confession ofjudgment is presented at the end of this Section 7940A. The content of the form is prescribed inM.S. 277.23, Subd. 1.

By signing the contract, the eligible taxpayer agrees to the following conditions of the confessionof judgment. (M.S. 277.23, Subd. 1-2; 279.37, Subd. 2)




1. To waive all legal rights to challenge the assessment and levy of the taxes and theadministration of the delinquent tax laws up to the time of the confession.

2. To accept the validity of the total delinquent tax amount due (taxes, penalty, fees forrecording and releasing a tax lien, sheriff's fees, court costs, and interest accrued up to thetime of the confession) on the manufactured home for all taxes payable years.

3. To agree to have the total delinquent tax amount due combined into a confession of judgmentand to fulfill the terms of the confession of judgment contract.

4. To pay immediately to the county auditor a down payment equal to the sum of 20% of thetotal delinquent tax amount combined into the confession of judgment plus the countyadministrative fees.

5. To direct court judgment to be entered for the remaining 80% of the total delinquent taxamount combined into the confession of judgment.

6. To pay the remaining 80% of the total delinquent tax amount combined into the confessionof judgment in four, equal, annual installments with interest on or before December 31 ofeach year following the year when the confession of judgment is signed.

7. To waive all requirements for a notice of default on any installment or interest due in thefuture under the court judgment.

8. To pay all current taxes on the same manufactured home each year before they becomedelinquent unless the taxes are being contested under M.S. 277.

TOTAL AMOUNT DUE UNDER CONFESSION OF JUDGMENT

The eligible taxpayer who offers to confess judgment must agree to pay the total delinquent taxamount under the confession of judgment. This means the total delinquent tax amount due onthe day when the confession agreement is signed. (M.S. 277.23, Subd. 1; 279.37, Subd. 1)

The components of the total delinquent tax amount which must be combined under a confessionof judgment are: (1) the unpaid tax; (2) the penalty on the unpaid tax; (3) the interest accruedbefore the confession; (4) the fees for recording and releasing a tax lien filed before theconfession, and (5) any other costs incurred before the confession; e.g., sheriff's fees and courtcosts.




COLLECTION OF DOWN PAYMENT + ADMINISTRATIVE FEES

At the time when the confession of judgment is signed, the eligible taxpayer is required to make alump sum payment to the county treasurer equal to the two amounts outlined below. The countytreasurer must not accept the confession of judgment until these two amounts are paid in full.

1. TWENTY PERCENT (20%) DOWN PAYMENT

The eligible taxpayer must pay 20% of the total delinquent tax amount that is combinedunder the confession of judgment. (M.S. 277.23, Subd. 1)

2. ADMINISTRATIVE FEES

The eligible taxpayer must pay the administrative fees charged by the county treasurer andthe administrator of the district court to offset the costs of administering the confession ofjudgment. (M.S. 277.23, Subd. 3; 279.37, Subd. 8)

The county board is responsible for determining the amount of the fee for both the countytreasurer and the administrator of the district court. The fee is to be charged equally on allconfessions of judgment in the county until the county board decides to change the fee.

The portion of the collected fee that is for the county treasurer's costs must be credited to thecounty general revenue fund. The remaining portion must be sent to the administrator of thedistrict court.

RECORDING THE CONFESSION AGREEMENT

Once the 20% down payment and the administrative fees are collected and the confessionagreement is signed, the county treasurer is responsible for performing the major tasks outlinedbelow. (M.S. 277.23, Subd. 1; 279.37, Subd. 3-7)

1. Notify the county board of the offer to confess judgment. However, the county board doesnot have to approve the confession of judgment.

2. Record the offer to confess judgment in the "Tax Judgment Book" or in the county computerdata base.




3. Deliver a copy of the written offer to confess judgment, a copy of the confession agreement,and a receipt for the amount of the 20% down payment to the administrator of the districtcourt .*

4. Credit the amount of the 20% down payment as a partial release of the confession ofjudgment and distribute the money according to the methods and time schedules outlined inSeries 7900B.

* NOTE: When entered by the administrator of the district court, the confession of judgment has the same force and effect of other civil judgments in personam .

INTEREST CHARGED ON UNPAID BALANCE

The eligible taxpayer who offers to confess judgment must agree to pay interest as part of theinstallment payments due each year. The interest is to be charged on the unpaid balance of thetotal delinquent tax amount that was combined under the confession of judgment. (M.S. 277.23,Subd. 1; 279.37, Subd. 2)

M.S. 277.15 provides that the interest rate is to be determined under M.S. 279.03. Under thatstatute, the annual rate of interest to be charged is the adjusted prime rate that is determinedunder M.S. 270.75, Subd. 5, subject to a minimum rate of 10% and a maximum rate of 14%.This is the same interest rate charged on all delinquent personal and real property taxes. SeeSection 7150 of this Manual for more detailed information about the interest rate and how it is tobe prorated monthly.

CALCULATION OF 1ST-YEAR'S ANNUAL INSTALLMENT

The first annual installment must be paid by the eligible taxpayer by December 31 of the yearfollowing the year when the confession of judgment was signed. For example, if the confessionwas signed on March 24, 1994, the first annual installment would be due by December 31, 1995.The 20% down payment serves as the installment payment for 1994. (M.S. 277.23, Subd. 1;279.37, Subd. 2)

The amount of the first annual installment is equal to 20% of the total delinquent tax amountthat was combined under the confession of judgment plus interest.




The annual rate of interest is prorated monthly from the month after the confession agreement issigned through December of the year following the year when the confession was signed. In theabove example, interest would be prorated for 21 months: April, 1994 through December, 1995.The total percentage of interest for the 21 months is multiplied by the total remaining balance ofthe total delinquent tax amount that was combined under the confession of judgment.

CALCULATION OF REMAINING ANNUAL INSTALLMENTS

The eligible taxpayer must pay the three remaining annual installments by December 31 of eachyear. The amount of each annual installment is equal to 20% of the total delinquent tax amountthat was combined under the confession of judgment plus interest for the year when theinstallment is due. (M.S. 277.23, Subd. 1; 279.37, Subd. 2)

For example, if one of the remaining installments is due by December 31, 1996, the annual rate ofinterest is charged for the months of January through December, 1996. The total percentage ofinterest for the 12 months is multiplied by the total remaining balance of the total delinquent taxamount that was combined under the confession of judgment.

NOTICE OF CONFESSION OF JUDGMENT PAYMENT

By November 30 of each year following the year when the confession of judgment was signed, thecounty treasurer must mail a notice to each eligible taxpayer who confessed judgment. Thewritten notice will be referred to as the "Notice of Confession of Judgment Payment" in thisSection 7940A. The two major purposes of the Notice are listed below. (M.S. 277.23, Subd. 2;279.37, Subd. 6)

1. To remind the eligible taxpayer that the next annual installment is due by December 31 ofthat year.

2. To list the total amount of the annual installment that is due by December 31 of that year.

A suggested form for the county treasurer's Notice of Confession of Judgment Payment ispresented at the end of this Section 7940A. Use the suggested form to develop your own countyNotice of Confession of Judgment Payment.




RECORDING + DISTRIBUTION OF ANNUAL INSTALLMENT PAYMENTS

The county treasurer must record each annual installment payment in the "Tax JudgmentBook" or in the county computer data base. A copy of the receipt for the amount of the paymentmust be delivered to the administrator of the district court. (M.S. 279.37, Subd. 7)

The county treasurer must credit the amount of the payment as a partial release of the confessionof judgment and show the year that the confession of judgment was entered. The amount of thepayment should not be applied to any specific year's delinquent tax amount.

The amount of the payment must be distributed according to the methods and time schedulesoutlined in Series 7900B.

