Mortgage Registry Tax Additional Security Exemption

Minnesota Statutes 287.04(3) 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. 
  Exempt under M.S 287.04(3).
  • MRT is not due on this mortgage since it secures the same debt upon which tax has been paid.