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S.F. No. 1501 - Modifying Distribution of Penalties, Interest, and Costs on Wind & Solar Production Taxes (as proposed to be amended by A-1)
 
Author: Senator Roger C. Chamberlain
 
Prepared By: Eric S. Silvia, Senate Counsel (651/296-1771)
 
Date: March 4, 2019



 

SF 1501 requires that all penalties, interest, and costs collected on the wind energy production tax and the solar energy production tax must be distributed to the same local taxing jurisdictions in the same percentage as is required for the original tax distribution: 80% to counties and 20% to cities and townships.

Under current law, if the taxes remain unpaid, the following penalties and interest associated with delinquent personal property taxes apply:

  1. All penalties and interest collected on special assessments against real and personal property must be distributed to the taxing jurisdiction that levied the assessment;
  2. 50% of all penalties collected on real and personal property taxes must be distributed to school districts within the county, and the remaining 50 percent must be distributed to the county;
  3. If interest on taxes have been delinquent for a period of one year or less, 50% of the interest must be distributed to school districts within the county and the remaining 50% to the county; and
  4. If interest on taxes have been delinquent for more than one year, 50% of the interest must be distributed to school districts within the county and the remaining 50% must be distributed to each city or town where the property is located based on a formula related to the city or town’s local tax rate and the county local tax rate, with any balance distributed to the county.

Effective for penalties, interest, and costs collected for taxes payable in 2020 and thereafter.

 
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