NOTICE OF DEFAULT ON CONFESSION OF JUDGMENT

If an annual installment is not paid by the December 31 deadline, the county treasurer mustimmediately send a notice by certified mail to the eligible taxpayer at the last known addresswithout regard to the county or state of the person's residency. The notice will be referred to inthis Section 7940A as the "Notice of Default on Confession of Judgment." (M.S. 277.23, Subd. 2;279.37, Subd. 6)

The purpose of the Notice is to warn the eligible taxpayer that, if the overdue annual installmentis not paid within 60 calendar days after the December 31 deadline, the county treasurer maytake one or more of the following actions: (1) require escrow payments of the delinquent amountplus next year's taxes, (2) request the lender to help in the collection process, (3) take over thetaxpayer’s state tax refunds or lottery winnings over $600, (4) impose a levy on money held forthe taxpayer or owed by the taxpayer, (5) seize and sell the taxpayer’s property, or (6) obtain acourt judgment against the taxpayer’s property.

If the eligible taxpayer has not paid the current tax before December 31 of the year when the taxis due, the county treasurer should also send a Notice of Default on Confession of Judgment bycertified mail to the eligible taxpayer. In this case, the Notice should warn the eligible taxpayerthat the county treasurer may take any of the above described enforced collection actions if thecurrent tax is not paid within 60 calendar days after the December 31 deadline.

The county treasurer must file the certificate in the treasurer's office as proof of the certifiedmailing. Failure to send or receive a Notice does not postpone any required payment or excuseany default under the confession of judgment.




REINSTATEMENT OF ORIGINAL TAX JUDGMENT UPON DEFAULT

When the eligible taxpayer fails to comply with the terms of the confession of judgment, thecounty treasurer must complete the major actions outlined below. (M.S. 279.37, Subd. 9)

1. Cancel the confession of judgment contract.

2. Notify the administrator of the district court to cancel the confession of judgment enteredagainst the taxpayer.

Once the above actions are completed, the county treasurer should select one of the availablemethods to enforce payment of the remaining balance of the total delinquent tax amount ormake a decision to cancel it.

NOTE: If an eligible taxpayer offers to confess judgment a second time, the county treasurer must accept the offer. All of the rules, procedures, and forms that were used for the first confession would be simply repeated. Only two confessions of judgment are allowed on the same total delinquent tax amount owed on the same manufactured home.(M.S. 279.37, Subd. 10)





CONFESSION OF JUDGMENT

To the Administrator of the District Court of Spruce County:

I (We), Bradley & Theresa Whitley , owner(s) of the following describedmanufactured home located in Spruce County, Minnesota:

Vehicle ID#: 178-2740-01213 Location: Pine Cove Mobile Home Park

342 Washington Street Applewood, MN 57252

Make, Model, Year: American Classic, Colonial II, 1985

upon which there are delinquent taxes for the year(s) 1993 , do hereby offer toconfess judgment pursuant to Minnesota Statutes, 277.23, on the total delinquent taxamount owed as of the date of this confession in the sum of $ 359.29 .

I (We) waive all irregularities in the tax proceedings affecting such taxes and any defenseor objections that I (we) may have under Minnesota Statutes.

I (We) agree to pay, at the time of the signing, a down payment in the sum of $ 71.86 ,which is one-fifth of the total delinquent tax amount confessed, plus a $20.00 fee foradministrative expenses.

I (We) direct the court to enter judgment for the sum of $ 287,43 , which is thedifference between the total delinquent tax amount confessed above and the downpayment listed above.

I (We) agree to pay the judgment amount in four, equal, annual installments with interestat the rate provided in Minnesota Statutes, 277.15 and payable annually on the balanceof the judgment amount remaining unpaid. Each annual installment is to be paid on orbefore December 31 of each year following the year in which this judgment is entered.

I (We) agree to pay all current taxes on the above described manufactured home eachyear before they become delinquent or within thirty (30) calendar days after finaljudgment in proceedings to contest such taxes under Minnesota Statutes, 273.125.

March 23, 1994 (Date of Signature(s)(Signature(s) of Owner(s)





NOTICE OF CONFESSION OF JUDGMENT PAYMENT

Date: November 22, 1995

Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Due Date: December 31, 1995 Applewood, MN 57252 Total Due: $ 122.16

The purpose of this notice is to remind you that your current year's annual installmentunder your confession of judgment is due no later than the date listed above.

If the total amount of the installment listed above is not received by the due date, yourconfession of judgment will be in default.

To avoid a default, submit the total amount of the installment listed above to the addresslisted below by the due date.

Make your check or money order payable to the Spruce County Treasurer. Put theproperty identification number listed above on your check or money order.

Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910





NOTICE OF DEFAULT ON CONFESSION OF JUDGMENT

Date: January 5, 1996 Bradley & Theresa Whitley Property ID#: 012-578-803 Pine Cove Mobile Home Park Property Type: Manufactured Home 342 Washington Street Due Date: December 31, 1995 Applewood, MN 57252 Total Due: $ 122.16

According to our records, you have not paid the current year's annual installment underyour confession of judgment that was due no later than the date listed above.

If the total amount of the installment listed above is not received within sixty (60)calendar days after the above due date, your confession of judgment will be in default, thejudgment will be canceled, and the county treasurer may take any of the following actionsto enforce payment of the unpaid balance of the confession of judgment:

1. Require escrow payments of the delinquent tax amount and the upcoming year'staxes.

2. Request the lender to help in the collection process.

3. Require the Minnesota Department of Revenue to withhold your state tax refunds orlottery winnings over $600.

4. Levy on your bank accounts or wages. 5. Seize and sell your personal or real property. 6. Obtain a court judgment against your property.

To avoid a default and subsequent enforced collection actions, submit the total amount ofthe installment listed above to the address listed below within 60 days of the December31, 1995 due date.

Make your check or money order payable to the Spruce County Treasurer. Put theproperty identification number listed above on your check or money order.

Audrey TrudeauSpruce County TreasurerSpruce County Courthouse234 West BroadwayGreenbriar, Minnesota 56323(234) 567-8910



ALTERNATIVE MONTHLY PAYMENT PLAN SECTION 7950A

When the tax situation warrants it, the county treasurer may allow a taxpayer to pay the totaldelinquent tax amount on a homesteaded manufactured home under a monthly payment plan.This payment plan would be an alternative to the 5-year confession of judgment authorizedunder M.S. 277.23 and outlined in Section 7940A.

Although not specifically authorized in the statutes, the alternative monthly payment plan can bejustified in the same way that several of the enforced collection actions are justified. The 1991Minnesota Legislature gave the county treasurer a mandate to take whatever action is"reasonable and necessary" to collect delinquent personal property taxes, includingmanufactured homes. The county treasurer may determine that an alternative monthly paymentplan is a "reasonable and necessary" method of collection.

There are two practical reasons for using an alternative monthly payment plan. First, mostdelinquent personal property taxes on homesteaded manufactured homes are relatively small. Itseems unreasonable to set up a 5-year confession of judgment plan to pay a total delinquent taxamount of $100 or even $200. The interest for each year plus the administrative fees add up tomore than the total delinquent tax amount in most cases. Consequently, very few taxpayers willoffer to confess judgment.

The second practical reason for using an alternative monthly payment plan is that mosttaxpayers who owe delinquent personal property taxes on a homesteaded manufactured homehave relatively small incomes and other assets and are sometimes experiencing temporaryfinancial problems. They may not be able to come up with the lump sum to pay the totaldelinquent tax amount, but would be willing and able to make small monthly payments.

Considering these two practical reasons, it only makes sense to let the taxpayer make smallmonthly payments on a small amount of delinquent taxes. This is probably the most likely waythat the total delinquent tax amount will be paid voluntarily.

The alternative monthly payment plan should not be granted to all taxpayers with ahomesteaded manufactured home. Each tax situation should be examined individually. If ataxpayer has a history of not paying taxes and defaulting on payment plans, the monthlypayment plan should probably not be granted. If a taxpayer has a good payment history and iscaught in a temporary financial bind, the monthly payment plan should definitely be considered.

The Department of Revenue recommends that any alternative monthly payment plan be basedon a formal contract. The contract agreement may be simple, but it should contain at least thebasic terms listed below.



ALTERNATIVE MONTHLY PAYMENT PLAN SECTION 7950A(Continued) (Page 2)

1. A statement by which the taxpayer agrees to pay the total delinquent amount due at thattime in monthly installments plus interest.

