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RELEVANT LINKS: <br /> <br />League of Minnesota Cities Information Memo: 6/22/2016 <br />Securing Payment of Utility Charges Page 22 <br /> <br /> Quoting a September 2014 memo, “the Minnesota Department of Revenue <br />has determined that unpaid water and sewer charges should be treated like <br />taxes when they are certified with the counties. The statutory language <br />indicates the unpaid charges are akin to taxes, not one-time special <br />assessments for specific improvements. There are two main reasons <br />supporting this interpretation: <br /> 1. The statute provides that the unpaid charges for water and sewer services <br />provided by a local governing body should be certified to the county at the <br />same time as local property taxes. <br />2. The statute specifies that unpaid water and sewer charges are to be <br />collected in the same fashion “as other taxes.” The Legislature’s use of the <br />term “other taxes” indicates that these unpaid charges are to be considered <br />a form of tax that falls within the broader category that includes these and <br />“other” taxes that a county collects. <br /> Cities and other operators of water systems have expressed concern about <br />recovering money for unpaid water and sewer charges when a property <br />forfeits for nonpayment of property taxes. Many counties code the charges <br />as special assessments in the county property tax systems, often because <br />the county systems do not allow for the charges to be coded in other ways. <br />Water system operators expressed concern that they would not recover <br />money on the charges if the charges are coded as special assessments <br />because special assessments levied before forfeiture are canceled upon <br />forfeiture (Minn. Stat. 282.07).” <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Minn. Stat. § 282.07. <br />All that said, cities should ask their county auditor when unpaid water and <br />sewer bills must be certified; the statute implies a deadline of Dec. 28 in <br />conjunction with property taxes, but some counties may require <br />certification of delinquent water and sewer bills by Nov. 29. As discussed <br />above, it is important that counties code these unpaid water and sewer <br />charges as property taxes, not special assessments, because special <br />assessments attached to a property are erased if that property is forfeited <br />for failure to pay property taxes. <br /> 1. Manufactured home parks <br />Prudential Co. of Minnesota <br />v. City of Minneapolis, 277 <br />N.W. 351 (Minn.1938). <br />Minn. Stat. § 444.075, subd. <br />3 (e). <br />A statutory city might consider certifying unpaid water charges to the <br />manufactured home park property owner if all of the following conditions <br />exist: <br />64 Am. Jur. 2d Public <br />Utilities § 46. <br /> <br />Minn. Stat. § 327C.09, subd. <br />2. <br />• The manufactured home park is privately owned. <br />• The local ordinance requires that utility accounts for all rental property <br />are in the property owner’s name (i.e. the park owner’s name). <br />• The manufactured park owner or agent contracts for the water services.