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Mortgage Registry Tax Additional Security Exemption

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Minnesota Statutes 287.04(c) provides an exemption for "a mortgage or other instrument that adds additional security for the same debt for which mortgage registry tax has been paid."

Example

  • A Single Member LLC, owned by John Anderson, signs a promissory note and receives a loan of $1 million to purchase an office building. The lender receives a mortgage on the real property being purchased to secure the debt.
    • Tax is paid on $1 million.
  • For additional collateral, the lender also receives a mortgage from John Anderson's brother. This mortgage is secured by land John's brother owns in Stevens County, MN. 
    • MRT is not due on this mortgage since it secures the same debt upon which tax has been paid.

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