2. A statement stipulating exactly how many months the taxpayer has to pay the totaldelinquent tax amount plus interest.

3. A statement by which the taxpayer agrees to pay the annual rate of interest as determinedunder M.S. 277.23, prorated monthly, charged on the remaining unpaid balance of the totaldelinquent tax amount, and payable with each monthly installment.

4. A statement stipulating the exact amount of the principal payment each month to which theinterest will be added.

5. A statement stipulating the deadline for paying the monthly installments each month.

6. A statement requiring the taxpayer to make out a check or money order for the total monthlypayment to the county treasurer, to put the property identification number on the check ormoney order, and to mail it to the county treasurer's address.

If a taxpayer defaults on an alternative monthly payment plan, the county treasurer will have tocancel the plan and select one of the available methods of enforcing payment or cancel theamount due.

NOTE: Although the alternative monthly payment plan is most appropriate for paying the totaldelinquent tax amount on a homesteaded manufactured home, it does not have to belimited to that tax situation. The county treasurer could also decide to allow the totaldelinquent tax amount on a non-homesteaded manufactured home, leased government-owned property, elevator or warehouse on leased railroad right-of-way land, or non-municipal utility property to be paid under an alternative monthly payment plan. Thesame criteria should be applied to each tax situation before deciding whether or not togrant the plan.



OVERSIZED LOAD MOVING PERMIT SECTION 7960A

M.S. 169.86, Subd. 1 contains a special provision designed to help the counties reduce the risk oflosing delinquent taxes when a manufactured home is removed from the county.

Under this provision, an “oversized load permit" cannot be issued to move a manufactured homeuntil the owner has presented a written statement from the county auditor and the countytreasurer where the unit is presently located to the Department of Public Safety. The statementmust certify that all personal and real property taxes have been paid. The statement must bedated within 30 days of the move.

As an alternative, the Department of Public Safety itself may obtain the statement from thecounty auditor and county treasurer by telephone. The telephone statement cannot be obtainedby the owner and then passed on to the Department of Public Safety by word of mouth.

If the statement is obtained by telephone, the moving permit must contain the followinginformation: (1) the date and time of the telephone call, and (2) the names of the persons in thecounty auditor's and county treasurer's offices who certified that all personal and real propertytaxes have been paid.

There are two exceptions to the above requirement:

1. New manufactured homes that are being moved by the manufacturer or the manufacturedhome dealer who owns them are exempt from the requirement.

2. A manufactured home dealer or financial institution that is relocating a repossessedmanufactured home must pay only the most recent single-year delinquent personal propertytaxes or current year taxes to receive the county auditor's and county treasurer's statement.

Example #1: The current year payable 1994 taxes and delinquent taxes for payable 1993 and1992 remain unpaid. Before a moving permit can be issued, the current year payable 1994taxes must be paid.

Example #2: The current year payable 1994 taxes have been paid. Delinquent taxes forpayable 1993 and 1992 remain unpaid. Before a moving permit can be issued, the delinquenttaxes for payable 1993 must be paid.

The basic principle is to collect the most recent taxes that remain unpaid before issuing amoving permit.



OVERSIZED LOAD MOVING PERMIT SECTION 7960A(Continued) (Page 2)

Note: The personal and real property taxes that must be paid before an oversized load permitmay be issued are the personal or real property taxes on the manufactured home itself.For example, this requirement does not apply to:

• The real property taxes owed by the applicant on property located somewhere otherthan where the manufactured home is located.

• Personal property taxes owed by the applicant but relating to property other than themanufactured home for which a moving permit has been requested.

• The real property taxes owed by another taxpayer for the pad where themanufactured home is presently located.



PROPERTY TAXES PAID BEFORE TITLE TRANSFER SECTION 7970A

The 2002 Minnesota Legislature enacted a provision that should aid the counties in the collectionof personal property taxes on manufactured homes. This new provision, coded as M.S. 168A.05,Subd. 1a, states that the Minnesota Department of Public Safety may not issue a certificate oftitle unless the application for transfer of title is accompanied by a statement from the countyauditor or county treasurer where the manufactured home is presently located, stating that allpersonal property taxes levied on the unit that are due from the current owner at the time oftransfer for which the application applies, are paid.

This new provision is effective for certificates of title issued by the Department of Public Safetyon or after July 1, 2002. (Laws 2002, Chapter 377, Article 4, Section 1)

The Department of Revenue interprets this provision, as written, to say that it is not necessarythat delinquent personal property taxes due from a previous owner be paid before the title to theunit can be transferred. Further, it is not required that the total current taxes for a year be paidregardless of when the application for transfer of title is made. Instead, just the current taxesdue at the time of transfer (and any delinquent taxes due from the current owner) must be paid.The following table illustrates how the county should administer this provision:

If Title TransferIs to Occur

These Personal Property Taxes on theManufactured Home Must Be Paid

On or before August 30 of the taxespayable year

Just the delinquent taxes due from the currentowner, if any

On or after August 31 of the taxespayable year but before November15 of the taxes payable year

The first half current property taxes plus thedelinquent taxes due from the current owner, ifany

On or after November 15 of the taxespayable year

Both the first half and the second half currentproperty taxes plus the delinquent taxes due fromthe current owner, if any

In addition, beginning with property taxes payable in 2003, the property tax statements formanufactured homes must contain a sentence notifying the taxpayer that the title to themanufactured home cannot be transferred unless the property taxes are paid. (Laws 2002,Chapter 377, Article 4, Section 15, which amended M.S. 273.125, Subd. 3.)

This notice should be shown on the back side of the property tax statement. The location isoptional, but must be on the copy of the statement that the taxpayer keeps for his/her records.



PROPERTY TAXES PAID BEFORE TITLE TRANSFER SECTION 7970A(Continued) (Page 2)

The following notice should be used for this purpose:

Notice: The title to your manufactured home cannot be transferred unless the totalpersonal property taxes due on your manufactured home at the time of transfer,including any delinquent taxes you owe, are paid.


DELINQUENT PERSONAL PROPERTY TAXES DISTRIBUTION

DISTRIBUTION OF COLLECTIONS SECTION 7900B

When all or part of the total delinquent tax amount is collected, the county treasurer has theresponsibility of distributing the various components of the amount collected. The majorcomponents of the total delinquent tax amount, the method of distributing them, and the timeschedules for distributing them are outlined below.

NOTE: For an explanation of the major components of the total delinquent tax amount, see Section 7070.

COMPONENT #1: THE UNPAID TAX ITSELF

The UNPAID TAX ITSELF is the major component of the total delinquent tax amount that iscollected by the county treasurer. The unpaid tax itself is to be distributed to the appropriatelocal taxing districts and the state (if the property was subject to the state general tax) accordingto the regular method and time schedule for settlement and distribution of current real andpersonal property taxes. (M.S. 276.09 through 276.111)

For detailed information about this regular method and time schedule, please refer to theDepartment of Revenue's calendar of the property tax due dates, settlement dates, anddistribution dates. The Property Tax Division maintains a current copy of the calendar on theDepartment of Revenue web page at:

http://www.taxes.state.mn.us/proptax/proptaxadmin/treasurers/publications.html

COMPONENT #2: PENALTIES + INTEREST

PENALTIES are always a component of the total delinquent tax amount because they are addedautomatically the day after the taxes are due and remain unpaid. INTEREST becomes acomponent of the total delinquent tax amount starting January 1 of the year following the yearwhen the taxes were due. See Series 7100 for detailed information about the penalties andinterest.

Similar to the unpaid tax itself, the penalties and interest are to be distributed according to theregular time schedule for settlement and distribution of current real and personal property taxes,including manufactured homes, under M.S. 276.09 through 276.111.



DISTRIBUTION OF COLLECTIONS SECTION 7900B(Continued) (Page 2)

The current method of apportioning the PENALTIES and INTEREST collected on personalproperty taxes and special assessments against personal property that are paid after they becomedelinquent is outlined below. (M.S. 276.131)

1. All penalties and interest collected on SPECIAL ASSESSMENTS against personal property,including manufactured homes, are to be distributed to the city or township that levied theassessment.

