SF4781

Purpose

• Create a dedicated land monument protection fund to support a public land survey system monument grant program.
• Establish a new tax and related recording fee to fund that purpose, and amend related Minnesota statutes to implement these changes.

Main provisions

• Imposition of a mortgage recording tax: A tax on the privilege of recording a mortgage is added, with a rate of 0.0023 (two-tenths of a percent) of the debt or portion of debt secured by any recorded mortgage of real property located in Minnesota.
• Who pays: The mortgagor (the borrower) is the person liable for the tax.
• Tax scope: The tax does not apply to the lawful interest amounts that may accrue with respect to the debt.
• Funding mechanism: The county recorder or registrar of titles must charge a per-recording fee for each mortgage recording and must deposit the revenue into the land monument protection fund, per section 287.40.
• Fund and program use: Revenue from the tax and recording fee goes specifically to the land monument protection fund to support the public land survey system monument grant program.
• Separation from other fees: This new recording fee is separate from existing fees charged under sections 357.18, 508.81, and 508A.82.
• Amended statutes: The bill amends Minnesota Statutes 2024 section 287.035 and section 287.21 subdivision 1, and proposes coding for a new law in Minnesota Statutes chapter 287.1.

Significant changes to existing law

• Creation of a dedicated funding source (land monument protection fund) funded by a mortgage recording tax and a new recording fee.
• Direct linkage of mortgage recording activity to financing of public land survey system monuments and related grants.
• Updates to the law governing the mortgage recording tax and related procedures, including the responsibilities of county recorders or registrars of titles.

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Relevant Terms - land monument protection fund - public land survey system monument grant program - mortgage recording tax - tax rate 0.0023 - mortgagor - recording of a mortgage - county recorder - registrar of titles - section 287.40 - Minnesota Statutes 2024 - per-recording fee - sections 357.18, 508.81, 508A.82 - Minnesota Statutes 2024 section 287.21 - Minnesota Statutes chapter 287.1 - deed (referenced in context of recording fees)