Homestead property confessions of judgements interest rates charged modification

SF 308 modifies the interest rate homeowners pay when they confess judgment on delinquent taxes for their primary residence (homestead property) in Minnesota. It changes the calculation method so the interest rate is set annually as the greater of 5% or 2% above the average prime rate charged by banks (as tracked by the Federal Reserve), rounded to the nearest whole percent, but not exceeding the maximum rate in existing law. This rate applies to all payments made under the confession of judgment agreement and is fixed for the duration of the judgment. The bill directly affects homeowners with overdue property taxes who choose this payment option instead of contesting the taxes.