Note: Because the counties and not the townships levy the ditch assessments or fees, thepenalties and interest on ditch assessments or fees are to be apportioned to thecounties in which the property is located and not to the townships. The amountreceived by a county for this purpose is to be deposited in the county ditch fund.

2. 50% of all PENALTIES collected on PERSONAL PROPERTY TAXES, includingmanufactured homes, is to be apportioned to the county in which the property is located, andthe other 50% is to be apportioned to all of the school districts in the county in proportion toeach school district’s taxable net tax capacity within the county in the prior levy year, fortaxes payable in the year of the collection, as provided in M.S. 127A.34. The taxable net taxcapacity of a school district for this purpose is the net tax capacity excluding powerline credit,tax increment, and fiscal disparity contribution net tax capacities (fiscal disparitydistribution value is not included in this net tax capacity).

Note: Cities, towns, special taxing districts, tax increment financing districts, and the stateare not authorized to receive any portion of the penalties collected on personalproperty taxes, including manufactured homes.

The penalties are to be distributed according to the regular schedule for settlement anddistribution of current property taxes. For more detailed information about this regularschedule, please refer to the Department of Revenue's calendar of the property tax due dates,the settlement dates, and the distribution dates for the upcoming taxes payable year. TheProperty Tax Division maintains a current copy of the calendar on the Department ofRevenue web page at:


3. Effective for INTEREST collected on PERSONAL PROPERTY TAXES, includingmanufactured homes, after June 30, 1999, the following apportionment is to be made:




(a) In the case of interest on taxes that have been delinquent for a period of one year or less,50% is to be apportioned to the county in which the property is located, and the other50% is to be apportioned to all of the school districts in the county in proportion to eachschool district’s taxable net tax capacity within the county in the prior levy year, fortaxes payable in the year of the collection, as provided in M.S. 127A.34. (See thedefinition of taxable net tax capacity on the previous page.)

(b) In the case of interest on taxes that have been delinquent for a period of more than oneyear, 50% is to be apportioned to all of the school districts in the county in proportion toeach school district’s taxable net tax capacity within the county in the prior levy year, asprovided in M.S. 127A.34, and the remaining 50% is to be apportioned between thecounty and the city or town where the property is located. The apportionment betweenthe city or town and the county is to be based on their net tax capacity local tax rates forthe taxes payable year in which the interest is collected. The share for the city or town isequal to its net tax capacity local tax rate as a proportion of the sum of the net taxcapacity local tax rates for the city or town and the county. The county gets the balanceremaining after the city or town share.

Interest on personal property taxes, including manufactured homes, collected on or beforeJune 30, 1999 should be distributed in accordance with previous law.

Note: Special taxing districts, tax increment financing districts, and the state are notauthorized to receive any portion of the interest collected on personal property taxes.

The interest is to be distributed according to the regular schedule for settlement anddistribution of current property taxes. For more detailed information about this regularschedule, please refer to the Department of Revenue's calendar of the property tax due dates,the settlement dates, and the distribution dates for the upcoming taxes payable year. TheProperty Tax Division maintains a current copy of the calendar on the Department ofRevenue web page at:


COMPONENT #3: FEES FOR RECORDING AND RELEASING A TAX LIEN

The FEES FOR RECORDING AND RELEASING A TAX LIEN become a component of thetotal delinquent tax amount only if the county treasurer actually files a Notice of Tax Lien, aNotice of Transcription of Tax Lien, or a Notice of Renewal of Tax Lien. See Series 7300 fordetailed information about recording and releasing a tax lien.




The fees for recording and releasing a tax lien must be paid directly to the county recorder whenthe county treasurer files a Notice of Release of Tax Lien. By that time, the county treasurer hascollected the required recording and releasing fees as part of the total delinquent tax amount andis able to pass that money directly to the county recorder when the Notice of Release of Tax Lienis filed.

COMPONENT #4: COUNTY SHERIFF'S FEES

COUNTY SHERIFF'S FEES become a component of the total delinquent tax amount only if thecounty treasurer officially involves the county sheriff in the enforced collection process. Ifinvolved, the sheriff's fees, as authorized by statute, will be added to the total delinquent taxamount owed by the taxpayer. See Series 7500, 7800, and 7900 for detailed information aboutthe county sheriff's involvement in the enforced collection process.

The payment of the county sheriff's fees are handled in one of the two general ways outlinedbelow.

1. If the county sheriff seizes the taxpayer's property and a third-party makes the highest bid atthe sheriff's sale, the sheriff collects the sale price from the third-party, withholds the sheriff'sfees, and submits the balance to the county treasurer. The county treasurer will distributethe components of the amount received from the sheriff according to the above methods andtime schedules.

2. If the county sheriff seizes the taxpayer's property and the county treasurer makes thehighest bid at the sheriff's sale, the county treasurer sells the property, sends the fees to thecounty sheriff, and distributes the components of the remaining balance according to theabove methods and time schedules.

COMPONENT #5: COURT COSTS

COURT COSTS become a component of the total delinquent tax amount only if the countytreasurer officially obtains a court judgment against the taxpayer's property. If the court entersjudgment, the court costs as authorized by statute will be added to the total delinquent taxamount owed by the taxpayer. See Series 7500 and 7900 for detailed information about thecourt's involvement in the enforced collection process.

After the total delinquent tax amount is collected, the county treasurer must pay the court costsdirectly to the court administrator. The components of the remaining balance will be distributedby the county treasurer according to the above methods and time schedules.




SPECIAL CASE: TIF DISTRICTS

A tax increment financing (TIF) district that qualifies to receive current year tax increments is toshare in tax delinquencies the same as the taxing districts. TIF districts receive a share of thetaxes actually collected, not the amount extended. When delinquent taxes are collected from aparcel located in a TIF district, the TIF district is to receive a share of the delinquent taxpayment. The portion that a TIF district receives is based on its regular tax settlementpercentage. (M.S. 469.176, Subd. 1(h))

A portion of the delinquent increment parcel taxes collected after a TIF district has gone out ofexistence are to be paid to the TIF authority if the delinquency caused outstanding bonds orcontractual obligations to be paid by sources other than tax increment or to go unpaid. The TIFdistrict portion is based on the district's regular tax settlement percentage in the year of thedelinquency. The TIF authority is to provide the county auditor with the information that isneeded to make the delinquent tax settlement.

Delinquent increment parcel taxes collected after a TIF district has gone out of existence andwhere there is no required payment to be made to the TIF district are to be distributed to alltaxing districts including special taxing districts. Regular tax settlement percentages are to beused to make this distribution.


DELINQUENT PERSONAL PROPERTY TAXES INDEX

INDEX SECTION 7900C

TOPIC HEADING SECTION NUMBER

30-day Waiting Period, Notice of Bank Levy................................................................. 7610, 762030-day Waiting Period, Notice of Wage Levy................................................................ 7705, 774090-day grace period, definition + application .............................................. 7220, 7305, 7440, 757090-day grace period, definition + application ........................................................ 7610, 7705, 7720

90-day grace period, escrow accounts .................................................................................... 7930A90-day grace period, Notice to Lender ................................................................................... 7920A90-day grace period, seizure + sale ........................................................................................... 7810Adjusted prime rate, calculation worksheet ............................................................................ 7150

Adjusted prime rate, interest charged...................................................................................... 7150Adjusted prime rate, schedule .................................................................................................. 7150Adjusted prime rate, source ..................................................................................................... 7150Alternative monthly payment plan, outline ............................................................... 7910A, 7950A

Assessment, leased govt-owned taxes ....................................................................................... 7130Assessment, leased railroad taxes ............................................................................................. 7130Assessment, manufactured home taxes .................................................................................... 7120Assessment, personal property taxes ........................................................................................ 7030

Assessment, utility company taxes............................................................................................ 7140Bank levy, 30-day waiting period................................................................................... 7610, 7620Bank levy, 90-day grace period ................................................................................................ 7610Bank levy, authority.................................................................................................................. 7610

Bank levy, Bank Assessment Order ............................................................................... 7610, 7670Bank levy, Bank Warning Letter ................................................................................... 7610, 7660Bank levy, bank's responses ..................................................................................................... 7650Bank levy, content of notice...................................................................................................... 7620

Bank levy, definition ................................................................................................................. 7610Bank levy, Exemption Notice.......................................................................................... 7610, 7640Bank levy, form of notice .......................................................................................................... 7620Bank levy, Levy Questionnaire....................................................................................... 7610, 7630

Bank levy, major steps.............................................................................................................. 7610Bank levy, method of service .................................................................................................... 7620Bank levy, Notice of Bank Levy ..................................................................................... 7610, 7620



INDEX SECTION 7900C(Continued) (Page 2)


Bank levy, Notice of Demand for Final Payment ..................................................................... 7680Bank levy, reduction + release ........................................................................................ 7610, 7690Bank levy, selection of banks .................................................................................................... 7620Bank levy, setoff rights.......................................................................................... 7610, 7650, 7680

Bank levy, types of accounts ..................................................................................................... 7620Bank's responses, claims setoff rights....................................................................................... 7650Bank's responses, fails to honor bank levy ............................................................................... 7650Bank's responses, honors bank levy ......................................................................................... 7650

Bank's responses, no money on deposit.................................................................................... 7650Bank's setoff rights, bank levy.............................................................................. 7610, 7650, 7680Bank's setoff rights, burden of proof........................................................................................ 7680Bank's setoff rights, definition.................................................................................................. 7680

Bank's setoff rights, Notice ....................................................................................................... 7680Bank's setoff rights, priority ..................................................................................................... 7680Bank's setoff rights, treasurer's action ..................................................................................... 7680Cancellation, treasurer's option................................................................................................ 7940

Central collection agency, option.............................................................................................. 7930Collection methods, outline....................................................................................................... 7050Collection methods, suggested sequence................................................................................... 7060Collection Plan, application ...................................................................................................... 7230

Collection Plan, introduction .................................................................................................... 7210Collection Plan, locating taxpayer's assets ............................................................................... 7230Collection Plan, review of options............................................................................................. 7230Collection Plan, reviewing taxpayer's account......................................................................... 7230

Comparison, personal + real property taxes .................................................................. 7010, 7040Confession of judgment, administrative fees......................................................................... 7940AConfession of judgment, calculate installments..................................................................... 7940AConfession of judgment, default ............................................................................................ 7940A

Confession of judgment, down payment ............................................................................... 7940AConfession of judgment, eligible parties................................................................................ 7940A





Confession of judgment, eligible property ............................................................................. 7940AConfession of judgment, interest charged.............................................................................. 7940AConfession of judgment, introduction.................................................................................... 7910AConfession of judgment, Notice of Default............................................................................. 7940A

Confession of judgment, Notice of Payment .......................................................................... 7940AConfession of judgment, recording......................................................................................... 7940AConfession of judgment, terms ............................................................................................... 7940AConfession of judgment, total amount due ............................................................................ 7940A

Confession of judgment, two allowed..................................................................................... 7940ACounty central collection agency, option ................................................................................. 7930County treasurer, collection responsibility .............................................................................. 7010County treasurer, mandate to collect taxes.................................................. 7010, 7040, 7210, 7505

County treasurer, mandate to collect taxes.......................................................... 7010, 7040, 7505Court judgment, collection option............................................................................................ 7920Court judgment, no longer necessary........................................................... 7050, 7305, 7510, 7530Court judgment, no longer necessary..................................................................... 7610, 7705, 7820

Deadline, payment of leased govt-owned taxes ........................................................................ 7130Deadline, payment of leased railroad taxes.............................................................................. 7130Deadline, payment of manufactured home taxes ..................................................................... 7120Deadline, payment of utility company taxes ............................................................................ 7140

Decertification/Modification Form........................................................................................... 7440Delinquent dates, leased govt-owned taxes .............................................................................. 7130Delinquent dates, leased railroad taxes .................................................................................... 7130Delinquent dates, manufactured home taxes ........................................................................... 7120

Delinquent dates, utility company taxes................................................................................... 7140Delinquent, overview ........................................................................................................7010, 7110Discovery of taxpayer's assets....................................................................... 7230, 7310, 7590, 7610Discovery of taxpayer's assets, seizure + sale ........................................................................... 7810

Distribution of collections, court costs.................................................................................... 7900BDistribution of collections, penalty/interest............................................................................ 7900B





Distribution of collections, sheriff's fees ................................................................................ 7900BDistribution of collections, tax ............................................................................................... 7900BDistribution of collections, tax lien fees ................................................................................. 7900BDistribution of collections, TIF districts................................................................................ 7900B

Due Dates, leased govt-owned taxes ......................................................................................... 7130Due Dates, leased railroad taxes ............................................................................................... 7130Due Dates, manufactured home taxes ...................................................................................... 7120Due dates, multiple tax statements ........................................................................................... 7160

Due Dates, utility company taxes.............................................................................................. 7140Employer honors wage levy, methods............................................................................. 7705, 7770Escrow Accounts, 90-day grace period.................................................................................. 7930AEscrow Accounts, calculate monthly payments..................................................................... 7930A

Escrow Accounts, coupon booklets........................................................................................ 7930AEscrow Accounts, definition .................................................................................................. 7930AEscrow Accounts, handling monthly payments .................................................................... 7930AEscrow Accounts, introduction.............................................................................................. 7910A

Escrow Accounts, monthly due date...................................................................................... 7930AEscrow Accounts, Notice of Escrow Payments...................................................................... 7930AEscrow Accounts, restrictions on use..................................................................................... 7930AExempt property, tax lien ......................................................................................................... 7380

Exemption Claim Form, wage levy; content ............................................................................ 7730Exemption Claim Form, wage levy; duration .......................................................................... 7730Exemption Claim Form, wage levy; form................................................................................. 7730Exemption Claim Form, wage levy; introduction .................................................................... 7705

Exemption Claim Form, wage levy; types ................................................................................ 7730Exemption Notice, bank levy; content...................................................................................... 7640Exemption Notice, bank levy; form .......................................................................................... 7640Exemption Notice, bank levy; introduction ............................................................................. 7610

Exemption Notice, bank levy; purpose..................................................................................... 7640Exemption Notice, bank levy; recipients .................................................................................. 7640





Exemption Notice, bank levy; time limits ................................................................................ 7640Fees, recording a tax lien .......................................................................................................... 7370Fees, releasing a tax lien............................................................................................................ 7370Fees, Revenue Recapture .......................................................................................................... 7420

Fees, sheriff's seizure + sale....................................................................................................... 7850Govt-owned property, definition.............................................................................................. 7020Govt-owned property, leased.................................................................................................... 7020Govt-owned property, tax type................................................................................................. 7020

In personam, tax lien................................................................................................................. 7010In rem, tax lien .......................................................................................................................... 7010Installments, multiple tax statements ....................................................................................... 7160Interest, adjusted prime rate .................................................................................................... 7150

Interest, basis ............................................................................................................................ 7150Interest, calculation worksheet ................................................................................................. 7150Interest, method of charging beginning 1993........................................................................... 7150Interest, overview............................................................................................................ 7010, 7110

Interest, schedule of rates ......................................................................................................... 7150Interest, source .......................................................................................................................... 7150Jeopardy assessment, bank levy ............................................................................................... 7610Jeopardy assessment, immediate levy/seizure .......................................................................... 7580

Jeopardy assessment, notify taxpayer ...................................................................................... 7580Jeopardy assessment, review processes .................................................................................... 7580Jeopardy assessment, seizure + sale.......................................................................................... 7810Jeopardy assessment, supporting evidence .............................................................................. 7580

Jeopardy collection, bank levy.................................................................................................. 7610Jeopardy collection, immediate levy/seizure ............................................................................ 7580Jeopardy collection, notify taxpayer ........................................................................................ 7580Jeopardy collection, review processes....................................................................................... 7580





Jeopardy collection, seizure + sale ............................................................................................ 7810Jeopardy collection, supporting evidence................................................................................. 7580Leased govt-owned property, definition................................................................................... 7020Leased govt-owned property, tax type ..................................................................................... 7020

Leased govt-owned taxes, assessment year............................................................................... 7130Leased govt-owned taxes, delinquent dates.............................................................................. 7130Leased govt-owned taxes, due dates ......................................................................................... 7130Leased govt-owned taxes, penalty............................................................................................. 7130

Leased railroad taxes, due dates ............................................................................................... 7130Leased railroad property, definition......................................................................................... 7020Leased railroad property, tax type ........................................................................................... 7020Leased railroad right-of-way operating property .................................................................... 7020

Leased railroad taxes, assessment year..................................................................................... 7130Leased railroad taxes, delinquent dates ................................................................................... 7130Leased railroad taxes, penalty .................................................................................................. 7130Levy & seizure, county shares state's powers........................................................................... 7520

Levy & seizure, court judgment not needed ............................................................................ 7510Levy & seizure, discovery of assets........................................................................................... 7590Levy & seizure, distribution of excess ...................................................................................... 7560Levy & seizure, duration of authority ...................................................................................... 7510

Levy & seizure, effective date ................................................................................................... 7510Levy & seizure, eligible property.............................................................................................. 7540Levy & seizure, exempt property.............................................................................................. 7550Levy & seizure, introduction .................................................................................................... 7505

Levy & seizure, maximum amount........................................................................................... 7560Levy & seizure, Notice Demand for Payment .......................................................................... 7570Levy & seizure, treasurer acts independently .......................................................................... 7530Levy & seizure, treasurer obtains judgment............................................................................ 7530

Levy & seizure, treasurer's warrant to sheriff ......................................................................... 7530Levy & seizure, two conditions................................................................................................. 7540





Levy on bank accounts, 30-day waiting period ............................................................. 7610, 7620Levy on bank accounts, 90-day grace period........................................................................... 7610Levy on bank accounts, authority ............................................................................................ 7610Levy on bank accounts, Bank Assessment Order.......................................................... 7610, 7670

Levy on bank accounts, Bank Warning Letter.............................................................. 7610, 7660Levy on bank accounts, bank's responses ................................................................................ 7650Levy on bank accounts, content of notice ................................................................................ 7620Levy on bank accounts, definition............................................................................................ 7610

Levy on bank accounts, Exemption Notice .................................................................... 7610, 7640Levy on bank accounts, form of notice..................................................................................... 7620Levy on bank accounts, Levy Questionnaire ................................................................. 7610, 7630Levy on bank accounts, major steps ........................................................................................ 7610

Levy on bank accounts, method of service............................................................................... 7620Levy on bank accounts, Notice of Bank Levy ................................................................ 7610, 7620Levy on bank accounts, reduction + release .................................................................. 7610, 7690Levy on bank accounts, selection of banks............................................................................... 7620

Levy on bank accounts, setoff rights ...................................................................... 7610, 7650, 7680Levy on bank accounts, types of accounts ............................................................................... 7620Levy on wages, 30-day waiting period ........................................................................... 7705, 7720Levy on wages, 90-day grace period......................................................................................... 7705

Levy on wages, authority.......................................................................................................... 7705Levy on wages, content of notice .............................................................................................. 7740Levy on wages, definition ......................................................................................................... 7705Levy on wages, employer honors levy ............................................................................ 7705, 7770

Levy on wages, employer's warning of liability ............................................................. 7705, 7780Levy on wages, Exemption Claim Form......................................................................... 7705, 7730Levy on wages, form of notice .................................................................................................. 7740Levy on wages, major steps ...................................................................................................... 7705

Levy on wages, method of service............................................................................................. 7740Levy on wages, Notice of Wage Levy ............................................................................. 7610, 7640





Levy on wages, order of assessment on employer .......................................................... 7705, 7785Levy on wages, priority............................................................................................................. 7740Levy on wages, reduction + release................................................................................. 7705, 7790Levy on wages, treasurer monitors compliance ............................................................. 7705, 7775

Levy on wages, verification of employment.................................................................... 7705, 7710Levy on wages, Wage Disclosure Form .......................................................................... 7705, 7750Levy on wages, Wage Withholding Form ...................................................................... 7705, 7760Levy Questionnaire, bank levy; content................................................................................... 7630

Levy Questionnaire, bank levy; form ....................................................................................... 7630Levy Questionnaire, bank levy; introduction .......................................................................... 7610Levy Questionnaire, bank levy; purpose.................................................................................. 7630Levy, definition.......................................................................................................................... 7510

Levy, jeopardy assessment........................................................................................................ 7580Levy, jeopardy collection .......................................................................................................... 7580Lien search certificate, tax lien ................................................................................................. 7395Mandate for county treasurer to collect taxes............................................. 7010, 7040, 7210, 7505

Manufactured home taxes, assessment year............................................................................. 7120Manufactured home taxes, delinquent dates............................................................................ 7120Manufactured home taxes, due dates ....................................................................................... 7120Manufactured home taxes, penalty .......................................................................................... 7120

Manufactured homes, definition............................................................................................... 7020Manufactured homes, located on leased land .......................................................................... 7020Manufactured homes, number in Minnesota........................................................................... 7020Manufactured homes, percentage of all taxes .......................................................................... 7040

Manufactured homes, population percentage.......................................................................... 7020Manufactured homes, tax type ................................................................................................. 7020Minnesota tax ID number, Revenue Recapture....................................................................... 7430Monthly payment plan, introduction .........................................................................7910A, 7950A

Moving permit, oversized load; outline ......................................................................7910A, 7960AMultiple tax statements, two installments ................................................................................ 7160





Non-municipal utility companies.............................................................................................. 7020Notice and Demand for Immediate Payment........................................................................... 7580Notice and Demand for Payment, bank levy.................................................................. 7570, 7610Notice and Demand for Payment, contents.............................................................................. 7570

Notice and Demand for Payment, format ................................................................................ 7570Notice and Demand for Payment, generic................................................................................ 7570Notice and Demand for Payment, restrictions ......................................................................... 7570Notice and Demand for Payment, seizure + sale ...................................................................... 7810

Notice and Demand for Payment, suggested form................................................................... 7570Notice and Demand for Payment, wage levy.................................................................. 7570, 7705Notice of Bank Levy, 30-day waiting period.................................................................. 7610, 7620Notice of Bank Levy, content.................................................................................................... 7620

Notice of Bank Levy, introduction ........................................................................................... 7610Notice of Bank Levy, method of service ................................................................................... 7620Notice of Bank Levy, selection of banks................................................................................... 7620Notice of Bank Levy, suggested form ....................................................................................... 7620

Notice of Bank Levy, types of accounts.................................................................................... 7620Notice of Confession of Judgment Payment........................................................................... 7940ANotice of Default on Confession of Judgment ........................................................................ 7940ANotice of Delinquent Taxes, 90-day grace period .................................................................... 7220

Notice of Delinquent Taxes, form and content......................................................................... 7220Notice of Delinquent Taxes, introduction ................................................................................ 7210Notice of Delinquent Taxes, mailing schedule.......................................................................... 7220Notice of Delinquent Taxes, purpose........................................................................................ 7220

Notice of Delinquent Taxes, suggested forms........................................................................... 7220Notice of Demand for Final Payment, bank levy ..................................................................... 7680Notice of Escrow Payments, content/form ............................................................................. 7930ANotice of foreclosure/cancellation, tax lien ............................................................................... 7390

Notice of Intent to Levy on Wages ................................................................................. 7705, 7720Notice of Intent to Levy on Wages, 30 days ............................................................................. 7720





Notice of Intent to Levy on Wages, content ............................................................................. 7720Notice of Intent to Levy on Wages, form.................................................................................. 7720Notice of Intent to Levy on Wages, introduction ..................................................................... 7705Notice of Release of Tax Lien, contents .................................................................................... 7350

Notice of Release of Tax Lien, filing locations.......................................................................... 7350Notice of Release of Tax Lien, format....................................................................................... 7350Notice of Release of Tax Lien, official copies............................................................................ 7350Notice of Release of Tax Lien, suggested form ......................................................................... 7350

Notice of Release of Tax Lien, verification ............................................................................... 7350Notice of Renewal of Tax Lien, contents .................................................................................. 7330Notice of Renewal of Tax Lien, filing locations........................................................................ 7330Notice of Renewal of Tax Lien, format..................................................................................... 7330

Notice of Renewal of Tax Lien, official copies.......................................................................... 7330Notice of Renewal of Tax Lien, suggested form ....................................................................... 7330Notice of Revenue Recapture, to taxpayer ............................................................................... 7450Notice of Tax Lien, 90-day grace period .................................................................................. 7305

Notice of Tax Lien, contents ..................................................................................................... 7320Notice of Tax Lien, filing locations ........................................................................................... 7320Notice of Tax Lien, format........................................................................................................ 7320Notice of Tax Lien, official copies............................................................................................. 7320

Notice of Tax Lien, seizure + sale.............................................................................................. 7810Notice of Tax Lien, suggested form .......................................................................................... 7320Notice of Transcription of Tax Lien, contents.......................................................................... 7340Notice of Transcription of Tax Lien, copies ............................................................................. 7340

Notice of Transcription of Tax Lien, filing............................................................................... 7340Notice of Transcription of Tax Lien, form ............................................................................... 7340Notice of Transcription of Tax Lien, format ............................................................................ 7340Notice of Wage Levy, 30-day waiting period ................................................................. 7705, 7740

Notice of Wage Levy, content ................................................................................................... 7740Notice of Wage Levy, introduction........................................................................................... 7705





Notice of Wage Levy, method of service .................................................................................. 7740Notice of Wage Levy, priority .................................................................................................. 7740Notice of Wage Levy, suggested form ...................................................................................... 7740Notice to Lender, 90-day grace period ................................................................................... 7920A

Notice to Lender, contents ...................................................................................................... 7920ANotice to Lender, definition of "lender" ................................................................................ 7920ANotice to Lender, financial agreements.................................................................................. 7920ANotice to Lender, identification of lenders ............................................................................. 7920A

Notice to Lender, introduction ............................................................................................... 7910ANotice to Lender, restrictions on use...................................................................................... 7920ANotice to Lender, suggested form ........................................................................................... 7920ANotice to Lender, treasurer's duties ....................................................................................... 7920A

Order of Assessment, bank levy; contact bank........................................................................ 7670Order of Assessment, bank levy; content ................................................................................. 7670Order of Assessment, bank levy; form ..................................................................................... 7670Order of Assessment, bank levy; introduction......................................................................... 7610

Order of Assessment, bank levy; service .................................................................................. 7670Order of Assessment, wage levy; contact ................................................................................. 7785Order of Assessment, wage levy; content ................................................................................. 7785Order of Assessment, wage levy; introduction......................................................................... 7705

Order of Assessment, wage levy; service .................................................................................. 7785Order of Assessment, wage levy; suggested form..................................................................... 7785Outline of collection methods ................................................................................................... 7050Oversized load moving permit, outline....................................................................... 7910A, 7960A

Partial payments, county treasurer's decision ......................................................................... 7160Partial Release of Tax Lien, filing locations............................................................................. 7360Partial Release of Tax Lien, format.......................................................................................... 7360Partial Release of Tax Lien, individual .................................................................................... 7360

Partial Release of Tax Lien, official copies............................................................................... 7360Partial Release of Tax Lien, property....................................................................................... 7360





Partial Release of Tax Lien, suggested forms ........................................................................... 7360Partial Release of Tax Lien, verification .................................................................................. 7360Penalty, leased govt-owned taxes.............................................................................................. 7130Penalty, leased railroad taxes.................................................................................................... 7130

Penalty, manufactured home taxes........................................................................................... 7120Penalty, overview............................................................................................................. 7010, 7110Penalty, utility company taxes .................................................................................................. 7140Personal property taxes, method of assessing........................................................................... 7030

Personal property taxes, method of levying.............................................................................. 7030Personal property taxes, statewide percentage......................................................................... 7040Personal property taxes, statistics............................................................................................. 7040Personal property taxes, types .................................................................................................. 7020

Railroad property, definition.................................................................................................... 7020Railroad property, leased.......................................................................................................... 7020Railroad property, non-operating ............................................................................................ 7020Railroad property, operating.................................................................................................... 7020

Railroad property, right-of-way ............................................................................................... 7020Railroad property, tax type....................................................................................................... 7020Reduction of bank levy, conditions required ........................................................................... 7690Reduction of bank levy, contents of form................................................................................. 7690

Reduction of bank levy, introduction ....................................................................................... 7610Reduction of bank levy, suggested form................................................................................... 7690Reduction of wage levy, conditions required ........................................................................... 7790Reduction of wage levy, content of form .................................................................................. 7790

Reduction of wage levy, introduction ....................................................................................... 7705Reduction of wage levy, suggested form................................................................................... 7790Release of bank levy, conditions required ................................................................................ 7690Release of bank levy, contents of form ..................................................................................... 7690

Release of bank levy, introduction............................................................................................ 7610Release of bank levy, suggested form........................................................................................ 7690





Release of wage levy, conditions required................................................................................ 7790Release of wage levy, content of form....................................................................................... 7790Release of wage levy, introduction ........................................................................................... 7705Release of wage levy, suggested form ....................................................................................... 7790

Revenue Recapture Unit, address/phone numbers.................................................................. 7410Revenue Recapture Unit, contact persons ............................................................................... 7410Revenue Recapture, 90-day grace period................................................................................. 7440Revenue Recapture, balance to taxpayer................................................................................. 7460

Revenue Recapture, contested case hearing ............................................................................ 7450Revenue Recapture, decertification/modification.................................................................... 7440Revenue Recapture, DOR fee ................................................................................................... 7420Revenue Recapture, DOR processes claim............................................................................... 7460

Revenue Recapture, duration of claim..................................................................................... 7420Revenue Recapture, eligible debtors ........................................................................................ 7420Revenue Recapture, ineligibility............................................................................................... 7420Revenue Recapture, introduction............................................................................................. 7410

Revenue Recapture, joint tax refunds...................................................................................... 7460Revenue Recapture, methods of filing claims .......................................................................... 7440Revenue Recapture, minimum amount offset.......................................................................... 7420Revenue Recapture, notice to taxpayer.................................................................................... 7450

Revenue Recapture, priority of creditors................................................................................. 7420Revenue Recapture, social security numbers........................................................................... 7440Revenue Recapture, tax identification number ....................................................................... 7430Revenue Recapture, types of refunds....................................................................................... 7420

Seize, definition ......................................................................................................................... 7510Seize, jeopardy assessment........................................................................................................ 7580Seize, jeopardy collection.......................................................................................................... 7580Seizure & Levy, county shares state's powers.......................................................................... 7520

Seizure & Levy, court judgment not needed ........................................................................... 7510Seizure & Levy, discovery of assets .......................................................................................... 7590





Seizure & Levy, distribution of excess...................................................................................... 7560Seizure & Levy, duration of authority ..................................................................................... 7510Seizure & Levy, effective date................................................................................................... 7510Seizure & Levy, eligible property ............................................................................................. 7540

Seizure & Levy, introduction.................................................................................................... 7505Seizure & Levy, maximum amount .......................................................................................... 7560Seizure & Levy, Notice Demand for Payment......................................................................... 7570Seizure & Levy, treasurer acts independently ......................................................................... 7530

Seizure & Levy, treasurer obtains judgment ........................................................................... 7530Seizure & Levy, treasurer's warrant to sheriff......................................................................... 7530Seizure & Levy, two conditions ................................................................................................ 7540Seizure + sale, 90-day grace period........................................................................................... 7810

Seizure + sale, court judgment.................................................................................................. 7820Seizure + sale, definition of terms ............................................................................................. 7810Seizure + sale, discovery of taxpayer's assets ........................................................................... 7810Seizure + sale, guidelines........................................................................................................... 7840

Seizure + sale, jeopardy assessment.......................................................................................... 7810Seizure + sale, jeopardy collection ............................................................................................ 7810Seizure + sale, major steps ........................................................................................................ 7810Seizure + sale, manage sale revenue ......................................................................................... 7880

Seizure + sale, Notice and Demand for Payment ..................................................................... 7810Seizure + sale, Notice of Tax Lien............................................................................................. 7810Seizure + sale, personal property available .............................................................................. 7830Seizure + sale, real property available ...................................................................................... 7830

Seizure + sale, restrictions......................................................................................................... 7890Seizure + sale, sheriff's actions.................................................................................................. 7870Seizure + sale, sheriff's costs ..................................................................................................... 7850Seizure + sale, statutory authority............................................................................................ 7810

Seizure + sale, total delinquent tax amount.............................................................................. 7850Seizure + sale, treasurer acts alone ........................................................................................... 7820





Seizure + sale, warrant to sheriff .............................................................................................. 7810Seizure + sale, warrant to sheriff .............................................................................................. 7820Setoff rights, bank levy ......................................................................................... 7610, 7650, 7680Setoff rights, bank levy; burden of proof ................................................................................. 7680

Setoff rights, bank levy; definition ........................................................................................... 7680Setoff rights, bank levy; introduction ...................................................................................... 7610Setoff rights, bank levy; Notice................................................................................................. 7680Setoff rights, bank levy; priority .............................................................................................. 7680

Setoff rights, bank levy; treasurer's action .............................................................................. 7680Settlement of collections, court costs ...................................................................................... 7900BSettlement of collections, penalty/interest .............................................................................. 7900BSettlement of collections, sheriff's fees.................................................................................... 7900B

Settlement of collections, tax................................................................................................... 7900BSettlement of collections, tax lien fees..................................................................................... 7900BSettlement of collections, TIF districts ................................................................................... 7900BSheriff, costs of seizure + sale of property ............................................................................... 7850

Sheriff, seizure + sale of property ............................................................................................ 7870Sheriff, warrant from treasurer.................................................................. 7810, 7820, 7850, 7860Suggested sequence of collection actions.................................................................................. 7060Tax lien, 90-day grace period ................................................................................................... 7305

Tax lien, county treasurer's authority...................................................................................... 7305Tax lien, court judgment not needed........................................................................................ 7305Tax lien, date of attachment ..................................................................................................... 7010Tax lien, definition and purpose............................................................................................... 7310

Tax lien, duration...................................................................................................................... 7310Tax lien, effective dates............................................................................................................. 7305Tax lien, enforceability.............................................................................................................. 7310Tax lien, exempt property......................................................................................................... 7380

Tax lien, fee for recording......................................................................................................... 7370Tax lien, fee for releasing .......................................................................................................... 7370





Tax lien, guidelines for filing..................................................................................................... 7310Tax lien, in rem vs. in personam............................................................................................... 7010Tax lien, lien search certificate ................................................................................................. 7395Tax lien, motivational tool ........................................................................................................ 7310

Tax lien, no court judgment needed ............................................................................... 7305, 7310Tax lien, Notice.......................................................................................................................... 7320Tax lien, notice of foreclosure/cancellation............................................................................... 7390Tax lien, overview...................................................................................................................... 7010

Tax lien, partial release for individual...................................................................................... 7360Tax lien, partial release for property ........................................................................................ 7360Tax lien, priority........................................................................................................................ 7310Tax lien, release ......................................................................................................................... 7350

Tax lien, renewal ....................................................................................................................... 7330Tax lien, taxpayer's financial condition.................................................................................... 7310Tax lien, taxpayer's tax situation.............................................................................................. 7310Tax lien, transcription............................................................................................................... 7340

Taxpayer's assets, sources ......................................................................................................... 7230Telephone contact, guidelines for the caller ............................................................................. 7240Telephone contact, introduction............................................................................................... 7210Telephone contact, purpose ...................................................................................................... 7240

Telephone contact, restrictions ................................................................................................. 7240Total delinquent tax amount, components............................................................ 7070, 7370, 7560Total delinquent tax amount, definition................................................................................... 7070Treasurer monitors wage levy......................................................................................... 7705, 7775

Types of personal property taxes .............................................................................................. 7020Utility companies, definition..................................................................................................... 7020Utility companies, electric light + power .................................................................................. 7020Utility companies, gas, crude oil, petroleum ............................................................................ 7020

Utility companies, others........................................................................................................... 7020Utility companies, tax type........................................................................................................ 7020





Utility company taxes, assessment year.................................................................................... 7140Utility company taxes, delinquent dates................................................................................... 7140Utility company taxes, due dates .............................................................................................. 7140Utility company taxes, penalty ................................................................................................. 7140

Verification of Employment, content of letter.......................................................................... 7710Verification of Employment, form of letter.............................................................................. 7710Verification of Employment, introduction ............................................................................... 7705Verification of Employment, methods...................................................................................... 7710

Verification of Employment, purpose ...................................................................................... 7710Verification of Employment, questions .................................................................................... 7710Verification of Employment, sources........................................................................................ 7710Wage Disclosure Form, calculation formula ............................................................................ 7750

Wage Disclosure Form, content................................................................................................ 7750Wage Disclosure Form, deadline to return .............................................................................. 7750Wage Disclosure Form, introduction ....................................................................................... 7705Wage Disclosure Form, major components ............................................................................. 7750

Wage Disclosure Form, purpose............................................................................................... 7750Wage Disclosure Form, suggested form ................................................................................... 7750Wage levy, 30-day waiting period .................................................................................. 7705, 7720Wage levy, 90-day grace period................................................................................................ 7705

Wage levy, authority................................................................................................................. 7705Wage levy, content of notice ..................................................................................................... 7740Wage levy, definition ................................................................................................................ 7705Wage levy, employer honors levy ................................................................................... 7705, 7770

Wage levy, employer's warning of liability .................................................................... 7705, 7780Wage levy, Exemption Claim Form................................................................................ 7705, 7730Wage levy, form of notice ......................................................................................................... 7740Wage levy, major steps ............................................................................................................. 7705

Wage levy, method of service.................................................................................................... 7740Wage levy, Notice of Wage Levy ......................................................................................7705, 7740





Wage levy, order of assessment on employer ................................................................. 7705, 7785Wage levy, priority.................................................................................................................... 7740Wage levy, reduction + release........................................................................................ 7705, 7790Wage levy, treasurer monitors compliance .................................................................... 7705, 7775

Wage levy, verification of employment........................................................................... 7705, 7710Wage levy, Wage Disclosure Form ................................................................................. 7705, 7750Wage levy, Wage Withholding Form ............................................................................. 7705, 7760Wage Withholding Form, content ............................................................................................ 7760

Wage Withholding Form, deadline to return........................................................................... 7760Wage Withholding Form, introduction.................................................................................... 7705Wage Withholding Form, purpose ........................................................................................... 7760Wage Withholding Form, suggested form................................................................................ 7760

Warning Letter, bank levy; 25% penalty................................................................................. 7660Warning Letter, bank levy; content ......................................................................................... 7660Warning Letter, bank levy; definition...................................................................................... 7660Warning Letter, bank levy; form.............................................................................................. 7660

Warning Letter, bank levy; introduction................................................................................. 7610Warning Letter, bank levy; total amount ................................................................................ 7660Warning Letter, wage levy; content ......................................................................................... 7780Warning Letter, wage levy; introduction................................................................................. 7705

Warning Letter, wage levy; suggested form............................................................................. 7780Warning Letter, wage levy; total liability ................................................................................ 7780Warrant to Sheriff, content ...................................................................................................... 7860Warrant to Sheriff, method of issuing...................................................................................... 7860

Warrant to Sheriff, seizure + sale ............................................................................................. 7810Warrant to Sheriff, selection of property ................................................................................. 7860Warrant to Sheriff, suggested form .......................................................................................... 7860Write-off, treasurer cancels delinquent taxes........................................................................... 7940


Documents

Delinquent Personal Property Tax Manual